Chanel, Inc. v. The Individuals, Business Entities, and Unincorporated Associations Identified on Schedule A

• Court: District Court, S.D. Florida
• Decided: September 4, 2024
• Docket: 0:24-cv-60435
• Status: Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 0:24-cv-60435-LEIBOWITZ CHANEL, INC.,

Plaintiff,

v.

THE INDIVIDUALS, BUSINESS ENTITIES, AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE “A,”

Defendants.

_________________________________________/

ORDER GRANTING PLAINTIFF’S MOTION FOR DEFAULT FINAL JUDGMENT

THIS CAUSE comes before the Court on Plaintiff’s Motion for Entry of Default Final Judgment against Defendants (the “Motion”) [ECF No. 30], filed on August 23, 2024. By the instant Motion, Plaintiff, Chanel, Inc. (“Plaintiff”) Plaintiff seeks entry of a default final judgment against Defendants, the Individuals, Business Entities, and Unincorporated Associations identified on Schedule “A” hereto (collectively “Defendants”), which operate Internet based e-commerce stores that infringe Plaintiff’s trademarks and promote and sell counterfeit goods bearing and/or using Plaintiff’s trademarks. [See generally Mot.]. Plaintiff requests the Court: (1) enjoin Defendants from producing or selling goods that infringe on its trademarks; (2) require Defendants, their agents or assigns, to instruct WhatsApp LLC in writing, to permanently terminate each of their respective WhatsApp accounts associated with the numbers identified for Defendant Numbers 1–12; (3) terminate the e-mail addresses, messaging services, usernames, e-commerce stores, and social media accounts Defendants own, operate, or control on any messaging service, e-commerce platform or social media website used by Defendants in connection with their counterfeit and infringing activities; (4) permanently remove the listings and associated images of goods bearing and/or using counterfeits and infringements of Plaintiff's trademarks used by Defendants via their e-commerce stores; and (5) award statutory damages. [See generally id.]. A Clerk’s Default [ECF No. 29] was entered against Defendants on July 15, 2024, after Defendants failed to respond to the Amended Complaint [ECF No. 17], despite having been served. See Aff. of Service [ECF No. 22]. The Court has carefully considered the Motion, the record, and applicable law, and finds default judgment against Defendants is proper. I. BACKGROUND! A. Factual Background Plaintiff is the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (the “Chanel Marks”): Registration Registration Date Classes/Goods Number CHANEL 0,626,035 May 1, 1956 IC 018 - Women’s Handbags CHANEL 0,902,190 | November 10, 1970 | IC 914 - Bracelets, Pins, and Earrings CHANEL 1,177,400 November 10, 1981 | IC 025 - Hats, Shawls and Belts IC 025 - Suits, Jackets, Skirts, _ Dresses, Pants, Blouses, Tunics, 3 1,241,264 June 7, 1983 Sweaters, Cardigans, Tee-Shirts, Coats, Raincoats, Scarves, Shoes and Boots IC 025 - Suits, Jackets, Skirts, Dresses, Pants, Blouses, Tunics, CHANEL 1,241,265 June 7, 1983 Sweaters, Cardigans, Coats, Raincoats, Scarves, Shoes and Boots

The factual background is taken from Plaintiff's Amended Complaint [ECF No. 17], Plaintiffs Application for Temporary Restraining Order, Preliminary Injunction, and Order Restraining Transfer of Assets [ECF No. 6], and supporting Declarations submitted by Plaintiff.

