Fendi S.A.S. Di Paola Fendi E Sorelle v. Cosmetic World, Ltd.

642 F. Supp. 1143, 55 U.S.L.W. 2236, 1 U.S.P.Q. 2d (BNA) 1508, 1986 U.S. Dist. LEXIS 20705
CourtDistrict Court, S.D. New York
DecidedSeptember 8, 1986
Docket85 CIV 9666 (LBS)
StatusPublished
Cited by25 cases

This text of 642 F. Supp. 1143 (Fendi S.A.S. Di Paola Fendi E Sorelle v. Cosmetic World, Ltd.) 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
Fendi S.A.S. Di Paola Fendi E Sorelle v. Cosmetic World, Ltd., 642 F. Supp. 1143, 55 U.S.L.W. 2236, 1 U.S.P.Q. 2d (BNA) 1508, 1986 U.S. Dist. LEXIS 20705 (S.D.N.Y. 1986).

Opinion

OPINION

SAND, District Judge.

Plaintiff, Fendi S.a.s. Di Paola Fendi e Sorelle (“Fendi”), brings this action for trade infringement pursuant to the Lanham Act, 15 U.S.C. § 1051 et seq., as amended by the Trademark Counterfeiting Act of 1984, against defendants, Mario and Paolo Vincelli (“the Vincellis”), charging them with dealing in imitation Fendi products bearing counterfeit Fendi trademarks. 1 Plaintiff now moves for summary judgment and seeks a permanent injunction *1145 against defendants, destruction of the counterfeit goods, and the return of the security that it has posted. Plaintiff also seeks monetary relief in the form of damages and/or an accounting for profits. It also seeks attorneys’ fees. For the reasons that follow, we grant plaintiff permanent injunctive relief, and hold that plaintiff is entitled to treble damages and attorneys’ fees. We refer this case to Magistrate Joel J. Tyler to report and recommend the appropriate sum. We also hold that plaintiff may destroy the counterfeit goods it has seized from defendants and is entitled to the return of the money it posted as security prior to the seizure.

I. BACKGROUND

Fendi is a limited partnership with its principal place of business in Italy. It is engaged in the manufacture and sale of a wide variety of fashion merchandise, including furs, pocketbooks and leather apparel. Most of the items in question here are women’s handbags. Plaintiff’s products are sold throughout the United States, but are distributed through only a limited number of carefully selected retail stores. The Fendi company has undertaken considerable effort to assure that genuine Fendi goods never travel outside of this exclusive retail network. Genuine Fendi products bear the registered trademark of the Fendi company, consisting of the word “FENDI” (Reg. No. 1,244,466), and a monogram comprised of two initial F’s (“FF”) (Reg. No. 1,214,472). Both the FENDI and FF monogram trademarks have been extensively advertised and now represent prestigious symbols in fashion.

On December 12 and 13, 1985, an ex parte seizure order was executed, and more than 1,000 items bearing counterfeit Fendi trademarks were seized at the Vincelli premises. Since the execution of the seizure order, all of these goods have been warehoused at plaintiff’s expense. Shortly after the seizure, both sides agreed that the case would be settled. On December 20, 1985, this Court issued an Order to dismiss the case but provided that it could be reopened within 90 days upon notification by either party. After two subsequent extensions of that Order, settlement negotiations collapsed and plaintiff brought the instant motion.

II. LIABILITY

Plaintiff contends that it is entitled to summary judgment as to defendants’ liability. In a brief affirmation in opposition, defendants contend, without any factual support whatsoever, that plaintiff has not made out a claim that defendants have engaged in selling goods with counterfeit trademarks.

The principles governing the grant of summary judgment are the same in trademark as in other actions. Summary judgment may not be granted unless it appears there is “no genuine issue as to any material fact.” F.R.Civ.P. 56(c). If, however, the suit can have but one possible outcome, summary judgment is appropriate.

On the uncontested facts here, we find plaintiff is entitled to summary judgment on the issue of liability. Plaintiff has established that defendants, in violation of 15 U.S.C. § 1051 et seq., actively engaged in the sale of goods bearing counterfeit FENDI and FF trademarks and attempted to pass off such goods as genuine Fendi products. Specifically, the deposition of Paolo Vincelli establishes that the Vincellis imported and distributed to numerous retailers merchandise bearing counterfeit Fendi trademarks. P. Vincelli Deposition at 57, 116. It also demonstrates that Paolo Vincelli travelled to Italy to find a source of imitation Fendi handbags so that he could sell them in the United States, and once there, had a source make merchandise specifically for him bearing the Fendi trademarks. Id. at 21. Moreover, the handbags themselves were designed in a deliberate attempt to duplicate genuine Fendi merchandise. Id. at 91-92. Vincelli told the retail merchants to whom he sold his products that the products were imitation Fendi merchandise and that the retailers’ customers would likely be deceived *1146 into thinking that they were buying genuine Fendi products. Id. at 92, 118.

III. RELIEF

A. Injunction

Defendants are hereby permanently enjoined from buying, selling, advertising or otherwise dealing in goods bearing the infringed marks. See 15 U.S.C. § 1116(a).

B. Destruction of the Goods

Plaintiff contends that the 1984 anti-counterfeiting amendments to the Lanham Act, codified at 15 U.S.C. §§ 1114-1118, entitle it to destroy not only the counterfeit marks, but the counterfeit goods as well. Although it is not clear from the face of the statute, we nevertheless find that plaintiff is entitled to destroy the goods.

Prior to the 1984 anti-counterfeiting amendments, 15 U.S.C. § 1118 explicitly permitted the destruction of only “labels, signs, prints, packages, wrappers, receptacles, and advertisements in the possession of the defendant, bearing the registered mark or any reproduction, counterfeit, copy, or colorable imitation thereof, and all plates, molds, matrices, and other means of making the same.” 2 The 1984 amendments added to this section that before any “articles” seized under the amended section 1116(d) could be destroyed, there must be notice given to the appropriate United States attorney so he may object to the destruction if the articles are evidence of a crime. 3 Section 1116(d), as amended, allows for an ex parte seizure order for “goods and counterfeit- marks involved in [the] violation” of either 15 U.S.C. § 1114(l)(a) or 36 U.S.C. § 380.

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Bluebook (online)
642 F. Supp. 1143, 55 U.S.L.W. 2236, 1 U.S.P.Q. 2d (BNA) 1508, 1986 U.S. Dist. LEXIS 20705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fendi-sas-di-paola-fendi-e-sorelle-v-cosmetic-world-ltd-nysd-1986.