Rabbinical Council of Massachusetts v. International Food Products, Inc.

District Court, D. Massachusetts·Decided October 24, 2023·No. 1:22-cv-11460·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS ____________________________________ ) RABBINICAL COUNCIL OF ) MASSACHUSETTS, ) also known as KVH KOSHER, ) ) Plaintiff, ) ) ) Civil Action No. 22-CV-11460-AK v. ) ) INTERNATIONAL FOOD PRODUCTS, ) INC., doing business as SABRA FOODS, ) ) Defendant. ) )

MEMORANDUM AND ORDER ON MOTION FOR DEFAULT JUDGMENT

A. KELLEY, D.J. Plaintiff Rabbinical Council of Massachusetts, also known as KVH Kosher (“KVH”), is one of the oldest kosher certifying organizations in North America and owns a trademark which it uses to certify that foods conform to kosher dietary laws by licensing the use of its trademark to kosher-qualified food products. [Dkt. 1 at 2-3]. KVH alleges that the defendant, International Food Products, Inc., doing business as Sabra Foods (“Sabra”), formerly a licensee of the Mark, used and continues to use the Mark despite KVH having sent Sabra a cease-and-desist letter demanding that Sabra cease the use of the trademark on its food products due to Sabra’s persistent inability to comply with the terms of their license among other breaches. [Id. at 3-4]. KVH obtained an entry of default after Sabra failed to respond to the Complaint or otherwise defend this action and have moved for default judgment. [See Dkt. 6; Dkt. 9; Dkt. 10; Dkt. 11; Dkt. 14]. On September 26, 2023, the Court held an evidentiary hearing on Plaintiff’s motion for default judgment. [Dkt. 20]. This included direct examination of witness Rabbi Azriel Blumberg and the admitting of several exhibits. [Id.]. Subsequently, Plaintiff has submitted an affidavit detailing the service of process that was provided to the Defendant in this matter. [Dkt. 21]. For the following reasons, KVH’s motion for default judgment [Dkt. 14] is GRANTED.

The Court enjoins Defendant from its current and future use of KVH’s trademark. The Court also imposes actual damages of $175,000 as a disgorgement of Sabra’s profits, treble damages in the amount of $525,000, civil penalties in the amount of $54,000, plus attorneys’ fees and costs in the amount of $14,829.67, for a total recovery of $593,829.67. I. BACKGROUND Unless otherwise noted, the facts are recited as alleged in KVH’s complaint. [See Dkt. 1]. Plaintiff KVH is a Massachusetts unincorporated nonprofit association and one of the oldest kosher certifying organizations in North America, providing trusted kosher product certification that is recognized throughout the world. [Id. at 1-2]. KVH owns United States Patent and Trademark Office Registration Number 1160488 (the “Mark”), and upon inspecting food

facilities to determine whether a food product abides by kosher laws, it licenses use of its trademark to kosher qualified food products. [Id. at 3]. For foods to be considered kosher and certified with the Mark, all of the ingredients and sub-units in a food product must conform to Jewish dietary laws, and foods must be processed on kosher equipment. [Id. at 2]. Pronouncing food products as kosher entails a meticulous examination of the products themselves as well as all the products and processes related to food preparation in order to ensure that they abide by the strict standards and highest level of quality required by kosher laws. [Id. at 2-3]. Defendant Sabra was previously a licensee of the Mark. [Id. at 3]. However, on March 16, 2016, KVH issued a cease-and-desist letter to Sabra demanding that Sabra cease the use of its trademark on its food products by April 30, 2016, due to Sabra’s persistent inability to comply with the terms and conditions of their license, for non-payment of fees, for adding new ingredients to their products without informing KVH, and for failing to take corrective actions in a timely manner as required by KVH. [Id. at 3-4]. Despite receiving KVH’s cease-and-desist,

Sabra continues to use KVH’s Mark on at least one KVH product without authorization or license from KVH, a fact which was brought to KVH’s attention. [Id. at 4]. After discovering Sabra’s continued unauthorized use of the Mark, KVH provided written notice to Sabra of its continued violation of both federal and state laws on May 31, 2022, and demanded that Sabra immediately cease-and-desist, which Sabra failed to do. [Id.]. On September 9, 2022, KVH filed its complaint against Sabra, seeking injunctive and monetary relief. [Dkt. 1]. In its supplemental filing, Plaintiff detailed the manner in which it executed service. [Dkt. 21]. First, Attorney John Diefenbach of Foscolo, PLLC (“Foscolo”) emailed a demand letter to Pierre Saroufim, an agent on behalf of Sabra. [Id. at ¶ 3]. Second, KVH hired ABC legal to assist with service, and deputy sheriff certified and returned on October

12, 2022, that a true and attested copy of the summons and complaint was hand-delivered to Rita Gebrael, who was the clerk and agent at the time of service for Defendant at 454 High Plain Street, Walpole MA 02081. [Id. at ¶ 5]. Sabra Foods is a family-owned business whose principal place of business is at 454 High Plain Street, Walpole MA 02081. [Id. at ¶ 6]. Rita Gebrael, who is the wife of Pierre Saroufim, works for Sabra Foods and accepted service on behalf of the company. [Id.]. A week later, Saroufin participated in a call with Foscolo attorneys where he confirmed receipt of the complaint and summons and confirmed Defendant’s address was 454 High Plain Street, Walpole MA 02081. [Id. at ¶¶ 7-8]. The High Street address does not have a mailbox which is why 422B Walpole St, P.O. Box 222, Norwood, MA 02062 is officially recorded with the Secretary of State. [Id. at ¶ 8]. Nevertheless, Saroufim physically accepts mail that is sent for signature at the High Street address. [Id.]. KVH brings three claims against Sabra: (1) dilution of its famous mark in violation of § 43(c) of the Lanham Act; (2) false designation of origin in violation of § 43 of the Lanham Act;

and (3) violation of Mass. Gen. Laws ch. 94 § 156: Kosher food; labeling and display; civil penalties. [Id. at 4-7]. KVH served Sabra copies of the complaint on September 9, 2022, and Sabra had until September 30, 2022 to respond. [Dkt. 4; Dkt. 7]. Sabra did not respond. KVH filed a motion for default judgment on January 2, 2023, and requested entry of default on January 17, 2023. [Dkt. 5; Dkt. 6]. On March 20, 2023, the Court denied the motion for default judgment without prejudice due to the two-step process for default judgment under Fed. R. Civ. P. 55 and granted the motion for entry of default; subsequently, the clerk entered default against Sabra for its failure to respond or otherwise defend its case. [Dkt. 8; Dkt. 9]. On April 20, 2023, KVH moved for default judgment in accordance with the Court’s standing order on motions for default judgment. [Dkt. 11; Dkt. 14]. The Court held an evidentiary hearing on September 26,

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