MetroPCS v. SD Phone Trader

190 F. Supp. 3d 987, 2016 U.S. Dist. LEXIS 84671, 2016 WL 3387746
Procedural entryThis page is a short order in MetroPCS v. SD Phone Trader. Read the opinion of the Court — 187 F. Supp. 3d 1147
District Court, S.D. California·Decided June 2, 2016·No. Case No.: 16CV0098-DMS-KSC·Published

Opinion

FINAL JUDGMENT AND PERMANENT INJUNCTION AGAINST RAMON M. ELIZONDO

Dana M. Sabraw, 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” or “Plaintiff’) brought the above-captioned lawsuit against Defendant RAMON M. ELIZON-DO a/k/a RAMON MANUEL ELIZON-DO a/k/a RAMON ELIZONDO JR., indi[989]*989vidually and d/b/a EC WIRELESS, EC WIRELESS ONE TOUCH COMMUNICATIONS, EC WIRELESS #3, and SD PHONE TRADER (“Defendant”), alleging that Defendant is engaged in an unlawful enterprise involving the unauthorized and deceptive acquisition and bulk resale overseas of specially-manufactured handsets designed for use on Plaintiffs wireless service offered under various brands, including MetroPCS, (“Handsets”), the theft of MetroPCS’s subsidy investment in the Handsets, the unlawful access of Plaintiffs protected computer systems and wireless network, the trafficking of protected and confidential computer passwords, and the willful infringement of Plaintiffs trademarks (collectively, the “Handset Theft and Trafficking Scheme” or the “Scheme”).

MetroPCS contends that Defendant and his co-conspirators perpetrated the Handset Theft and Trafficking Scheme by acquiring large quantities of Handsets from MetroPCS and/or MetroPCS authorized retailers and dealers and by soliciting others to purchase MetroPCS Handsets in large quantities for the benefit of Defendant. MetroPCS asserts that Defendant and his co-conspirators acquired the Me-troPCS Handsets with the knowledge and intent that the Handsets will not be used on the MetroPCS 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, MetroPCS asserts Defendant and his co-conspirators 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 Defendant, at a premium, under the MetroPCS trademarks,

MetroPCS Handsets are sold subject to terns 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.

As a result of Defendant’s involvement in the Handset Theft and Trafficking Scheme, MetroPCS has asserted' claims against Defendant for 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., federal trademark infringement under 15 U.S.C. § 1114, federal common law trademark infringement- and false advertising under 15 U.S.C., § 1125(a)(1)(A) and (B), contributory trademark infringement, and unfair competition in violation of California [990]*990Business & Professions Code § 17200 et seq.

Based on the stipulation of the parties, 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:

metroi ;s.

MetroPCS uses the MetroPCS Marks on and in connection with its telecommunications products and services. The 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 for, profit; and (d) prohibit using the Handsets for a purpose that could damage or adversely affect Me-troPCS, 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 Fraúd' and Abuse Act, 18 U.S.C. § 1030, et seq., contributory trademark infringement, and unfair competition in violation of California Business & Professions Code § 17200 et seq.

5. MetroPCS has suffered damages, including loss of goodwill and damage to its reputation, as a result of Defendant’s conduct. On review and consideration of all relevant factors, MetroPCS is entitled to damages and injunctive relief on the claims as set forth in the Complaint.

6. Final judgment for liability is hereby entered against Defendant RAMON M. ELIZONDO a/k/a RAMON. MANUEL ELIZONDO .a/k/a RAMON ELIZONDO JR., individually and d/b/a EC WIRELESS, EC WIRELESS ONE TOUCH COMMUNICATIONS, EC WIRELESS #3, and SD PHONE TRADER and in favor of the Plaintiff, on all of the claims set forth in Plaintiffs Complaint.

• 7.

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

MetroPCS v. SD Phone Trader, 190 F. Supp. 3d 987, 2016 U.S. Dist. LEXIS 84671, 2016 WL 3387746 (S.D. Cal. 2016).

190 F. Supp. 3d 987 (MetroPCS v. SD Phone Trader) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related