GS Holistic LLC v. HR LLC

District Court, W.D. Washington·Decided July 29, 2024·No. 2:23-cv-00401·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE

GS HOLISTIC, LLC, CASE NO. C23-0401JLR Plaintiff, ORDER v. HR LLC, et al, Defendants.

Before the court is Plaintiff GS Holistic, LLC’s (“GS Holistic”) motion for entry of default judgment against Defendants HR LLC, d/b/a Kings Smoke Shop (“Kings Smoke Shop”) and Hassan Pasha (together, “Defendants”). (Mot. (Dkt. # 19); see Prop. Judgment (Dkt. # 19-4).) Neither Defendant has appeared in this action, and the Clerk has entered default against both Defendants. (See Dkt.; 6/15/23 Entry of Default (Dkt. # 11); 12/1/23 Entry of Default (Dkt. # 14).1) The court has considered GS Holistic’s motion, the materials it submitted in support of its motion, the relevant portions of the

record, and the governing law. Being fully advised, the court GRANTS in part and DENIES in part GS Holistic’s motion for entry of default judgment. GS Holistic is a Delaware limited liability corporation (“LLC”) that has its principal place of business in California. (Compl. (Dkt. # 1) ¶ 4.) It alleges that it is the owner of the “STÜNDENGLASS” trademark, has worked to distinguish the

Stündenglass brand as “the premier manufacturer of glass infusers,” and has devoted significant time and resources promoting and protecting its trademark. (Id. ¶¶ 4, 8-10, 15.) GS Holistic has registered the following trademarks: (1) U.S. Trademark Registration No. 6,633,884 “for the standard character mark ‘Stündenglass’ in association with goods further identified in registration in international class 011”; (2) U.S.

Trademark Registration No. 6,174,292 “for the design plus words mark ‘S’ and its logo in association with goods further identified in the registration in international class 034”; and (3) U.S. Trademark Registration No. 6,174,291 “for the standard character mark ‘Stündenglass’ in association with goods further identified in registration in international class 034” (together, the “Stündenglass Marks”). (Id. ¶ 11; see also Mot., Ex. A

(screenshots of pages from the United States Patent and Trademark Office’s Trademark Electronic Search System that describe each trademark).) GS Holistic asserts that

1 GS Holistic dismissed its claims against Defendant Romaisa Asif on January 2, 2024. (See 1/2/24 Notice (Dkt. # 15).) consumers are willing to pay more for “the recognized quality and innovation associated with the Stündenglass Marks.” (Compl. ¶ 21.) Thus, genuine Stündenglass glass infusers

are priced at $599.95, while non-Stündenglass infusers sell for between $199.00 and $600.00. (Id.) Defendant Kings Smoke Shop is a Washington limited liability company that has its principal place of business in Washington. (Id. ¶ 5.) Defendant Hassan Pasha is an owner of Kings Smoke Shop and is a resident and citizen of Washington. (Id. at 1; id. ¶ 6.) GS Holistic asserts that Defendants sold and continue to sell counterfeit products

bearing the Stündenglass Marks. (Id. ¶¶ 25-28.) On December 8, 2022, according to GS Holistic, its investigator visited Kings Smoke Shop’s location; observed that the shop had “an excess” of glass infusers that displayed the Stündenglass Marks; purchased a glass infuser “with a Stündenglass Mark affixed to it” for $550.00; and determined the glass infuser was a counterfeit product that displayed “the Infringing Marks.” (Id. ¶ 30; see

also id. ¶ 26 (defining the “Infringing Marks” as “reproductions, counterfeits, copies, and/or colorable imitations of one or more of the Stündenglass Marks”); Mot. Ex. B (photographs of the alleged counterfeit product).) GS Holistic filed its complaint on March 16, 2023. (See Compl. at 1.) It alleges claims under the Lanham Act against both Defendants for counterfeiting and trademark

infringement in violation of 15 U.S.C. § 1114 and for false designation of origin and unfair competition in violation of 15 U.S.C. § 1125(a). (Id. ¶¶ 52-69.) Among other relief, it seeks damages, costs of suit, a permanent injunction prohibiting Defendants from continuing to infringe its Stündenglass trademarks, and an order requiring Defendants to deliver all infringing products to GS Holistic for destruction. (Id. at 12-14.)

