3 BEES & ME INC. v. Besportble

Background

3 Bees & Me Inc. develops, markets, sells, and distributes children’s toys under the “3 Bees & Me” brand. The opinion states that the brand is registered with the United States Patent and Trademark Office. 3 Bees & Me also owns by assignment U.S. Design Patent No. D 884,087, titled “Bathtub Toy Fastener,” covering a design for fastening bathtub toys, such as toy basketball hoops, to bathtub fixtures.

3 Bees & Me alleged that, beginning in February 2019, the defendants manufactured, imported, exported, advertised, marketed, promoted, distributed, displayed, offered for sale, and sold bathtub toys through Amazon storefronts that infringed the patent. The defendants named in the caption included Besportble, Britenway, Byonebye, Clispeed, Cyfie, Deerbb, Funpa, Glossrise, Hely Cancy, House Ur Home, Les Yeu, Libobo Toys, Lioobo, Littolo, Marppy, Marxiao Shop, Nepdome, Panzisun, Raintoad, Roochl, Seisso, Sqsyqz, Stonishi, Toyandona, Wakauto, We&Zhe, Xisheep, and 58BH. The opinion states that none of the defendants was an authorized distributor or licensee of the patent.

Court’s findings

The court found that 3 Bees & Me had established personal jurisdiction at this stage over Byonebye, Marppy, Littolo, Britenway, and Cyfie because they operated Amazon storefronts through which customers in New York State had purchased the accused products.

The court also found that 3 Bees & Me had established a likelihood of success on its patent-infringement claim. Applying the design-patent comparison described in the opinion, the court concluded that the accused products and the patented design were “substantially the same,” meaning that an ordinary observer familiar with earlier designs would be deceived into believing the accused product was the patented design.

The court found that 3 Bees & Me was likely to suffer immediate and irreparable harm without emergency relief, including unrecoverable revenue losses, lost market share, price erosion, reputational harm, and lost marketing opportunities. It found that the potential harm to the defendants from being stopped from profiting from the alleged infringement was outweighed by the potential harm to 3 Bees & Me. The court also found that the public interest favored protecting the patent and preventing the sale of products the court described as inferior and infringing. Finally, it found good cause for advance relief and expedited discovery because the defendants might hide, transfer, destroy, or make inaccessible the accused products and related records.

Order

The court granted 3 Bees & Me’s application. It issued a temporary restraining order against Byonebye, Marppy, Littolo, Britenway, and Cyfie, barring them from manufacturing, selling, advertising, distributing, or otherwise dealing in the accused products. The order also barred them from concealing or disposing of the products or related records, creating new entities or accounts to avoid the order, or knowingly helping others engage in those activities. The order extended comparable restrictions to people acting together with those defendants who received actual notice.

The order required the defendants to appear and explain why a preliminary injunction—a longer-lasting order issued after further proceedings—should not be entered. It authorized service of the order, summons, complaint, and supporting papers by email using addresses identified by Amazon.com. It also authorized expedited discovery. The five restrained defendants were ordered to provide sworn information about their names, addresses, websites, storefronts, sales, financial accounts, and compliance with the order, and to respond to interrogatories and document requests within the stated deadlines.

Amazon.com was ordered to identify the defendants’ accounts and storefronts and provide related identifying, contact, sales, financial, and business records. 3 Bees & Me was required to deposit a $500 security bond to cover damages that might result from an improper or wrongful restraint. The complaint, supporting exhibits, application, declarations, and the order were to remain sealed until Amazon.com complied with the order. Judge Lewis J. Liman signed the order.