General Nutrition Investment Co. v. General Vitamin Centers, Inc.

817 F. Supp. 2d 66, 2011 U.S. Dist. LEXIS 103447, 2011 WL 4344195
CourtDistrict Court, E.D. New York
DecidedSeptember 14, 2011
Docket10-CV-2763 (NGG) (RML)
StatusPublished
Cited by4 cases

This text of 817 F. Supp. 2d 66 (General Nutrition Investment Co. v. General Vitamin Centers, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Nutrition Investment Co. v. General Vitamin Centers, Inc., 817 F. Supp. 2d 66, 2011 U.S. Dist. LEXIS 103447, 2011 WL 4344195 (E.D.N.Y. 2011).

Opinion

ORDER

NICHOLAS G. GARAUFIS, District Judge.

Plaintiffs General Nutrition Centers, Inc. (“GNC”) and General Nutrition Investment Company (together, “Plaintiffs”) brought this action, alleging that Defendants General Vitamin Centers, Inc. and Nayma Cheema (together, “Defendants”) infringed on Plaintiffs’ GNC mark. (Compl. (Docket Entry # 1).) Plaintiffs bring six claims for (1) trademark infringement in violation of 15 U.S.C. § 1114, (2) trademark counterfeiting in violation of 15 U.S.C. § 1114, (3) unfair competition in violation of 15 U.S.C. § 1125(a), (4) federal trademark dilution in violation of 15 U.S.C. § 1125(c), (5) trademark infringement and unfair competition under New York common law, and (6) dilution and injury to business reputation in violation of New York General Business Law § 360-1. (Id.)

On March 7, 2011, upon Plaintiffs’ motion, the Clerk of Court entered default against both Defendants. (Docket Entry # 11.) On March 10, 2011, Plaintiffs moved for default judgment. (Docket Entry #12.) The court referred Plaintiffs’ Motion for Default Judgment, including an inquest on damages if necessary, to Magistrate Judge Robert M. Levy for Report and Recommendation (“R & R”) pursuant to 28 U.S.C. § 636(b)(1)(B) and Federal Rule of Civil Procedure 72(b). (Order dated June 2, 2011.) Judge Levy recommended that the court grant Plaintiffs’ motion for default judgment, issue a permanent injunction against Defendants’ use of GNC marks, and award Plaintiffs $9,740.04 in fees and costs. (R & R (Docket Entry # 16).)

No party has filed an objection to Judge Levy’s Report and Recommendation, and the time to do so has passed. Accordingly, the court reviews these recommendations for clear error. La Torres v. Walker, 216 F.Supp.2d 157, 159 (S.D.N.Y.2000); Gesualdi v. Mack Excavation & Trailer Serv., Inc., No. 09-CV-2502 (KAM)(JO), 2010 WL 985294, at *1, 2010 U.S. Dist. LEXIS 23620, at *3 (E.D.N.Y. Mar. 15, 2010). Having reviewed the record and Judge Levy’s R & R, the court finds no clear error. The court adopts the R & R in its entirety, and notes that the parties have waived further judicial review of this issue by failing to object See Wagner & Wagner, LLP v. Atkinson, Haskins, Nellis, Brittingham, Gladd, & Carwile, P.C., 596 F.3d 84, 92 (2d Cir.2010) (“[A] party waives appellate review of a decision in a magistrate judge’s Report and Recommendation if the party fails to file timely objections designating the particular issue.”).

For the foregoing reasons, the court adopts Judge Levy’s R & R in its entirety. Plaintiffs’ motion for default judgment is GRANTED. Defendants are permanently enjoined from using GNC marks, and they *71 shall pay Plaintiffs $9,740.04 in fees and costs.

SO ORDERED.

REPORT AND RECOMMENDATION

LEVY, United States Magistrate Judge:

By order dated June 2, 2011, the Honorable Nicholas G. Garaufis, United States District Judge, referred plaintiffs’ motion for entry of a default judgment to me to conduct an inquest and issue a report and recommendation. For the reasons stated below, I respectfully recommend that plaintiffs’ motion be granted in part and denied in part. As to the portions of plaintiffs motion that should be granted, I recommend that plaintiff be awarded a total of $9,740.04.

BACKGROUND AND FACTS

Plaintiffs General Nutrition Investment Company (“GNIC”) and General Nutrition Centers, Inc. (“GNC”) (collectively, “plaintiffs”), commenced this action in June 2010. They assert claims against defendants General Vitamin Centers, Inc. (“GVC”), and Nayma Cheema (collectively, “defendants”) for trademark infringement, trademark counterfeiting, unfair competition, federal trademark dilution under federal law, unfair competition and dilution and injury to business reputation under New York law. (See Complaint, dated June 16, 2010 (“Compl.”), ¶¶ 35-60.) After defendants failed to appear or answer in this action, plaintiffs moved for a default judgment and Judge Garaufis referred the motion to me. (See Order, dated June 2, 2011.) By order dated June 6, 2011, I directed plaintiffs to serve and file a submission in support of its claims for damages and attorney’s fees, and I directed defendant to serve and file any opposition on or before July 8, 2011. (See Order, dated June 6, 2011.) To date, the court has received no communication from defendants.

Affidavits of Service indicate that defendants Nayma Cheema and General Vitamin Centers, Inc. were served with the summons and complaint on June 23, 2010 and June 24, 2010, respectively. (See Affidavit of Nelson Carvajal, sworn to June 25, 2010; Affidavit of Deborah LaPointe, sworn to June 24, 2010.) On March 7, 2011, the Clerk of the Court noted defendants’ default. (See Clerk’s Notation of Default, dated Mar. 7, 2011.) Having reviewed the papers plaintiffs submitted in support of their application, I respectfully recommend that plaintiffs’ request for a default judgment be granted.

It is well-settled that a defaulting defendant is deemed to have admitted all of the well-pleaded allegations in the complaint pertaining to liability. Cotton v. Slone, 4 F.3d 176, 181 (2d Cir.1993); Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973 F.2d 155, 158 (2d Cir.1992). Plaintiffs’ allegations are as follows:

Plaintiff GNC is the largest global specialty retailer of nutritional products. (Compl. ¶ 9.) GNIC is GNC’s wholly-owned indirect intellectual property holding subsidiary and has established a portfolio of famous trademarks which are used under license by GNC and its affiliates, franchisees, and licensees in the conduct of GNC’s business. (Id. ¶ 10.)

GNIC owns a federal trademark registration for the mark “GNC” (the “GNC Mark”) on the Principal Register of the Department of Commerce, Patent and Trademark Office (“USPTO”), Registration No. 2,180,647, which was issued on August 11, 1998. (Id. ¶ 12; Ex. 1.) The GNC Mark is also protected by valid USP-TO Registration No. 3,429,065. (Id. ¶ 13; Ex. 2.) In addition, GNIC also owns registrations for the GNC Mark in over seventy-six countries worldwide. (Id. ¶ 14.) GNIC also owns the mark “GNC GENERAL NUTRITION CENTERS,” as used as *72

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Bluebook (online)
817 F. Supp. 2d 66, 2011 U.S. Dist. LEXIS 103447, 2011 WL 4344195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-nutrition-investment-co-v-general-vitamin-centers-inc-nyed-2011.