GS Holistic served Kings Smoke Shop on April 17, 2023, and Mr. Pasha on April 19, 2023. (See Service Affs. (Dkt. ## 6-7.) The Clerk entered default against Kings Smoke Shop on June 15, 2023, and against Mr. Pasha on December 1, 2023. (6/15/23 Entry of Default; 12/1/13 Entry of Default.) GS Holistic filed this motion for entry of default judgment on July 23, 2024. (Mot.)

Below, the court sets forth the relevant legal standard and then evaluates GS Holistic’s motion for entry of default judgment. A. Legal Standard Federal Rule of Civil Procedure 55(b)(2) authorizes the court to enter default judgment against a defaulting defendant upon the plaintiff’s motion. Fed. R. Civ. P.

55(a), (b)(2). After default is entered, well-pleaded factual allegations in the complaint, except those related to damages, are considered admitted and are sufficient to establish a defendant’s liability. TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 1987) (citing Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)). Entry of default judgment is left to the court’s sound discretion. Aldabe v. Aldabe,

616 F.2d 1089, 1092 (9th Cir. 1980). In exercising its discretion, the court considers seven factors (the “Eitel factors”): (1) the possibility of prejudice to the plaintiff if relief is denied; (2) the substantive merits of the plaintiff’s claims; (3) the sufficiency of the claims raised in the complaint; (4) the sum of money at stake in relationship to the defendant’s behavior; (5) the possibility of a dispute concerning material facts; (6) whether default was due to excusable neglect; and (7) the preference for decisions on

the merits when reasonably possible. Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986). After the court determines that default judgment is appropriate, it must then determine the amount and character of the relief that should be awarded. See TeleVideo, 826 F.2d at 917-18. B. Whether the Eitel Factors Favor Default Judgment The court preliminarily determines that default judgment is warranted in this case

because, on balance, the Eitel factors weigh in favor of such judgment. The court discusses each factor in turn. 1. Possibility of Prejudice to Plaintiff The first Eitel factor considers whether the plaintiff will suffer prejudice if default judgment is not entered. See PepsiCo, Inc., v. Cal. Sec. Cans, 238 F. Supp. 2d 1172,

1177 (C.D. Cal. 2002). Without default judgment, GS Holistic will suffer prejudice because it will “be denied the right to judicial resolution” of its claims and will be “without other recourse for recovery.” Elektra Entm’t Grp. Inc. v. Crawford, 226 F.R.D. 388, 392 (C.D. Cal. 2005). Thus, the first Eitel factor weighs in favor of entering default judgment.

Free access — add to your briefcase to read the full text and ask questions with AI

GS Holistic LLC v. HR LLC, (W.D. Wash. 2024).

GS Holistic LLC v. HR LLC (GS Holistic LLC v. HR LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Alvera M. Aldabe v. Charles D. Aldabe
616 F.2d 1089 (Ninth Circuit, 1980)
Gary R. Eitel v. William D. McCool
782 F.2d 1470 (Ninth Circuit, 1986)
Reno Air Racing Association, Inc. v. Jerry McCord
452 F.3d 1126 (Ninth Circuit, 2006)
Freecycle Network, Inc. v. Oey
505 F.3d 898 (Ninth Circuit, 2007)
Pepsico, Inc. v. California Security Cans
238 F. Supp. 2d 1172 (C.D. California, 2002)
GUCCI AMERICA, INC. v. Tyrrell-Miller
678 F. Supp. 2d 117 (S.D. New York, 2008)
Fendi Adele S.R.L. v. Burlington Coat Factory Warehouse Corp.
689 F. Supp. 2d 585 (S.D. New York, 2010)
Pom Wonderful v. Robert Hubbard, Jr.
775 F.3d 1118 (Ninth Circuit, 2014)
Fong v. United States
300 F.2d 400 (Ninth Circuit, 1962)
Yelp Inc. v. Catron
70 F. Supp. 3d 1082 (N.D. California, 2014)
Wecosign, Inc. v. IFG Holdings, Inc.
845 F. Supp. 2d 1072 (C.D. California, 2012)
Philip Morris USA Inc. v. Castworld Products, Inc.
219 F.R.D. 494 (C.D. California, 2003)
In re Newkirk Mining Co.
238 F. Supp. 1 (E.D. Pennsylvania, 1964)
Saalfield Pub. Co. v. G. & C. Merriam Co.
238 F. 1 (Sixth Circuit, 1917)