1,314,511 January 15, 1985 IC 018 - Leather Goods-Namely, Handbags CHANEL 1,347,677 July 9, 1985 IC 018 - Leather Goods-Namely, Handbags IC 006 - Keychains IC 014 - Costume Jewelry IC 025 - Blouses, Shoes, Belts, OD 1,501,898 August 30, 1988 Scarves, Jackets, Men’s Ties IC 026 - Brooches and Buttons for Clothing IC 018 - Leather Goods; namely, Handbags, Wallets, Travel Bags, Luggage, Business and Credit CHANEL 1,733,051 November 17, 1992 Card Cases, Change Purses, Tote Bags, Cosmetic Bags Sold Empty, and Garment Bags for Travel IC 018 - Leather Goods; namely, Handbags, Wallets, Travel Bags, 1,734,822 November 24, 1992 | Luggage, Business Card Cases, Change Purses, Tote Bags, and Cosmetic Bags Sold Empty . IC 014 - Timepieces; namely, 2,959,712 April 9, 2002 Watches, and Parts Thereof RUE CAMBON 2,964,843 July 5, 2005 IC 018 - Handbags IC 009 - Eyeglass Frames, Sunglasses 3,025,936 December 13, 2005 | IC 025 - Gloves, Swimwear IC 026 - Hair Accessories, namely, Barrettes CHANEL 3,133,139 August 22, 2006 IC 014 - Jewelry and Watches IC 009 - Eyeglass Frames, Sunglasses, Sunglass Parts, Cases For Spectacles and Sunglasses IC 025 - Swimwear, Stockings CHANEL 3,134,695 August 29, 2006 | © 926 - Hair Accessories, Namely, Barrettes IC 028 - Bags Specially Adopted For Sports Equipment, Tennis Rackets, Tennis Balls, Tennis Racket Covers 3,149,203 | September 26, 2006 | IC 014 - Jewelry IC 009 - Cases for Telephones CHANEL 3,890,159 December 14, 2010 - Kev Cases

IC 009 - Protective Covers for Portable Electronic Devices, Handheld Digital Devices, 4,074,269 December 20, 2011 Personal Computers and Cell Phones IC 018 - Key Cases IC 025 - For Clothing, namely, Coats, Jackets, Dresses, Tops, Blouses, Sweaters, Cardigans, 4,241,822 November 13, 2012 Skirts, Vests, Pants, Jeans, Belts, Swim Wear, Pareos, Hats, Scarves, Ties, Gloves, Footwear, Hosiery CHANEL 5,100,448 December 13, 2016 |IC 020 - Pillows CHANEL 5,166,441 March 21, 2017 IC 024 - Travelling blankets 5,280,486 September 5, 2017 020 - Pillows

[See Decl. of Elizabeth Han in Supp. of the Pl.’s Appl. for TRO, Prelim. Inj., and Order Restraining Transfer of Assets (“Han Decl.”), ECF No. 6-1 94; see also United States Trademark Registrations of the Chanel Marks at issue attached as Composite Exhibit 1 to the Am. Compl., ECF No. 17-1]. The Chanel Marks are used in connection with the manufacture and distribution of high-quality goods in the categories identified above. [See Han Decl., ECF No. 6-1 99 4-5]. Defendants, through Internet based e-commerce stores under the seller names identified on Schedule “A” hereto (the “E-commerce Store Names”), have advertised, promoted, offered for sale, or sold goods bearing and/or using what Plaintiff has determined to be counterfeits, infringements, reproductions, or colorable imitations of the Chanel Marks. [See Han Decl., ECF No. 6-1, fff 9-14; Decl. of Stephen M. Gaffigan in Supp. of the Pl.’s Appl. for TRO, Preliminary Injunction, and Order Restraining Transfer of Assets (“Gaffigan Decl.”), ECF No. 6-2 § 2; Decl. of Kathleen Burns in Supp. of the Pl.’s Appl. for TRO, Prelim. Inj. and Order Restraining Transfer of Assets (“Burns Decl.”), ECF No. 6-3 § 4]. Although each Defendant may not copy and infringe each Chanel Mark for each category of goods protected, Plaintiff has submitted sufficient evidence

showing that each Defendant has infringed, at least, one or more of the Chanel Marks. [See Han Decl. ¶¶ 4, 9–14]. Defendants are not now, nor have they ever been, authorized or licensed to use, reproduce, or make counterfeits, reproductions, or colorable imitations of the Chanel Marks. [See id. ¶¶ 9, 13–14].

