GS Holistic, LLC v. Samiullah Shinwar d/b/a Swag Smokes

District Court, E.D. California·Decided June 10, 2026·No. 2:23-cv-00355·Unknown

Opinion

GS HOLISTIC, LLC, Case No. 2:23-cv-00355-CSK Plaintiff, ORDER AND FINDINGS AND RECOMMENDATIONS v.

SAMIULLAH SHINWAR d/b/a SWAG SMOKES, (ECF No. 44) Defendant.

Plaintiff GS Holistic, LLC asserts claims for “Federal Trademark Counterfeiting and Infringement, 15 U.S.C. § 1114” and “Federal False Designation of Origin[,] 15 U.S.C. § 1125(a)” against Defendant Samiullah Shinwar doing business as (“d/b/a”) Swag Smokes, seeking monetary damages, restitution, an injunction, and other relief. Third Amended Complaint (“TAC”) (ECF No. 36). Defendant has not made an appearance in this action, and a Clerk’s Default was entered on January 12, 2026. (ECF No. 42.) Presently pending before the Court is Plaintiff’s motion for default judgment (ECF No. 44), which was taken under submission without argument pursuant to Local Rule 230(g).1 1 This motion is referred to the undersigned pursuant to Local Rule 302(c)(19) and 28 U.S.C. § 636(b)(1)(A). For the reasons that follow, the Court recommends Plaintiff’s motion for default judgment be DENIED with prejudice, and the Third Amended Complaint be DISMISSED A. Facts The TAC alleges that since 2020, Plaintiff has marketed and sold glass infusers and related accessories using “Stündenglass” trademarks. TAC ¶ 9. Plaintiff has three registered trademarks: (1) Mark 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”; (2) Mark 6,174,291 for “the standard character mark ‘Stündenglass’ in association with goods further identified in registration in international class 034”; and (3) Mark 6,633,884 for “the standard character mark ‘Stündenglass’ in association with goods further identified in registration in international class 011.”2 Id. ¶ 12. Plaintiff has used these Marks in commerce throughout the United States continuously since 2020. Id. ¶ 14. The TAC alleges that products branded with these Marks are “widely recognized nationally and internationally” and “known for high quality and innovation.” Id. ¶ 9. The TAC alleges the Marks are famous, distinctive, and popular with consumers, celebrities, and industry professionals. Id. ¶¶ 15, 17, 19-20. The TAC alleges the Marks are exclusive to Plaintiff, clearly displayed on its products, packaging, and advertisements, and the subject of substantial time and money investment for Plaintiff. Id. ¶¶ 16, 18. Plaintiff authorizes stores in the United States to sell products bearing the Marks, which typically sell for a higher price than similar non-branded

2 The Nice Agreement establishes a classification of goods and services for the purposes of registering trademarks and service marks. Class 11 goods include “apparatus and installations for lighting, heating, cooling, steam generating, cooking, drying, ventilating, water supply and sanitary purposes.” Class 34 goods include “tobacco and tobacco substitutes; cigarettes and cigars; electronic cigarettes and oral vaporizers for smokers; smokers’ articles; matches.” See List of Goods and Services in Class Order, Nice Classification Index, accessed June 3, 2026, 11:04 a.m., available at https://nclpub.wipo.int/enfr/. products. Id. ¶¶ 21-22. Because of the above, the TAC alleges that products with these Marks are targeted by counterfeiters, which in turn misleads consumers, tarnishes Plaintiff’s public image, and affects Plaintiff’s sales of authentic products to legitimate store owners. Id. ¶¶ 23-26. Plaintiff actively enforces its rights to protect its Marks, often through litigation. Id. ¶ 27. Defendant Shinwar is alleged to be an individual who owns, manages, and operates a business known as “Swag Smokes,” a sole proprietorship with its principal place of business in Stockton, California. Id. ¶¶ 6-8. The TAC states Defendant has previously offered to sell glass infusers bearing reproductions or imitations of Plaintiff’s Marks. Id. ¶¶ 29-31. Specifically, the TAC alleges that on October 26, 2022, Plaintiff’s investigator visited Swag Smokes and “observed one Gravity Infuser device on display that bore marks identical or substantially indistinguishable from the Stündenglass Marks,” which the investigator purchased from the store for $270. Id. ¶ 31. Plaintiff’s investigator observed the absence of Plaintiff’s authentication sticker, packaging inconsistencies including a missing cleaning kit and “differences in brightness, color contrast, and label design,” and the use of lower-quality materials. Id. ¶ 32. The TAC states that the investigator’s observations confirmed the product “was intended to imitate the appearance of authentic Stündenglass Gravity Infusers” and was a counterfeit. Id. ¶ 33. The TAC concludes Defendant Shinwar willfully “authorized, directed, and/or participated” in Swag Smokes’s offer for sale of the “Counterfeit Goods” and its infringement of the Marks, which occurred without Plaintiff’s authorization and after registration of the Marks. Id. ¶¶ 36, 39, 40, 50. Plaintiff contends it has suffered losses and damage to its brand, business reputation, and goodwill because of Defendant’s acts, which are “likely to cause confusion, mistake, or deception among reasonably prudent consumers.” Id. ¶¶ 42-49, 51. Plaintiff prays for statutory and treble damages; costs; an order enjoining Defendant’s sale of any counterfeit Stündenglass product and an order for destruction of products bearing the Marks; an accounting and disgorgement of profits/restitution; and other relief. Id. at 19-21. B. Procedural Posture Plaintiff initiated this action on February 26, 2023, asserting claims against Swag Smokes for Federal Trademark Counterfeiting and Infringement, 15 U.S.C. § 1114 and Federal False Designation of Origin and Unfair Competition, 15 U.S.C. § 1125(a). (ECF No. 1.) The Clerk of the Court entered default against Swag Smokes, but after Plaintiff requested leave to amend, this default was set aside. (ECF Nos. 5-9.) Plaintiff’s First Amended Complaint (“FAC”) was filed on July 18, 2023, and asserted the same claims against Defendant Shinwar d/b/a Swag Smokes. See FAC (ECF No. 10). The Clerk of Court entered default against Defendant on November 3, 2023. (ECF No. 19.) On December 8, 2023, Plaintiff filed a motion for default judgment. (ECF No. 24.) The Court denied the motion without prejudice and dismissed the FAC with leave to amend on August 20, 2024. 8/20/2024 Order (ECF No. 29). Plaintiff's motion for default judgment was denied for failure to satisfy the second and third Eitel factors because the FAC did not sufficiently allege the elements for Defendant’s use of Plaintiff's trademarks and for the sale of counterfeit goods or likelihood of confusion, as required to establish claims for trademark infringement and false designation of origin. 8/20/2024 Order at 8- 12. The Court instructed Plaintiff to ensure that any amended pleading cured the defects identified in the August 20, 2024 Order and to ensure Plaintiff carried its burden on any subsequent motion for default judgment. Id. at 15. On September 19, 2024, Plaintiff filed the Second Amended Complaint (“SAC”). (ECF No. 30.) After the SAC was filed, Plaintiff took no further action until the Court issued an Order to Show Cause (“OSC”) on April 1, 2025, requiring a response from Plaintiff within 14 days. 4/1/2025 OSC (ECF No. 31). Plaintiff served the SAC on Defendant on May 3, 2025. (ECF No. 33.) After Plaintiff again took no action to advance the case after service of the SAC, th

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