GS Holistic LLC v. Ranya and Dania LLC

District Court, W.D. Washington·Decided December 14, 2023·No. 3:23-cv-05180·Unknown

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. C23-5180JLR 11 Plaintiff, ORDER v. 12 RANYA AND DANIA LLC, et al., 13 Defendants. 14

16 Before the court is Plaintiff GS Holistic, LLC’s (“GS Holistic”) motion for entry 17 of default judgment against Defendants Ranya and Dania LLC d/b/a Dania Smoke Shop 18 (“Dania Smoke”) and Ali Altameemi (together, “Defendants”). (Mot. (Dkt. # 22); see 19 Prop. Judgment (Dkt. # 22-3).) Neither Defendant has appeared in this action, and the 20 Clerk has entered default against both Defendants. (See Dkt.; 6/15/23 Entry of Default 21 (Dkt. # 16); 11/20/23 Entry of Default (Dkt. # 20).) The court has considered GS 22 Holistic’s motion, the materials it submitted in support of its motion, the relevant portions 1 of the record, and the governing law. Being fully advised, the court GRANTS in part and 2 DENIES in part GS Holistic’s motion for entry of default judgment.

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 registered owner of the “Stündenglass” trademarks, has worked to distinguish the 7 Stündenglass brand as “the premier manufacturer of glass infusers,” and has devoted 8 significant time and resources to promoting and protecting its trademark. (Id. ¶¶ 4, 7-9,

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

14 and (3) U.S. Trademark Registration No. 6,174,291 “for the standard character mark 15 ‘Stündenglass’ in association with goods further identified in registration in international 16 class 034” (together, the “Stündenglass Marks”).1 (Id. ¶ 10; see also Mot., Ex. A 17 (screenshots of pages from the United States Patent and Trademark Office’s Trademark 18 Electronic Search System that describe these trademarks).) GS Holistic asserts that

19 consumers are willing to pay more for “the recognized quality and innovation associated 20

21 1 GS Holistic refers to these trademarks interchangeably in its complaint as either the “Stündenglass Marks” or the “Stündenglass Trademarks.” The court uses the term 22 “Stündenglass Marks” in this order. 1 with the Stündenglass Marks.” (Compl. ¶ 20.) Thus, genuine Stündenglass brand glass 2 infusers are priced at $599.95, while non-Stündenglass infusers sell for between $199.00

3 and $600.00. (Id.) 4 Defendant Dania Smoke is a Washington LLC that has its principal place of 5 business in Washington. (Id. ¶ 5.) Defendant Ali Altameemi is a resident and citizen of 6 Washington and the owner of Dania Smoke. (Id. ¶ 6, 23.) GS Holistic alleges that 7 Defendants sold counterfeit products bearing the Stündenglass Marks. (Id. ¶¶ 24-27.) 8 On December 13, 2022, according to GS Holistic, its investigator visited Dania Smoke’s

9 location; observed that the shop had “an excess of” glass infusers that displayed the 10 Stündenglass Marks; purchased a glass infuser “with a Stündenglass Mark affixed to it” 11 for $439.99; and determined the glass infuser was a counterfeit product that displayed 12 “the Infringing Marks.” (Id. ¶ 29; see also id. ¶ 25 (defining the “Infringing Marks” as 13 “reproductions, counterfeits, copies, and/or colorable imitations of one or more of the

14 Stündenglass Marks”).) 15 GS Holistic filed its complaint on March 6, 2023. (See id. at 1.) It alleges claims 16 under the Lanham Act against both Defendants for counterfeiting and trademark 17 infringement in violation of 15 U.S.C. § 1114 and for false designation of origin and 18 unfair competition in violation of 15 U.S.C. § 1125(a). (Id. ¶¶ 51-68.) Among other

19 relief, it seeks damages, costs of suit, a permanent injunction prohibiting Defendants 20 from continuing to infringe its Stündenglass trademarks, and an order requiring 21 Defendants to deliver all infringing products to GS Holistic for destruction. (Id. at 22 12-14.) 1 GS Holistic served Dania Smoke on April 17, 2023, and Mr. Altameemi on June 2 6, 2023. (See Service Affs. (Dkt. ## 12, 17).) The Clerk entered default against Dania

3 Smoke on June 15, 2023, and against Mr. Altameemi on November 20, 2023. (See 4 6/15/23 Entry of Default; 11/20/23 Entry of Default.) GS Holistic filed this motion for 5 entry of default judgment on December 11, 2023. (Mot.) 7 Below, the court sets forth the relevant legal standard and then evaluates GS 8 Holistic’s motion for entry of default judgment.

9 A. Legal Standard 10 Federal Rule of Civil Procedure 55(b)(2) authorizes the court to enter default 11 judgment against a defaulting defendant upon the plaintiff’s motion. Fed. R. Civ. P. 12 55(a), (b)(2). After default is entered, well-pleaded factual allegations in the complaint, 13 except those related to damages, are considered admitted and are sufficient to establish a

14 defendant’s liability. TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 15 1987) (citing Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)). 16 Entry of default judgment is left to the court’s sound discretion. Aldabe v. Aldabe, 17 616 F.2d 1089, 1092 (9th Cir. 1980). In exercising its discretion, the court considers 18 seven factors (the “Eitel factors”): (1) the possibility of prejudice to the plaintiff if relief

19 is denied; (2) the substantive merits of the plaintiff’s claims; (3) the sufficiency of the 20 claims raised in the complaint; (4) the sum of money at stake in relationship to the 21 defendant’s behavior; (5) the possibility of a dispute concerning material facts; 22 (6) whether default was due to excusable neglect; and (7) the preference for decisions on 1 the merits when reasonably possible. Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 2 1986). After the court determines that default judgment is appropriate, it must then

3 determine the amount and character of the relief that should be awarded. See TeleVideo, 4 826 F.2d at 917-18. 5 B. Whether the Eitel Factors Favor Default Judgment 6 The court preliminarily determines that default judgment is warranted in this case 7 because, on balance, the Eitel factors weigh in favor of such judgment. The court 8 discusses each factor in turn.

9 1. Possibility of Prejudice to Plaintiff 10 The first Eitel factor considers whether the plaintiff will suffer prejudice if default 11 judgment is not entered. See PepsiCo, Inc., v. Cal. Sec. Cans, 238 F. Supp. 2d 1172, 12 1177 (C.D. Cal. 2002). Without default judgment, GS Holistic will suffer prejudice 13 because it will “be denied the right to judicial resolution” of its claims and will be

14 “without other recourse for recovery.” Elektra Entm’t Grp. Inc. v. Crawford, 226 F.R.D. 15 388, 392 (C.D.

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