Chere Amie, Inc. v. Windstar Apparel, Corp.

191 F. Supp. 2d 343, 61 U.S.P.Q. 2d (BNA) 1114, 2001 U.S. Dist. LEXIS 2140, 2001 WL 210364
CourtDistrict Court, S.D. New York
DecidedMarch 2, 2001
Docket01 Civ. 0040
StatusPublished
Cited by8 cases

This text of 191 F. Supp. 2d 343 (Chere Amie, Inc. v. Windstar Apparel, 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
Chere Amie, Inc. v. Windstar Apparel, Corp., 191 F. Supp. 2d 343, 61 U.S.P.Q. 2d (BNA) 1114, 2001 U.S. Dist. LEXIS 2140, 2001 WL 210364 (S.D.N.Y. 2001).

Opinion

MEMORANDUM AND ORDER

PAULEY, District Judge.

Plaintiffs Chere Amie, Inc., Obvious, Inc. and Greena, Inc. seek a preliminary injunction pursuant to the Lanham Act, 15 U.S.C. §§ 1051 et seq., and the Copyright Act, 17 U.S.C. §§ 101 et seq., enjoining defendants Windstar Apparel, Corp., Global Apparel, Inc., Jong Ki Park, Jae C. Han, Paula B. Abraham, Barbara Rentzer, Mia Decaro and Young Hwa Yoo from producing and selling sleepwear apparel which plaintiffs claim infringes Obvious, Inc.’s trademark “Girl Zone” and five of its copyrighted sleepwear designs. For the reasons stated below, plaintiffs’ application is granted.

BACKGROUND

Procedural History

Plaintiffs moved by order to show cause on January 3, 2001 for, inter alia, a temporary restraining order and a preliminary injunction enjoining defendants from selling or distributing infringing sleepwear. In addition to trademark and copyright infringement, plaintiffs’ complaint asserts claims for misappropriation of trade secrets, conversion, tortious interference with business relationships, unfair competition, and RICO violations.

On January 8, after hearing counsel for all parties, this Court issued a temporary restraining order enjoining defendants from infringing plaintiffs’ trademark, “Girl Zone,” and copyrights in five pajama designs. {See Order to Show Cause at 8, No. 01 Civ. 0040(WHP), S.D.N.Y. Jan. 8, 2001.) At that time, this Court also established a *345 briefing schedule for the preliminary injunction motion, an expedited discovery schedule, and set January 22, 2001 for an evidentiary hearing.

At the January 22 hearing, plaintiffs called two witnesses: Dong Yung Gang (“Gang”), the former president of Obvious, Inc. (“Obvious”), and Chang W. Lee (“Chang Lee”), Obvious’ current chief executive officer. Defendants called Jong Kee Park (“Park”), the president of Windstar Apparel, Inc. (“Windstar”). After presenting those witnesses, the parties stipulated that no additional testimony was necessary and plaintiffs limited their preliminary injunction application to their trademark and copyright claims. (Transcript from Evidentiary Hearing dated January 22, 2001 (“Tr.”) at 88; Letter from Bruce Claugus, Esq., dated Jan. 26, 2001 at 1.)

The Parties

Chere Amie, Inc. (“Chere Amie”), a California close corporation founded by Naim Ho Paik (“Paik”), has manufactured children’s and women’s sleepwear since 1998. (Affidavit of Nam Ho Paik, dated Dec. 21, 2000 (“Paik Aff.”) ¶2.) Obvious, a New York corporation, designs and markets clothing for Chere Amie. (Paik Aff. ¶ 3.) Greena, Inc., a closely-held Chere Amie affiliate established in 1997, distributes Chere Amie’s products. (Paik Aff. ¶4.)

