GS Holistic LLC v. Barrett & Mitchell Enterprises Inc

CourtDistrict Court, W.D. Washington
DecidedFebruary 1, 2024
Docket3:23-cv-05227
StatusUnknown

This text of GS Holistic LLC v. Barrett & Mitchell Enterprises Inc (GS Holistic LLC v. Barrett & Mitchell Enterprises Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GS Holistic LLC v. Barrett & Mitchell Enterprises Inc, (W.D. Wash. 2024).

Opinion

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3 4 5 6 7 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 8 AT SEATTLE

9 10 GS HOLISTIC, LLC, CASE NO. C23-5227JLR 11 Plaintiff, ORDER v. 12 BARRETT & MITCHELL 13 ENTERPRISES, INC., et al., 14 Defendants. 15 I. INTRODUCTION 16 Before the court is Plaintiff GS Holistic, LLC’s (“GS Holistic”) motion for entry 17 of default judgment against Defendants Barrett & Mitchell Enterprises, Inc., d/b/a The 18 Greenroom (“The Greenroom”) and Rozalynn Mitchell (together, “Defendants”). (Mot. 19 (Dkt. # 20); see Prop. Judgment (Dkt. # 20-3).) Neither Defendant has appeared in this 20 action, and the Clerk has entered default against both Defendants. (See Dkt.; 8/29/23 21 Entry of Default (Dkt. # 14); see also 10/4/23 Order (Dkt. # 18) (dismissing GS 22 1 Holistic’s claims against former Defendant Timothy Mitchell without prejudice for 2 failure to effect timely service).) The court has considered GS Holistic’s motion, the

3 materials it submitted in support of its motion, the relevant portions of the record, and the 4 governing law. Being fully advised, the court GRANTS in part and DENIES in part GS 5 Holistic’s motion for entry of default judgment. 6 II. BACKGROUND 7 GS Holistic is a Delaware limited liability corporation (“LLC”) that has its 8 principal place of business in California. (Compl. (Dkt. # 1) ¶ 4.) It alleges that it is the

9 owner of the “G PEN” trademarks, has worked to distinguish the G Pen brand as “the 10 premier manufacturer of vaporizers,” and has devoted significant time and resources to 11 promoting and protecting its trademark. (Id. ¶¶ 4, 8-10, 17.) In 2016, Grenco Science, 12 Inc. assigned to GS Holistic all rights associated with the G PEN trademark and other 13 trademarks associated with products sold by GS Holistic. (Id. ¶ 11.) As a result, GS

14 Holistic is now the owner of 21 registered trademarks—including word marks, standard 15 character marks, and design plus words marks—related to its G Pen products (together, 16 the “G Pen Marks”1). (Id. ¶¶ 12(a)-(u).) GS Holistic asserts that consumers are willing 17 to pay more for “the recognized quality and innovation associated with the G Pen 18 Marks.” (Id. ¶ 21.) Thus, genuine G Pen brand vaporizers are priced between $70.00

19 and $250.00 while equivalent non-G Pen products usually sell for between $11.00 and 20 $20.00. (Id.) 21

1 GS Holistic uses the terms “G Pen Marks” and “G Pen Trademarks” interchangeably in 22 its complaint. (See generally Compl.) The court uses the term “G Pen Marks” in this order. 1 Defendant The Greenroom is a Washington corporation that has its principal place 2 of business in Washington. (Id. ¶ 5.) Defendant Rozalynn Mitchell is a resident and

3 citizen of Washington and is one of the owners of The Greenroom. (Id. ¶¶ 7, 22, 24.) GS 4 Holistic alleges that Defendants have offered for sale counterfeit goods bearing 5 “reproductions, counterfeits, copies and/or colorable imitations of one or more” of the 6 following G Pen Marks: (a) U.S. Trademark Registration No. 4,390,645 “for the 7 standard character mark ‘G Pen’ in association with goods further identified in [the] 8 registration in international class 010”; (b) U.S. Trademark Registration No. 4,466,586

