Chanel, Inc. v. VERONIQUE IDEA CORP.

795 F. Supp. 2d 262, 101 U.S.P.Q. 2d (BNA) 1431, 2011 U.S. Dist. LEXIS 71823, 2011 WL 2636199
CourtDistrict Court, S.D. New York
DecidedJune 28, 2011
Docket10 Civ. 2587 (VM)
StatusPublished
Cited by6 cases

This text of 795 F. Supp. 2d 262 (Chanel, Inc. v. VERONIQUE IDEA CORP.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chanel, Inc. v. VERONIQUE IDEA CORP., 795 F. Supp. 2d 262, 101 U.S.P.Q. 2d (BNA) 1431, 2011 U.S. Dist. LEXIS 71823, 2011 WL 2636199 (S.D.N.Y. 2011).

Opinion

DECISION AND ORDER

VICTOR MARRERO, District Judge.

Plaintiff Chanel, Inc. (“Chanel”) brought this action alleging, among other things, trademark infringement and false designation of origin under the Lanham Act (the “Act”), 15 U.S.C. §§ 1114(1) and 1125(a) (“§§ 1114(1) and 1125(a)”) against defendant Veronique Idea Corp. and individual defendant Jong Eun Park (“Park”) (together, “Defendants”). On September 13, 2010, the Court entered a Stipulated Consent Permanent Injunction. Chanel now moves for partial summary judgment pursuant to Federal Rule of Civil Procedure 56 (“Rule 56”) on liability and damages under the Act. For the reasons discussed below, Chanel’s motion is GRANTED. 1

*265 I. BACKGROUND 2

Chanel is engaged in the business of manufacturing and distributing high-end costume jewelry under the federal registered trademark “CC”, U.S. Trademark Registration Number 1,501,898 (the “Chanel Mark”). Chanel’s genuine products are among the best-selling costume jewelry in the world and the Chanel Mark is a symbol of Chanel’s quality, reputation, and goodwill, which has never been abandoned. The Chanel Mark has never been assigned or licensed to the Defendants nor do they have the right or authority to use the Chanel Mark for any purpose.

Despite Defendants’ knowledge of Chanel’s ownership of the Chanel Mark, Defendants promoted, displayed, offered for sale, and sold costume jewelry, including pendants, earrings and necklaces bearing the Chanel Mark at issue. On or about March 15, 2010, Adrienne Hahn Sisbarro (“Hahn”), Chanel’s Director of Legal Administration, engaged Investigator Elizabeth Elfeld (“Elfeld”) and American Trademark Investigations, Inc. to conduct an investigation of Defendants’ business operations. On March 16, 2010, while visiting Defendants’ business location, Elfeld observed on display a necklace identified as No. N50209, and a pendant identified as No. P20627 (the “Pendant”), each bearing the Chanel Mark at issue. The following day Elfeld sent an e-mail message to Defendants requesting pricing and pictures of several of the items she saw on display including the Pendant. On March 18, 2010, Elfeld received an email from Defendants, which attached pictures and prices for the items she inquired about in her March 16 email (the “Photo Price List”). By e-mail dated March 19, 2010, Elfeld placed an order for one dozen of each of the jewelry items identified in the Photo Price List. A few days later, on March 24, 2010, Elfeld received an e-mail confirmation from Defendants attaching Invoice # 114377, dated March 23, 2010, in the amount of $837.00, which listed, among other things, twelve of the Chanel branded Pendants she had ordered. That same day, Chanel served Defendants with a copy of the Summons and Complaint in this case describing Defendants’ infringement and counterfeit activities.

On March 26, 2010, Elfeld traveled to Defendants’ retail storefront to finalize her purchase. She was “provided with a paper bag, and she compared the contents of the bag with Invoice # 114377 and confirmed that the order was complete, including the counterfeit Chanel branded pendants, with chains.” (PI. 56.1 Statement ¶ 31.) Elfeld then paid for the products with a cashier’s check made payable to Veronique Idea Corp. in the amount of $837.00. The Pendants purchased from Defendants were then delivered to Chanel, together with a chain of custody, for analysis. The Pendants were determined to be “non-genuine counterfeit products” that were “of a different quality than genuine Chanel jewelry products.” (Hahn Decl. ¶ 17; see also PL 56.1 Statement ¶ 32.)

II. DISCUSSION

A. STANDARD OF REVIEW

In connection with a Rule 56 motion, summary judgment is appropriate when the evidence “show[s] that there is no gen *266 uine issue of material fact and that the moving party is entitled to a judgment as a matter of law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The role of a court in ruling on such a motion “is not to resolve disputed issues of fact but to assess whether there are any factual issues to be tried, while resolving ambiguities and drawing reasonable inferences against the moving party.” Knight v. U.S. Fire Ins. Co., 804 F.2d 9, 11 (2d Cir.1986).

In a case such as this one where the plaintiff would ultimately bear the burden of persuasion at trial and is the movant for summary judgment, the plaintiff must make a prima facie showing, with sufficient admissible evidence, that there are no genuine issues of material fact for trial. Celotex Corp. v. Catrett, 477 U.S. 317, 331, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). After such a showing, the non-moving party “may not rest upon the mere allegations or denials of the adverse party’s pleading”; the non-moving party must respond with “specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e). “To this end, ‘[t] he non-moving party may not rely on mere conclusory allegations nor speculation, but instead must offer some hard evidence showing that its version of the events is not wholly fanciful.’ ” Golden Pac. Bancorp v. FDIC, 375 F.3d 196, 200 (2d Cir.2004) (quoting D'Amico v. City of New York, 132 F.3d 145, 149 (2d Cir.1998)). In other words, the non-movant “cannot avoid summary judgment simply by asserting a ‘metaphysical doubt as to the material facts.’ ” Woodman v. WWOR-TV, Inc., 411 F.3d 69, 75 (2d Cir. 2005) (quoting Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986)).

B. LANHAM ACT CLAIMS

Chanel claims that Defendants have violated both §§ 1114(1) and 1125(a). “Under § 1114 of the Lanham Act, plaintiff in a trademark infringement action must show that defendant (1) without consent, (2) used in commerce, (3) a reproduction, copy or colorable imitation of plaintiffs registered mark, as part of the sale or distribution of goods or services, and (4) that such a use is likely to cause confusion.” Gruner + Jahr USA Publ’g v. Meredith Corp., 991 F.2d 1072, 1075 (2d Cir.1993); see also 15 U.S.C. § 1114(l)(a).

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795 F. Supp. 2d 262, 101 U.S.P.Q. 2d (BNA) 1431, 2011 U.S. Dist. LEXIS 71823, 2011 WL 2636199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chanel-inc-v-veronique-idea-corp-nysd-2011.