Von Erickson Laboratories LLC v. Target Corporation, et al.

District Court, D. New Jersey·Decided September 18, 2026·No. 2:24-cv-09316·Unknown

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

VON ERICKSON LABORATORIES LLC, Plaintiff, No. 24cv9316 (EP) (SDA) V. MEMORANDUM ORDER TARGET CORPORATION, ef al., Defendants.

PADIN, District Judge. Plaintiff Von Erickson Laboratories LLC (“Von Erickson”) sells a red necklace designed to resemble dripping blood and holds a registered copyright in its design. Von Erickson alleges that Defendants Target Corporation, Target Stores, Inc., and Target Brands, Inc. (collectively, “Target”) and Ballet Group, Inc. (“Ballet,” together with Target, ‘““Defendants”) infringed that copyright by selling a similar necklace as Halloween costume jewelry. Von Erickson now moves for summary judgment on liability, willfulness, and statutory damages. D.E. 49-1 (“Motion” or “Mot.”).! Defendants oppose. D.E. 61 (“Opp’n”). Von Erickson replied. D.E. 64 (“Reply”). The Court decides the Motion without oral argument. See Fed. R. Civ. P. 78(b); L. Civ. R. 78.1(b). Because there are genuine issues of material fact in this case, as explained below, the Court will DENY the Motion.

' Von Erickson filed its Notice of Motion at D.E. 49.

1. BACKGROUND? A. The Registered Necklace Peter Erickson has designed and sold jewelry since 1993. PSUF 7 6. He began doing business as “Von Erickson” in 2009 and in 2013 formed Von Erickson Laboratories LLC, a New York limited liability company. /d. 4 7-8. In 2009, Erickson created the Large Blood Drip Necklace (the “Registered Necklace”). /d § 11. Erickson created the Registered Necklace by hand, built paper models, and devised an adjustable “loop and belt” closure. /d. § 12. The Registered Necklace is registered with the United States Copyright Office. Jd § 9. Registration No. VA 1-832-450, effective October 15, 2012, covers the work, which was first published on June 19, 2009. Jd. Supplementary Registration No. VA 1-433-345, effective July 17, 2013, covers the same work. Jd. J 10. Erickson assigned the Registered Necklace’s copyright to his company, Von Erickson, on May 21, 2013, and the assignment was recorded with the Copyright Office on July 15, 2013. Jd. Jj 23-24. Von Erickson sells its jewelry—including the Registered Necklace—direct to consumers online. /d. § 15. Von Erickson opened an Etsy store in April 2009 and created a website to sell its work two months later. /d. J 18-19, 22. It made its first Etsy sale of the Registered Necklace on June 8, 2009. Jd. Also in June 2009, Von Erickson displayed and sold the Registered Necklace at the Fangoria trade show in New York City. Jd. 925. Online articles in 2009 and 2010 and an April 2009 blog post featured the Registered Necklace’s design. /d. §{ 26-27. Von Erickson claims it has sold “thousands” of Registered Necklaces since 2009 at around $16 to $18 each. /d. 49 17, 28.

* The facts in this Section and throughout this Memorandum Order are undisputed unless otherwise indicated and are drawn from (1) Plaintiff’s Statement of Undisputed Material Facts, D.E. 73 (“PSUF”); (2) Defendants’ Response to Plaintiff's SUF, D.E. 62 (“Defendants’ Response” or “D. Resp.”); and (3) Plaintiff's reply to Defendants’ Response, D.E. 64-1 (“SUF Reply”).

B. The Parties’ Prior Dispute In September 2016, Von Erickson sent Target a letter notifying it of Von Erickson’s copyright in the Registered Necklace. /d. J 32. The letter identified Registration No. VA 1-832- 450, attached the registration certificate and images comparing the Registered Necklace to a product Target was then selling, asserted that Target’s product was an exact copy, and demanded an accounting of Target’s sales and profits. D.E. 50-16, Ex. Q. Target acknowledged the letter in October 2016 and stated it had begun investigating Von Erickson’s allegations. PSUF § 33; D-E. 50-17, Ex. R. Von Erickson sued Target in June 2017. Its complaint in Von Erickson Laboratories LLC v. Amscan Holdings, Inc., No. 17-03916 (D.N.J. filed June 1, 2017) (the “2017 Action”), alleged infringement of the Registered Necklace—the same issue here. Von Erickson named Target and Almar Sales Company, Inc. (“Almar”), Target’s distributor, among the defendants. See D.E. 65-2. The product accused of infringement in the 2017 Action was different from the one in this case, was produced by Almar, and was sold in Target stores. SUF Reply § 69. Almar defended the 2017 Action and indemnified Target. Jd. § 70. The 2017 Action ended with a settlement agreement reached in June 2018. PSUF 4 35. Almar signed as Target’s indemnitor, but Target did not sign the settlement agreement. SUF Reply § 73. Almar agreed to refrain from selling, importing, marketing, distributing, or advertising products infringing Von Erickson’s “original design” of the Registered Necklace. PSUF ¢ 36. The settlement agreement was a compromise of disputed claims, stating that Almar

admitted no liability, and that Almar admitted no infringement or wrongful act. D.E. 62 74-75; D.E. 64-1 9 74-75. Target was dismissed from the 2017 Action with prejudice.? C. The Accused Necklace The necklace at issue here reached Target through its supplier, Ballet. Target and Ballet both sell costume jewelry. PSUF § 5. Ballet supplies such jewelry to major retailers, including Target. /d. Starting in 2021, Target sold a package of three choker necklaces (the “Three-Pack”). Id. 39-40; D.E. 50-18, Ex. T. One of the three chokers is a red necklace with blood-like drops (the “Accused Necklace”) (the Registered Necklace and Accused Necklace collectively, the ‘“Necklaces”). PSUF 9 39, 50; D.E. 50-18, Ex. T. According to Von Erickson, the Accused Necklace infringes on the Registered Necklace’s copyright. PSUF 4] 39, 50. The back of the Three-Pack packaging states it was “distributed by Target Corporation.” Jd. 4 40. Through two purchase orders, Ballet bought 20,304 units of the Three-Pack from supplier CAP Fashion and sold them to Target. /d. 49-52, 56, 61. Target displayed and sold the Three- Pack in stores and on its website from August 2021 until at least June 2023. Jd. § 37. According to Target’s records, it sold 16,640 Three-Packs, generating $94,079 in revenue. /d. §§ 44-45. Ballet stated in an interrogatory answer that Nicole Bran, a Ballet employee, developed the concept for the Accused Necklace in late 2020 or early 2021, discussed it with Target, and obtained Target’s approval for production. D.E. 65-4, Ex. 16.

32017 Action, D.E. 35. The Court takes judicial notice of the 2017 Action’s docket for the disposition, not for the truth of any allegation in that case. See Orabi v. Ait’y Gen., 738 F.3d 535, 537 n.1 (3d Cir. 2014). unclear when the purchase orders were made. The parties describe the two orders by quantity and unit cost, PSUF §§[ 51-53, 56-57, and Ballet converted its aggregate cost using a March 1, 2021, exchange rate from Chinese RMB to U'S. dollars, id. § 61, but no party asserts when either order was placed. The March 2021 dates that appear elsewhere in the record are entry dates on Target’s orders to Ballet, not on Ballet’s orders to CAP Fashion.

Von Erickson learned of Target’s sales in September or October 2021, PSUF 4 38, and learned in November 2024 that Ballet was the Accused Necklace’s distributor and indemnitor, id. | 48. Von Erickson submitted the side-by-side image below of the Accused Necklace (top) and the Registered Necklace (bottom):

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