Plaintiff’s counsel retained Invisible Inc, a licensed private investigative firm, to investigate the promotion and sale of counterfeit and infringing versions of Plaintiff’s branded products by Defendants and to obtain the available payment account data for receipt of funds paid to Defendants for the sale of such counterfeit branded products. [See Han Decl. ¶ 10; Burns Decl. ¶ 3; Gaffigan Decl. ¶ 2]. Invisible Inc accessed, via the social media website, Facebook.com, the Internet based e-commerce stores operating under each of Defendants’ E-commerce Store Names, and exchanged direct messages with each Defendant via a private messaging application and/or service2 using the messaging contact information identified on their respective E-commerce Store Name to place an order for the purchase of, at least, one product bearing counterfeits and infringements of one or more of Plaintiff’s trademarks at issue. [See Burns Decl. ¶ 4]. Each order

was processed entirely electronically and following the submission of the orders, Invisible Inc received information for finalizing payment3 for the products ordered from Defendants to their

2 Defendants operate their E-commerce Store Names in tandem with electronic communication via private messaging applications and/or services, including WhatsApp and direct message applications, to complete their offer and sale of Plaintiff’s branded products. [See Burns Decl. ¶ 4, n.1; Han Decl. ¶ 13, n.2; Gaffigan Decl. ¶ 2, n.3]. The means of contact provided by Defendants in connection with their respective E-commerce Store Names, including e-mail addresses, WhatsApp phone numbers, and direct message applications and/or services, are also identified on Schedule “A.” [See Burns Decl. at n.1; Gaffigan Decl. at n.3].

3 Invisible did not transmit the funds to finalize the sale for the orders from some of the Defendants so as to avoid funding Defendants’ coffers. [See Burns Decl. ¶ 4, n.2; Gaffigan Decl. ¶ 2, n.2]. respective payment accounts,4 identified on Schedule “A.” [Id.]. At the conclusion of the process, the detailed web pages of the various products bearing the Chanel Marks offered for sale and ordered via Defendants’ E-commerce Store Names, together with photographs of one of the products received by Invisible Inc to its address in the Southern District of Florida, were sent to Plaintiff’s

representative for inspection. [See Burns Decl. ¶ 4; Han Decl. ¶¶ 11–12, n.1; Gaffigan Decl. ¶ 2, n.1]. Plaintiff reviewed the detailed web page captures reflecting Plaintiff’s branded products identified and captured by Invisible Inc, together with photographs of one of the items received, and determined the products were non-genuine, unauthorized versions of Plaintiff’s goods. [See Han Decl. ¶¶ 12–14]. B. Procedural Background On March 19, 2024, Plaintiff filed its Complaint [ECF No. 1] and thereafter its Amended Complaint on March 29, 2024 [ECF No. 17] against Defendants for federal trademark counterfeiting and infringement, false designation of origin, common law unfair competition, and common law trademark infringement. On March 20, 2024, Plaintiff moved ex parte for a Temporary Restraining

Order [ECF No. 6] and an Order Authorizing Alternative Service [ECF No. 7], which the Court granted on March 21, 2024 [ECF Nos. 9, 11]. In accordance with the March 21, 2024 Order Authorizing Alternative Service, Plaintiff served each Defendant with a Summons and a copy of the Amended Complaint via electronic mail and via website posting on March 29, 2024. [See Decl. of Stephen M. Gaffigan in Supp. of the Pl.’s Mot. (“Gaffigan Decl. in Supp. of Mot.”), ECF No. 30-3 ¶ 6; see also Aff. of Service, ECF No. 22].

4 Defendants use money transfer and retention services with PayPal, Inc. (“PayPal”) as a method to receive monies generated through the sale of counterfeit products. [See Burns Decl. ¶ 4, n.3; Gaffigan Decl. ¶ 4]. Defendants failed to file an answer or other response, and the time allowed for Defendants to respond to the Amended Complaint has expired. [See Gaffigan Decl. in Supp. of Mot., ECF No. 30-3 ¶¶ 7–8]. To Plaintiff’s knowledge, Defendants are not infants or incompetent persons, and the Servicemembers Civil Relief Act does not apply. [See id. ¶ 9]. On July 15, 2024, Plaintiff moved

for a Clerk’s Entry of Default. [ECF No. 28]. A Clerk’s Default was entered against Defendants on July 15, 2024 [ECF No. 29] for failure to appear, plead, or otherwise defend pursuant to Rule 55(a) of the Federal Rules of Civil Procedure. Plaintiff now moves the Court to grant default final judgment against Defendants. II. LEGAL STANDARD Pursuant to Rule 55(b)(2) of the Federal Rules of Civil Procedure, the Court is authorized to enter a final judgment of default against a party who has failed to respond to a complaint. See Fed. R. Civ. P. 55(b)(2). The entry of default constitutes an admission by a defendant of the well-pleaded allegations in the complaint. See Cancienne v. Drain Master of S. Fla., Inc., No. 08-61123-CIV, 2008 U.S. Dist. LEXIS 125458, 2008 WL 5111264, at *1 (S.D. Fla. Dec. 3, 2008) (citing Cotton v.

