Patsy's Brand, Inc. v. I.O.B. Realty, Inc.

District Court, S.D. New York·Decided August 15, 2025·No. 1:99-cv-10175·Unknown

Opinion

USDC SDNY DOCUMENT ELECTRONICALLY FILED DOC #: UNITED STATES DISTRICT COURT ee aD SOUTHERN DISTRICT OF NEW YORK TEESE BILAN: August 15, 2025 wn K PATSY’S BRAND, INC., Plaintiff, -against- 99-CV-10175 (KMW) 1.0.B. REALTY, INC., PATSY’S INC., OPINION & ORDER FRANK BRIJA, JOHN BRECEVICH, and NICK TSOULOS, Defendants. wn K KIMBA M. WOOD, United States District Judge: On March 8, 2024, Plaintiff Patsy’s Brand, Inc. (“Plaintiff”) filed a motion to hold Defendants I.0.B. Realty, Inc. (“I.O.B. Realty”) and Isa “Frank” Brija, and Respondents Nexhmije Nezaj, Muharrem Memishaj, and Frank Brija’s attorney, Brian Roffe, in civil contempt for violating the trademark injunction in this case. (Notice of Mot., ECF No. 397; Pl.’s Mar. Mot., ECF No. 398.) On September 6, 2024, after the parties exchanged discovery, Plaintiff also moved to hold Frank Brija’s son, Adem Bria, in contempt. (Notice of Mot., ECF No. 454; Pl.’s Nov. Mot., ECF No. 530.) For the reasons set forth below, Plaintiff's motions to hold Defendants and Respondents in contempt are GRANTED IN PART, as to Frank Brija and Brian Roffe, and DENIED IN PART, as to Nexhmije Nezajy, Muharrem Memishaj, and Adem Brya.

BACKGROUND The Court assumes familiarity with the lengthy history of this case, which is described in previous decisions, including the Second Circuit’s decision in 2003 and this Court’s decisions in 2006, 2020, and 2021. Patsy’s Brand, Inc. v. I.O.B. Realty, Inc., 317 F.3d 209, 212-15 (2d Cir.

2003); Oct. 13, 2006 Order at 2–9, ECF No. 176; Patsy’s Brand, Inc. v. I.O.B. Realty, Inc., No. 99-CV-10175, 2020 WL 4252682, at *1–3 (S.D.N.Y. July 24, 2020); Patsy’s Brand, Inc. v. I.O.B. Realty, Inc., No. 99-CV-10175, 2021 WL 3418475, at *1–4 (S.D.N.Y. Aug. 5, 2021). The Court describes only the background relevant to the issues addressed in the present motions. I. The Injunction

This case involves an ongoing dispute between “Patsy’s Italian Restaurant,” owned by Plaintiff Patsy’s Brand, Inc., and “Patsy’s Pizzeria,” owned by Defendants I.O.B. Realty and Frank Brija. Since 1995, Plaintiff has owned the registered trademark for PATSY’S PR SINCE 1944 in International Class 30 for sauces, with U.S. Registration No. 1,874,789. (Pl.’s Mar. Mot. at 2; see also MacMull July 26, 2019 Decl. Ex. 1 ¶ 20 (“Complaint”), ECF No. 185-1.) In 1999, Plaintiff sued Defendants I.O.B. Realty, Frank Brija, John Brecevich (a co- owner of Patsy’s Pizzeria), and Nick Tsoulos (a licensee of the Patsy’s Pizzeria franchises), for trademark infringement after Defendants began distributing their own jarred sauces. (See Pl.’s Mar. Mot. at 2; Complaint.) On February 21, 2001, Judge John S. Martin, Jr. granted Plaintiff’s

motion for summary judgment and denied Defendants’ cross-motion for summary judgment. Patsy’s Brand, Inc. v. I.O.B. Realty, Inc., No. 99-CV-10175, 2001 WL 170672, at *14 (S.D.N.Y. Feb. 21, 2001) (Martin, J.). On April 18, 2001, Judge Martin entered a final judgment in which he permanently enjoined, among others, Defendants, their agents and attorneys, and all persons in active concert or participation with them: 4(d). from applying for, obtaining or maintaining any trademark registration for a mark which comprises, consists of the words PATSY’S or PATSY’S RESTAURANT for sauces or other packaged food products[.] . . . 4(e). from opposing any application for registration or petitioning to cancel any registration of Plaintiff for trademark PATSY’S for sauces or other packaged food products or restaurant services[.] (MacMull Mar. 8, 2024 Decl. (“MacMull Mar. Decl.”) Ex. 1 ¶¶ 4(d), 4(e) (“Injunction”), ECF No. 399-1.) On August 27, 2002, Judge Martin found that Defendants had willfully violated the Injunction by selling pasta sauce bearing labels that were confusingly similar to Plaintiff’s labels. Patsy’s Brand, Inc. v. I.O.B. Realty, Inc., No. 99-CV-10175, 2002 WL 1988200, at *1–2

