Powerwand Inc v. Hefei Neniang Trading Co Ltd

CourtDistrict Court, W.D. Washington
DecidedJune 27, 2023
Docket2:22-cv-01413
StatusUnknown

This text of Powerwand Inc v. Hefei Neniang Trading Co Ltd (Powerwand Inc v. Hefei Neniang Trading Co Ltd) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powerwand Inc v. Hefei Neniang Trading Co Ltd, (W.D. Wash. 2023).

Opinion

1 2 3

4 5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 7 POWERWAND INC. , CASE NO. 2:22-cv-01413-JHC 8 Plaintiff, ORDER GRANTING MOTION FOR 9 v. DEFAULT JUDGMENT 10 HEFAI NENIANG TRADING CO., LTD. and TAO HAN, 11 Defendants. 12 13

14 I 15 INTRODUCTION 16 This matter comes before the Court on Plaintiff Powerwand Inc.’s Motion for Default 17 Judgment against Defendants Hefai Neniang Trading Co., Ltd. and Tao Han. Dkt. # 14. The 18 motion is unopposed. See generally Dkt. The Court has considered the motion, the record, and 19 the applicable law. Being fully advised, the Court GRANTS the motion. 20 II 21 BACKGROUND 22 Powerwand is a Texas-based corporation that designs and sells custom apparel. Dkt. # 1 23 at 2–4. Powerwand owns exclusive rights to various intellectual property, including copyright 24 1 protection for 19 original photographs and trademark registration for the “INAKA” family of 2 brands. Id. at 5, 11. Defendant Hefai Neniang Trading is a Chinese corporation and retailer with 3 an ecommerce storefront on Amazon.com (Amazon). Id. at 2. Defendant Tao Han is the legal

4 representative and sole shareholder of Hefai Neniang Trading. Id. 5 In February and May 2022, Powerwand shared photos on social media to promote the 6 launch of its new apparel and designs. Id. at 4. Soon after, Defendants listed and began offering 7 nine new shorts products on their Amazon storefront. Id. Defendants’ offerings incorporated 8 Powerwand’s trademarked designs, referenced “Inaka” in the listing titles, and included identical 9 images to the product photos from Powerwand’s social media sites. Id. at 4–5. 10 On September 17, 2022, Powerwand filed 25 notices through Amazon’s online Digital 11 Millennium Copyright Act (DMCA) complaint process, requesting that Amazon remove 25 of 12 Defendants’ product listings for displaying Powerwand’s copyrighted and trademarked material

13 without authorization. Id. at 5. Amazon took down the challenged listings the next day. Id. at 6. 14 Defendants responded to the takedown notices by filing 25 counter-notifications with Amazon’s 15 DMCA system. Id. Powerwand received notice of the counter-notifications from Amazon on 16 September 20, 2022 and filed this action on October 4, 2022. Id. 17 Powerwand served Defendants by email in January 2023 after the Court granted leave to 18 serve process by alternative means. Dkt. ## 10, 11. The Clerk entered an Order of Default 19 against Defendants in May 2023. Dkt. # 13. Powerwand then filed the motion at issue, seeking 20 default judgment, monetary damages, and permanent injunctive relief. Dkt. # 14. 21 22

23 24 1 III 2 DISCUSSION 3 A. Legal Standards

4 If a defendant fails to plead or otherwise defend, the clerk enters the party’s default. Fed. 5 R. Civ. P. 55(a). Then, upon a plaintiff’s request or motion, the court may grant default 6 judgment for the plaintiff. Fed. R. Civ. P. 55(b)(2); see Aldabe v. Aldabe, 616 F.2d 1089, 1092 7 (9th Cir. 1980). On default judgment motions, “[t]he court must accept all well-pled allegations 8 of the complaint as established fact, except allegations related to the amount of damages.” UN4 9 Prods., Inc. v. Primozich, 372 F. Supp. 3d 1129, 1133 (W.D. Wash. 2019) (citing TeleVideo Sys., 10 Inc. v. Heidenthal, 826 F.2d 915, 917–18 (9th Cir. 1987)). Courts typically consider these seven 11 “Eitel” factors when evaluating a request for a default judgment: 12 (1) the possibility of prejudice to the plaintiff, (2) the merits of plaintiff’s substantive claim, (3) the sufficiency of the complaint, (4) the sum of money at 13 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 14 underlying the Federal Rules of Civil Procedure favoring decisions on the merits.

