American Exchange Time LLC v. Tissot SA

District Court, S.D. New York·Decided December 5, 2022·No. 1:17-cv-04737·Unknown

Opinion

USDC SDNY DOCUMENT UNITED STATES DISTRICT COURT en □□□ FILED SOUTHERN DISTRICT OF NEW YORK DATE FILED: 12/5/2022.

AMERICAN EXCHANGE TIME LLC, 17 CV 4737 (VM) Plaintiff, ORDER - against - TISSOT S.A., Defendant.

VICTOR MARRERO, United States District Judge. I. BACKGROUND On June 22, 2017, Plaintiff American Exchange Time LLC (“American Exchange”) filed this action against defendant Tissot S.A. (“Tissot”) pursuant to 28 U.S.C. §§ 2201 and 2202, seeking a declaratory judgment under 15 U.S.C. § 1051 that its trademark was not confusingly similar to Tissot’s trademark. American Exchange also sought an award of attorneys’ fees and costs. On August 23, 2019, the Court entered default judgment in favor of American Exchange and referred American Exchange’s Motion for Attorneys’ Fees and Costs (the “Motion,” see Dkt. No. 78) to Magistrate Judge Ona T. Wang for a report and recommendation. On November 3, 2022, Magistrate Judge Wang issued a Report and Recommendation (the “Report,” see Dkt. No. 86), a copy of which is attached and

incorporated herein, recommending that the Motion be granted. As of the date of this Order, no objections to the Report have been filed, nor has any request been made for an

extension of time to object. For the reasons stated below, the Court adopts the recommendations of the Report in their entirety. II. STANDARD OF REVIEW A district court evaluating a magistrate judge’s report may adopt those portions of the report to which no “specific written objection” is made, as long as the factual and legal bases supporting the findings and conclusions set forth in those sections are not clearly erroneous or contrary to law. Fed. R. Civ. P. 72(b); see also Thomas v. Arn, 474 U.S. 140, 149 (1985); Wilds v. United Parcel Serv., Inc., 262 F. Supp. 2d 163, 169 (S.D.N.Y. 2003). The Court is not required to

review any portion of a magistrate judge’s report that is not the subject of an objection. See Thomas, 474 U.S. at 149. A district judge may accept, set aside, or modify, in whole or in part, the findings and recommendations of the magistrate judge. See Fed. R. Civ. P. 72(b). III. DISCUSSION Upon a review of the full factual record in this litigation, including the papers submitted in connection with the underlying motion and in this proceeding, as well as the Report and applicable legal authorities, the Court reaches the same conclusions as Magistrate Judge Wang. The Court further concludes that the findings, reasoning, and legal support for the recommendations made in Report are not clearly erroneous or contrary to law and are thus warranted. Accordingly, for substantially the reasons set forth in Magistrate Judge Wang’s Report, the Court adopts in their entirety the Report’s factual and legal analyses and determinations, as well as its substantive recommendations, as the Court’s ruling on American Exchange’s Motion. Iv. ORDER For the reasons discussed above, it is hereby ORDERED that the Report and Recommendation of Magistrate Judge Ona T. Wang dated November 3, 2022 (Dkt. No. 86) is adopted in its entirety. It is further ORDERED that Plaintiff’s motion for attorneys’ fees (Dkt. No. 78) is GRANTED; and it is further ORDERED that this action is dismissed. Accordingly, the Clerk of Court is directed to terminate any pending motions and to close this case.

SO ORDERED. JEZE2 Dated: 5 December 2022 Victor Marrero New York, New York U.S.D.d.

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------------x : AMERICAN EXCHANGE TIME LLC, : Plaintiff, : 17-CV-4737 (VM) (OTW) : -against- : REPORT & RECOMMENDATION : TISSOT S.A., : : Defendant. : : -------------------------------------------------------------x ONA T. WANG, United States Magistrate Judge: To the Honorable Victor Marrero, United States District Judge: Plaintiff American Exchange Time LLC (“Plaintiff”) brought this action pursuant to 28 U.S.C. §§ 2201 and 2202, seeking a declaratory judgment under 15 U.S.C. § 1051 (the “Lanham Act”) that its trademark was not confusingly similar to Defendant Tissot S.A.’s (“Defendant”) trademark. (ECF 16, Amended Complaint ¶ 1,) (“Am. Compl.”). On August 23, 2019, the Honorable Victor Marrero entered default judgment in favor of Plaintiff and referred Plaintiff’s motion for attorneys’ fees and costs to me for a report and recommendation. (ECF 71). After a careful review of the submissions in this case, I recommend that Plaintiff’s motion for attorneys’ fees be GRANTED, and that Plaintiff be awarded $95,746.501 in attorneys’ fees occasioned by Defendant’s sanctionable conduct in this litigation. 1 This amount is reduced from Plaintiff’s requested amount of $96,446.50, for reasons explained infra, Section II.C. I. BACKGROUND Plaintiff is a watch company based in the United States. (Am. Compl. ¶ 7). Defendant is a watch company based in Switzerland. (Am. Compl. ¶ 17). On or about May 29, 2012, Plaintiff

filed an application for the trademark “itouch” in International Class 14 in connection with “Jewelry and watches” (U.S. Trademark Serial No. 85637640) (the “AE Mark”). (Am. Compl. ¶ 16). Plaintiff had been utilizing the AE Mark in commerce since December 1, 2009. (Am. Compl. ¶ 8). On or about March 27, 2013, Defendant filed a Notice of Opposition against the AE Mark asserting that it was confusingly similar to Defendant’s trademark “T-TOUCH” in connection

with “Horological and chronometric instruments” (U.S. Trademark Registration No. 3653565) (the “Tissot Mark”). (Am. Compl. ¶ 29). Plaintiff subsequently filed the instant action on June 22, 2017, seeking (i) a declaration that the AE Mark is not confusingly similar to the Tissot Mark; (ii) a declaration that AE, in using the AE Mark, had not engaged in any acts of registered or unregistered trademark infringement, false designation of origin, common law unfair competition, or common law

trademark infringement, under Federal or State Law; and (iii) an award of Plaintiff’s attorneys’ fees and all costs. (Am. Compl. ¶¶ 42-44). The parties began settlement discussions in January 2018. (Declaration of Aaron J. Solomon, Esq., dated July 15, 2021, ¶ 7) (“Solomon Decl.”). On August 20, 2018, Plaintiff sent Defendant a draft settlement agreement. (Solomon Decl. ¶ 7). Despite Plaintiff’s myriad attempts to obtain responsive comments from Defendant to this settlement agreement,

Defendant did not provide a fulsome response for several months. (Solomon Decl. ¶ 9). In order to save time and relying on Defendant’s good faith representations that the settlement structure Plaintiff proposed would likely be approved, Plaintiff filed a new trademark application in accordance with the terms of the proposed settlement agreement. (Solomon Decl. ¶ 11). Defendant finally sent its comments to the settlement agreement on February 20,

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