Mass. Mut. Life Ins. Co., 402 F.3d 1267, 1277-78 (11th Cir. 2005)). However, a defendant’s default “does not in itself warrant. . . entering a default judgment.” Goldman v. HSBC Bank USA, Nat’l Ass’n, No. 13-81271-CIV, 2015 WL 1782241, at *1 (S.D. Fla Mar. 24, 2015) (alteration in original; internal quotation marks omitted) (quoting Nishimatsu Constr. Co. v. Houston Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)). Because a defendant is not held to admit facts that are not well-pleaded or to admit conclusions of law, the Court must first determine whether there is a sufficient basis in the pleading for judgment to be entered. See id.; see also Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir. 1987) (“[L]iability is well-pled in the complaint, and is therefore established by the entry of default[.]”). Once a plaintiff has established a sufficient basis for liability, the Court must conduct an inquiry to determine the appropriate damages. PetMed Express, Inc. v. MedPets.Com, Inc., 336 F. Supp. 2d 1213, 1217 (S.D. Fla. 2004). Although an evidentiary hearing is generally required, the Court need not conduct such a hearing “when . . . additional evidence would be truly unnecessary to

a fully informed determination of damages.” Safari Programs, Inc. v. CollectA Int’l Ltd., 686 F. App’x 737, 746 (11th Cir. 2017) (quoting SEC v. Smyth, 420 F.3d 1225, 1232 n.13 (11th Cir. 2005)). Therefore, where the record adequately supports the award of damages, an evidentiary hearing is not required. See Smyth, 420 F.3d at 1232 n.13; PetMed, 336 F. Supp. 2d 1213 at 1217 (finding an evidentiary hearing unnecessary because plaintiff was seeking statutory damages under the Lanham Act). III. DISCUSSION A. Claims Plaintiff seeks default judgment against Defendants on the claims asserted in the Amended Complaint: (1) trademark counterfeiting and infringement under section 32 of the Lanham Act, in

violation of 15 U.S.C. section 1114 (Count I); (2) false designation of origin under section 43(a) of the Lanham Act, in violation of 15 U.S.C. section 1125(a) (Count II); (3) unfair competition under Florida common law (Count III); and (4) trademark infringement under Florida common law (Count IV). See Am. Compl. ¶¶ 40–65. 1. Counterfeiting and Infringement Section 32 of the Lanham Act, 15 U.S.C. section 1114, provides liability for trademark infringement if, without the consent of the registrant, a defendant uses “in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark . . . which . . . is likely to cause confusion, or to cause mistake, or to deceive.” 15 U.S.C. § 1114(1)(a). To prevail on a trademark infringement claim, a plaintiff must demonstrate “(1) that it had prior rights to the mark at issue and (2) that the defendant had adopted a mark or name that was the same, or confusingly similar to its mark, such that consumers were likely to confuse the two.” Planetary Motion, Inc. v. Techsplosion, Inc., 261 F.3d 1188, 1193 (11th Cir. 2001) (footnote call number and citation omitted).

2. False Designation of Origin The test for liability for false designation of origin under 15 U.S.C. section 1125(a) is the same as for a trademark counterfeiting and infringement claim—i.e., whether the public is likely to be deceived or confused by the similarity of the marks at issue. See Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763, 780 (1992) (Stevens, J., concurring). 3. Common Law Unfair Competition Whether a defendant’s use of a plaintiff’s trademarks created a likelihood of confusion between the plaintiff’s and the defendant’s products is also the determining factor in the analysis of unfair competition under the common law of Florida. See Rolex Watch U.S.A., Inc. v. Forrester, No. 83-8381-Civ, 1986 WL 15668, at *3 (S.D. Fla. Dec. 9, 1986) (“The appropriate test for determining

