Coach, Inc. v. Swap Shop, Inc.

916 F. Supp. 2d 1271, 2012 WL 6830423, 2012 U.S. Dist. LEXIS 184417
CourtDistrict Court, S.D. Florida
DecidedSeptember 21, 2012
DocketCase No. 12-60400-CIV
StatusPublished
Cited by14 cases

This text of 916 F. Supp. 2d 1271 (Coach, Inc. v. Swap Shop, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coach, Inc. v. Swap Shop, Inc., 916 F. Supp. 2d 1271, 2012 WL 6830423, 2012 U.S. Dist. LEXIS 184417 (S.D. Fla. 2012).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTIONS TO DISMISS OR FOR MORE DEFINITE STATEMENT

WILLIAM P. DIMITROULEAS, District Judge.

THIS CAUSE is before the Court upon Defendants SWAP SHOP, INC. SWAP SHOP, MANAGEMENT, LLC, 3290 SUNRISE INVESTMENTS, INC., 3291 SUNRISE INVESTMENTS, INC., PRESTON B. HENN, BETTY D. HENN, KATHERINE HENN, and DAPHNE FITZPATRICK (collectively, “Defendants’’)^ Motions to Dismiss or for More Definite Statement [DE’s 44-50, 56]. The Court has carefully considered the Motions, Plaintiffs COACH, INC. and COACH SERVICES, INC. (collectively, “Coach”)’s Omnibus Memorandum of Law in Opposition [DE 60], Defendants’ Omnibus Replies [DE’s 63, 64], and is otherwise fully advised in the premises.

I. BACKGROUND1

A large flea market exists in Fort Lauderdale, Florida called “Thunderbird Swap Shop” or “Ft. Lauderdale Swap Shop” (hereinafter the “Flea Market”). This case arises from claims by Coach that the Flea Market has been and continues to be a hot-bed for vendors to sell illegal “knockoff” goods, including counterfeit Coach products.

Coach is engaged in the manufacture, marketing and sale of fine leather and mixed material products including handbags, wallets, and accessories including eyewear, footwear including shoes, jewelry and watches. See [DE 27] at ¶ 17. Coach has used a variety of legally-protected trademarks, trade dresses, and design elements/copyrights for many years on and in connection with the advertisement and sale of its products (collectively the “Coach Marks”). ¶ 18. Coach has expended substantial time, money, and other resources in developing, advertising, and otherwise promoting the Coach Marks. ¶ 19. As a result, products bearing the Coach Marks are widely recognized and exclusively associated by consumers, the public, and the trade as being high quality products sourced from Coach, and have acquired strong secondary meaning. ¶ 19. Coach products have also become among the most popular in the world, with Coach’s [1275]*1275annual global sales reaching nearly four billion dollars ($4,000,000,000). ¶ 19.

Defendants 3290 Sunrise Investments, Inc. and 3291 Sunrise Investments, Inc. (collectively, the “Landlord Defendants”), are the owners and lessor of several parcels of real property upon which the Flea Market operates, and co-own the Flea Market. See [DE 27] at ¶¶ 9, 10. Defendants Swap Shop Inc. and Swap Shop Management, L.L.C. (hereinafter collectively referred to as the “Swap Shop Management”) are the lessees and/or cooperators of the Flea Market. ¶¶ 11, 12. Defendants Preston Henn, his wife Betty Henn, their daughter Katherine Henn, and Daphne Fitzpatrick (collectively the “Principal Defendants”), individually and/or collectively, are the principal owners, officers, directors and managers of the Swap Shop Management and Landlord Defendants. ¶ 13. The Swap Shop Management, Landlord and Principal Defendants, individually and/or collectively, own, operate, control and the Flea Market. ¶ 14. Coach alleges in its Amended Complaint:

Defendants, acting in concert with each other, operate out of the same offices, share common officers, directors and/or principal owners, and, in cooperation with and as the alter egos of one another, have induced, caused and/or materially contributed to the promotion and sale of counterfeit Coach products at the Flea Market. With knowledge of these illegal activities, or with willful blindness, Defendants have financially benefitted from them. As such, Defendants are contributorily and vicariously liable for the infringing activities described below.

