OMEGA SA v. The Individuals, Business Entities, And Unincorporated Associations Identified On Schedule A

• Court: District Court, S.D. Florida
• Decided: March 22, 2022
• Docket: 0:22-cv-60109
• Status: Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 22-CV-60109-RAR

OMEGA SA, et al.,

Plaintiffs,

v.

THE INDIVIDUALS, BUSINESS ENTITIES, AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE “A,”

Defendants. /

ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL DEFAULT JUDGMENT

THIS CAUSE comes before the Court upon Plaintiffs’ Motion for Entry of Final Default Judgment [ECF No. 42] (“Motion”). Plaintiffs, Omega SA, Blancpain SA, Compagnie des Montres Longines, Francillon S.A., Glashütter Uhrenbetrieb GmbH, Hamilton International AG, Montres Breguet S.A., Rado Uhren AG, Tissot SA, Certina AG, and Mido AG, seek entry of a default final judgment against Defendants, the Individuals, Business Entities, and Unincorporated Associations identified on Schedule “A” that operate commercial Internet websites and/or e- commerce stores that infringe Plaintiffs’ trademarks and promote and sell counterfeit goods bearing and/or using Plaintiffs’ trademarks. See generally Mot. [ECF No. 42]. Plaintiffs request the Court: (1) enjoin Defendants from producing or selling goods that infringe on their trademarks; (2) disable, or at Plaintiffs’ election, transfer the domain names at issue to Plaintiffs; (3) assign all rights, title, and interest, to the domain names to Plaintiffs and permanently delist or deindex the domain names from any Internet search engines; (4) remove the listings and associated images of goods bearing and/or using counterfeits and infringements of Plaintiffs’ trademarks at issue, and the goods of each Defendant bearing one or more of Plaintiffs’ trademarks held by the Internet marketplaces be surrendered to Plaintiffs; and (5) award statutory damages. See generally id. A Clerk’s Default [ECF No. 35] was entered against Defendants on March 10, 2022, after Defendants failed to respond to the Amended Complaint [ECF No. 24], despite having been served. See Proof of Service [ECF No. 30]. The Court having considered the record and noting no opposition to Plaintiffs’ Motion, it is hereby ORDERED AND ADJUDGED that Plaintiffs’ Motion [ECF No. 42] is GRANTED for the reasons stated herein. Pursuant to Rule 58 of the Federal Rules of Civil Procedure, a default final judgment will be entered by separate order. BACKGROUND! A. Factual Background Omega SA is the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (“Omega Marks”):

IC 014. Watches (including pocket watches, wrist watches with or without straps, bands Q or bracelets, pendant watches, calendar

chronographs, and parts for all of the foregoing.

The factual background is taken from Plaintiffs’ Amended Complaint, Motion, and supporting Declarations submitted by Plaintiffs. Page 2 of 36

734,891 July 24, 1962 |IC 014. Timepieces and Parts Thereof. CONSTELLATION | 1,223,349 J 983 NL, 014. Watches and parts thereof. ©) IC 014. Watch Cases [ , Watch Chains, and OMEGA 1,290,661 | August 21, 1984 Watch Stands Sold as a Unit with Watches ] December 18 IC 014. Watches, Wrist Watches, Portfolio DE VILLE 1,309,929 1984 > |Watches, Pendant Watches, and Miniature Clocks; and Parts Thereof. 1,776,436 June 15, 1993 |IC 014. Watches. a Q 1,827,397 March 22, 1994 014. Watches. IC 014. Watches, [ watch straps, watch December 21 bracelets and parts for the aforesaid goods; | 2,912,918 > |chronometers, chronographs; watches made 2004 of precious metals; watches partly or entirely set with precious stones. PLANET OCEAN 3,085,659 April 25, 2006 |IC 014. Watches and watch parts. SEAMASTER 3,640,080 | June 16, 2009 [IC O14. Jewelry, [ precious stones; ] horological and chronometrical instruments. IC 014. [jewelry and precious stones;] es fae 3,757,932 March 9, 2010 horological and chronometric instruments. IC 014. Watches, watch straps, watch bracelets and parts thereof, chronometers, AQUA TERRA 4,299,644 March 12, 2013 |chronographs for use as watches, watches made of precious metals, watches partly or entirely set with precious stones. CO-AXIAL 4,442,192 December 3, Ic 014. Horological and chronometric 2013 instruments. DARK SIDE OF IC 014. Horological and chronometric IC 014. Horological and chronometric QO December 6, instruments and parts for the aforesaid 5,094,915 goods; accessories namely, watch chains, OMEGA 2016 presentation cases for watches and cases for watches. CO-AXIAL . MASTER 5,266,563 |August 15, 2017 O14. Horological and chronometric CHRONOMETER

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See Decl. of Antoine Haller (“Haller Decl.”) [ECF No. 6-2] § 4. The Omega Marks are used in connection with the manufacture and distribution of high-quality goods in the categories identified above. See id. Blancpain SA is the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (““Blancpain Marks”):