whether there is a likelihood of confusion, and thus trademark infringement, false designation of origin, and unfair competition under the common law of Florida, is set forth in John H. Harland, Inc. v. Clarke Checks, Inc., 711 F.2d 966, 972 (11th Cir. 1983).”). 4. Common Law Trademark Infringement The analysis of liability for Florida common law trademark infringement is the same as the analysis of liability for trademark infringement under section 32(a) of the Lanham Act. See PetMed, 336 F. Supp. 2d at 1217–18. B. Liability The well-pleaded factual allegations of Plaintiff’s Amended Complaint properly contain the elements for each of the above claims. See generally Am. Compl. Plaintiff establishes it had prior rights to the marks at issue. [See Am. Compl. ¶ 15]. Plaintiff also alleges Defendants “are actively using, promoting and otherwise advertising, distributing, selling, and/or offering for sale substantial quantities of their Counterfeit Goods with the knowledge and intent that such goods

will be mistaken for the genuine high-quality goods offered for sale by Chanel[.]” [Id. ¶ 25 (alteration added)]. Further, Plaintiff alleges “Defendants’ . . . infringing activities are likely to cause confusion, deception, and mistake in the minds of consumers[.]” [Id. ¶ 32 (alterations added)]. Because the allegations in the Amended Complaint are deemed admitted by virtue of Defendants’ failure to answer or respond, default judgment under Rule 55 of the Federal Rules of Civil Procedure is appropriately entered against them. C. Relief Plaintiff requests an award of equitable relief and monetary damages against Defendants for trademark infringement in Count I. The Court analyzes Plaintiff’s request for relief as to Count I

only, as judgment for Count II, III, and IV—false designation of origin, common law unfair competition, and common law trademark infringement—is limited to entry of the requested equitable relief under Count I. [See generally Mot.]. Injunctive Relief. Under the Lanham Act, a district court is authorized to issue an injunction “according to the principles of equity and upon such terms as the court may deem reasonable,” to prevent violations of trademark law. 15 U.S.C. § 1116(a). Indeed, “[i]njunctive relief is the remedy of choice for trademark and unfair competition cases, since there is no adequate remedy at law for the injury caused by a defendant’s continuing infringement.” Burger King Corp. v. Agad, 911 F. Supp. 1499, 1509–10 (S.D. Fla. 1995) (alteration in original; quotation marks omitted; quoting Century 21 Real Estate Corp. v. Sandlin, 846 F.2d 1175, 1180 (9th Cir. 1988)). Injunctive relief is available even in the default judgment setting, see, e.g., PetMed, 336 F. Supp. 2d at 1222–23, since defendants’ failure to respond or otherwise appear makes it difficult for a plaintiff to prevent further infringement absent an injunction. See Jackson v. Sturkie, 255 F. Supp. 2d 1096, 1103 (N.D. Cal.

2003) (“[D]efendant’s lack of participation in this litigation has given the court no assurance that defendant’s infringing activity will cease. Therefore, plaintiff is entitled to permanent injunctive relief.”) (alteration added)). Permanent injunctive relief is appropriate when a plaintiff demonstrates: (1) it has suffered irreparable injury; (2) there is no adequate remedy at law; (3) the balance of hardship favors an equitable remedy; and (4) an issuance of an injunction is in the public’s interest. See eBay, Inc. v. MercExchange, LLC, 547 U.S. 388, 391 (2006) (citations omitted). Plaintiff has carried its burden on each of the four factors. Specifically, “a sufficiently strong showing of likelihood of confusion [caused by trademark infringement] may by itself constitute a showing of . . . a substantial threat of irreparable harm.” E.

Remy Martin & Co., S.A. v. Shaw-Ross Int’l Imps., Inc., 756 F.2d 1525, 1530 (11th Cir. 1985) (alterations added; footnote call number omitted); see also Levi Strauss & Co. v. Sunrise Int’l Trading Inc., 51 F.3d 982, 986 (11th Cir. 1995) (“There is no doubt that the continued sale of thousands of pairs of counterfeit jeans would damage [the plaintiff’s] business reputation and decrease its legitimate sales.” (alteration added)). Plaintiff’s Amended Complaint and the submissions show the goods produced, offered for sale, and/or sold by Defendants are nearly identical to Plaintiff’s genuine products, and consumers viewing Defendants’ counterfeit goods post- sale would confuse them for Plaintiff’s genuine products. [See, e.g., Am. Compl. ¶ 25 (“The net effect of Defendants’ actions is likely to cause confusion of consumers at the time of initial interest, sale, and in the post-sale setting, who will believe Defendants’ goods offered for sale in or through Defendants’ e-commerce stores are genuine goods originating from, associated with, and/or approved by Chanel”)]. Plaintiff has no adequate remedy at law so long as Defendants continue to operate the E-

