Multifab, Inc. v. ArlanaGreen.com

122 F. Supp. 3d 1055, 2015 U.S. Dist. LEXIS 105500, 2015 WL 4748309
CourtDistrict Court, E.D. Washington
DecidedAugust 11, 2015
DocketNo. 2:15-CV-0066-SMJ
StatusPublished
Cited by3 cases

This text of 122 F. Supp. 3d 1055 (Multifab, Inc. v. ArlanaGreen.com) is published on Counsel Stack Legal Research, covering District Court, E.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Multifab, Inc. v. ArlanaGreen.com, 122 F. Supp. 3d 1055, 2015 U.S. Dist. LEXIS 105500, 2015 WL 4748309 (E.D. Wash. 2015).

Opinion

ORDER DENYING PLAINTIFF’S MOTION FOR ENTRY OF DEFAULT JUDGMENT

SALVADOR MENDOZA, JR., District Judge.

Before the Court, without oral argument, is Plaintiffs Motion for Entry of [1061]*1061Default Judgment, ECF No. 29. ■ Plaintiff requests a default judgment on its claims of trademark infringement and false advertising under the Lanham- Act, cyberpi-racy. under the Anti-Cybersquatting Consumer Protection Act, and violation of the Washington Consumer Protection Act. Plaintiff-requests monetary damages, forfeiture of Defendants’ website, and a permanent injunction. Having reviewed the pleadings and the file in this matter, the Court is fully informed and denies the motion.

I. FACTUAL AND PROCEDURAL BACKGROUND1

Plaintiff is a corporation domiciled in Washington that engages in the business of manufacturing ánd distribution. ECF No. 1 at 7. Plaintiff has registered the words “Multifab” and' “Multifab, Inc.” as business names and tradenames with the State of Washington, but not with the' United States Patent and Trademark Office. Id. at 7-8. Plaintiff has used each name for at least twenty five years. Id. Currently, Plaintiff holds a domain name of “Multifab, Inc.” that is registered within the State of Washington for -the purposes of carrying out its business as well as storing and viewing- videos related to its business. Id. at 8. .

In October 2009, Defendant Arlana-Green.com was established by a registrant named Arlana Green. Id. at 3. On Décem-ber 15, 2014, the name of the Arlana-Green.com’s registrar changed from Arla-na Green to- Ruben Isaev. Id. Defendant ArlanaGreeh.com is a website which features and displays pornographic images and videos. Id. at 3.

Plaintiff alleges that Defendants engaged in an unfair and deceptive trade practice by using its tradename to promote pornographic images and videos which caused- confusion as to Plaintiffs name and purpose. Id. at 13,17. ■ ■

On March 11, 2015, ’Plaintiff filed this action seeking a 'preliminary injunction, damages, costs, attorney’s fees,. Defendants’ profits, and' an order compelling Defendants to transfer the Arlana-Green.com domain name to Plaintiff. ECF No. 1 at 18-20. On March 13, 2015, the Court issued a temporary restraining order that enjoined and restrained Defendants from using the word “Multifab” in any'website under their control. ECF No. 17 at 10-11. In addition, the Court allowed Plaintiff to execute service via electronic and United States Mail. Id. at- 9. On March 16, 2015, Defendants were served by electronic,' regular and registered mail. ECF No. 19. 1

On March 26, 2015, the Court dissolved the temporary restraining order and issued a preliminary injunction to exist until the resolution of this case. ECF No. 23 at 9, Defendants have not , appeared within the necessary time frame and have not filed an answer to Plaintiffs Qomplaint, as of this date. Plaintiff moved for default on April 21, 2015, ECF No. 26, and the Clerk of Court entered Defendants into default on April 24, 2015. ECF No. 28.

Plaintiff now moves , for entry of default judgment. Plaintiff seeks a permanent injunction, damages, costs, attorneys’ fees, Defendants’ .profits, and an, order compelling Defendants to transfer the “Arlana-Green.com” domain name to Plaintiff.

II. ANALYSIS '

A. Default Judgment

Before a court can enter a default judgment, the moving party must, show that [1062]*1062the clerk ■ has entered default “against whom a judgment for affirmative relief is sought.” Fed.R.Civ.P. 55(a). After default is entered, the moving party files a Motion for Default Judgment pursuant to Federal Rule of Civil Procedure 55(b). Plaintiff has, satisfied each requirement.

When assessing a motion for default judgment, the Court must accept all well-pleaded allegations of the complaint as fact, except facts related to the amount of damages. TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir.1987). Where those facts establish a defendant’s liability, the Court has discretion, not an obligation, to enter a default judgment. See Aldabe v. Aldabe, 616 F.2d 1089, 1092-93 (9th Cir.1980). Factors which the Court may consider in exercising its discretion include: (1) the possibility of prejudice to the plaintiff, (2) the merits of plaintiffs substantive claim, (3) the sufficiency of the complaint, (4) the sum of money at stake in the action, (5) the possibility of a dispute concerning material facts, (6) whether the default was due to excusable neglect, and (7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits. Eitel v. McCool, 782 F.2d 1470, 1471-1472 (9th Cir.1986).

After reviewing the allegations of the complaint, the attached evidence, and the argument and authority offered in the Motion for Default Judgment, Plaintiff has failed to establish trademark infringement or false advertising under the Lanham Act, cyberpiracy under the Anti-Cybers-quatting Consumer Protection Act, or a violation of Washington’s Consumer Protection Act. Given the lack of merit in Plaintiffs substantive claims, the Court declines to enter default judgment and grants Plaintiff leave to amend the Complaint. The Court addresses Plaintiffs claims in turn.

1. Trademark Infringement, 15 U.S.C. § 1125(a)(1)(A)

To succeed on a trademark infringement claim under 15 U.S.C. § 1125(a)(1)(A), a plaintiff must demonstrate: (1) ownership of a trademark, and (2) a likelihood of confusion2 through a balancing of eight factors. Wells Fargo & Co. v. ABD Ins. & Financial Services, Inc., 758 F.3d 1069, 1072 (9th Cir.2014). In this case, Plaintiff has not shown that Defendants’ “actual practice is likely to produce confusion in the minds of consumers.” KP Permanent Make-Up, Inc. v. Lasting Impression I, Inc., 543 U.S. 111, 117, 125 S.Ct. 542, 160 L.Ed.2d 440 (2004). As a result, there can be no trademark infringement.

To determine whether a trademark use gives rise to a likelihood of consumer confusion, the Court considers eight non-exhaustive factors, known as the Sleekcraft factors: (1) strength of the mark; (2) proximity or relatedness of the goods; (3) similarity of the marks; (4) evidence of actual confusion; (5) marketing channels; (6) degree of consumer care; (7) the defendants’ intent; and (8) likelihood of expansion. Network Automation, Inc. v. Advanced Sys. Concepts, Inc.,

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122 F. Supp. 3d 1055, 2015 U.S. Dist. LEXIS 105500, 2015 WL 4748309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/multifab-inc-v-arlanagreencom-waed-2015.