Trademark Registration | Registration Class / Goods Number Date Fifty Fathom 661,036 April 29, 1958 JIC 014. Mechanical watches. 1,727,428 oe 27, IC 014. Watches and parts thereof. 4,518,491 June 4, 2013 Ic 014. Jewelry [, precious stones |; horological and chronometric instruments. See Haller Decl. ¢ 14. The Blancpain Marks are used in connection with the manufacture and distribution of quality goods in the categories identified above. See id. Compagnie des Montres Longines, Francillon S.A. is the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (“Longines Marks”):

Trademark Registration | Registration Class / Goods Number Date IIR TIO September 10, [IC 014. Watches, parts of watches, and LONGINE ° ° °

LONGINES _, 668.956 October 28, {IC 014. Watches and watch movements ix ° 1958 and parts thereof IC 014. Clocks, Watches and Parts —

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IC 014. Precious metals and their alloys, namely, white gold, yellow gold, pink THE LONGINES September 13 gold; jewelry watches, precious stones, MASTER 2,995,368 P 005 > Inamely diamonds, horological and COLLECTION chronometric instruments, namely, chronographs, chronometers for use as watches, watches, watch movement See Haller Decl. § 24. The Longines Marks are used in connection with the manufacture and distribution of high-quality goods in the categories identified above. See id. Glashiitter Uhrenbetrieb GmbH is the owner of the following trademark, which 1s valid and registered on the Principal Register of the United States Patent and Trademark Office (“Glashtitte Original Mark”):

Trademark Registration Registration Class / Goods Number Date IC 014. horological and chronometric instruments, namely, watches, parts of clocks and watches [, alarms for clocks, 7 ee S 2,519,207 December 18, |precious metals and their alloys sold in Ls 2001 bulk, precious metals, jewelry, precious gemstones, imitation jewelry, cufflinks, tie pins, and belt buckles made of precious metal ]. See Haller Decl. § 34. The Glashiitte Original Mark is used in connection with the manufacture and distribution of high-quality goods in the categories identified above. See id. Hamilton International AG is the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (“Hamilton Marks”):

Trademark Registration Registration Class / Goods Number Date November 27 IC 014. Horological Instruments- HAMILTON 741,279 1962 > |Namely, Watches, Clocks, Chronometers, and Parts Thereof Page 5 of 36

T November 13, |IC 014. Watches, clocks and parts VENTURA

instruments IC 014. Precious metals and their alloys and goods made of these materials or coated therewith included in this class, namely, figurines and trophies; jewelry, namely, rings, earrings, cuff links, bracelets, charms, brooches, chains and necklaces; tie pins; tie clips; jewelry caskets and cases; precious stones, semi- precious stones; timepieces and September 29 chronometric instruments, namely, KHAKI PILOT 4,820,105 > {chronometers, chronographs, clocks, 2015 . watches, wristwatches, wall clocks, alarm clocks as well as parts and accessories for the aforesaid goods, namely, hands, anchors, pendulums, barrels, watch cases, watch straps, watch dials, clockworks, watch chains, movements for timepieces, watch springs, watch glasses, presentation cases for timepieces, cases for timepieces IC 014. Horological and chronometric instruments, namely, watches, chronographs, clocks, watches, watch bracelets, clocks, alarm clocks and parts and fittings for the aforesaid goods, HAMILTON 5,168,258 March 21, 2017 |namely, needles, anchors, rockers, barrels, watch cases, watch straps, watch dials, clockworks, watch chains, watch movements, watch springs, watch glasses, cases for watchmaking, cases for watches IC 014. Precious metals and their alloys \, / and goods made of these materials or = 5,257,031 August 1, 2017 |plated therewith included in this class, | \ namely, figurines, trophies; jewelry, namely, rings, earrings, cufflinks, Page 6 of 36

bracelets, charms, brooches, watch and jewelry chains, necklaces, tie pins, tie clips, jewelry boxes; precious stones, semi-precious stones; horological and chronometric instruments, namely, chronometers, chronographs as watches, clocks, watches, wrist watches, pendulum watches, alarm clocks and parts and fittings for the aforesaid goods, namely, hands, anchors, balance, barrels, watch cases, watch straps, watch dials, clockworks, watch chains, watch moveinents. See Haller Decl. § 44. The Hamilton Marks are used in connection with the manufacture and distribution of high-quality goods in the categories identified above. See id. Montres Breguet S.A. is the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (“Breguet Marks”):

