OFF-WHITE LLC v. BAODING SPRINGRU TRADE CO., LTD.

Background

Off-White LLC brought the action against 21 defendants, alleging trademark infringement and counterfeiting under the Lanham Act, the federal trademark statute. With its complaint, Off-White sought emergency court orders, including a temporary restraining order, an order restraining assets, permission for alternative electronic service, and expedited discovery. The court granted that application on February 4, 2019, and later entered a preliminary injunction after the defendants failed to appear at a scheduled hearing.

Off-White later obtained permission to seek a default judgment and permanent injunction. After the defendants again failed to appear at a show-cause hearing, the court entered default judgment against the remaining defendants on Off-White’s trademark counterfeiting and infringement claims and entered a permanent injunction against each defendant.

Damages Recommendation

The case was referred to Magistrate Judge Cott to determine damages and other relief. Off-White requested $1,400,000 in statutory damages—$100,000 for each of 14 defaulting defendants—along with post-judgment interest and an order freezing the defendants’ assets and allowing their transfer to Off-White until the judgments were satisfied. Off-White then voluntarily dismissed Baoding Springru Trade Co., Ltd., leaving 13 defaulting defendants.

Judge Cott issued a Report and Recommendation advising that Off-White receive $100,000 from each of the 13 remaining defaulting defendants, for a total of $1,300,000, plus post-judgment interest. He also recommended an order freezing each remaining defaulting defendant’s assets and authorizing their release and transfer to Off-White until the applicable judgment was satisfied. Neither party objected.

Ruling

Under the federal procedure governing review of a magistrate judge’s recommendation, Judge Abrams reviewed the recommendation for clear error because no objections were filed. She found no clear error and adopted Judge Cott’s Report and Recommendation in its entirety.

The court awarded Off-White statutory damages totaling $1,300,000, plus post-judgment interest. It also ordered the remaining defaulting defendants’ assets frozen and authorized their release and transfer to Off-White until the monetary judgments were satisfied. The Clerk was directed to terminate pending motions and close the case.