15 Eitel v. McCool, 782 F.2d 1470, 1471–72 (9th Cir. 1986). Because default judgments are 16 generally disfavored, “default judgment is appropriate only if the well-pleaded factual allegations 17 of the complaint suffice to establish a plaintiff’s entitlement to a judgment under the applicable 18 law.” Dentist Ins. Co. v. Luke St. Marie Valley Dental Grp., P.L.L.C., No. 2:21-cv-01229-JHC, 19 2022 WL 1984124, at *2 (W.D. Wash. Jun. 6, 2022) (citing DIRECTV, Inc. v. Hoa Huynh, 503 20 F.3d 847, 855 (9th Cir. 2007)). 21 B. Application of Eitel Factors 22 All seven Eitel factors support Powerwand’s motion. Default judgment is therefore an 23 appropriate remedy in this case. 24 1 1. Prejudice to Plaintiff 2 “[P]rejudice exists where the plaintiff has no recourse for recovery other than default 3 judgment.” Curtis v. Illumination Arts, Inc., 33 F. Supp. 3d 1200, 1211 (W.D. Wash. 2014)

4 (citation and internal quotation marks omitted). As Defendants have failed to respond to this 5 action, default judgment is Powerwand’s only means for recovery. See Eve Nevada, LLC v. 6 Derbyshire, No. 21-0251-LK, 2022 WL 279030, at *3 (W.D. Wash. Jan. 31, 2022) (first Eitel 7 factor favors entry of default judgment when the defendant “failed to respond or otherwise put 8 forth a defense”). Thus, this factor supports default judgment. 9 2. Merits of Plaintiff’s claims and sufficiency of complaint 10 “Courts often consider the second and third Eitel factors together.” Developers Sur. and 11 Indem. Co. v. View Point Builders, Inc., No. C20-0221JLR, 2020 WL 3303046, at *5 (W.D. 12 Wash. Jun. 17, 2022). As noted above, for the purpose of this motion, the Court must accept all

13 well-pleaded allegations in the complaint as true. See UN4 Prods, 372 F. Supp. 3d at 1133. 14 Accepting such allegations, the Court finds that the second and third Eitel factors support default 15 judgment for all five claims. 16 (a) Direct copyright infringement (claim one) 17 Powerwand alleges that Defendants engaged in direct and willful copyright infringement 18 in violation of the Copyright Act. Dkt. # 14 at 4. To establish a claim for direct copyright 19 infringement, a plaintiff must 1) “show ownership of the allegedly infringed material” and 2) 20 “demonstrate that the alleged infringers violate at least one exclusive right granted to copyright 21 holders under 17 U.S.C. § 106.” A&M Records, Inc. v. Napster, Inc., 239 F.3d 1004, 1013 (9th 22 Cir. 2001). To prove that a defendant engaged in willful copyright infringement, “the plaintiff

23 must show (1) that the defendant was actually aware of the infringing activity, or (2) that the 24 defendant’s actions were the result of ‘reckless disregard’ for, or ‘willful blindness’ to, the 1 copyright holder’s rights.” Louis Vuitton Malletier, S.A. v. Akanoc Sols., Inc., 658 F.3d 936, 944 2 (9th Cir. 2011) (quoting Island Software & Comput. Serv., Inc. v. Microsoft Corp., 413 F.3d 257, 3 263 (2d Cir. 2005)). If an infringer makes no attempt to inquire into whether the item was

4 subject to copyright protection, the infringer may be found to have acted with reckless disregard 5 or willful blindness. See Unicolors, Inc. v. Urban Outfitters, Inc., 853 F.3d 980

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Powerwand Inc v. Hefei Neniang Trading Co Ltd, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powerwand-inc-v-hefei-neniang-trading-co-ltd-wawd-2023.