GOLDEN GOOSE S.P.A. D/B/A GOLDEN GOOSE DELUXE BRAND v. ADASHOE001

Background

Golden Goose moved for default judgment and a permanent injunction against defendants accused of advertising, distributing, and selling counterfeit Golden Goose products through the DHgate online marketplace. The complaint alleged that the defendants marketed and shipped counterfeit products to New York and used DHgate merchant accounts and storefronts to conduct those activities.

The court had authorized service through electronic means and other DHgate-based messaging. Golden Goose filed an affidavit stating that it had served all defendants except Shoes_sg; Golden Goose later voluntarily dismissed its claims against that defendant. None of the defendants subject to the motion answered or appeared. The Clerk of Court issued certificates of default.

Ruling

The court concluded that default judgment was appropriate. It found that the complaint made a prima facie showing of personal jurisdiction under New York Civil Practice Law and Rules section 302(a)(3), and that the complaint’s attached exhibits identified allegedly infringing conduct by each defendant. Because the defendants defaulted, the well-pleaded allegations were treated as admitted. The motion for default judgment was therefore granted as to liability.

The court also found permanent injunctive relief appropriate. It relied on allegations that the counterfeit products were nearly indistinguishable from Golden Goose products, created consumer confusion, threatened Golden Goose’s goodwill and control over its marks and trade dress, and reflected willful conduct. The terms of the earlier preliminary injunction were adopted as a permanent injunction against the defaulting defendants.

Under the Lanham Act, the court could award statutory damages for counterfeit marks. Golden Goose requested $100,000 against each defaulting defendant and stated that it did not seek a separate damages hearing. Considering the alleged willfulness, the value of the marks, the difficulty of calculating actual damages because the defendants did not appear, and the need for deterrence, the court awarded $75,000 against each defaulting defendant. It also awarded post-judgment interest under 28 U.S.C. section 1961(a).

Disposition

The court granted Golden Goose’s motion for default judgment as to the defendants identified in the conclusion. It awarded $75,000 in statutory damages against each defaulting defendant, provided for post-judgment interest, and ordered that the preliminary injunction become permanent. Golden Goose was directed to submit a proposed final judgment within seven days and to address whether any issues remained before the case could be closed.