MetroPCS v. Pesina

190 F. Supp. 3d 688, 2016 U.S. Dist. LEXIS 82064, 2016 WL 3257034
CourtDistrict Court, S.D. Texas
DecidedJune 3, 2016
DocketCivil Action No: 15-cv-03313
StatusPublished

This text of 190 F. Supp. 3d 688 (MetroPCS v. Pesina) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MetroPCS v. Pesina, 190 F. Supp. 3d 688, 2016 U.S. Dist. LEXIS 82064, 2016 WL 3257034 (S.D. Tex. 2016).

Opinion

FINAL JUDGMENT AND PERMANENT INJUNCTION AGAINST DEFENDANTS

DAVID HITTNER, UNITED STATES DISTRICT JUDGE

Plaintiff T-Mobile USA, Inc., a Delaware corporation (“T-Mobile”), for itself and its MetroPCS brand (collectively referred to hereafter as “MetroPCS”) brought the above-captioned lawsuit against Defendants JOSE ANTONIO PESINA, a/k/a JOSE ANTONIO PECINA, JR., a/k/a JOSE PECINA; and ALMA PECINA GONZALEZ, a/k/a ALMA DELIA PECI-NA (collectively “Defendants”), alleging that Defendants are engaged in an unlawful enterprise involving the unauthorized and deceptive acquisition and bulk resale overseas of specially-manufactured handsets designed for use on MetroPCs’s wireless service (collectively, “MetroPCS Handsets”), the theft of MetroPCs’s subsi[691]*691dy investment in the Handsets, the unlawful access of MetroPCs’s protected computer systems and wireless network, the trafficking of MetroPCs’s protected and confidential computer passwords, and the willful infringement of MetroPCs’s trademarks (collectively, the “Handset Theft and Trafficking Scheme” or the “Scheme”).

MetroPCS contends that Defendants and their co-conspirators perpetrated the Handset Theft and Trafficking Scheme by acquiring large quantities of MetroPCS Handsets from MetroPCS and/or Me-troPCS authorized retailers and dealers and by soliciting others to purchase Me-troPCS Handsets in large quantities for the benefit of Defendants. MetroPCS asserts that Defendants and their co-conspirators acquired the MetroPCS Handsets with the knowledge and intent that the Handsets will not be used on the Me-troPCS wireless network (as required by the MetroPCS terms and conditions), but instead, the Handsets are, trafficked and the vast majority are -ultimately resold as new overseas where the Handsets are not subsidized by wireless carriers (as they are in the United States). In some cases, Me-troPCS asserts Defendants acquired the MetroPCS Handsets with the knowledge and intent that the Handsets will be computer-hacked or “unlocked,” to disable software installed in.the Handsets by the manufacturers at the request and expense of MetroPCS, which enables the activation of the MetroPCS Handsets exclusively on MetroPCs’s wireless system. The purpose of the software is to allow MetroPCS to offer the Handsets at a discount to the consumer while protecting MetroPCs’s subsidy investment in the Handset. Me-troPCS asserts that the illegally unlocked Handsets are trafficked and resold as new by Defendants, at' a premium, under the MetroPCS trademarks.

MetroPCS Handsets are sold subject to terms and conditions (“Terms and Conditions”) which conspicuously restrict and limit the sale and use of the Handsets. The packaging of every MetroPCS Handset provides that by purchasing or opening the package, activating, using, or paying for MetroPCS service, the purchaser agrees to the MetroPCS Terms and Conditions posted on www.metropcs.com. Purchasers have the option to return the MetroPCS Handset in accordance with the return policy if they do not agree to the Terms and Conditions. The methods used by MetroPCS for obtaining its customers’ agreement to the Terms and -Conditions are legally-valid and appropriate, and the Terms and Conditions constitute a valid and binding .contract between MetroPCS and each of its customers. Pursuant to the Terms and Conditions of MetroPCS Handsets, purchasers agree, among other things: (a) to pay the applicable service charges and other related fees; (b) to activate the MetroPCS Handsets on the MetroPCS network; (c) not to resell the MetroPCS Handsets and related products and services; and (d) not to use thé Handsets for a purpose that could damage or adversely affect MetroPCS.

In this case, as a result of Defendants’ alleged involvement in the Handset Theft and Trafficking Scheme, MetroPCS has asserted claims against Defendants for unfair competition, tortious interference with business- relations, torious interference with contractual relations, conspiracy to commit fraud and fraudulent misrepresentation, unjust enrichment, common law fraud and fraudulent misrepresentation, conspiracy to induce breach of contract, trafficking in computer passwords, 18 U.S.C. § 1030(a)(6), unauthorized access, 18 U.S.C. § 1030(a)(5)(C), unauthorized access with intent to defraud 18 U.S.C. § 1030(a)(4), federal trademark infringement, 15 U.S.C. § 1114 [§ 32(1) of the Lanham Act], federal common law trademark infringement and false advertising, [692]*69215 U.S.C. § 1125(a)(1)(A) and (B) [§ 43(a) of the Lanham Act], contributory trademark infringement, and conversion.

Based on the position advocated by the Plaintiff, and having reviewed the Complaint- and file and being otherwise duly and fully advised in the premises, it is hereby:

ORDERED, ADJUDGED and DECREED that:

metroPCS.

1; This Court has jurisdiction over all the parties and all of the claims set forth in MetroPCs’s Complaint.

2. MetroPCS has the right to use and enforce rights in the standard character and stylized MetroPCS® mark (collectively, the “MetroPCS Marks”), as depicted below:

MetroPCS uses the MetroPCS Marks on and in connection with its telecommunications products and services. Thé Me-troPCS Marks are valid,' distinctive, pro-tectable, famous, have acquired secondary meaning, and are associated exclusively with MetroPCS.

3. The Terms and Conditions and the language in and on the packaging constitute a valid and binding contract enforceable between MetroPCS and each of its customers. The Court finds the Terms and Conditions set forth certain rights and restrictions on the use of MetroPCS Handsets. Among other things, the Terms .and Conditions: (a) require that the customer pay applicable service charges and other related fees; (b) indicate that the Handset is designed to be activated on the Me-troPCS network; (c) prohibit resale of Me-troPCS Handsets and related products and services; and (d) prohibit using the Handsets for a purpose that could damage or adversely affect MetroPCS, for which MetroPCS is entitled to relief.

. 4. The conduct set forth in the Complaint constitutes violations of the Lanham Act, 15 U.S.C. §§ 1114 and 1125(a)(1)(A) and (B) (federal trademark infringement and false advertising). The Court further finds that the conduct also constitutes unfair competition, tortious interference with business relationships and prospective advantage, conspiracy, unjust enrichment, common law fraud and fraudulent .misrepresentation, violations of the federal Computer Fraud and Abuse Act, 18 U.S.C. § 1030, et seq., contributory trademark infringement, and conversion.

5. MetroPCS has suffered damages, including loss • of goodwill and damage to its reputation, as a result of Defendants’ conduct.

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Bluebook (online)
190 F. Supp. 3d 688, 2016 U.S. Dist. LEXIS 82064, 2016 WL 3257034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropcs-v-pesina-txsd-2016.