Trademark Registration Registration Class / Goods Number Date IC 014. Watches, watch straps, watch BREGUET 3,042,405 January 10, bracelets, and parts thereof, horological 2006 instruments, namely, chronometers and chronographs IC 009. [ Spectacles and sunglasses; spectacle frames; spectacle cases; chains for spectacles; apparatus for recording; transmitting and reproducing sound or images, namely, CD and DVD players; magnetic recording media and recording 3,414,708 April 22, 2008 discs, namely, blank CDs, blank DVDs; ] magnetic recording media and recording discs, namely, pre-recorded CDs and DVDs in the field of musical festivals. IC 014. Jewelry, horological and chronometric instruments. IC 016. Printed matter and periodicals, Page 7 of 36

namely, books, magazines, catalogs, brochures, featuring horological and chronometric instruments, jewelry and writing instruments; stationery, namely, pencils, pens, and fountain pens. IC 018. Goods made of leather and imitation leather, namely, wallets, briefcases, business card cases, key cases, backpacks, trunks, valises, umbrellas. IC 025. Clothing, namely, [ caps, hats, ] scarves, neckties [, belts, shirts, T-shirts, and jackets ]. See Haller Decl. § 54. The Breguet Marks are used in connection with the manufacture and distribution of high-quality goods in the categories identified above. See id. Rado Uhren AG 1s the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (“Rado Marks”):

Trademark Registration Registration Class / Goods Number Date 788,733 April 27, 1965 |IC 014. Watches and parts thereof. RAD oe © RADO 982.878 April 30, 1974 IC 014. [clocks and ] watches and parts DIASTAR thereof November 3, RADO 1,729,207 1992 IC 014. watches and parts thereof

See Haller Decl. § 64. The Rado Marks are used in connection with the manufacture and distribution of high-quality goods in the categories identified above. See id. Tissot SA is the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (“Tissot Marks”):

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Trademark Registration Registration Class / Goods Number Date

. IC 014. watches; parts, fittings and

POWERMATIC 2,102,854 April 1, 2003 IC 014. Electronic watches energized by the wearer, and their parts IC 014. Horological and chronometric

4,900,255 February 16, Ic 014. Horological and chronometric 2016 instruments. 4,971,556 June 7, 2016 Ic 014. Horological and chronometric instruments.

See Haller Decl. § 74. The Tissot Marks are used in connection with the manufacture and distribution of high-quality goods in the categories identified above. See id. Certina AG is the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (“Certina Marks”):

Trademark Registration Registration Class / Goods Number Date CERTINA 401,762 Tune 8, 1943 IC 014. Watches, Parts Thereof, Watch Movements and Clocks. CERTINA-DS 3,283,211 August 21, 2007|IC 014. Watches and watch parts IC 014. [ Precious metals; precious metal alloys; goods in precious metals or coated therewith, namely, figurines ehep September 9, and trophies; jewelry; jewelry boxes; ceinatos 4,600,118 014 jewelry caskets; precious stones; ] Oey horological and chronometric instruments; watch chains; caskets for watches; cases for the presentation of watches. IC 014. Precious metals; precious metal (aaa, alloys; precious stones; horological and wae 4,739,714 May 19, 2015 |chronometric instruments; caskets for watches; cases for the presentation of watches. Page 9 of 36

See Haller Decl. § 84. The Certina Marks are used in connection with the manufacture and distribution of high-quality goods in the categories identified above. See id. Mido AG is the owner of the following trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (“Mido Marks”):

Trademark Registration Registration Class / Goods Number Date IC 014. Watches, and chronometers, MIDO 225,024 March 8, 1927 |watch movements, watch cases, [ dials ] and parts of watches. IC 014. Watches, Wrist Watches, [Deck Mido January 12, |Watches, alarm Watches, Watch 399,480 MULTIFORT 1943 Pendulettes, chronometers, Movements, ] Cases and Dials[for the Same]. OCEANSTAR 441,020 October 19, |IC 014. Watches, watch casings and 1948 parts of watches. MULTIFORT 4,431,373 November 12, Ic 014. Horological and chronometric 2013 instruments. See Haller Decl. § 94. The Mido Marks are used in connection with the manufacture and distribution of high-quality goods in the categories identified above. See id. 94. Collectively, the Omega Marks, Blancpain Marks, Longines Marks, Glashiitte Original Mark, Hamilton Marks, Breguet Marks, Rado Marks, Tissot Marks, Certina Marks, and Mido Marks are referred to herein as the ‘Plaintiffs’ Marks.” Plaintiffs’ representative reviewed and visually inspected the detailed web page captures and photographs reflecting various products bearing Plaintiffs’ trademarks offered for sale through the commercial Internet websites and/or e-commerce stores operating under Defendants’ domain names and seller identification names identified on Schedule “A” (“Subject Domain Names and Seller IDs”) and determined the products were non-genuine, unauthorized versions of Plaintiffs’ products. See id. J] 107-108. Based on their investigation, Plaintiffs allege Defendants have

