Khaled v. Bordenave

CourtDistrict Court, S.D. New York
DecidedApril 29, 2019
Docket1:18-cv-05187
StatusUnknown

This text of Khaled v. Bordenave (Khaled v. Bordenave) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Khaled v. Bordenave, (S.D.N.Y. 2019).

Opinion

USDC SDNY DOCUMENT UNITED STATES DISTRICT COURT ELECTRONICALLY FILED SOUTHERN DISTRICT OF NEW YORK DOC #:___— DATE FILED:__1/24)(1__ KHALED M. KHALED and ATK ENTERTAINMENT, INC., Plaintiffs, 18 Civ. 5187 (PAE) -\V- OPINION & ORDER CURTIS BORDENAVE and BUSINESS MOVES CONSULTING INC. d/b/a BUSINESS MOVES, Defendants,

PAUL A. ENGELMAYER, District Judge: Plaintiffs Khaled M. Khaled, a hip-hop music mogul, and ATK Entertainment, Inc. (“ATK”); have moved for leave to file an amended complaint. Dkt. 33. The existing Complaint brings eight claims against defendants Curtis Bordenave and Business Moves Consulting, Inc., (“Business Moves”). These are: two counts of invasion of right of privacy in violation of New York Civil Rights Law §§ 50-51; trademark infringement and unfair competition in violation of the Lanham Act, 15 U.S.C. §§ 1114(1),1125(a); unfair competition under New York common law; violation of the New York Deceptive and Unfair Trade Practices Act, N.Y. Gen. Bus. Law § 349; commercial defamation; and a claim for declaratory judgment of non-infringement. The proposed amended Complaint (“PAC”) seeks to add a claim for cancellation of trademark registration pursuant to 15 U.S.C. § 1052(a), based on Business Moves’ registration of ASAHD COUTURE (U.S. Trademark Registration No. 5,623,582); to expand its trademark infringement claims by adding allegations regarding defendants’ purported use of additional variations of the WE THE BEST mark; and to shift the statutory basis for plaintiffs’ claim of breach of the right of privacy from New York to Florida law. Defendants oppose this motion on the grounds that: (1) certain newly alleged facts that plaintiffs claim support granting their

motion to amend were known or available to plaintiffs at the time they filed the initial Complaint, (2) amending the Complaint would unfairly prejudice defendants, and (3) plaintiffs’ new claims regarding the WE THE BEST mark fail to state a claim of trademark infringement and hence are futile. For the following reasons, the Court grants plaintiffs’ motion in part and denies it in part. I. Background A. Facets! 1. The Parties Khaled is known professionally as “DJ Khaled.” Among other things, he is known for the use of the phrase “WE THE BEST” in many of his songs. Asahd Tuck Khaled is his 18- month-old son. Dkt. 10 (“Compl.”) §§ 1-2. ATK Entertainment, Inc., is a Florida corporation named after Asahd. It has a principal place of business in Miami-Dade County. Id. § 8. Bordenave is the founder and principal of Business Moves, a corporation incorporated in Mississippi with a place of business in Dallas, Texas. Jd. □□ 9-10. Business Moves is an apparel company that sells t-shirts with various logos and slogans via Instagram and its website. Id. 39, 44. 2. Allegations Plaintiffs allege that defendants intentionally appropriated the names and trademarks of Khaled and his son Asahd to direct internet traffic to defendant’s products. Id. {{ 1-3. Plaintiffs own registered trademarks in DJ KHALED (U.S. Trademark Registration No. 5,085,344), Id. 4 17, and WE THE BEST (Nos. 4,198,000; 5,031,701; 5,032,062; 5,341,520) for a variety of

' The account of the case’s underlying facts and procedural history is drawn from the parties’ pleadings, as well as their submissions in support of and in opposition to the instant motion.