commerce Store Names because Plaintiff cannot control the quality of what appears to be its products in the marketplace. An award of monetary damages alone will not cure the injury to Plaintiff’s reputation and goodwill if Defendants’ infringing and counterfeiting actions can continue. Moreover, Plaintiff faces hardship from loss of sales and its inability to control its reputation in the marketplace. By contrast, Defendants face no hardship if they are prohibited from the infringement of Plaintiff’s trademarks. Finally, the public interest supports the issuance of a permanent injunction against Defendants to prevent consumers from being misled by Defendants’ products, and potentially harmed by their inferior quality. See Chanel, Inc. v. besumart.com, 240 F. Supp. 3d 1283, 1291 (S.D. Fla. 2016) (“[A]n injunction to enjoin infringing behavior serves the public interest in protecting consumers from such behavior.” (alteration added; citation omitted)); see also World

Wrestling Ent., Inc. v. Thomas, No. 12-cv-21018, 2012 WL 12874190, at *8 (S.D. Fla. Apr. 11, 2012) (considering the potential for harm based on exposure to potentially hazardous counterfeit merchandise in analyzing public’s interest in an injunction). The Court’s broad equity powers allow it to fashion injunctive relief necessary to stop Defendants’ infringing activities. See, e.g., Swann v. Charlotte-Mecklenburg Bd. of Educ., 402 U.S. 1, 15 (1971) (“Once a right and a violation have been shown, the scope of a district court’s equitable powers to remedy past wrongs is broad, for . . . [t]he essence of equity jurisdiction has been the power of the Chancellor to do equity and to mould [sic] each decree to the necessities of the particular case.” (citation and internal quotation marks omitted)); United States v. Bausch & Lomb Optical Co., 321 U.S. 707, 724 (1944) (“Equity has power to eradicate the evils of a condemned scheme by prohibition of the use of admittedly valid parts of an invalid whole.”). Defendants have created an Internet-based counterfeiting scheme in which they are profiting from their deliberate misappropriation of Plaintiff’s rights. Accordingly, the Court may fashion

injunctive relief to eliminate the means by which Defendants are conducting their unlawful activities by requiring Defendants, their agents or assigns, to instruct WhatsApp LLC in writing, to permanently terminate each of their respective WhatsApp accounts associated with the numbers identified for Defendant Numbers 1-12, terminating the e-mail addresses, messaging services, usernames, e-commerce stores, and social media accounts Defendants own, operate, or control on any messaging service, e-commerce platform or social media website used by Defendants in connection with their counterfeit and infringing activities, and the permanent removal of Defendants’ listings and associated images of goods bearing Plaintiff’s trademarks used by Defendants via their e-commerce stores, such that these means may no longer be used as instrumentalities to further the sale of counterfeit goods.

Statutory Damages. In a case involving the use of counterfeit marks in connection with the sale, offering for sale, or distribution of goods, 15 U.S.C. section 1117(c) provides that a plaintiff may elect an award of statutory damages at any time before final judgment is rendered in the sum of not less than $1,000.00 nor more than $200,000.00 per counterfeit mark per type of good. See 15 U.S.C. § 1117(c)(1). In addition, if the Court finds Defendants’ counterfeiting actions were willful, it may impose damages above the maximum limit up to $2,000,000.00 per counterfeit mark per type of good. See 15 U.S.C. § 1117(c)(2). The Court has wide discretion to determine the amount of statutory damages. See PetMed, 336 F. Supp. 2d at 1219 (citations omitted). An award of statutory damages is appropriate despite a plaintiff’s inability to prove actual damages caused by a defendant’s infringement. See Under Armour, Inc. v. 51nfljersey.com, No. 13-62809-Civ, 2014 U.S. Dist. LEXIS 56475, at *22-23, 2014 WL 1652044 (S.D. Fla. Apr. 23, 2014) (citing Ford Motor Co. v. Cross, 441 F. Supp. 2d 837, 852 (E.D. Mich. 2006) (“[A] successful plaintiff in a trademark infringement case is entitled