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advertised, promoted, offered for sale, or sold goods bearing and/or using what Plaintiffs have determined to be counterfeits, infringements, reproductions, or colorable imitations of Plaintiffs’ Marks. See id.; Am. Compl. ¶¶ 17–23, 84. Defendants are not now, nor have they ever been, authorized or licensed to use, reproduce, or make counterfeits, reproductions, or colorable

imitations of Plaintiffs’ Marks. See Haller Decl. ¶¶ 104, 107. B. Procedural Background On January 14, 2022, Plaintiffs filed their Complaint, and on February 10, 2022, filed their Amended Complaint against Defendants. On January 19, 2022, Plaintiffs filed their Ex Parte Motion for Order Authorizing Alternate Service of Process [ECF No. 7] (“Motion for Alternate Service”). The Court entered an Order Granting the Motion for Alternate Service on January 20, 2022 [ECF No. 10]. In accordance with the January 20, 2022 Order, Plaintiffs served each Defendant with a Summons and a copy of the Amended Complaint via electronic mail and website posting on February 10, 2022. See Decl. of Virgilio Gigante (“Gigante Decl.”) [ECF No. 42-5] ¶ 6; Proof of Service [ECF No. 30]. Defendants failed to file an answer or other response, and the time allowed for Defendants

to respond to the Amended Complaint has since expired. See Gigante Decl. ¶¶ 7–8. To Plaintiffs’ knowledge, Defendants are not infants or incompetent persons, and the Servicemembers Civil Relief Act does not apply. See id. ¶ 9. On March 10, 2022, the Clerk entered default against Defendants [ECF No. 35] for failure to plead or otherwise defend pursuant to Rule 55(a) of the Federal Rules of Civil Procedure. Plaintiffs now move the Court for default final judgment against Defendants. LEGAL STANDARD A party may apply to the court for a default judgment when the defendant fails to timely respond to a pleading. FED. R. CIV. P. 55(b)(2). “A defendant, by his default, admits the plaintiff’s well-pleaded allegations of fact, is concluded on those facts by the judgment, and is barred from contesting on appeal the facts thus established.” Eagle Hosp. Physicians, LLC v. SRG Consulting, Inc., 561 F.3d 1298, 1307 (11th Cir. 2009) (internal quotations omitted) (quoting Nishimatsu Constr. Co. v. Houston Nat’l Bank, 515 F.2d 1200, 1205 (5th Cir. 1975)). However, conclusions

of law are to be determined by the court. Mierzwicki v. CAB Asset Management LLC, No. 14- 61998, 2014 WL 12488533, at *1 (S.D. Fla. Dec. 30, 2014). Therefore, a court may enter a default judgment only if there is a “sufficient basis to state a claim.” Id. Once a plaintiff has established a sufficient basis for liability, the Court must conduct an inquiry to determine the appropriate damages. PetMed Express, Inc. v. MedPets.Com, Inc., 336 F. Supp. 2d 1213, 1217 (S.D. Fla. 2004). Although an evidentiary hearing is generally required, the Court need not conduct such a hearing “when . . . additional evidence would be truly unnecessary to a fully informed determination of damages.” Safari Programs, Inc. v. CollectA Int’l Ltd., 686 F. App’x 737, 746 (11th Cir. 2017). Therefore, where the record adequately supports the award of damages, an evidentiary hearing is not required. See SEC v. Smyth, 420 F.3d

1225, 1232 n.13 (11th Cir. 2005); PetMed Express, Inc., 336 F. Supp. 2d at 1217, 1223 (finding an evidentiary hearing unnecessary because plaintiff was seeking statutory damages under the Lanham Act); Luxottica Group S.p.A. v. Casa Los Martnez Corp., No. 14-22859, 2014 WL 4948632, at *2 (S.D. Fla. Oct. 2, 2014) (same). ANALYSIS A. Claims Plaintiffs seek a default judgment for the relief sought in the Amended Complaint, asserting the following claims against Defendants: (1) trademark counterfeiting and infringement under section 32 of the Lanham Act, in violation of 15 U.S.C. section 1114 (“Claim 1”); (2) false designation of origin under section 43(a) of the Lanham Act, in violation of 15 U.S.C. section 1125(a) (“Claim 2”); (3) unfair competition under Florida common law (“Claim 3”); and (4) trademark infringement under Florida common law (“Claim 4”). See Am. Compl. ¶¶ 100–125. 1. Counterfeiting and Infringement Section 32 of the Lanham Act, 15 U.S.C. section 1114, provides liability for trademark infringement if, without the consent of the registrant, a defendant uses “in commerce any

reproduction, counterfeit, copy, or colorable imitation of a registered mark . . . which . . . is likely to cause confusion, or to cause mistake, or to deceive.” 15 U.S.C. § 1114(1)(a). To prevail on its trademark infringement claim, a plaintiff must demonstrate “(1) that it had prior rights to the mark at issue and (2) that the defendant had adopted a mark or name that was the same, or confusingly similar to its mark, such that consumers were likely to confuse the two.” Planetary Motion, Inc. v. Techsplosion, Inc., 261 F.3d 1188, 1193 (11th Cir. 2001) (footnote and citations omitted). 2. False Designation of Origin The test for liability for false designation of origin under 15 U.S.C. section 1125(a) is the same as for a trademark counterfeiting and infringement claim—i.e., whether the public is likely to be deceived or confused by the similarity of the marks at issue. See Two Pesos, Inc. v. Taco

