GS Holistic LLC v. Wham Bonney Lake Inc

CourtDistrict Court, W.D. Washington
DecidedNovember 21, 2023
Docket3:23-cv-05213
StatusUnknown

This text of GS Holistic LLC v. Wham Bonney Lake Inc (GS Holistic LLC v. Wham Bonney Lake Inc) 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. Wham Bonney Lake Inc, (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. C23-5213JLR 11 Plaintiff, ORDER v. 12 WHAM BONNEY LAKE INC., 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 Wham Bonney Lake Inc. d/b/a Tobacco Time 18 (“Tobacco Time”), Sukjoo Lee, and Hana Choi (together, “Defendants”). (Mot. (Dkt. 19 # 16); see Prop. Judgment (Dkt. # 16-3).) None of the Defendants have appeared in this 20 action, and the Clerk has entered default against all three Defendants. (See Dkt.; 6/8/23 21 Entry of Default (Dkt. # 9); 8/23/23 Entry of Default (Dkt. # 13).) The court has 22 1 considered GS Holistic’s motion, the materials it submitted in support of its motion, the 2 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 registered owner of the “Stündenglass” trademarks, has worked to distinguish the

9 Stündenglass brand as “the premier manufacturer of glass infusers,” and has devoted 10 significant time and resources to promoting and protecting its trademark. (Id. ¶¶ 4, 8-10, 11 15.) GS Holistic has registered the following trademarks: (1) U.S. Trademark 12 Registration No. 6,633,884 “for the standard character mark ‘Stündenglass’ in association 13 with goods further identified in registration in international class 011”; (2) U.S.

14 Trademark Registration No. 6,174,292 “for the design plus words mark ‘S’ and its logo 15 in association with goods further identified in the registration in international class 034”; 16 and (3) U.S. Trademark Registration No. 6,174,291 “for the standard character mark 17 ‘Stündenglass’ in association with goods further identified in registration in international 18 class 034” (together, the “Stündenglass Marks”).1 (Id. ¶ 11; see also Mot., Ex. A

19 (screenshots of pages from the United States Patent and Trademark Office’s Trademark 20

21 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 22 “Stündenglass Marks” in this order. 1 Electronic Search System that describe these trademarks).) GS Holistic asserts that 2 consumers are willing to pay more for “the recognized quality and innovation associated

3 with the Stündenglass Marks.” (Compl. ¶ 21.) Thus, genuine Stündenglass brand glass 4 infusers are priced at $599.95, while non-Stündenglass infusers sell for between $199.00 5 and $600.00. (Id.) 6 Defendant Tobacco Time is a Washington LLC that has its principal place of 7 business in Washington. (Id. ¶ 5.) Defendants Sukjoo Lee and Hana Choi are residents 8 and citizens of Washington and the owners of Tobacco Time. (Id. at 1; id. ¶¶ 6-7, 24.)

9 GS Holistic alleges that Defendants sold counterfeit products bearing the Stündenglass 10 Marks. (Id. ¶¶ 25-28.) On January 31, 2023, according to GS Holistic, its investigator 11 visited Tobacco Time’s location; observed that the shop had “an excess of” glass infusers 12 that displayed the Stündenglass Marks; purchased a glass infuser “with a Stündenglass 13 Mark affixed to it” for $470.41; and determined the glass infuser was a counterfeit

14 product that displayed “the Infringing Marks.” (Id. ¶ 30; see also id. ¶ 26 (defining the 15 “Infringing Marks” as “reproductions, counterfeits, copies, and/or colorable imitations of 16 one or more of the Stündenglass Marks”).) 17 GS Holistic filed its complaint on March 14, 2023. (See id. at 1.) It alleges claims 18 under the Lanham Act against both Defendants for counterfeiting and trademark

19 infringement in violation of 15 U.S.C. § 1114 and for false designation of origin and 20 unfair competition in violation of 15 U.S.C. § 1125(a). (Id. ¶¶ 52-69.) Among other 21 relief, it seeks damages, costs of suit, a permanent injunction prohibiting Defendants 22 from continuing to infringe its Stündenglass trademarks, and an order requiring 1 Defendants to deliver all infringing products to GS Holistic for destruction. (Id. at 2 12-14.)

3 GS Holistic served Ms. Choi on April 8, 2023, and served Tobacco Time and Mr. 4 Lee on June 9, 2023. (See Service Affs. (Dkt. ## 7, 10-11).) The Clerk entered default 5 against Ms. Choi on June 8, 2023, and against Tobacco Time and Mr. Lee on August 23, 6 2023. (6/8/23 Entry of Default; 8/23/23 Entry of Default.) GS Holistic filed this motion 7 for entry of default judgment on November 17, 2023. (Mot.) 8 III. ANALYSIS

9 Below, the court sets forth the relevant legal standard and then evaluates GS 10 Holistic’s motion for entry of default judgment. 11 A. Legal Standard 12 Federal Rule of Civil Procedure 55(b)(2) authorizes the court to enter default 13 judgment against a defaulting defendant upon the plaintiff’s motion. Fed. R. Civ. P.

14 55(a), (b)(2). After default is entered, well-pleaded factual allegations in the complaint, 15 except those related to damages, are considered admitted and are sufficient to establish a 16 defendant’s liability. TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 17 1987) (citing Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)). 18 Entry of default judgment is left to the court’s sound discretion. Aldabe v. Aldabe,

19 616 F.2d 1089, 1092 (9th Cir. 1980). In exercising its discretion, the court considers 20 seven factors (the “Eitel factors”): (1) the possibility of prejudice to the plaintiff if relief 21 is denied; (2) the substantive merits of the plaintiff’s claims; (3) the sufficiency of the 22 claims raised in the complaint; (4) the sum of money at stake in relationship to the 1 defendant’s behavior; (5) the possibility of a dispute concerning material facts; 2 (6) whether default was due to excusable neglect; and (7) the preference for decisions on

3 the merits when reasonably possible. Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 4 1986). After the court determines that default judgment is appropriate, it must then 5 determine the amount and character of the relief that should be awarded. See TeleVideo, 6 826 F.2d at 917-18. 7 B. Whether the Eitel Factors Favor Default Judgment 8 The court preliminarily determines that default judgment is warranted in this case

9 because, on balance, the Eitel factors weigh in favor of such judgment. The court 10 discusses each factor in turn. 11 1. Possibility of Prejudice to Plaintiff 12 The first Eitel factor considers whether the plaintiff will suffer prejudice if default 13 judgment is not entered. See PepsiCo, Inc., v. Cal. Sec. Cans, 238 F. Supp. 2d 1172,

14 1177 (C.D. Cal. 2002). Without default judgment, GS Holistic will suffer prejudice 15 because it will “be denied the right to judicial resolution” of its claims and will be 16 “without other recourse for recovery.” Elektra Entm’t Grp. Inc. v. Crawford, 226 F.R.D.

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