to recover enhanced statutory damages even where its actual damages are nominal or non- existent.”) (alteration added; citations omitted)); Playboy Enters., Inc. v. Universal Tel-A-Talk, Inc., No. 96-6961-Civ, 1998 WL 767440, at *8 (E.D. Pa. Nov. 3, 1998) (awarding statutory damages where plaintiff failed to prove actual damages or profits). The option of a statutory damages remedy in trademark counterfeiting cases is sensible given evidence of a defendant’s profits in such cases is frequently almost impossible to ascertain. See, e.g., S. Rep. No. 104-177, pt. V § 7, at 10 (1995) (discussing purposes of Lanham Act statutory damages); PetMed, 336 F. Supp. 2d at 1220 (recognizing that statutory damages are “[e]specially appropriate in default judgment cases due to infringer nondisclosure” (alteration added; citations omitted)). This case is no exception. The allegations of the Amended Complaint and the evidence

establish each Defendant intentionally copied one or more of the Chanel Marks for the purpose of deriving the benefit of Plaintiff’s well-known reputation. Defendants have defaulted on Plaintiff’s allegations of willfulness. [See Am. Compl. ¶ 31]; see also Arista Records, Inc. v. Beker Enters., Inc., 298 F. Supp. 2d 1310, 1313 (S.D. Fla. 2003) (concluding that a court may infer willfulness from the defendants’ default); PetMed, 336 F. Supp. 2d at 1217 (stating that upon default, well- pleaded allegations are taken as true). As such, the Lanham Act permits the Court to award up to $2,000,000.00 per infringing mark on each type of good as statutory damages to ensure Defendants do not continue their intentional and willful counterfeiting activities. The only available evidence demonstrates each Defendant individually promoted, distributed, advertised, offered for sale and/or sold at least one type of good bearing marks which were counterfeits of at least one of the Chanel Marks protected by federal trademark registrations. [See Am. Compl. ¶¶ 15, 41–45; Han Decl. ¶¶ 4–5, 9–14; see also Decl. of Elizabeth Han in Supp.

of Mot. (“Han Decl. in Support of Motion”), ECF No. 30-1 ¶ 5; Han Decl. in Supp. of Mot. Ex. 1, Statutory Damages Calculation Chart, ECF No. 30-2]. Based on the above considerations, Plaintiff suggests the Court award statutory damages by starting with a baseline of thirty thousand dollars ($30,000.00), trebled to reflect Defendants’ willfulness, and doubled for the purpose of deterrence, resulting in one hundred eighty thousand dollars ($180,000.00) per trademark counterfeited per type of good offered for sale and/or sold per Defendant. [See Mot. at 16–17; Han Decl. in Supp. of Mot. ¶¶ 5–6; Statutory Damages Calculation Chart]. The award should be sufficient to deter Defendants and others from continuing to counterfeit or otherwise infringe Plaintiff’s trademarks, compensate Plaintiff, and punish Defendants, all stated goals of 15 U.S.C. section 1117(c). The Court finds this award of statutory

damages falls within the permissible range under 15 U.S.C. section 1117(c) and is just. See Chanel, Inc. v. Individuals, No. 24-cv-22336-BLOOM/Elfenbein, 2024 U.S. Dist. LEXIS 145638 (S.D. Fla. Aug. 15, 2024) (entry of statutory damages award using a baseline of $30,000.00, trebled to reflect willfulness and doubled for the purpose of deterrence, resulting in $180,000.00 per trademark counterfeited per type of good offered for sale and/or sold). IV. CONCLUSION For the foregoing reasons, it is ORDERED AND ADJUDGED that Plaintiff’s Motion for Entry of Default Final Judgment [ECF No. 30] is GRANTED. Default final judgment and a permanent injunction shall be entered by separate order. DONE AND ORDERED in the Southern District of Florida on September 3, 2024.