Cabana, Inc., 505 U.S. 763, 780 (1992) (Stevens, J., concurring in the judgment). 3. Common Law Unfair Competition Whether a defendant’s use of a plaintiff’s trademarks created a likelihood of confusion between the plaintiff’s and the defendant’s products is also the determining factor in the analysis of unfair competition under the common law of Florida. See Rolex Watch U.S.A., Inc. v. Forrester, No. 83-8381, 1986 WL 15668, at *3–4 (S.D. Fla. Dec. 9, 1986) (“[I]t is clear that the Court need not find ‘actual confusion’ . . . . The proper test is ‘likelihood of confusion . . . .”’). 4. Common Law Trademark Infringement The analysis of liability for Florida common law trademark infringement is the same as the analysis of liability for trademark infringement under section 32(a) of the Lanham Act. See PetMed Express, Inc., 336 F. Supp. 2d at 1217–18. B. Liability The well-pleaded factual allegations of Plaintiffs’ Amended Complaint properly contain

the elements for each of the above claims and are admitted by virtue of Defendants’ defaults. See Am. Compl. ¶¶ 17–23, 84–92, 101–104, 108–111, 116–118, and 121–124. Moreover, the Amended Complaint’s factual allegations have been substantiated by sworn declarations and other evidence and establish Defendants’ liability for each of the claims asserted. Accordingly, default judgment pursuant to Rule 55 of the Federal Rules of Civil Procedure is appropriately entered against Defendants. C. Relief Plaintiffs request an award of equitable relief and monetary damages against Defendants for trademark infringement in Claim 1. The Court analyzes Plaintiffs’ request for relief as to Claim 1 only, as the judgment for Claims 2, 3, and 4—false designation of origin, common law unfair

competition, and common law trademark infringement—is limited to entry of the requested equitable relief for Claim 1. See generally Mot. [ECF No. 42]. Injunctive Relief. Pursuant to the Lanham Act, a district court is authorized to issue an injunction “according to the principles of equity and upon such terms as the court may deem reasonable,” to prevent violations of trademark law. 15 U.S.C. § 1116(a). Indeed, “[i]njunctive relief is the remedy of choice for trademark and unfair competition cases, since there is no adequate remedy at law for the injury caused by a defendant’s continuing infringement.” Burger King Corp. v. Agad, 911 F. Supp. 1499, 1509–10 (S.D. Fla. 1995) (alteration in original) (internal quotation marks omitted) (quoting Century 21 Real Estate Corp. v. Sandlin, 846 F.2d 1175, 1180 (9th Cir. 1988)). Injunctive relief is available even in the default judgment setting, see, e.g., PetMed Express, Inc., 336 F. Supp. 2d at 1222–23, because Defendants’ failure to respond or otherwise appear makes it difficult for a plaintiff to prevent further infringement absent an injunction. See

Jackson v. Sturkie, 255 F. Supp. 2d 1096, 1103 (N.D. Cal. 2003) (“[D]efendant’s lack of participation in this litigation has given the court no assurance that defendant’s infringing activity will cease. Therefore, plaintiff is entitled to permanent injunctive relief.”). Permanent injunctive relief is appropriate where a plaintiff demonstrates: (1) it has suffered irreparable injury; (2) there is no adequate remedy at law; (3) the balance of hardship favors an equitable remedy; and (4) an issuance of an injunction is in the public’s interest. See eBay, Inc. v. MercExchange, LLC., 547 U.S. 388, 391–92 (2006). Plaintiffs have carried their burden on each of the four factors. Specifically, in trademark cases, “a sufficiently strong showing of likelihood of confusion [caused by trademark infringement] may by itself constitute a showing of . . . a substantial threat

of irreparable harm.” E. Remy Martin & Co., S.A. v. Shaw-Ross Int’l Imports, Inc., 756 F.2d 1525, 1530 (11th Cir. 1985) (footnote omitted); see also Levi Strauss & Co. v. Sunrise Int’l Trading Inc., 51 F.3d 982, 986 (11th Cir. 1995) (“There is no doubt that the continued sale of thousands of pairs of counterfeit jeans would damage [the plaintiff’s] business reputation and decrease its legitimate sales.”). Plaintiffs’ Amended Complaint and the submissions show that the goods produced and sold by Defendants are nearly identical to Plaintiffs’ genuine products, and consumers viewing Defendants’ counterfeit goods post-sale would actually confuse them for Plaintiffs’ genuine products. See, e.g., Am. Compl. ¶ 85 (“Defendants’ actions are likely to cause confusion of consumers at the time of initial interest, sale, and in the post-sale setting, who will believe all of Defendants’ goods are genuine goods originating from, associated with, and/or approved by Plaintiffs.”). Plaintiffs have no adequate remedy at law so long as Defendants continue to operate the Subject Domain Names and Seller IDs because Plaintiffs cannot control the quality of what appear

