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

CourtDistrict Court, District of Columbia
DecidedJune 30, 2010
DocketCivil Action No. 2008-0390
StatusPublished

This text of Lifted Research Group, Inc. v. Behdad, Inc. (Lifted Research Group, Inc. v. Behdad, Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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

2 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

3 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.

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