Chanel, Inc. v. Fe Corp.

District Court, E.D. California·Decided August 7, 2024·No. 2:23-cv-02946·Unknown

Opinion

CHANEL, INC., a New York Corporation, No. 2:23-cv-02946 KJM AC Plaintiff, v. FINDINGS AND RECOMMENDATIONS FE CORPORATION d/b/a CUSTOM CASES, a California Corporation; FARSHAD NAJAFI, an Individual; MM CELL CORP d/b/a CUSTOM CASESPHONE REPAIR, a California Corporation; and DOES 1-10, inclusive, Defendants.

This matter is before the court on plaintiff’s motion for default judgment. ECF No. 17. The motion was referred to the undersigned pursuant to E.D. Cal. R. 302(c)(19). For the reasons set forth below, the undersigned recommends plaintiff’s motion be GRANTED, and that judgment be entered in favor of plaintiff. I. Relevant Background On December 15, 2023, plaintiff Chanel, Inc. (“Chanel”) filed this action against defendants FE Corporation d/b/a Custom Cases (“FE Corp”), MM Cell Corp d/b/a Custom Cases Phone Repair (“MM Cell”), and Farshad Najafi (collectively, “defendants”) for Trademark Infringement and False Designation of Origin under the Lanham Act, as well as related claims of trademark infringement and unfair competition under the statutory and common law of the state of California. ECF No. 1, Declaration of Tara A. Currie (“Currie Decl.”), ¶ 2, Exh. A. The complaint arises out of defendants’ importation, manufacturing, production, distribution, advertisement, marketing, offering for sale, and/or sale of counterfeit phone cases and accessories bearing unauthorized reproductions of plaintiff’s federally registered trademarks (the “Accused Products”). Plaintiff alleges the “Chanel Marks have been used in interstate commerce to identify and distinguish Chanel’s high-quality clothing, handbags, jewelry, watches, hair accessories, phone accessories, fragrance and beauty products among other goods for an extended period of time.” ECF No. 1 at 5. Plaintiff alleges defendants design, manufacture, import, distribute, advertise, market, offer for sale, and/or sell phone accessory products that bear marks identical to, substantially indistinguishable from, or confusingly similar to the Chanel Marks (the “Accused Products”), with photos of examples in the complaint. ECF No. 1 at 5-6. Summons were issued to defendants and each summons was returned executed between January 8, 2024 and January 22, 2024. ECF Nos. 6, 7, 8, 9, and 10. Defendants failed to file a responsive pleading or otherwise make an appearance in this action. The Clerk of the Court entered default against defendants on March 1, 2024. ECF No. 11. Plaintiff now requests that this court grant default judgment in favor of plaintiff and against defendants, and award $150,000 in statutory damages and injunctive relief. ECF No. 17. The motion for default judgment was taken under submission. ECF No. 18. Defendants did not respond to the motion for entry of default judgment and have not otherwise appeared in this case. II. Motion Plaintiff moves for default judgment on all counts, seeking judgment in the amount of $150,000 and the issuance of a permanent injunction against defendants. ECF No. 17 at 19. Defendants have not appeared or filed any response. III. Analysis A. Legal Standard Pursuant to Federal Rule of Civil Procedure 55, default may be entered against a party against whom a judgment for affirmative relief is sought who fails to plead or otherwise defend against the action. See Fed. R. Civ. P. 55(a). However, “[a] defendant’s default does not automatically entitle the plaintiff to a court-ordered judgment.” PepsiCo, Inc. v. Cal. Sec. Cans, 238 F.Supp.2d 1172, 1174 (C.D. Cal. 2002) (citing Draper v. Coombs, 792 F.2d 915, 924-25 (9th Cir. 1986)); see Fed. R. Civ. P. 55(b) (governing the entry of default judgments). Instead, the decision to grant or deny an application for default judgment lies within the district court’s sound discretion. Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). In making this determination, the court may consider the following factors:

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Chanel, Inc. v. Fe Corp., (E.D. Cal. 2024).

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