to be their products in the marketplace. An award of monetary damages alone will not cure the injury to Plaintiffs’ reputations and goodwill if Defendants’ infringing and counterfeiting continue. Moreover, Plaintiffs face hardship from loss of sales and their inability to control their reputations in the marketplace. By contrast, Defendants face no hardship if they are prohibited from the infringement of Plaintiffs’ trademarks. Finally, the public interest supports the issuance of a permanent injunction against Defendants to prevent consumers from being misled by Defendants’ products, and potentially harmed by their inferior quality. See Chanel, Inc. v. besumart.com, 240 F. Supp. 3d 1238, 1291 (S.D. Fla. 2016) (“[A]n injunction to enjoin infringing behavior serves the public interest in protecting consumers from such behavior.”) (citation omitted); World Wrestling Entm’t, Inc. v. Thomas, No. 12-21018, 2012 WL 12874190, at *8 (S.D. Fla. Apr. 11, 2012)

(considering the potential for harm based on exposure to potentially hazardous counterfeit merchandise in analyzing public’s interest in an injunction). Broad equity powers allow the Court to fashion injunctive relief necessary to stop Defendants’ infringing activities. See, e.g., Swann v. Charlotte-Mecklenburg Bd. of Educ., 402 U.S. 1, 15 (1971) (“Once a right and a violation have been shown, the scope of a district court’s equitable powers to remedy past wrongs is broad, for . . . [t]he essence of equity jurisdiction has been the power of the Chancellor to do equity and to mould [sic] each decree to the necessities of the particular case.” (citation and internal quotation marks omitted)); United States v. Bausch & Lomb Optical Co., 321 U.S. 707, 724 (1944) (“Equity has power to eradicate the evils of a condemned scheme by prohibition of the use of admittedly valid parts of an invalid whole.” (citations omitted)). District courts are expressly authorized to order the transfer or surrender of domain names in an in rem action against a domain name. See 15 U.S.C. §§ 1125(d)(1)(C), (d)(2). However, courts have not limited the remedy to that context. See, e.g., Philip Morris USA, Inc. v. Otamedia Ltd., 331 F.

Supp. 2d 228, 230 n.2 (S.D.N.Y. 2004) (transferring Yesmoke.com domain name to plaintiff despite the fact the plaintiff did not own a trademark in the term “Yesmoke” and noting 15 U.S.C. section 1125 “neither states nor implies that an in rem action against the domain name constitutes the exclusive remedy for a plaintiff aggrieved by trademark violations in cyberspace”); Ford Motor Co. v. Cross, 441 F. Supp. 2d 837, 853 (E.D. Mich. 2006) (ordering the defendants to disclose all other domain registrations held by them and to transfer registration of a particular domain name to plaintiff in part under authority of 15 U.S.C. section 1116(a)). Defendants have created an Internet-based counterfeiting scheme in which they are profiting from their deliberate misappropriation of Plaintiffs’ rights. Accordingly, the Court may fashion injunctive relief to eliminate the means by which Defendants are conducting their unlawful

activities. Appropriate remedies to achieve this end include ordering the cancellation or transfer of the Subject Domain Names to Plaintiffs; removing the Seller IDs’ listings and images of goods; and requiring that the goods of each Defendant be surrendered to Plaintiffs, such that these means may no longer be used as instrumentalities to further the sale of counterfeit goods. Statutory Damages. In a case involving the use of counterfeit marks in connection with the sale, offering for sale, or distribution of goods, 15 U.S.C. section 1117(c) provides that a plaintiff may elect an award of statutory damages at any time before final judgment is rendered in the sum of not less than $1,000.00 nor more than $200,000.00 per counterfeit mark per type of good. See 15 U.S.C. § 1117(c)(1). In addition, if the Court finds Defendants’ counterfeiting actions were willful, it may impose damages above the maximum limit up to $2,000,000.00 per counterfeit mark per type of good. See 15 U.S.C. § 1117(c)(2). The Court has wide discretion to determine the amount of statutory damages. See PetMed Express, Inc., 336 F. Supp. 2d at 1219 (citations omitted). An award of statutory damages is

appropriate despite a plaintiff’s inability to prove actual damages caused by a defendant’s infringement. See Ford Motor Co., 441 F. Supp. 2d at 852 (citations omitted) (“[A] successful plaintiff in a trademark infringement case is entitled to recover enhanced statutory damages even where its actual damages are nominal or non-existent.”); Playboy Enters., Inc. v. Universal Tel-A- Talk, Inc., No. 96-6961, 1998 WL 767440, at *8 (E.D. Pa. Nov. 3, 1998) (awarding statutory damages where plaintiff failed to prove actual damages or profits). The option of a statutory damages remedy in trademark counterfeiting cases is sensible given evidence of a defendant’s profits in such cases is frequently almost impossible to ascertain. See, e.g., S. Rep. No. 104-177, pt. V § 7, at 10 (1995) (discussing purposes of Lanham Act statutory damages); PetMed Express, Inc., 336 F. Supp. 2d at 1220 (statutory damages are “[e]specially appropriate in default judgment

