GS Holistic LLC v. Ranya and Dania LLC

CourtDistrict Court, W.D. Washington
DecidedJuly 3, 2024
Docket3:23-cv-05179
StatusUnknown

This text of GS Holistic LLC v. Ranya and Dania LLC (GS Holistic LLC v. Ranya and Dania 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. Ranya and Dania LLC, (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. C23-5179JLR 11 Plaintiff, ORDER v. 12 RANYA AND DANIA 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 Ranya and Dania LLC, d/b/a Dania Smoke Shop 18 (“Dania Smoke Shop”) and Ali Altameemi (together, “Defendants”). (Mot. (Dkt. # 19); 19 see Prop. Judgment (Dkt. # 19-4).) Neither Defendant has appeared in this action, and 20 the Clerk has entered default against both Defendants. (See Dkt.; 6/15/23 Entry of 21 Default (Dkt. # 12); 12/1/23 Entry of Default (Dkt. # 15).) 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.

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. # 8) ¶ 4.) It alleges that it is the 6 owner of the “STÜNDENGLASS” trademark, has worked to distinguish the 7 Stündenglass brand as “the premier manufacturer of glass infusers,” and has devoted 8 significant time and resources promoting and protecting its trademark. (Id. ¶¶ 4, 7-9, 14.)

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

19 consumers are willing to pay more for “the recognized quality and innovation associated 20 with the Stündenglass Marks.” (Compl. ¶ 20.) Thus, genuine Stündenglass glass infusers 21 are priced at $599.95, while non-Stündenglass infusers sell for between $199.00 and 22 $600.00. (Id.) 1 Defendant Dania Smoke Shop is a Washington limited liability company that has 2 its principal place of business in Washington. (Id. ¶ 5.) Defendant Ali Altameemi is an

3 owner of Dania Smoke Shop and is a resident and citizen of Washington. (Id. at 1; id. 4 ¶ 6.) GS Holistic asserts that Defendants sold and continue to sell counterfeit products 5 bearing the Stündenglass Marks. (Id. ¶¶ 24-27.) On December 5, 2022, according to GS 6 Holistic, its investigator visited Dania Smoke Shop’s location; observed that the shop had 7 “an excess” of glass infusers that displayed the Stündenglass Marks; purchased a glass 8 infuser “with a Stündenglass Mark affixed to it” for $399.99; and determined the glass

9 infuser was a counterfeit product that displayed “the Infringing Marks.” (Id. ¶ 29; see 10 also id. ¶ 25 (defining the “Infringing Marks” as “reproductions, counterfeits, copies, 11 and/or colorable 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. ¶¶ 51-68.) 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 Dania Smoke Shop on April 17, 2023, and Mr. Altameemi on 21 June 6, 2023. (See Service Affs. (Dkt. ## 7, 11).) The Clerk entered default against 22 Dania Smoke Shop on June 15, 2023, and against Mr. Altameemi on December 1, 2023. 1 (6/15/23 Entry of Default; 12/1/13 Entry of Default.) GS Holistic filed this motion for 2 entry of default judgment on July 1, 2024. (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.

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GS Holistic LLC v. Ranya and Dania LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gs-holistic-llc-v-ranya-and-dania-llc-wawd-2024.