e 6 DAVID 8S, LEIBOWITZ UNITED STATES DISTRICT JUDGE

ce: counsel of record

SCHEDULE “A” DEFENDANTS BY NUMBER, E-COMMERCE STORE NAME, FINANCIAL ACCOUNT INFORMATION, AND MEANS OF CONTACT

Defendant / Def. Payee / Means E-commerce Store Financial Account Social Media URL No. Merchant ID of Contact Name WhatsApp +8615320068006 https://www.facebook. Alisaaa—Luxury 19938116861@163.co lujiaxihuyunxia@gm com/profile.php?id=10 1 Shop m ail.com 0091756694757 https://www.facebook. Jian Wei CP5RGHYAZ WhatsApp com/profile.php?id=10 2 a/k/a weijian 9PBC 273168208@qq.com +8615707506702 0069796227132 https://www.facebook. com/profile.php?id=10 0084848809826 https://www.facebook. com/groups/60431059 WhatsApp 4982014/user/1000848 3 Jirong Wang jw778881@gmail.com +8615307594367 48809826/ Lee Zhang WhatsApp https://www.facebook. a/k/a Fashion +8618520143508 com/profile.php?id=10 4 boutique 475344082@qq.com 657901296@qq.com 0084428915935 WhatsApp +85259806186 https://www.facebook. Light luxury bag paypal202307@163.co jlp920322@gmail.co com/profile.php?id=61 5 a/k/a GOGO m m 552541510981 https://www.facebook. com/profile.php?id=61 552318127118 https://www.facebook. com/groups/10438195 Plum Cc WhatsApp 22813387/user/615523 6 a/k/a plum-cc 阳 易 1420851679@qq.com +8618160775968 18127118 WhatsApp +8615215169924 https://www.facebook. radsuitup@gmail.co com/profile.php?id=10 7 Rad Luxury Factory 蓉 屈 rongqu2021@163.com m 0092082774232 https://www.facebook. com/profile.php?id=61 551219554513 WhatsApp https://www.facebook. 8 Sandra Williams 1679223884@qq.com +8618620237304 com/groups/10438195 Defendant / Def. Payee / Means E-commerce Store Financial Account Social Media URL No. Merchant ID of Contact Name 22813387/user/615512 19554513 https://www.facebook. com/profile.php?id=61 550723947933 https://www.facebook. com/groups/60431059 She Ghs WhatsApp 4982014/user/6155072 9 a/k/a Dior 3464609131@qq.com +8618476804484 3947933/ https://www.facebook. com/groups/40902684 Sheng Li Huang a18125741658@163.coWhatsApp 0816031/user/1000909 10 a/k/a lisen m +8613642729672 09955726/ WhatsApp https://www.facebook. yx5045 +8615013688802 com/profile.php?id=10 11 a/k/a yuxiaofei 754242147@qq.com 616485211@qq.com 0039970464653 https://www.facebook. com/profile.php?id=10 0085661050280 https://www.facebook. 李梅梅 com/groups/10438195 a/k/a lu xu r ys ho WhatsApp 22813387/user/100085 e86 1845149405@qq.com +8613902579067 661050280/ https://www.facebook. com/profile.php?id=61 550001004612 https://www.facebook. com/groups/60431059 WhatsApp 4982014/user/6155000 12 吴晓婷 1845149405@qq.com +8615800036245 1004612/ https://www.facebook. com/profile.php?id=10 0067923909299 https://www.facebook. com/groups/50393024 7517873/ https://www.facebook. com/groups/50393024 7517873/user/1000679 13 Jun Zhang 徐红旗 536464599@qq.com Facebook DM 23909299 Defendant / Def. Payee / Means E-commerce Store Financial Account Social Media URL No. Merchant ID of Contact Name https://www.facebook. com/profile.php?id=61 553761143910 https://www.facebook. com/groups/60431059 4982014/user/6155376 Meng Sheng 1162981685@qq.com Facebook DM 1143910 https://www.facebook. com/li.ni077 https://www.facebook. com/groups/60431059 4982014/user/6155440 14 Ni Li 1162981685@qq.com Facebook DM 5266878/ https://www.facebook. com/profile.php?id=10 15 Mily Miller 2481399315@qq.com Facebook DM 0093224184590 RL Bags Pampanga https://www.facebook. a/k/a RL Online Lugtureginegalvez02@ com/profile.php?id=10 16 Shop gmail.com Facebook DM 0077439033071 https://facebook.com/g roups/6043105949820 Shine Denise Dennis sunshine.gonzales@yah 14/user/100001859152 17 Desamparados Desamparados oo.com Facebook DM 913/