9 “for the word mark ‘G’ and its logo in association with goods further identified in the 10 registration in international class 010”; and (c) U.S. Trademark Registration No. 11 4,462,090 “for the standard character mark ‘MicroG’ in association with goods further 12 identified in the registration in international class 010” (together, the “Infringing 13 Marks”). (Id. ¶¶ 26(a)-(c); see Mot., Ex. A (screenshots of pages from the United States

14 Patent and Trademark Office’s Trademark Electronic Search System that describe these 15 trademarks).) On December 13, 2022, according to GS Holistic, its investigator visited 16 The Greenroom’s location; observed that the shop had “an excess of vaporizers” that 17 displayed the G Pen Marks; purchased “a Micro G Vaporizer with a G Pen Mark affixed 18 to it” for $71.59; and determined the vaporizer “was a [c]ounterfeit product in that it

19 displayed the Infringing Marks.” (Compl. ¶ 30.) 20 GS Holistic filed its complaint on March 16, 2023. (Id. at 1.) It alleges claims 21 under the Lanham Act against both Defendants for counterfeiting and trademark 22 infringement in violation of 15 U.S.C. § 1114 and for false designation of origin and 1 unfair competition in violation of 15 U.S.C. § 1125(a). (Id. ¶¶ 52-69.) Among other 2 relief, it seeks damages, costs of suit, a permanent injunction prohibiting Defendants

3 from continuing to infringe its G Pen trademarks, and an order requiring Defendants to 4 deliver all infringing products to GS Holistic for destruction. (Id. at 14-16.) 5 GS Holistic served The Greenroom on June 12, 2023, and Ms. Mitchell on June 6 14, 2023. (See Service Affs. (Dkt. ## 7, 10).) The Clerk entered default against 7 Defendants on August 29, 2023. (8/29/23 Entry of Default.) GS Holistic filed this 8 motion for entry of default judgment on January 29, 2024. (Mot.)

9 III. ANALYSIS 10 Below, the court sets forth the relevant legal standard and then evaluates GS 11 Holistic’s motion for entry of default judgment. 12 A. Legal Standard 13 Federal Rule of Civil Procedure 55(b)(2) authorizes the court to enter default

14 judgment against a defaulting defendant upon the plaintiff’s motion. Fed. R. Civ. P. 15 55(a), (b)(2). After default is entered, well-pleaded factual allegations in the complaint, 16 except those related to damages, are considered admitted and are sufficient to establish a 17 defendant’s liability. TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 18 1987) (citing Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)).

19 Entry of default judgment is left to the court’s sound discretion. Aldabe v. Aldabe, 20 616 F.2d 1089, 1092 (9th Cir. 1980). In exercising its discretion, the court considers 21 seven factors (the “Eitel factors”): (1) the possibility of prejudice to the plaintiff if relief 22 is denied; (2) the substantive merits of the plaintiff’s claims; (3) the sufficiency of the 1 claims raised in the complaint; (4) the sum of money at stake in relationship to the 2 defendant’s behavior; (5) the possibility of a dispute concerning material facts;

3 (6) whether default was due to excusable neglect; and (7) the preference for decisions on 4 the merits when reasonably possible. Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 5 1986). After the court determines that default judgment is appropriate, it must then 6 determine the amount and character of the relief that should be awarded. See TeleVideo, 7 826 F.2d at 917-18. 8 B. Whether the Eitel Factors Favor Default Judgment

9 The court preliminarily determines that default judgment is warranted in this case 10 because, on balance, the Eitel factors weigh in favor of such judgment. The court 11 discusses each factor in turn. 12 1. Possibility of Prejudice to Plaintiff 13 The first Eitel factor considers whether the plaintiff will suffer prejudice if default

14 judgment is not entered. See PepsiCo, Inc., v. Cal. Sec.

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