Lifted Research Group, Inc. v. Behdad, Inc.

District Court, District of Columbia·Decided June 30, 2010·No. Civil Action No. 2008-0390·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

LIFTED RESEARCH GROUP, INC.,

Plaintiff, Civil Action No. 08-390 (CKK)

v.

BEHDAD, INC., et al., Defendants.

MEMORANDUM OPINION

(June 30, 2010)

Plaintiff Lifted Research Group, Inc. (“LRG”) filed a Complaint in this case against Defendant Behdad, Inc. (“Behdad”) on March 4, 2008, alleging violations of federal trademark and copyright law.1 See Compl., Docket No. [1]. Although properly and timely served with the Complaint and Summons, Behdad failed to respond to the Complaint, and the Clerk of the Court, upon motion by LRG, entered default against Behdad. See Clerk’s Entry of Default as to Behdad , Docket No. [5]. LRG subsequently filed a [8] Motion for Default Judgment, which was granted- in-part and held in abeyance-in-part. See LRG v. Behdad, Inc., 591 F. Supp. 2d 3 (D.D.C. 2008). Specifically, the Court granted LRG’s Motion for Default Judgment as to Behdad’s liability and LRG’s request for injunctive relief, but held the motion in abeyance with respect to LRG’s request for monetary damages. The Court directed LRG to file a supplemental memorandum providing further legal support for its monetary damages request.

1 Plaintiff’s Complaint in this case also named as Defendants “John Does 1-10.” See Compl., Docket No. [1]. By Order dated December 10, 2008, the Court dismissed Does 1-10 as defendants in this case without prejudice for Plaintiff’s failure to serve the summons and complaint on them. See December 10, 2008 Order, Docket No. [9]. Accordingly, Behdad is the only remaining Defendant in the case at this time.

This matter now comes before the Court upon the filing by LRG of the requested [13]

Supplemental Memorandum in support of its Motion for Default Judgment (“Supplemental Memorandum”). The Court has thoroughly considered LRG’s Supplemental Memorandum, the attachments thereto, the relevant case law as well as statutory authority, and the record of this case as a whole. For the reasons set forth below, the Court shall GRANT LRG’s [8] Motion for Default Judgment insofar as it seeks monetary damages and shall award LRG a monetary judgment in the amount of $140,835.00, which consists of: (a) $106,560.00 in statutory damages pursuant to 15 U.S.C. § 1117(c); (b) $30,000.00 in statutory damages pursuant to 17 U.S.C. § 504; (c) $3,600.00 in reasonable attorney’s fees pursuant to 15 U.S.C. § 1117(a) and 17 U.S.C. § 505; (d) $250.00 in reasonable investigative fees pursuant to 15 U.S.C. § 1117(a); and (e) $425.00 in reasonable costs pursuant to 15 U.S.C. § 1117(a).

I. BACKGROUND

Plaintiff LRG is a California corporation that manufactures and distributes apparel under four federally registered trademarks (Reg. Nos. 2,513,951; 2,633,832; 2,958,307; and 2,506,859 (hereinafter “LRG Marks”)) and a registered copyright (Reg. No. VA-1-348-151). Complaint, Docket No. [1], ¶¶ 2, 7. LRG brought suit on March 4, 2008 against Defendant Behdad, a District of Columbia corporation operating a retail business known as Clutch. Id. ¶ 3. The Complaint alleged Behdad advertised, distributed, and sold counterfeit products, including jeans and t-shirts, bearing LRG Marks and nearly identical in appearance to genuine LRG goods. Id. ¶¶ 3, 16, 36. LRG alleged the following specific violations: (1) trademark counterfeiting and infringement in violation of § 32 of the Lanham Act, 15 U.S.C. § 1114; (2) false designation of origin in violation of § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); and (3) copyright

infringement in violation of the Copyright Act, 17 U.S.C. § 501. Id. ¶¶ 27–45.

According to the Complaint, Behdad was aware of LRG’s ownership of LRG Marks and Copyright and knew its own goods would be mistaken for LRG products. See id. ¶¶ 15, 17. In addition, Behdad failed to cease its conduct after it was formally notified and requested to do so by LRG. Prior to filing the Complaint, LRG delivered a cease and desist letter to Behdad on December 11, 2007. See Pl.’s Mot. for Default J. at 8 (citing Declaration o f Stephen M. Gaffigan (“Gaffigan Decl.”) ¶ 2), Docket No. [8]. Nonetheless, on May 24, 2008, more than two months after the Complaint was filed, Behdad continued to offer counterfeit LRG products for sale. Id.

Behdad did not respond to the Complaint or otherwise participate in the litigation of this case. Behdad was served with the Complaint and Summons on March 20, 2008. See Return of Service/Affidavit, Docket No. [3]. After Behdad failed to respond to the Complaint, LRG filed a [4] Motion for Entry of Default. The Clerk of the Court entered default against Behdad pursuant to Federal Rule of Civil Procedure 55(a). See Clerk’s Entry of Default as to Behdad, Docket No. [5]. On December 10, 2008, LRG’s [8] Motion for Default Judgment was granted-in-part and held in abeyance-in-part pursuant to Federal Rule of Civil Procedure 55(b)(2). See LRG v. Behdad, Inc., 591 F. Supp. 2d 3 (D.D.C. 2008). Specifically, the Court granted LRG’s Motion for Default Judgment as to the Defendant’s liability for violations of the Lanham Act and the Copyright Act and LRG’s request for injunctive relief, but held the motion in abeyance with respect to LRG’s request for monetary damages and directed LRG to file supplemental briefing concerning the legal authority for LRG’s requested statutory damages. See id. at 10. LRG, which had requested $106,560.00 in statutory damages under the Lanham Act and $30,000.00 in statutory damages under the Copyright Act as well as attorneys’ fees and costs, has now filed the

requested Supplemental Memorandum. See Supplemental Mem., Docket No. [13].

II. LEGAL STANDARD

Federal Rule of Civil Procedure 55(a) provides that the clerk of the court must enter a party’s default “[w]hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise.” FED . R. CIV . P. 55(a). After a default has been entered by the clerk of the court, a court may enter a default judgment pursuant to Rule 55(b). FED . R. CIV . P. 55(b). “The determination of whether default judgment is appropriate is committed to the discretion of the trial court.” Int’l Painters and Allied Trades Industry Pension Fund v. Auxier Drywall, LLC, 531 F. Supp. 2d 56, 57 (D.D.C. 2008) (citing Jackson v. Beech, 636 F.2d 831, 836 (D.C. Cir. 1980)). Upon entry of default by the clerk of the court, the “defaulting defendant is deemed to admit every well-pleaded allegation in the complaint.” Int’l Painters and Allied Trades Indus. Pension Fund v. R.W. Armine Drywall Co., Inc., 239 F. Supp. 2d 26, 30 (D.D.C. 2002) (internal citation omitted). “Although the default establishes a defendant’s liability, the court is required to make an independent determination of the sum to be awarded unless the amount of damages is certain.” Id. (citing Adins v. Teseo, 180 F. Supp. 2d 15, 17 (D.D.C. 2001). Accordingly, when moving for a default judgment, the plaintiff must prove its entitlement to the amount of monetary damages requested. Id. “In ruling on such a motion, the court may rely on detailed affidavits or documentary evidence to determine the appropriate sum for the default judgment.” Id.

III. DISCUSSION

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Lifted Research Group, Inc. v. Behdad, Inc., (D.D.C. 2010).

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