Emoji Company GmbH v. The Individuals, Corporations, Limited Liability Companies, Partnerships, and Unincorporated Associations Identified on Schedule A Hereto

CourtDistrict Court, N.D. Illinois
DecidedSeptember 26, 2022
Docket1:20-cv-04678
StatusUnknown

This text of Emoji Company GmbH v. The Individuals, Corporations, Limited Liability Companies, Partnerships, and Unincorporated Associations Identified on Schedule A Hereto (Emoji Company GmbH v. The Individuals, Corporations, Limited Liability Companies, Partnerships, and Unincorporated Associations Identified on Schedule A Hereto) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Emoji Company GmbH v. The Individuals, Corporations, Limited Liability Companies, Partnerships, and Unincorporated Associations Identified on Schedule A Hereto, (N.D. Ill. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

EMOJI COMPANY GMBH, ) ) Plaintiff, ) ) No. 20-cv-04678 v. ) ) Judge Andrea R. Wood THE INDIVIDUALS, CORPORATIONS, ) LIMITED LIABILITY COMPANIES, ) PARTNERSHIPS, AND ) UNINCORPORATED ASSOCIATIONS ) IDENTIFIED ON SCHEDULE A HERETO, ) ) Defendants. ) _______________________________________) EMOJI COMPANY GMBH, ) ) Plaintiff, ) ) No. 21-cv-05319 v. ) ) Judge Andrea R. Wood THE INDIVIDUALS, CORPORATIONS, ) LIMITED LIABILITY COMPANIES, ) PARTNERSHIPS, AND ) UNINCORPORATED ASSOCIATIONS ) IDENTIFIED ON SCHEDULE A HERETO, ) ) Defendants. ) _______________________________________) EMOJI COMPANY GMBH, ) ) Plaintiff, ) ) No. 21-cv-05453 v. ) ) Judge Andrea R. Wood THE INDIVIDUALS, CORPORATIONS, ) LIMITED LIABILITY COMPANIES, ) PARTNERSHIPS, AND ) UNINCORPORATED ASSOCIATIONS ) IDENTIFIED ON SCHEDULE A HERETO, ) ) Defendants. ) MEMORANDUM OPINION AND ORDER

Plaintiff Emoji Company GmbH makes no claim to have developed the familiar set of icons used to express ideas or emotions that are accessible on mobile phones. Nor does it claim to have coined the word commonly used to refer to such icons. Nonetheless, Plaintiff owns federal trademark registrations for the word “emoji,” which it uses and licenses for use in connection with the marketing and sale of numerous products. Before the Court are three actions brought by Plaintiff, each naming as Defendants hundreds of online stores that it lists in a Schedule “A” attached to each complaint. In all three actions, Plaintiff alleges that each Defendant offers for sale and sells products using infringing and counterfeit versions of Plaintiff’s registered trademarks in violation of the Lanham Act, 15 U.S.C. §§ 1114, 1125(a), and the Illinois Uniform Deceptive Trade Practices Act, 815 ILCS 510/1 et seq. (Emoji Company GmbH v. The Individuals, Corporations, Limited Liability Companies, Partnerships, and Unincorporated Associations Identified on Schedule A Hereto, Nos. 1:21-cv-04678 (“Emoji I”), 1:21-cv-05319

(“Emoji II”), 1:21-cv-05453 (“Emoji III”.) Plaintiff has moved for entry of default and default judgment against the Defendants that remain in the cases but have not answered the complaints or otherwise appeared. (Emoji I, Dkt. No. 57; Emoji II, Dkt. No. 45; Emoji III, Dkt. No. 59.) For the reasons stated below, the Court grants Plaintiff’s motions, grants injunctive relief, and awards Plaintiff $25,000 in statutory damages as to each Defendant. BACKGROUND

Plaintiff owns the trademarks covered by U.S. Trademark Registration Nos. 4,868,832, 5,202,078, and 5,415,510, with the earliest registration occurring on December 15, 2015. (Am. Compl., Emoji I (Aug. 10, 2020), Dkt. No. 8; Am. Compl, Ex. 1, Emoji I (Aug. 10, 2020), Dkt. No. 8-1.)1 Each trademark is for the word “emoji” (one is for the word in capital letters) and grants Plaintiff the exclusive right to use the mark in commerce with respect to an array of products. (Am. Compl., Ex. 1, Emoji I.) Plaintiff’s exclusive right to use the mark covers everything from articles of clothing and snacks to “orthopaedic foot cushions” and “[p]atient safety restraints.” (Id.)

