Restoration Hardware, Inc. v. Alimia Light

District Court, N.D. California·Decided July 11, 2023·No. 4:23-cv-00948·Unknown

Opinion

NORTHERN DISTRICT OF CALIFORNIA 2 RESTORATION HARDWARE, INC., et al., Case No. 4:23-cv-00948-HSG 3 Plaintiffs, 4 v. ORDER GRANTING MOTION ALIMIA LIGHT, et al., INJUNCTION 6 Defendants. 7 8 Before the Court is Plaintiffs’ motion for preliminary injunction. ECF No. 16. On May 5, 9 2023, the Court entered a temporary restraining order (“TRO”) against Defendants and set a 10 show cause hearing for why a preliminary injunction should not be entered. ECF No. 23. 11 Plaintiffs emailed Defendants notice of the TRO, which required Defendants to respond to the 12 motion for preliminary injunction by June 16, 2023. See ECF No. 26. None of the Defendants 13 filed an opposition or other response. The Court now GRANTS the motion for preliminary 14 injunction. 16 Plaintiffs are RH US, LLC and its parent company Restoration Hardware, Inc. See ECF 17 No. 1 ¶¶ 1, 4–5. Plaintiffs allege that Defendants are selling knockoffs of Plaintiffs’ lighting 18 fixtures. Id. ¶ 2. Plaintiffs bring claims for copyright infringement, trademark infringement, and 19 unfair competition under California law. Id. ¶ 3. Plaintiffs seek a preliminary injunction 20 enjoining Defendants from infringing Plaintiffs’ works and marks, and freezing financial 21 accounts. 23 Plaintiffs seeking preliminary relief must establish that: (1) they are likely to succeed on 24 the merits; (2) they are likely to suffer irreparable harm in the absence of preliminary relief; (3) 25 the balance of equities tips in their favor; and (4) an injunction is in the public interest. Id. A 26 court must find that “a certain threshold showing” is made on each of the four required elements. 27 Leiva-Perez v. Holder, 640 F.3d 962, 966 (9th Cir. 2011). Under the Ninth Circuit’s sliding 1 merits” if “a hardship balance [also] tips sharply towards the [movant],” and “so long as the 2 [movant] also shows that there is a likelihood of irreparable injury and that the injunction is in 3 the public interest.” All. for the Wild Rockies v. Cottrell, 632 F.3d 1127, 1135 (9th Cir. 2011). 4 The goal of a preliminary injunction is to maintain the status quo, which is “the last uncontested 5 status which preceded the pending controversy.” GoTo,com, Inc. v. Walt Disney Corp, 202 F.3d 6 1199 (9th Cir. 2000) (citations omitted) (the status quo was prior to Disney’s adoption of the 7 allegedly infringing mark). 9 A. Likelihood of Success on the Merits 10 The Court finds that Plaintiffs are likely to succeed on the merits of their claims. 11 To prevail on their copyright infringement claims, Plaintiffs must show (1) ownership of 12 the allegedly infringed material, and (2) a violation of at least one exclusive right under 17 U.S.C. 13 §106. See A&M Records, Inc. v. Napster, Inc., 239 F.3d 1004, 1013 (9th Cir. 2001). Plaintiffs 14 have provided copies of their certificates of registration from the Copyright Office (ECF No. 1- 15 2), which is prima facie evidence of the validity of their copyrights in their photographs. See 17 16 U.S.C. § 410(c). Plaintiffs also have provided a table showing RH photographs side-by-side with 17 Defendants’ infringing photographs. See ECF No. 1-4. Defendants appear to be flagrantly 18 copying and publicly displaying numerous RH copyrighted works on their websites. See 17 19 U.S.C. §§ 106(1) and (5). 20 To prevail on a claim for trademark infringement under the Lanham Act, Plaintiffs must 21 show ownership of valid RH marks and that Defendants’ use of the marks is “likely to cause 22 confusion, or to cause mistake, or to deceive.” See Lahoti v. VeriCheck, Inc., 586 F.3d 1190, 23 1196 (9th Cir. 2009) (citation omitted); see also 1525 U.S.C. § 1125(a). The Lanham Act 24 protects both registered and unregistered marks. Id. The standard test of ownership is priority 25 of use, and “the party claiming ownership must have been the first to actually use the mark in 26 the sale of goods or services.” Halicki Films, LLC v. Sanderson Sales & Mktg., 547 F.3d 1213, 27 1226 (9th Cir. 2008) (citation omitted). To determine whether there is a likelihood of confusion, 1 flexibly.” JL Beverage Co., LLC v. Jim Beam Brands Co., 828 F.3d 1098, 1106 (9th Cir. 2016).1 2 Plaintiffs have demonstrated that they own the RH marks (defined as the AQUITAINE, 3 ARCACHON, BOULE DE CRISTAL, CAMINO, CANNELE, CASCADA, ECLATANT, 4 FULCRUM, HARLOW, MACHINIST, MARIGNAN, PAUILLAC, PEARL, RAIN, 5 RAVELLE, RHYS, SAN MARCO, SAVILE, SPIRIDON, UTILITAIRE, WRIGHT, and 6 RESTORATION HARDWARE marks) (ECF No. 1, ¶ 60), by providing photographs of the 7 marks in use on their website and dates of first use. See ECF Nos. 1-3, 1-5. Considering the 8 Sleekcraft factors, it is evident that Defendants’ use of the RH marks is likely to cause confusion. 9 Plaintiffs’ marks are distinctive, and Defendants are using identical marks to sell products that 10 appear to be knockoffs. See ECF Nos. 1-3, 1-5. Plaintiffs and Defendants are using the same 11 marketing channels (websites) to sell the same types of products. 12 Plaintiff’s unfair competition claim is likely to succeed for the same reasons, as the Ninth 13 Circuit has held that “state common law claims of unfair competition and actions pursuant to 14 California Business and Professions Code § 17200 are ‘substantially congruent’ to claims made 15 under the Lanham Act.” Cleary v. News Corp., 30 F.3d 1255, 1262–63 (9th Cir. 1994). 16 B. Irreparable Harm 17 The Court finds that Plaintiffs are likely to suffer irreparable harm if the Court does not 18 grant preliminary relief. Since the Court has found that Plaintiffs are likely to prevail on the 19 trademark infringement claim, they are entitled to a presumption of irreparable harm under the 20 Trademark Modernization Act of 2020. Vineyard House, LLC v. Constellation Brands U.S. 21 Operations, Inc., 515 F. Supp. 3d 1061, 1081 n.16 (N.D. Cal. 2021). Further, Plaintiffs allege 22 that they have poured substantial resources into developing their brands and products since 1980. 23 See Compl. ¶¶ 57–58. Given the risk that consumers will believe they are purchasing authentic 24 RH lighting products, Plaintiffs’ loss of control over business reputation and potential damage 25 to goodwill constitutes an irreparable injury. Cisco Sys., Inc. v. Shenzhen Usource Tech. Co. No. 26 1 The factors are: (1) the strength of the mark; (2) proximity or relatedness of the goods; (3) similarity of the marks; 27 (4) evidence of actual confusion; (5) marketing channels used; (6) type of goods and the degree of care likely to be 1 5:20-CV-04773-EJD, 2020 WL 5199434, at *8 (N.D. Cal. Aug. 17, 2020) (noting intangible 2 injuries such as loss of goodwill through sale of counterfeited products can constitute irreparable 3 harm). 4 C. Balance of Equities 5 The Court finds the balance of the equities tip in Plaintiffs’ favor.

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Restoration Hardware, Inc. v. Alimia Light, (N.D. Cal. 2023).

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