GS Holistic LLC v. Splash Distributors LLC

District Court, E.D. Wisconsin·Decided September 23, 2025·No. 2:24-cv-01160·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

GS HOLISTIC, LLC,

Plaintiff, Case No. 24-CV-1160-JPS-JPS v.

SPLASH DISTRIBUTORS, LLC and ORDER SHAHED SHAIK,

Defendants.

1. INTRODUCTION In September 2024, Plaintiff GS Holistic, LLC (“GS”) sued Defendants Splash Distributors, LLC (“Splash”) and Shahed Shaik (“Shaik”) (together, “Defendants”) for trademark infringement and counterfeiting in violation of the Lanham Act, 15 U.S.C. §§ 1051 et seq., and for design patent infringement in violation of the patent laws of the United States, 35 U.S.C. §§ 1 et seq. ECF No. 1. Defendants failed to file a responsive pleading or otherwise defend against the action following timely service of process. ECF Nos. 6 and 7; Fed. R. Civ. P. 12(a)(1)(A)(i). In October 2024, GS requested, and the Clerk of Court entered, default against Defendants. ECF No. 8 and Oct. 31, 2024 docket entry. Prior to GS moving for default judgment, Defendants moved to vacate the entry of default against them, ECF Nos. 11–13, and the Court granted that motion as to Shaik but denied it as to Splash, ECF No. 22. Accordingly, the Clerk’s entry of default as to Splash still stands. In February 2025, GS served Splash, against whom default had been entered, with a subpoena for certain documents. ECF No. 24 at 2. Splash served its objections and responses to each of GS’ requests in March 2025. Id. GS attempted to meet and confer with Splash in April 2025 about the discovery requests but was told that Splash opposed the relief GS sought. Id.; ECF No. 25. At the end of April 2025, GS moved to compel production of documents from Splash that it asserts are relevant to its damages calculations in moving for default judgment. ECF Nos. 23 and 24. Splash opposed the motion, ECF No. 33, and GS replied, ECF No. 34. The motion is accordingly ripe for review and, for the reasons discussed herein, will be granted in part and denied in part. 2. FACTUAL BACKGROUND GS sues Defendants for trademark infringement, false designation of origin and unfair competition, and design patent infringement. ECF No. 1. First, GS alleges that Defendants “have offered two types of counterfeit [GS] goods: counterfeit gravity infuser waterpipes and counterfeit Kompact gravity infuser waterpipes, both bearing imitations of the Stündenglass Trademarks that were not made or authorized by GS.” Id. at 6. These counterfeit goods bear “Infringing Marks,” which are “identical with or substantially indistinguishable from, the Stündenglass Trademarks.” Id. at 7. The counterfeit goods are further “almost identical to authentic [GS] products.” Id. On December 29, 2022, a GS investigator visited a Splash facility and observed at least 45 Kompact Stündenglass gravity infuser waterpipes and “an excess” of gravity infuser waterpipes, all of which bore Stündenglass Trademarks. Id. at 7–8; see also ECF No. 1-7. The investigator purchased multiple of these units, with each costing him $120.00. ECF No. 1 at 7. Splash has “distributed, provided, marketed, advertised, promoted, offered for sale, and sold [counterfeit Stündenglass] gravity infuser waterpipes . . . through its wholesale location” and through its “website and social media promotion.” Id. at 10, 11. Splash has further “sold, offered for sale, distributed and advertised counterfeit [Stündenglass] gravity infuser waterpipes . . . to various third-party retailers without advising them that the goods were counterfeit.” Id. at 10. One such third-party retailer is Vaper Zone LLC. Id. Those third-party retailers then sold counterfeit Stündenglass goods. Id. at 10–11. Splash’s use of the Stündenglass Trademarks began after their registration, and “[n]either GS, nor any of its authorized agents, have consented to [its] use of the Stündenglass Trademarks, or any use of reproductions, counterfeits, copies and/or colorable imitations thereof.” Id. at 8–9. GS alleges that Splash’s sale of these counterfeit goods “was, and is, likely to cause confusion or to cause mistake and/or deceive consumers who purchase” those goods, id. at 9, and that Splash has “directly and proximately caused” GS damages by its direct sale of counterfeit Stündenglass goods and also “contributorily caused harm to GS through third party retailer sales” of counterfeit goods. Id. at 12–13. GS alleges that these facts constitute a violation of the Lanham Act, specifically for direct and contributory trademark infringement and counterfeiting under 15 U.S.C. § 1114 and for federal false designation of origin and unfair competition under 15 U.S.C. § 1125(a). Id. at 18–21. It contends that it is entitled to injunctive relief under 15 U.S.C. § 1116 as well as disgorgement of profits, statutory damages, treble damages, and costs of the action under 15 U.S.C. § 1117. Id. at 23–26. In addition to importing and selling counterfeit goods bearing Stündenglass Trademarks, Splash also imported, distributed, sold, and advertised counterfeit goods that “implemented the unauthorized use of GS’ patented designs.” Id. at 15–16. Specifically, Splash offered gravity infuser waterpipes that infringed on GS’ ‘D817 and ‘D804 patents (the “Infringing Products”). Id. at 16–17. On December 29, 2022, a GS investigator visited a Splash facility and observed at least 45 Infringing Products Id. at 16. Splash sold three of these units to the investigator for $120.00 each. Id. In addition to offering the Infringing Products for sale, Splash also distributed them to third party retailers, such as Vaper Zone LLC. Id. at 18. GS contends that Splash has accordingly “contributorily caused harm to GS through third party retailer sales of the Infringing Products distributed to them by” Splash. Id. GS contends that Splash’s infringement entitles it to “a reasonable royalty” pursuant to 35 U.S.C. § 284 and “all remedies for design patent infringement permitted under 35 U.S.C. § 289.” Id. at 22. GS further alleges that Splash’s infringement of GS’ patents was willful, entitling it to “enhanced damages and attorneys’ fees.” Id. GS also seeks injunctive relief to enjoin Splash’s continued patent infringement of the ‘D817 and ‘D804 patents. Id. at 23. 3. LEGAL STANDARD The Federal Rules of Civil Procedure make clear that “[p]arties may obtain discovery regarding any nonprivileged matter that is relevant to any party's claim or defense and proportional to the needs of the case.” Fed. R. Civ. P. 26(b)(1). “Despite the liberal breadth of discovery allowed under Rule 26 of the Federal Rules of Civil Procedure, a proponent of a motion to compel discovery bears the initial burden to prove that the information sought is relevant.” PsyBio Therapeutics, Inc. v. Corbin, No. 20 C 3340, 2021 WL 445952

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GS Holistic LLC v. Splash Distributors LLC, (E.D. Wis. 2025).

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