GS Holistic LLC v. The Spot Smoke Shop LLC

CourtDistrict Court, W.D. Washington
DecidedNovember 7, 2023
Docket2:23-cv-00318
StatusUnknown

This text of GS Holistic LLC v. The Spot Smoke Shop LLC (GS Holistic LLC v. The Spot Smoke Shop 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. The Spot Smoke Shop 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. C23-0318JLR 11 Plaintiff, ORDER v. 12 THE SPOT SMOKE SHOP, LLC, et 13 al., 14 Defendants. 15 I. INTRODUCTION 16 Before the court is Plaintiff GS Holistic, LLC’s (“GS Holistic”) motion for entry 17 of default judgment against Defendants The Spot Smoke Shop, LLC d/b/a The Spot 18 Smoke Shop (“The Spot Smoke Shop”) and Haitham Almaamar (together, 19 “Defendants”). (Mot. (Dkt. # 17); see Prop. Judgment (Dkt. # 17-3).) Neither Defendant 20 has appeared in this action, and the Clerk has entered default against both Defendants. 21 (5/31/23 Entry of Default (Dkt. # 10); 8/31/23 Entry of Default (Dkt. # 15).) The court 22 1 has considered GS Holistic’s motion, the materials it submitted in support of its motion, 2 the relevant portions of the record, and the governing law. Being fully advised, the court

3 GRANTS in part and DENIES in part GS Holistic’s motion for entry of default 4 judgment. 5 II. BACKGROUND 6 GS Holistic is a Delaware limited liability corporation (“LLC”) that has its 7 principal place of business in California. (Compl. (Dkt. # 1) ¶ 4.) It alleges that it is the 8 owner of the “Stündenglass” trademark, has worked to distinguish the Stündenglass

9 brand as “the premier manufacturer of glass infusers,” and has devoted significant time 10 and resources to promoting and protecting its trademark. (Id. ¶¶ 4, 7-9, 14.) GS Holistic 11 has registered the following trademarks: (1) U.S. Trademark Registration No. 6,633,884 12 “for the standard character mark ‘Stündenglass’ in association with goods further 13 identified in registration in international class 011”; (2) U.S. Trademark Registration No.

14 6,174,292 “for the design plus words mark ‘S’ and its logo in association with goods 15 further identified in the registration in international class 034”; and (3) U.S. Trademark 16 Registration No. 6,174,291 “for the standard character mark ‘Stündenglass’ in association 17 with goods further identified in registration in international class 034” (together, the 18 “Stündenglass Marks”). (Id. ¶ 10; see also Mot., Ex. A (screenshots of pages from the

19 United States Patent and Trademark Office’s Trademark Electronic Search System that 20 describe each trademark).) GS Holistic asserts that consumers are willing to pay more 21 for “the recognized quality and innovation associated with the Stündenglass Marks.” 22 1 (Compl. ¶ 20.) Thus, genuine Stündenglass glass infusers are priced at $599.95, while 2 non-Stündenglass infusers sell for between $199.00 and $600.00. (Id.)

3 Defendant The Spot Smoke Shop is a Washington corporation that has its 4 principal place of business in Washington. (Id. ¶ 5.) Defendant Haitham Almaamar is a 5 resident and citizen of Washington. (Id. ¶ 6.) GS Holistic asserts that Defendants sold 6 counterfeit products bearing the Stündenglass Marks. (Id. ¶¶ 24-27.) On December 11, 7 2022, according to GS Holistic, its investigator visited The Spot Smoke Shop’s location; 8 observed that the shop had “an excess” of glass infusers that displayed the Stündenglass

9 Marks; purchased a glass infuser “with a Stündenglass Mark affixed to it” for $605.55; 10 and determined the glass infuser was a counterfeit product that displayed “the Infringing 11 Marks.” (Id. ¶ 29; see also id. ¶ 25 (defining the “Infringing Marks” as “reproductions, 12 counterfeits, copies, and/or colorable imitations of one or more of the Stündenglass 13 Marks”).)

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

19 from continuing to infringe its Stündenglass trademarks, and an order requiring 20 Defendants to deliver all infringing products to GS Holistic for destruction. (Id. at 21 12-14.) 22 1 GS Holistic served Mr. Almaamar on April 7, 2023, and The Spot Smoke Shop on 2 June 2, 2023. (See Service Affs. (Dkt. ## 7, 13).) The Clerk entered default as to Mr.

3 Almaamar on May 31, 2023, and as to The Spot Smoke Shop on August 31, 2023. 4 (5/31/23 Entry of Default; 8/31/23 Entry of Default.) GS Holistic filed this motion for 5 entry of default judgment on October 31, 2023. (Mot.) 6 III. ANALYSIS 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. Cal. 2005). Thus, the first Eitel factor weighs in favor of entering default 16 judgment. 17 2.

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GS Holistic LLC v. The Spot Smoke Shop LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gs-holistic-llc-v-the-spot-smoke-shop-llc-wawd-2023.