GS Holistic LLC v. Wham Bonney Lake Inc

District Court, W.D. Washington·Decided November 21, 2023·No. 3:23-cv-05213·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE

GS HOLISTIC, LLC, CASE NO. C23-5213JLR Plaintiff, ORDER v. WHAM BONNEY LAKE INC., et al., Defendants. I. INTRODUCTION Before the court is Plaintiff GS Holistic, LLC’s (“GS Holistic”) motion for entry of default judgment against Defendants Wham Bonney Lake Inc. d/b/a Tobacco Time (“Tobacco Time”), Sukjoo Lee, and Hana Choi (together, “Defendants”). (Mot. (Dkt. # 16); see Prop. Judgment (Dkt. # 16-3).) None of the Defendants have appeared in this action, and the Clerk has entered default against all three Defendants. (See Dkt.; 6/8/23 Entry of Default (Dkt. # 9); 8/23/23 Entry of Default (Dkt. # 13).) The court has considered GS Holistic’s motion, the materials it submitted in support of its motion, the relevant portions of the record, and the governing law. Being fully advised, the court

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

Stündenglass brand as “the premier manufacturer of glass infusers,” and has devoted significant time and resources to promoting and protecting its trademark. (Id. ¶¶ 4, 8-10, 15.) GS Holistic has registered the following trademarks: (1) U.S. Trademark Registration No. 6,633,884 “for the standard character mark ‘Stündenglass’ in association with goods further identified in registration in international class 011”; (2) U.S.

Trademark Registration No. 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”; and (3) U.S. Trademark Registration No. 6,174,291 “for the standard character mark ‘Stündenglass’ in association with goods further identified in registration in international class 034” (together, the “Stündenglass Marks”).1 (Id. ¶ 11; see also Mot., Ex. A

(screenshots of pages from the United States Patent and Trademark Office’s Trademark

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 “Stündenglass Marks” in this order. Electronic Search System that describe these trademarks).) GS Holistic asserts that consumers are willing to pay more for “the recognized quality and innovation associated

with the Stündenglass Marks.” (Compl. ¶ 21.) Thus, genuine Stündenglass brand glass infusers are priced at $599.95, while non-Stündenglass infusers sell for between $199.00 and $600.00. (Id.) Defendant Tobacco Time is a Washington LLC that has its principal place of business in Washington. (Id. ¶ 5.) Defendants Sukjoo Lee and Hana Choi are residents and citizens of Washington and the owners of Tobacco Time. (Id. at 1; id. ¶¶ 6-7, 24.)

GS Holistic alleges that Defendants sold counterfeit products bearing the Stündenglass Marks. (Id. ¶¶ 25-28.) On January 31, 2023, according to GS Holistic, its investigator visited Tobacco Time’s location; observed that the shop had “an excess of” glass infusers that displayed the Stündenglass Marks; purchased a glass infuser “with a Stündenglass Mark affixed to it” for $470.41; and determined the glass infuser was a counterfeit

product that displayed “the Infringing Marks.” (Id. ¶ 30; see also id. ¶ 26 (defining the “Infringing Marks” as “reproductions, counterfeits, copies, and/or colorable imitations of one or more of the Stündenglass Marks”).) GS Holistic filed its complaint on March 14, 2023. (See id. at 1.) It alleges claims under the Lanham Act against both Defendants for counterfeiting and trademark

infringement in violation of 15 U.S.C. § 1114 and for false designation of origin and unfair competition in violation of 15 U.S.C. § 1125(a). (Id. ¶¶ 52-69.) Among other relief, it seeks damages, costs of suit, a permanent injunction prohibiting Defendants from continuing to infringe its Stündenglass trademarks, and an order requiring Defendants to deliver all infringing products to GS Holistic for destruction. (Id. at 12-14.)

GS Holistic served Ms. Choi on April 8, 2023, and served Tobacco Time and Mr. Lee on June 9, 2023. (See Service Affs. (Dkt. ## 7, 10-11).) The Clerk entered default against Ms. Choi on June 8, 2023, and against Tobacco Time and Mr. Lee on August 23, 2023. (6/8/23 Entry of Default; 8/23/23 Entry of Default.) GS Holistic filed this motion for entry of default judgment on November 17, 2023. (Mot.)

Below, the court sets forth the relevant legal standard and then evaluates GS Holistic’s motion for entry of default judgment. A. Legal Standard Federal Rule of Civil Procedure 55(b)(2) authorizes the court to enter default judgment against a defaulting defendant upon the plaintiff’s motion. Fed. R. Civ. P.

55(a), (b)(2). After default is entered, well-pleaded factual allegations in the complaint, except those related to damages, are considered admitted and are sufficient to establish a defendant’s liability. TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 1987) (citing Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)). Entry of default judgment is left to the court’s sound discretion. Aldabe v. Aldabe,

616 F.2d 1089, 1092 (9th Cir. 1980). In exercising its discretion, the court considers seven factors (the “Eitel factors”): (1) the possibility of prejudice to the plaintiff if relief is denied; (2) the substantive merits of the plaintiff’s claims; (3) the sufficiency of the claims raised in the complaint; (4) the sum of money at stake in relationship to the defendant’s behavior; (5) the possibility of a dispute concerning material facts; (6) whether default was due to excusable neglect; and (7) the preference for decisions on

the merits when reasonably possible. Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986). After the court determines that default judgment is appropriate, it must then determine the amount and character of the relief that should be awarded. See TeleVideo, 826 F.2d at 917-18. B. Whether the Eitel Factors Favor Default Judgment The court preliminarily determines that default judgment is warranted in this case

because, on balance, the Eitel factors weigh in favor of such judgment. The court discusses each factor in turn. 1. Possibility of Prejudice to Plaintiff The first Eitel factor considers whether the plaintiff will suffer prejudice if default judgment is not entered. See PepsiCo, Inc., v. Cal. Sec. Cans, 238 F. Supp. 2d 1172,

1177 (C.D. Cal. 2002). Without default judgment, GS Holistic will suffer prejudice because it will “be denied the right to judicial resolution” of its claims and will be “without other recourse for recovery.” Elektra Entm’t Grp. Inc. v. Crawford, 226 F.R.D. 388, 392 (C.D. Cal. 2005). Thus, the first Eitel factor weighs in favor of entering default judgment.

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GS Holistic LLC v. Wham Bonney Lake Inc, (W.D. Wash. 2023).

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