cases due to infringer nondisclosure”) (citations omitted). This case is no exception. Here, the allegations of the Amended Complaint and the evidence establish the Defendants intentionally copied one or more of Plaintiffs’ Marks for the purpose of deriving the benefit of Plaintiffs’ world-famous reputation. Defendants have defaulted on Plaintiffs’ allegations of willfulness. See Am. Compl. ¶ 91; Arista Records, Inc. v. Beker Enters., Inc., 298 F. Supp. 2d 1310, 1313 (S.D. Fla. 2003) (finding a court may infer willfulness from the defendants’ default); PetMed Express, Inc., 336 F. Supp. 2d at 1217 (stating that upon default, well-pleaded allegations are taken as true). As such, the Lanham Act permits the Court to award up to $2,000,000.00 per infringing mark on each type of good as statutory damages to ensure Defendants do not continue their intentional and willful counterfeiting activities. The only available evidence demonstrates that each Defendant promoted, distributed, advertised, offered for sale, and/or sold at least one (1) type of good bearing at least one (1) mark

which is a counterfeit of one of Plaintiffs’ Marks protected by federal trademark registrations. See Am. Compl. ¶¶ 24, 30, 36, 42, 48, 54, 60, 66, 72, 78, 84–92, 101–105; Haller Decl. 104–108. Based on the above considerations, Plaintiffs have asked the Court to award statutory damages in the amount of $1,000,000.00 against each Defendant. See Mot. [ECF No. 42] at 14–15. The award should be sufficient to deter Defendants and others from continuing to counterfeit or otherwise infringe Plaintiffs’ trademarks, compensate Plaintiffs, and punish Defendants, all stated goals of 15 U.S.C. section 1117(c). The Court finds that this award of statutory damages falls within the permissible range under 15 U.S.C. section 1117(c) and is just. See Fendi S.R.L. v. Joe Bag, No. 19-61356, 2019 WL 4693677 (S.D. Fla. Aug. 28, 2019) [ECF No. 43] (awarding plaintiff $1,000,000.00 against each defendant); Adidas AG v. Global Online Shopping, No. 19-61180

(S.D. Fla. 2019) [ECF No. 36] (awarding plaintiff $1,000,000.00 against each defendant); Louis Vuitton Malletier v. lv2014.skrar, No. 19-61015 (S.D. Fla. 2019) [ECF No. 42] (awarding plaintiff $1,000,000.00 against each defendant); Abercrombie & Fitch Trading Co. v. Artemis Gesdy, No. 19-60287 (S.D. Fla. 2019) [ECF No. 36] (awarding plaintiff $1,000,000.00 against each defendant); Fendi S.R.L. v. socjmkfn, No. 19-61356 (S.D. Fla. 2019) [ECF No. 44] (awarding plaintiff $1,000,000.00 against each defendant); Goyard St Honore v. Agote, No. 17-62276, 2018 WL 2006870 (S.D. Fla. Apr. 19, 2018) [ECF No. 49] (awarding plaintiff $1,000,000.00 against each defendant); Specialized Bicycle Components, Inc. v. 17 No.1-Own, No. 17-61201, 2017 WL 3016929 (S.D. Fla. July 14, 2017) [ECF No. 44] (awarding plaintiff $1,000,000.00 against each defendant). CONCLUSION For the foregoing reasons, Plaintiffs are entitled to the entry of final default judgment. Accordingly, it is hereby ORDERED AND ADJUDGED that Plaintiffs’ Motion [ECF No. 42] is GRANTED. Default final judgment and a permanent injunction shall be entered by separate order. DONE AND ORDERED in Fort Lauderdale, Florida, this 22nd day of March, 2022.

UNITED STATES DISTRICT JUDGE

Page 20 of 36

SCHEDULE “A” DEFENDANTS BY NUMBER, SUBJECT DOMAIN NAME, SELLER ID, FINANCIAL ACCOUNT INFORMATION, MERCHANT ID, INFRINGING PRODUCT NUMBER, AND E-MAIL