According to Plaintiff, Defendants operate fully interactive e-commerce stores that offer for sale and sell unauthorized emoji products to customers in Illinois and throughout the United States. (Am. Compl. ¶ 13, Emoji I.) Plaintiff alleges that many Defendants reside in China and undertake various efforts to conceal their identities to avoid being shut down for selling counterfeit products. (Id. ¶¶ 13, 18–19.) Further, Plaintiff alleges that Defendants also attempt to evade Plaintiff’s efforts at enforcing its intellectual property rights by moving the funds in their e- commerce accounts to bank accounts outside the Court’s jurisdiction. (Id. ¶ 21.) Based on these claims, shortly after commencing each case presently before the Court, Plaintiff filed ex parte motions for temporary restraining orders that, among other things, would direct the various online

marketplace platforms that host Defendants’ internet stores to locate the accounts and funds connected to Defendants’ stores and to restrain and enjoin any transfer or disposition of the funds in those accounts. (TRO, Emoji I (Mar. 29, 2021), Dkt. No. 25.) The Court issued the temporary restraining orders and also authorized service of process by email or electronic publication. On Plaintiff’s motions, the operative temporary restraining orders subsequently were superseded by preliminary injunction orders. (Prelim. Inj., Emoji I (June 22, 2021), Dkt. No. 48.)

1 Because the filings and orders in Emoji I are substantially identical to those in Emoji II and Emoji III, where the Court cites only the record of Emoji I, that record citation is representative of the analogous documents in the records in Emoji II and Emoji III. As each case has progressed, several Defendants were voluntarily dismissed by Plaintiff, usually because the parties reached a settlement agreement. Nonetheless, a substantial number of Defendants were served, remain in the actions, and have not answered the complaint against them or entered appearances. Accordingly, Plaintiff now seeks entry of default and default judgment as to the defaulting Defendants in each case.

DISCUSSION

Federal Rule of Civil Procedure 55 governs the entry of default and default judgment. Under Rule 55(a), “[w]hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.” Fed. R. Civ. P. 55(a); see also Breuer Elec. Mfg. Co. v. Toronado Sys. of Am., Inc., 687 F.2d 182, 185 (7th Cir. 1982) (“Although Rule 55(a) refers to entry of default by the clerk, it is well-established that a default also may be entered by the court.” (citation omitted)). “The basic effect of an entry of default . . . is that upon default, the well- pleaded allegations of a complaint relating to liability are taken as true.” VLM Food Trading Int’l, Inc. v. Ill. Trading Co., 811 F.3d 247, 255 (7th Cir. 2016) (internal quotation marks omitted). Once the default has been established, the plaintiff must move for the entry of default judgment under Rule 55(b) for a determination as to its entitlement to the relief it seeks. Id. “A default judgment establishes, as a matter of law, that defendants are liable to plaintiff on each cause of action alleged in the complaint.” e360 Insight v. The Spamhaus Project, 500 F.3d 594, 602 (7th Cir. 2007). Here, Plaintiff has established that default and default judgment should be entered against those Defendants who have not responded or entered appearances. Plaintiff has properly served Defendants by electronic publication or email, as authorized by the Court, and the time for answering or otherwise responding to the complaint has expired in each action. Consequently, the Court accepts the allegations in the complaints as true and concludes that the defaulting Defendants are liable for trademark infringement and counterfeiting under 15 U.S.C. § 1114

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Bluebook (online)
Emoji Company GmbH v. The Individuals, Corporations, Limited Liability Companies, Partnerships, and Unincorporated Associations Identified on Schedule A Hereto, Counsel Stack Legal Research, https://law.counselstack.com/opinion/emoji-company-gmbh-v-the-individuals-corporations-limited-liability-ilnd-2022.