Gavrieli Brands LLC v. Lovie Pearl GmbH

CourtDistrict Court, C.D. California
DecidedSeptember 19, 2023
Docket2:22-cv-06112
StatusUnknown

This text of Gavrieli Brands LLC v. Lovie Pearl GmbH (Gavrieli Brands LLC v. Lovie Pearl GmbH) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gavrieli Brands LLC v. Lovie Pearl GmbH, (C.D. Cal. 2023).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES — GENERAL

Sees 2:22-cv-06112MCSMRW Beg September 19, 2023 Title Gavrieli Brands, LLC v. Lovie Pearl GmbH

Present: The Honorable Mark C. Scarsi, United States District Judge

Stephen Montes Kerr —__——NotReported Deputy Clerk Court Reporter

Attorney(s) Present for Plaintiff(s): Attorney(s) Present for Defendant(s): None Present None Present

Proceedings: (IN CHAMBERS) ORDER RE: MOTION FOR DEFAULT JUDGMENT AND APPLICATION TO SUPPLEMENT RECORD (ECF NOs. 25, 28)

Plaintiff Gavrieli Brands, LLC moves for default judgment against Defendant Lovie Pearl GmbH. (Notice of Mot., ECF No. 25; Mot., ECF No. 25-1.) Defendant does not oppose the motion and has not otherwise appeared to defend this action. The Court deems this motion appropriate for decision without a hearing. Fed. R. Civ. P. 78(b); C.D. Cal. R. 7-15. Plaintiff also filed an application to supplement the record with a recent communication with Defendant’s counsel. (Appl., ECF No. 28.) The Court finds good cause to allow Plaintiff to proffer the additional evidence in support of the instant motion. I. BACKGROUND According to the complaint, Plaintiff sells a famous line of footwear called Tieks, which are foldable ballet-style flats featuring a split sole. (Compl. § 15, ECF No. 1.) The split sole, dubbed the “Peekaboo,” bears colors contrasting from the upper portion of the footwear, which gives the Tieks shoes a distinctive look. (/d.) Plaintiff has committed significant resources “in developing Tieks® designs and Page 1 of 12 CIVIL MINUTES — GENERAL Initials of Deputy Clerk SMO

securing the intellectual property rights that protect it, including” 13 design patents and two utility patents. (Id. ¶¶ 21–37.) Plaintiff sells these shoes “in over fifty (50) styles and patterns, and [the shoes] retail for $185 to $345 per pair.” (Id. ¶ 16.) Defendant is a German company who sells shoes similar to Plaintiff’s ballet-style flats designed with split soles; the colors of the soles also contrast with the upper parts of the shoe. (Id. ¶¶ 6, 38.) Defendant sells its products through “through its Amazon Web Store with the name ‘loviepearl’” at a cheaper price. (Id. ¶ 39; Compl. Ex. P, ECF No. 1-15.)

Based on these allegations, Plaintiff brings 15 claims of patent infringement of the following design and utility patents: “United States Design Patent[] Nos. D686,812, D688,855, D943,897, D943,252, D846,259, D903,279, D846,845, D885,018, D886,435, D846,849, D681,927, D888,380, and D844,951 and United States Patent[] Nos. 8,745,893 and 9,398,786.” (Compl. ¶¶ 2, 43–213.)

II. LEGAL STANDARD

Federal Rule of Civil Procedure 55(b)(2) permits the Court to enter default judgment. The Court need not make detailed findings of fact in the event of default. Adriana Int’l Corp. v. Thoeren, 913 F.2d 1406, 1414 (9th Cir. 1990). On entry of default, well-pleaded allegations in the complaint concerning liability are taken as true. Damages, however, must be proven. Garamendi v. Henin, 683 F.3d 1069, 1080 (9th Cir. 2012) (citing Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)).

Courts consider several factors in determining whether to enter default judgment: “(1) the possibility of prejudice to the plaintiff, (2) the merits of plaintiff’s substantive claim, (3) the sufficiency of the complaint, (4) the sum of money at stake in the action[,] (5) the possibility of a dispute concerning material facts[,] (6) whether the default was due to excusable neglect, and (7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits.” Eitel v. McCool, 782 F.2d 1470, 1471–72 (9th Cir. 1986).

Local Rule 55-1 requires the party seeking default judgment to submit a declaration establishing (1) when and against which party the default was entered; (2) the identification of the pleading to which default was entered; (3) whether the defaulting party is an infant or incompetent person, and if so, whether that person is represented by a general guardian, committee, conservator, or other representative; (4) that the Servicemembers Civil Relief Act does not apply; and (5) that the defaulting party was properly served with notice. C.D. Cal. R. 55-1. III. DISCUSSION

A. Jurisdiction and Service of Process

The Court must first address whether it may exercise subject-matter jurisdiction and personal jurisdiction over Defendants and whether Plaintiff properly served Defendants. In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999).

The Court has original subject-matter jurisdiction over Plaintiff’s patent infringement claims. 28 U.S.C. § 1338(a), (b).

Plaintiff asserts that the Court has personal jurisdiction over Defendant under Federal Rule of Civil Procedure 4(k)(2). Rule 4(k)(2) permits a court to exercise personal jurisdiction where “a claim . . . arises under federal law” if “the defendant is not subject to jurisdiction in any state’s courts of general jurisdiction” and if “exercising jurisdiction is consistent with the United States Constitution and laws.” A patent infringement action arises under federal law. 28 U.S.C. § 1338(a). Personal jurisdiction analysis in patent infringement actions is governed by Federal Circuit precedent. Synthes (U.S.A.) v. G.M. Dos Reis Jr. Ind. Com de Equip. Medico, 563 F.3d 1285, 1293 (Fed. Cir. 2009). As to the second Rule 4(k)(2) element, it is the defendant’s burden to identify “a suitable forum in which the plaintiff could have brought suit” in order to avoid application of Rule 4(k)(2). Touchcom, Inc. v. Bereskin & Parr, 574 F.3d 1403, 1415 (Fed. Cir. 2009). Defendant has failed to do so here, and the Court concludes that Rule 4(k)(2) applies.

As to the final Rule 4(k)(2) element, the Federal Circuit applies “a three-factor test for specific jurisdiction, which considers whether (1) the defendant purposefully directed its activities at residents of the forum, (2) the claim arises out of or relates to the defendant’s activities with the forum, and (3) assertion of personal jurisdiction is reasonable and fair.” Synthes, 563 F.3d at 1297. Rule 4(k)(2) “contemplates a defendant’s contacts with the entire United States, as opposed to the state in which the district court sits.” Id. at 1295. “[A] court may properly assert specific jurisdiction, even if the contacts are isolated and sporadic, so long as the cause of action arises out of or relates to those contacts.” Id. at 1297.

A defendant purposefully directs its activities at a forum if it places its products in the stream of commerce such that the defendant knew the likely destination of the products and that they should reasonably anticipate being haled into court there. Beverly Hills Fan Co. v.

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Gavrieli Brands LLC v. Lovie Pearl GmbH, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gavrieli-brands-llc-v-lovie-pearl-gmbh-cacd-2023.