goods and services. Jd. 30. Plaintiffs claim that defendants intentionally used, and applied to register trademarks for, ASAHD, ASAHD COUTURE, A.S.A.H.D. A SON AND HIS DAD, and WE THE BEST LIFESTYLE. Jd. ¥3. Plaintiffs allege that defendants have used these trademarks in connection with their clothing and magazine publishing business. Jd. In July 2017, roughly nine months after Asahd’s birth, defendants filed U.S. Application Serial Number 87/529,960 for ASAHD and U.S. Application Serial Number 87/529,865 for ASAHD COUTURE (for fragrance, skincare, and haircare products). Jd. 440. Ten days later, defendants filed Application Serial Number 87/541,379 for WE THE BEST LIFESTYLE. Id. 42. Soon thereafter, defendants filed two additional trademark applications, No. 87/529,960 for ASAHD COUTURE (in connection with footwear and other clothing items) and No. 87/867,012 for A.S.A.H.D. ASON AND HIS DAD. Id. 9 43. Defendants do not dispute these facts. Plaintiffs allege, inter alia, that defendants have used the WE THE BEST mark and Asahd’s name for commercial purposes without Khaled’s or ATK’s consent. Compl. § 47. They claim that defendants’ use of the mark is intentionally fraudulent and seeks to deceive consumers into associating defendants’ merchandise and services with DJ Khaled and Asahd. Jd. { 45. Plaintiffs further allege that defendants have defamed ATK and harmed its business reputation by falsely claiming ownership of the ASAHD brand. Id. {| 54-57. Plaintiffs allege that the infringing use of variations of their marks is part of a pattern of infringing conduct by defendants. In addition to the trademark registrations at issue in the instant ‘case, defendants have applied to register trademarks for, inter alia, CARDI B (named after another well-known hip-hop figure), STORMI COUTURE (named after Stormi Webster, the daughter of model Kylie Jenner and hip-hop artist Travis Scott), CYNTHIA BAILEY EYEWEAR (named after a model and television personality), and Sirius (named after the

popular satellite radio station). Jd. 439. Plaintiffs claim that, like Khaled and ATK, none of these individuals or their representatives have authorized defendants to use or register these trademarks. Jd. B. Procedural History On June 8, 2018, plaintiffs filed their Complaint bringing the above claims against Bordenave and Business Moves. Dkt. 10. On September 26, 2018, the Court entered a scheduling order that set October 26, 2018 as the deadline to amend pleadings. Dkt. 22. The Court ordered that fact discovery be completed by January 23, 2019, Dkt. 22, although this deadline was later extended, at the parties’ request, to April 26, 2019. Dkt. 32. On January 9, 2019, plaintiffs filed a motion to amend their Complaint, Dkt. 33, based on information discovered in preparation for a December 11, 2018 settlement conference before Magistrate Judge Debra Freeman; a supporting memorandum of law, Dkt. 34 “Pl. Mem.”); a proposed amended Complaint, Dkt. 34-1; and a supporting declaration of David A. Donahue, Esq., Dkt. 35 (“Donahue Decl.”). Plaintiffs claim to have discovered allegedly infringing uses of the WE THE BEST mark by defendants that occurred between November 2018 and January 2019, after the deadline to amend had passed. Pl. Mem. at 3-4. Plaintiffs also claim that, ina discussion immediately preceding the settlement conference, defendants’ counsel questioned whether plaintiffs’ right of privacy claims could viably proceed under New York law. Jd. at 4. The parties agree that plaintiffs’ desire to amend the Complaint resulted from information gained in connection with the settlement conference. Dkt. 39 “Def. Mem.”) at 9. On January 23, 2019, defendants filed a memorandum of law in opposition to the motion to amend. Dkt. 39. On January 30, 2019, plaintiffs filed a reply. Dkt. 41.

I. Applicable Legal Standards Plaintiffs’ motion to amend is subject to two Federal Rules of Civil Procedure: 15(a) and 16(b). Rule 15(a) provides that a court “should freely give leave [to amend] when justice so requires.” Fed. R. Civ. P. 15(a)(2).

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Khaled v. Bordenave, Counsel Stack Legal Research, https://law.counselstack.com/opinion/khaled-v-bordenave-nysd-2019.