King Spider LLC v. 884886 CH Store

Background

King Spider LLC moved for final default judgment and a permanent injunction against the defaulting defendants. The motion concerned claims arising from the defendants’ alleged unauthorized use of King Spider’s Sp5der marks in manufacturing, importing, exporting, advertising, marketing, distributing, displaying, offering for sale, or selling counterfeit products. The court considered King Spider’s legal memorandum, Gabriela N. Nastasi’s supporting affidavit, proof of service of the summons and Fourth Amended Complaint, and the clerk’s certificate stating that no answer had been filed.

Rulings on Liability

The court granted judgment in favor of King Spider on the First and Second Causes of Action pleaded against the defaulting defendants. The court dismissed the Third, Fourth, and Fifth Causes of Action against those defendants without prejudice.

Damages

The court awarded King Spider $75,000 in statutory damages under 15 U.S.C. § 1117(c) of the Lanham Act against the 24 defaulting defendants identified in the order. The award included post-judgment interest. The court stated that the award served both compensatory and punitive purposes for willful infringement and that King Spider had adequately supported the requested statutory damages.

Permanent Injunction

The defaulting defendants, their officers, agents, employees, and people acting with them who receive actual notice of the order are permanently prohibited from manufacturing, selling, or otherwise dealing in counterfeit products or products bearing the Sp5der marks or confusingly similar marks. The injunction also bars direct or indirect infringement, false designations or descriptions likely to cause confusion, concealment or disposal of counterfeit products and related records, and efforts to evade the order by using new entities, platforms, accounts, or storefronts.

The defaulting defendants must deliver infringing products, packaging, labels, tags, advertising, promotional materials, and other infringing materials for destruction. The order also restricts the transfer or withdrawal of the defendants’ assets from or to their financial accounts. Certain third-party service providers and financial institutions with actual notice are included in specified injunction provisions, including provisions against assisting or facilitating prohibited conduct.

Other Relief and Disposition

The court dissolved the 30-day automatic stay on enforcement of the judgment. It allowed the defaulting defendants to seek dissolution or modification of the order upon a proper showing and two business days’ written notice. Violations may be treated as contempt of court, with possible fines and property seizure. The court retained jurisdiction to interpret and enforce the order, directed the clerk to enter judgment under Federal Rule of Civil Procedure 54(b), terminated the defaulting defendants as parties, and terminated docket entry 212.

Classification

This is a procedural order under the stated classification convention because it enters default judgment based on the defendants’ nonappearance rather than resolving the claims through an adversarial merits process.