(S.D.N.Y. Aug. 27, 2002) (Martin, J.). Judge Martin held Defendants in contempt of court, awarded Plaintiff attorneys’ fees and $19,800 in treble compensatory damages, and issued a $10,000 coercive fine. Id. at *3. On January 16, 2003, the Second Circuit affirmed the 2001 Injunction in substantial part, modifying portions not relevant to Plaintiff’s present motion (such as placing restrictions on the font size and labelling of the pizzeria’s products). Patsy’s Brand, Inc., 317 F.3d at 220–23. On July 26, 2019, Plaintiff moved to hold Frank Brija in contempt for violating the Injunction for a second time. (ECF Nos. 183, 184, 185, and 186.) On August 5, 2021, this Court held Frank Brija and his former counsel in contempt. Patsy’s Brand, Inc., 2021 WL 3418475, at

*1, *18. The Court imposed a $100,000 coercive sanction against Defendants and their former counsel ($20,000 per violation), and ordered them to pay Plaintiff’s attorneys’ fees. Id. at *17– 18. The Court warned that “[i]f there are future violations of the Injunction, Defendants will be sanctioned $100,000 for each violation.” Id. at *17. The Court found Defendants in contempt for applying for the trademark “PATSY’S PIZZERIA SINCE 1933” in International Class 30, which includes sauces and other staple foods. Id. at *10–11. First, the Court found that Paragraph 4(d) of the Injunction was clear and unambiguous. Id. at *11. Second, the Court found, by clear and convincing evidence, that Defendants had not complied with Paragraph 4(d) of the Injunction because Defendants had indisputedly applied for the “PATSY’S PIZZERIA SINCE 1933” trademark. Id. Third, the Court found that Defendants had not diligently attempted to comply with the Injunction. Id. at *12. In finding that Defendants had not diligently attempted to comply, the Court rejected Defendants’ argument that their conduct was based on a “good faith and reasonable interpretation of the Injunction.” Id. In addition, the Court rejected Defendants’ advice of counsel argument. Id. at *12–15. The Court stated that “[n]o legal advice is needed to

understand Paragraph 4(d)’s prohibition of ‘applying for, obtaining or maintaining any trademark registration’ with the words ‘Patsy’s.’” Id. at *15 (quoting Injunction ¶ 4(d) (emphasis in original)). The Court also stated that, as repeat offenders, Defendants should have proceeded with caution and petitioned the Court for modification or clarification of the Injunction’s scope. Id. at *12. II. Key Events Relevant to Plaintiff’s Present Motions Plaintiff alleges that (1) Frank and Adem Brija, Nezaj (Frank Brija’s common-law wife), and Memishaj (Frank Brija’s half-brother)1 violated Paragraph 4(d) of the Injunction when Frank Brija—with Adem Brija’s assistance—filed trademark applications for “PATSY’S OF EAST

HARLEM” and “PATSY’S OF HARLEM” in Nezaj’s and Memishaj’s names, respectively; and (2) Frank Brija and Brian Roffe violated Paragraph 4(e) of the Injunction when Frank Brija filed a counterclaim in the Trademark Trial and Appeal Board (“TTAB”), petitioning to cancel Plaintiff’s trademark PATSY’S PR SINCE 1944. A. Trademark Applications In January 2023, Frank Brija filed two trademark applications with the United States Patent and Trademark Office (“USPTO”). (Pl.’s Mar. Mot. at 5–6.) Brija concedes that he filed the trademark applications on his own, but signed Nezaj’s and Memishaj’s names as signatories

1 Frank Brija states that he and Nezaj are not “formally married,” but that “she is the mother of [his] two youngest children, and [he] consider[s] her to be [his] wife.” (Frank Brija Decl. at 1 n.1, ECF No. 420.) In addition, Frank Brija states that “Memishaj was born to my mother after she remarried.” (Id. at n.2.) to the applications. (See Defs.’ Opp’n at 14, ECF No.

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