The parties dispute who controlled Obvious. At the hearing, while Gang was uncertain whether he was the sole shareholder of Obvious, he claimed to be the “sole proprietor” and president of Obvious until April 1, 2000. (Tr. at 35-36.) In contrast, Paik asserted that he was the sole shareholder of Obvious until September 1, 2000, when he transferred forty shares to Chang Lee and twenty shares to Kwan B. Lee. This was corroborated by Change Lee who testified that he received forty shares of Obvious when he was appointed as president of Obvious. (Paik Reply Aff. ¶ 3.; Tr. at 68.) While Obvious’ corporate records have disappeared, plaintiffs offered Obvious employees’ paychecks bearing Paik’s name, although not his signature, and Obvious’ by-laws, dated January 26, 1996, which Paik signed as its “incorporator,” as further circumstantial evidence of ownership. (Reply Aff. of Nam Ho Paik (“Paik Reply Aff.”) Ex. A: Obvious’ By-Laws; Ex B: Checks to Paula Abraham.) Based on the testimony of Gang and Chang Lee, this Court finds that Paik was a shareholder of Obvious. 1

Defendants Jae C. Han, Paula B. Abraham, Barbara Rentzer, Mia Decaro and Young Hwa Yoo (the “Obvious Employees”) were employed by Obvious until October 2000 when they left and joined Windstar, a New York clothing manufacturer. (See Paik Aff. ¶¶ 5, 8-12; Affidavit of Paula B. Abraham, dated Jan. 11, 2001 (“Abraham Aff.”) ¶ 27; Affidavit of Mia Decaro, dated Jan. 12, 2001 (“Decaro Aff.”) ¶ 15.) Park is the president of Windstar and a cousin of Gang by marriage. (Tr. at 24; Affidavit of Jong Ki Park, dated Jan. 19, 2001 (“Park.Aff.”), ¶3.) Defendant Global Apparel, Inc. (“Global”) is a California company that manufactures and distributes apparel for Windstar. (Paik Aff. ¶ 6.)

Underlying Facts

In 1998, Obvious applied to the U.S. Patent and Trademark Office (“PTO”) to register “Girl Zone” as a trademark. (Paik Reply Aff. ¶ 11.) In support of the application, Gang signed a declaration on September 29, 1998 (“PTO Declaration”) stating that Obvious had

*346 adopted and is using the [“Girl Zone”] trademark ... for ... girl’s and women’s clothing. The trademark was first used in [Obvious’ apparel] ... on August 1, 1998, and is now used in interstate commerce. The mark is used and displayed in the labels, invoices, advertisements and order forms and three specimens showing the mark as actually used are presented herewith.

(Paik Reply Aff. Ex. C: PTO Declaration). On December 1, 2000, the PTO issued a federal trademark registration 'certificate to Obvious for “Girl Zone” effective as of July 11, 2000. (Paik Aff. Ex. B: Girl Zone Registration Certificate.)

Plaintiffs assert that soon after Gang left Obvious, Park recruited the Obvious Employees to work for Windstar marketing the “Girl Zone” trademark and at least five designs entitled “Pucker Up Frog,” “Huggable Koala,” “Chiky,” “Lovebug Ladybug” and “Holy Cow” (collectively, “Sleepwear Designs”). (Paik Aff. ¶¶ 44, 49.) According to plaintiffs, Park realized his goal on October 7, 2000, when Kohl’s Department Stores (“Kohl’s”) ordered clothing from Windstar bearing the Sleepwear Designs and the “Girl Zone” trademark. (Paik Aff. ¶ 54.) On October 19, 2000, Windstar sent “cut tickets” to Global specifying the manufacturing measurements for Kohl’s order and listing Kohl’s as Windstar’s buyer. (Paik Aff. ¶ 63, Ex. L: Cut Tickets.)

Sensing that something was wrong in Chere Amie’s New York office, Chang Lee traveled from Chere Amie’s Los Angeles headquarters to New York to meet with the Obvious Employees. (Tr. at 14; Lee Reply Aff. ¶ 2.) While the parties dispute what occurred at this October 23 meeting in New York, it is clear that the Obvious Employees left Obvious to join the employ of Windstar which was several floors below Obvious offices at 1407 Broadway. (Conf. Tr. at 7.)

On November 3, 2000, Kohl’s Corporation (“Kohl’s”) purchased $8,729.76 worth of Sleepwear Design children’s pajamas bearing the “Girl Zone” trademark from Windstar. (See Paik Aff. Ex. J: Purchase Order & Paik Aff. Ex. K: Kohl’s Printout.)

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191 F. Supp. 2d 343, 61 U.S.P.Q. 2d (BNA) 1114, 2001 U.S. Dist. LEXIS 2140, 2001 WL 210364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chere-amie-inc-v-windstar-apparel-corp-nysd-2001.