GS Holistic LLC v. Dapara LLC

CourtDistrict Court, W.D. Washington
DecidedMay 8, 2025
Docket2:24-cv-01226
StatusUnknown

This text of GS Holistic LLC v. Dapara LLC (GS Holistic LLC v. Dapara LLC) 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. Dapara LLC, (W.D. Wash. 2025).

Opinion

1 2

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

9 10 GS HOLISTIC, LLC, CASE NO. C24-1226JLR 11 Plaintiff, ORDER v. 12 DAPARA LLC, et al., 13 Defendants. 14

15 I. INTRODUCTION 16 Before the court is Plaintiff GS Holistic, LLC’s (“GS Holistic”) motion for entry 17 of default judgment against Defendants Dapara LLC, d/b/a Pacific Smoke (“Pacific 18 Smoke”), Matthew Cho, and Philip Cho (together, “Defendants”). (Mot. (Dkt. # 15); see 19 Prop. Judgment (Dkt. # 15-4).) The court has considered GS Holistic’s motion, the 20 materials it submitted in support of its motion, the relevant portions of the record, and the 21 governing law. Being fully advised, the court GRANTS in part and DENIES in part GS 22 Holistic’s motion for entry of default judgment. 1 II. BACKGROUND 2 GS Holistic is a Delaware limited liability corporation that has its principal place

3 of business in California. (Compl. (Dkt. # 1) ¶ 4.) It alleges that it is the owner of the 4 “Stündenglass” trademark, has worked to distinguish the Stündenglass brand as “the 5 premier manufacturer of Gravity Infusers,” and has devoted significant time and 6 resources promoting and protecting its trademark. (Id. ¶¶ 4, 8-10, 15.) GS Holistic has 7 registered the following trademarks: (1) U.S. Trademark Registration No. 6,633,884 “for 8 the standard character mark ‘Stündenglass’ in association with goods further identified in

9 registration in international class 011”; (2) U.S. Trademark Registration No. 6,174,292 10 “for the design plus words mark ‘S’ and its logo in association with goods further 11 identified in the registration in international class 034”; and (3) U.S. Trademark 12 Registration No. 6,174,291 “for the standard character mark ‘Stündenglass’ in association 13 with goods further identified in registration in international class 034” (together, the

14 “Stündenglass Marks”). (Id. ¶ 11; see also id., Ex. A (copies of trademark registrations).) 15 GS Holistic asserts that consumers are willing to pay higher prices for “the recognized 16 quality and innovation associated with the Stündenglass Marks.” (Id. ¶ 21.) Thus, 17 genuine Stündenglass Gravity Infusers are priced at $599.95, while non-Stündenglass 18 infusers with fake Stündenglass Marks sell for between $199.00 and $600.00. (Id.)

19 Defendant Pacific Smoke is a Washington limited liability company that has its 20 principal place of business in Washington. (Id. ¶ 5.) Matthew Cho and Phillip Cho are 21 citizens of Washington State and are governors of Pacific Smoke. (Id. ¶¶ 6-7.) GS 22 Holistic asserts that Defendants sold and continue to sell counterfeit products bearing the 1 Stündenglass Marks. (See, e.g., id. ¶¶ 27-40.) On December 12, 2022, GS Holistic’s 2 investigator visited Pacific Smoke’s location; observed that the shop had “an excess of

3 Gravity Infusers which appeared to display each of the Stündenglass Marks”; purchased a 4 Gravity Infuser “with Stündenglass Marks affixed to it” for $495.45; and determined that 5 the Gravity Infuser was a counterfeit product bearing “Infringing Marks.” (Id. ¶ 34; see 6 also id. ¶ 29 (defining the “Infringing Marks” as “reproductions, counterfeits, copies, 7 and/or colorable imitations of one or more of the Stündenglass Marks”); id. ¶ 35, Ex. B 8 (photographs of the allegedly infringing product).)

9 GS Holistic filed its complaint on August 11, 2024. (See id. at 1.) It alleges 10 claims under the Lanham Act against Defendants for counterfeiting and trademark 11 infringement in violation of 15 U.S.C. § 1114 and for false designation of origin in 12 violation of 15 U.S.C. § 1125(a). (Id. ¶¶ 57-74.) Among other relief, it seeks statutory 13 damages, costs of suit, a permanent injunction prohibiting Defendants from continuing to

14 infringe its Stündenglass trademarks, and an order requiring Defendants to deliver all 15 infringing materials to GS Holistic for destruction. (Id. at 16-18.) 16 GS Holistic served its complaint on Matthew Cho and Phillip Cho on September 17 30, 2024, and is served Pacific Smoke on November 11, 2024. (See Service Affs. (Dkt. 18 ## 7-9).) The Clerk entered default against Matthew Cho and Phillip Cho on November

19 26, 2024, and against Pacific Smoke on January 22, 2025. (Entries of Default (Dkt. ## 8, 20 13).) GS Holistic filed this motion for entry of default judgment on May 1, 2025. (Mot.) 21 22 1 III. ANALYSIS 2 Below, the court sets forth the relevant legal standard and then evaluates GS

3 Holistic’s motion for entry of default judgment. 4 A. Legal Standard 5 Federal Rule of Civil Procedure 55(b)(2) authorizes the court to enter default 6 judgment against a defaulting defendant upon the plaintiff’s motion. Fed. R. Civ. P. 7 55(a), (b)(2). After default is entered, well-pleaded factual allegations in the complaint, 8 except those related to damages, are considered admitted and are sufficient to establish a

9 defendant’s liability. TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 10 1987) (citing Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)). 11 Entry of default judgment is left to the court’s sound discretion. Aldabe v. Aldabe, 12 616 F.2d 1089, 1092 (9th Cir. 1980). In exercising its discretion, the court considers 13 seven factors (the “Eitel factors”): (1) the possibility of prejudice to the plaintiff if relief

14 is denied; (2) the substantive merits of the plaintiff’s claims; (3) the sufficiency of the 15 claims raised in the complaint; (4) the sum of money at stake in relationship to the 16 defendant’s behavior; (5) the possibility of a dispute concerning material facts; 17 (6) whether default was due to excusable neglect; and (7) the preference for decisions on 18 the merits when reasonably possible. Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir.

19 1986). After the court determines that default judgment is appropriate, it must then 20 determine the amount and character of the relief that should be awarded. See TeleVideo, 21 826 F.2d at 917-18. 22 1 B. Whether the Eitel Factors Favor Default Judgment 2 The court preliminarily determines that default judgment is warranted in this case

3 because, on balance, the Eitel factors weigh in favor of such judgment. The court 4 discusses each factor in turn. 5 1. Possibility of Prejudice to Plaintiff 6 The first Eitel factor considers whether the plaintiff will suffer prejudice if default 7 judgment is not entered. See PepsiCo, Inc., v. Cal. Sec. Cans, 238 F. Supp. 2d 1172, 8 1177 (C.D. Cal. 2002). Without default judgment, GS Holistic will suffer prejudice

9 because it will “be denied the right to judicial resolution” of its claims and will be 10 “without other recourse for recovery.” Elektra Entm’t Grp. Inc. v. Crawford, 226 F.R.D. 11 388, 392 (C.D. Cal. 2005). Thus, the first Eitel factor weighs in favor of entering default 12 judgment. 13 2. Substantive Merits and Sufficiency of the Complaint

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