Kid Car NY, LLC v. Kidmoto Technologies LLC

District Court, S.D. New York·Decided March 31, 2020·No. 1:19-cv-07929·Unknown

Opinion

Atlanta, GA 30309-3996 D: +1 404.853.8122 F: +1 404.853.8806 Oo guar chods.eutherland.com

Application DENIED without prejudice. March 31, 2020 All discovery is stayed pending further Order of this Court. Via ECF Filing Honorable P. Kevin Castel SO ORDERED. United States Courthouse March 31, 2020 500 Pearl Street, Courtroom 11D . A ‘ New York, New York 10007 Zi Peer 6 United States District Judge Re: Kid Car NY, LLC vy. Kidmoto Technologies LLC and Nelson Nigel Case Number: 1:19-cv-07929-PKC

Dear Judge Castel: We write on behalf of Plaintiff Kid Car NY, LLC (“Kid Car’) in the above styled action, pursuant to Your Honor's Individual Practices § 3(B) and Local Civil Rule 37.2 to request a discovery conference with the Court to resolve a discovery dispute between Kid Car and the Defendants. As represented in the accompanying Certification, we have met and conferred in a good-faith attempt to resolve the parties’ disputes, but most of the issues, discussed below remain unresolved. By way of background, Kid Car has sued Defendants for unfair competition arising primarily out of trademark infringement under state and federal law. Defendants repeatedly used the “KID CAR” trademark in web-based advertisements and web postings in an effort to deceive consumers into thinking they were accessing Kid Car’s web site and signing up for its service. Kid Car also asserts a claim for copyright infringement based on the Defendants having copied virtually in full the text Kid Car’s “app” for customer reservation and dispatch system, and several other claims. This dispute relates to the Defendants refusal to provide relevant documents in response to Plaintiffs First Requests for Production of Documents (the “First Requests”), which were duly served on Defendants on December 30, 2019. These requests primarily sought documents in two broad categories. The first category of documents sought relate to the ads that Defendants posted on Google and the reports that Google sends or makes available to advertisers reflecting the success of such ads in terms of views, clicks through to the advertiser’s web site and a limited set of “conversions” of such ads into business. The second category is comprised largely of records of app downloads and financial statements necessary to show profits earned from Defendants’ infringement, as well as damages suffered — in each case available remedies under relevant statutes. On February 3, 2020, Defendants duly served their Responses to Plaintiffs First Requests for Documents (the “Response” stating virtually blanket objections. With the exception of a request for all documents evidencing communications between the parties

Eversheds Sutherland (US) LLP is part ofa global legal practice, operating through various separate and distinct legal entities, under

(Request No. 10), and a tiny subset of documents in response to Request No. 9 (which category Defendants have elsewhere denied exist), Defendants objected to the provision of any of the documents sought in the First Request. The central objection is stated as follows: “Defendants object to this request pending a forthcoming motion for judgment on the pleadings….” stating broadly that the complaint fails to show entitlement to either trademark or copyright protections. In other words, Defendants essentially seek a stay of production until its motion has been resolved. The Defendants did not even serve their pre-motion letter relating to this Motion for Judgment on the Pleadings until March 10, 2020, and it will not be resolved for some time. Since Kid Car needs the relevant documents both as evidence and as a basis for depositions and other further discovery, this objection amounts to claimed unilateral stay (without motion) of all discovery by the Plaintiff only until after the period for fact discovery has expired. These grounds are specious. No stay has been entered in this proceeding, and the Defendants are not entitled to refuse to respond to recovery on the grounds of a pending motion. See Envirosource, Inc. v. Horsehead Res. Dev. Co., No. 95CIV.5106(AGS)(SEG), 1996 WL 399823, at *1 (S.D.N.Y. July 17, 1996) (noting pending motion to dismiss and sensitive nature of data did not give defendant right to “grant[] itself a unilateral stay”) Kirschner v. J.P. Morgan Chase Bank, N.A., No. 17CIV6334PGGSLC, 2020 WL 230183, at *2 (S.D.N.Y. Jan. 15, 2020) (“A motion to dismiss does not automatically stay discovery.”); Funai Elec. Co. v. Orion Elec. Co., No. 01CIV.3501(AGS)(JCF), 2002 WL 1808419, at *12 (S.D.N.Y. Aug. 7, 2002) (same). The Defendants further object generally to most requests on the grounds that the requested documents will reveal information that is competitively sensitive. The parties are in the process of negotiating a Protective Order that should fully resolve such objections. (Unfortunately, the parties also have disputes over the terms of the Protective Order which likely will have to be presented to the Court as well). Note that the First Request included certain definitions that may be relevant, and the Response seeks to incorporate certain “General Objections.”1 REQUESTS AT ISSUE REQUEST NO. 1: Copies of all Subject Ads and Postings, including Subject Google Ads and such documents as will show during what time periods the Subject Ads and Postings were run or posted. If copies of such Subject Ads or Postings are not available, provide such documents as will disclose the text thereof.

RESPONSE: In addition to the General Objections set forth above, Defendants object to this request pending a forthcoming motion for judgment on the pleadings, as

1 The relevant definitions from Kid Car’s First Requests are attached as Exhibit A. The “General Objections” from Defendants’ Responses to Kid Car’s First Requests are attached as Exhibit B. Plaintiff has failed to identify any part of the Kid Car NY, LLC name subject to trademark. Defendants further object to this request as overly broad and harassing in that it seeks information without regard to its potential relevance to any issue in this action, specifically ads and postings outside of the New York area where Kid Car NY, LLC operates, which may reveal competitive advantages, strategies or other information unrelated to this action, and because the request is generally overly broad and harassing. Defendants further object to this request to the extent it seeks information not relevant to the subject matter in this action, including the claim or defense of any party in this litigation, and is not reasonably calculated to lead to the discovery of admissible evidence. Grounds for Motion as to Request No. 1: By way of explanation, the term “Subject Ads and Postings” as defined in the First Request refers to all of the advertisements and web postings by the Defendants that incorporate the specific phrase “kid car” in singular, plural or possessive form. In other words, these are the ads and web postings that Kid Car asserts violate the KID CAR trademark and have misled consumers. Defendants’ objections are entirely improper. • The assertion that the very infringing ads and postings of which Plaintiff complains are not relevant verges on the laughable. The prevalence and durations of such ads and postings and their phraseology are relevant to the willfulness of Defendants’ actions in using the KID CAR mark in its ads and postings and constitute a tacit admission by Defendants that the mark had acquired a valuable secondary meaning of which Defendants could take advantage through misleading consumers. These ads and postings and the periods during which they were used are also a starting point for the computation of Defendants’ profits from its infringements and Plaintiff’s damages as a result of the misleading use of the mark, both of which are available remedies under statute.

Free access — add to your briefcase to read the full text and ask questions with AI

Kid Car NY, LLC v. Kidmoto Technologies LLC, (S.D.N.Y. 2020).

Kid Car NY, LLC v. Kidmoto Technologies LLC (Kid Car NY, LLC v. Kidmoto Technologies LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.