See [DE 27] at ¶ 14. As for Defendants’ infringing conduct, Coach alleges as follows:

On December 10, 2010, Coach’s investigator canvassed the Flea Market and discovered multiple vendors advertising, displaying, offering for sale, and/or selling in plain view merchandise bearing logos and source-identifying indicia and design elements that are imitations of one or more of the Coach Trademarks and the Coach Design Elements (hereinafter “counterfeit Coach merchandise”). ¶ 30. These vendors were located on property owned by Defendant 3291 Sunrise, and managed by Swap Shop Management and by and through the Principal Defendants. ¶ 30.

On that same day, following Coach’s investigator’s survey, the Broward Sheriffs office, together with the Lauderhill Police Department and Fort Lauderdale Police Department, raided the Flea Market, seizing hundreds of counterfeit items, including merchandise bearing Coach’s trademarks and copyrights. ¶ 31. The infringing vendors’ booths and cargo containers were located on property owned by Defendant 3291 Sunrise, and managed by Swap Shop Management and by and through the Principal Defendants. ¶ 31. The raid resulted in the arrest of six Swap Shop vendors, including Shakila Harannine and Palto Harannine. ¶ 31.

On January 3, 2011, Coach sent a cease and desist letter to the Landlord and Swap Shop Management Defendants, in order to compel their immediate cooperation in ending its and its vendors/lessees illegal activity. ¶ 32; [DE 27-1], On January 13, 2011, Coach provided the Landlord, and Swap Shop Management Defendants with a second letter, containing a list of all federally registered Coach Trademarks in order to assist them in removing Coach counterfeit merchandise from the Flea Market. ¶ 33; [DE 27-2].

On November 30, 2011, Coach’s investigator returned to the Flea Market and again discovered multiple vendors advertising, displaying, offering for sale, and/or selling in plain view counterfeit Coach [1276]*1276merchandise. ¶ 34. Specifically, Coach’s investigator observed a vendor doing business as MVP Athletics advertising, displaying, offering for sale, and/or selling, in plain view, counterfeit Coach products including cellular phone covers. ¶ 35. MVP Athletics was operating from booth no. WC BB-13 on property owned by Defendant 3290 Sunrise, and managed by Swap Shop Management and by and through the Principal Defendants. ¶ 35. Coach’s investigator also observed a vendor doing business as Florida Gift Shop International displaying, offering for sale, and/or selling, in plain view, counterfeit Coach products, including cellular phone covers. Florida Gift Shop was operating from booth no. WC T-16, on property owned by Defendant 3290 Sunrise, and managed by Swap Shop Management and by and through the Principal Defendants. ¶ 36.

On December 2, 2011, Coach sent a second cease and desist letter to the Landlord and Swap Shop Management Defendants, to compel their assistance in ending its and its vendorsAessees infringing activities. ¶ 37; [DE 27-3].

Shortly thereafter, on December 13, 2011, agents from the United States Department of Homeland Security Immigration and Customs Enforcement Division (“ICE”), along with the Broward Sheriffs Office raided the Flea Market, seizing more than 3,000 counterfeit items, including counterfeit Coach watches and cellular phone covers. ¶ 38. The infringing vendors’ booths were located on property owned by Defendant 3290 Sunrise, and managed by the Swap Shop Management and by and through the Principal Defendants. ¶ 38.

Prior to carrying out the raid, ICE agents visited the Flea Market’s management office to advise the Landlord, Swap Shop Management and Principal Defendants of their investigation and their plan to seize counterfeit merchandise from the Flea Market’s vendors. ¶ 39.

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Cite This Page — Counsel Stack

Bluebook (online)
916 F. Supp. 2d 1271, 2012 WL 6830423, 2012 U.S. Dist. LEXIS 184417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coach-inc-v-swap-shop-inc-flsd-2012.