Financial Account Defendant / Defendant Information: Infringing Product Subject Domain Name PayPal Merchant ID Number PayPal Account / Payee / Number / E-mail / Seller ID Store Number 1 dearwatch90.store 714946201@qq.com 3NLZUH7DLRBLL rizzocamieyz65@gmail.com llvvpurchasing@gmail.com 1 dffnglksdfhnd.online llvvpurchasing@gmail.com C9YLU545FFSGC rizzocamieyz65@gmail.com llvvpurchasing@gmail.com 1 fdg3dgj.online llvvpurchasing@gmail.com C9YLU545FFSGC rizzocamieyz65@gmail.com llvvpurchasing@gmail.com 1 jlkjjk43jjkh.online llvvpurchasing@gmail.com C9YLU545FFSGC rizzocamieyz65@gmail.com llvvpurchasing@gmail.com 1 juhhjh36knjk.online llvvpurchasing@gmail.com C9YLU545FFSGC rizzocamieyz65@gmail.com llvvpurchasing@gmail.com 1 lucky3watch.com llvvpurchasing@gmail.com C9YLU545FFSGC janeywenona1030@gmail.co m llvvpurchasing@gmail.com 1 mmbbdfdg.fun llvvpurchasing@gmail.com C9YLU545FFSGC rizzocamieyz65@gmail.com llvvpurchasing@gmail.com 1 sdanmlgldsfc.online llvvpurchasing@gmail.com C9YLU545FFSGC rizzocamieyz65@gmail.com 3 club.vipwatchmall.xyz berbershop01@outlook.com global@ellaservice.com 4 csobuy.com rimsemea@outlook.com support@csobuy.com nicolekilgroth@gmail.com 5 flinees.com fsj19730512@hotmail.com PV8H93KUFABFJ No email received guangzhoukaizhuofu1@outlo 6 gekaka.com ZPDX5LKZTMC4A service@gekaka.com ok.com 7 giftfrs.com huayucheng@tenflyer04.com 9869TXU782SCW Tiiglig@outlook.com 10 totheesw.com yanqing@hcyfshoes.com W6WDNU9SYG5X2 sminiyoni689@yahoo.com 13 naburei.com wry19830316@hotmail.com 2QS44HE9HZMS8 No email received 14 psition.com yl123231@163.com verilty01@outlook.com bimignxingdad@outlook.co 15 redemor.com VKDTDSZ4E4T4L service@redemor.com m 17 sjhifs.com 24009746@qq.com 28P3U4UM26T8U chinaqiguo.com shangjiaying2021@sunkisns.c om 18 sunkisns.com hedouliangpin@gmail.com R6HHBSWECLYVC Helen.M.Olney536482@gmai l.com 19 ukshopnow.com qwsaxzq@exelav.co.uk 29KRY49CJKAT6 service@ukshopnow.com 20 vwatchesvip.com wang041404@163.com UB77B7J562APG 21 watch.uyqma.com pajsuakk@yahoo.com MZDLJXW3VEVEQ rizzocamieyz65@gmail.com 21 watco.top yuhe61333@163.com YVWV6VBPDTYHU rizzocamieyz65@gmail.com bs_watches@aol.co.uk 22 watches.is sale@watches.is sale@watches.is opabyukinten72@mail.com JXCA6S5QHUDF8 enlasiretepi7@mail.com 52NCAJRRWRDNC support@smalldogk.com dominqueecowen67@outloo 23 zusustores.com NH459EA6N48HE noreply@notice.mailzh- k.com apolo.com 24 A Watches Store 2495039 1005002722249711 25 Amy's Watch Store 5627044 1005001880001063 26 Barrett Watch Store 5004001 1005002477212168 27 catherine wr's store 800794 32508181579 28 Chenwatch Store 912175255 1005002835503489 China Watch Gallery 29 1168522 1005001324905168 Store digital product-001 30 911834196 1005002775491393 Store 31 Domineering man Store 911928222 1005002663799917 32 Good watch Store 900243401 1005002608042539 33 Greatwatch Store 911726027 1005002467276978 34 HHAAJJStore Store 912068623 1005002768417412 High quality watch 35 911808138 1005002771001020 Store 36 JIANGYUYAN 16888 4000808436629 37 Leipin Store 911852111 1005002541063785 38 LinkFashion Store 910765003 1005002605149312 39 Luo Store 5404039 10000221765910 40 Luxurybrands Store 911966075 1005002636812320 41 MIQIAOWatch Store 911758645 1005002450219838 Mr Li phone 42 1850112 1005002781737826 accessories Store 43 myAge Store 912060494 1005002752275884 44 nanren watch Store 911757972 1005002643433513 45 PAMSOTT Store 912162145 1005002835608879 46 PJY Store 5040037 1005002653253464 P-V-C-R-O-AAA 47 911706142 1005002494677316 Watch Store PYROPETS Official 48 3858071 4000703867732 Store 49 qunimade Store 912133165 1005002818011155 50 Shop910972041 Store 910972041 1005002672233458 51 Shop911261078 Store 911261078 1005001921729510 52 Shop911805624 Store 911805624 1005002699654909 53 Shop911815088 Store 911815088 1005002608043992 54 Shop911816054 Store 911816054 1005002608005140 55 Shop911817367 Store 911817367 1005002527270031 56 Shop911827576 Store 911827576 1005002616737931 57 Shop911880485 Store 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