GS Holistic LLC v. RAB 786 LLC

CourtDistrict Court, W.D. Washington
DecidedNovember 7, 2023
Docket2:23-cv-00321
StatusUnknown

This text of GS Holistic LLC v. RAB 786 LLC (GS Holistic LLC v. RAB 786 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. RAB 786 LLC, (W.D. Wash. 2023).

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. C23-0321JLR 11 Plaintiff, ORDER v. 12 RAB 786 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 RAB 786 LLC d/b/a Xhale Gallery (“Xhale 18 Gallery”), Nadeem Anjum, and Muhammad Jamil Anjum (together, “Defendants”). 19 (Mot. (Dkt. # 12); see Prop. Judgment (Dkt. # 12-3).) None of the Defendants have 20 appeared in this action, and the Clerk has entered default against all Defendants. (See 21 Dkt.; Entry of Default (Dkt. # 10).) The court has considered GS Holistic’s motion, the 22 materials it submitted in support of its motion, the relevant portions of the record, and the 1 governing law. Being fully advised, the court GRANTS in part and DENIES in part GS 2 Holistic’s motion for entry of default judgment.

3 II. BACKGROUND 4 GS Holistic is a Delaware limited liability corporation (“LLC”) that has its 5 principal place of business in California. (Compl. (Dkt. # 1) ¶ 4.) It alleges that it is the 6 owner of the “Stündenglass” trademark, has worked to distinguish the Stündenglass 7 brand as “the premier manufacturer of glass infusers,” and has devoted significant time 8 and resources promoting and protecting its trademark. (Id. ¶¶ 4, 8-10, 15.) GS Holistic

9 has registered the following trademarks: (1) U.S. Trademark Registration No. 6,633,884 10 “for the standard character mark ‘Stündenglass’ in association with goods further 11 identified in registration in international class 011”; (2) U.S. Trademark Registration No. 12 6,174,292 “for the design plus words mark ‘S’ and its logo in association with goods 13 further identified in the registration in international class 034”; and (3) U.S. Trademark

14 Registration No. 6,174,291 “for the standard character mark ‘Stündenglass’ in association 15 with goods further identified in registration in international class 034” (together, the 16 “Stündenglass Marks”). (Id. ¶ 11; see also Mot., Ex. A (screenshots of pages from the 17 United States Patent and Trademark Office’s Trademark Electronic Search System that 18 describe each trademark).) GS Holistic asserts that consumers are willing to pay more

19 for “the recognized quality and innovation associated with the Stündenglass Marks.” 20 (Compl. ¶ 21.) Thus, genuine Stündenglass glass infusers are priced at $599.95, while 21 non-Stündenglass infusers sell for between $199.00 and $600.00. (Id.) 22 1 Defendant Xhale Gallery is a Washington corporation that has its principal place 2 of business in Washington. (Id. ¶ 5.) Defendants Nadeem Anjum and Muhammad Jamil

3 Anjum are owners of Xhale Gallery and are residents and citizens of Washington. (Id. at 4 1; id. ¶¶ 6-7.) GS Holistic asserts that Defendants sold counterfeit products bearing the 5 Stündenglass Marks. (Id. ¶¶ 25-28.) On December 8, 2022, according to GS Holistic, its 6 investigator visited Xhale Gallery’s location; observed that the shop had “an excess” of 7 glass infusers that displayed the Stündenglass Marks; purchased a glass infuser “with a 8 Stündenglass Mark affixed to it” for $441.00; and determined the glass infuser was a

9 counterfeit product that displayed “the Infringing Marks.” (Id. ¶ 30; see also id. ¶ 26 10 (defining the “Infringing Marks” as “reproductions, counterfeits, copies, and/or colorable 11 imitations of one or more of the Stündenglass Marks”).) 12 GS Holistic filed its complaint on March 6, 2023. (See id. at 1.) It alleges claims 13 under the Lanham Act against both Defendants for counterfeiting and trademark

14 infringement in violation of 15 U.S.C. § 1114 and for false designation of origin and 15 unfair competition in violation of 15 U.S.C. § 1125(a). (Id. ¶¶ 52-69.) Among other 16 relief, it seeks damages, costs of suit, a permanent injunction prohibiting Defendants 17 from continuing to infringe its Stündenglass trademarks, and an order requiring 18 Defendants to deliver all infringing products to GS Holistic for destruction. (Id. at

19 12-14.) 20 GS Holistic served Nadeem Anjum and XHale Gallery on April 17, 2023; it 21 served Muhammad Jamil Anjum on April 21, 2023. (See Service Affs. (Dkt. ## 6-8).) 22 The Clerk entered default against all three Defendants on June 23, 2023. (Entry of 1 Default.) GS Holistic filed this motion for entry of default judgment on October 31, 2 2023. (Mot.)

3 III. ANALYSIS 4 Below, the court sets forth the relevant legal standard and then evaluates GS 5 Holistic’s motion for entry of default judgment. 6 A. Legal Standard 7 Federal Rule of Civil Procedure 55(b)(2) authorizes the court to enter default 8 judgment against a defaulting defendant upon the plaintiff’s motion. Fed. R. Civ. P.

9 55(a), (b)(2). After default is entered, well-pleaded factual allegations in the complaint, 10 except those related to damages, are considered admitted and are sufficient to establish a 11 defendant’s liability. TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 12 1987) (citing Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)). 13 Entry of default judgment is left to the court’s sound discretion. Aldabe v. Aldabe,

14 616 F.2d 1089, 1092 (9th Cir. 1980). In exercising its discretion, the court considers 15 seven factors (the “Eitel factors”): (1) the possibility of prejudice to the plaintiff if relief 16 is denied; (2) the substantive merits of the plaintiff’s claims; (3) the sufficiency of the 17 claims raised in the complaint; (4) the sum of money at stake in relationship to the 18 defendant’s behavior; (5) the possibility of a dispute concerning material facts;

19 (6) whether default was due to excusable neglect; and (7) the preference for decisions on 20 the merits when reasonably possible. Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 21 1986). After the court determines that default judgment is appropriate, it must then 22 1 determine the amount and character of the relief that should be awarded. See TeleVideo, 2 826 F.2d at 917-18.

3 B. Whether the Eitel Factors Favor Default Judgment 4 The court preliminarily determines that default judgment is warranted in this case 5 because, on balance, the Eitel factors weigh in favor of such judgment. The court 6 discusses each factor in turn. 7 1. Possibility of Prejudice to Plaintiff 8 The first Eitel factor considers whether the plaintiff will suffer prejudice if default

9 judgment is not entered. See PepsiCo, Inc., v. Cal. Sec. Cans, 238 F. Supp. 2d 1172, 10 1177 (C.D. Cal. 2002). Without default judgment, GS Holistic will suffer prejudice 11 because it will “be denied the right to judicial resolution” of its claims and will be 12 “without other recourse for recovery.” Elektra Entm’t Grp. Inc. v. Crawford, 226 F.R.D. 13 388, 392 (C.D. Cal. 2005). Thus, the first Eitel factor weighs in favor of entering default

14 judgment. 15 2. Substantive Merits and Sufficiency of the Complaint 16 The second and third Eitel factors—the substantive merits of the plaintiff’s claim 17 and the sufficiency of the plaintiff’s complaint—are frequently analyzed together.

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GS Holistic LLC v. RAB 786 LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gs-holistic-llc-v-rab-786-llc-wawd-2023.