Off-White LLC v. 6014350
- George Daniels
- 1:18-cv-05322-GBD-GWG
- U.S. District Court · Southern District of New York
- 8
In Off-White LLC v. 6014350, Judge Daniels granted default judgment, awarding $25.65 million, interest, a permanent injunction, and frozen assets to Off-White.
Off-White LLC received a $25.65 million statutory-damages award, post-judgment interest, a permanent injunction, and the transfer of the defaulting defendants’ restrained assets. The 108 defaulting defendants were subject to the damages awards, injunction, continuing asset restraint, and asset transfer.
What happened
In Off-White LLC v. 6014350, Off-White LLC accused various defendants of selling counterfeit products bearing its trademarks through eBay accounts and storefronts. One hundred eight defendants defaulted, meaning they did not defend the case.
The court granted Off-White’s motion for default judgment. It awarded $25.65 million in statutory damages, plus post-judgment interest, continued the asset freeze, ordered the frozen assets transferred to Off-White, and imposed a permanent injunction with the same terms as an earlier preliminary injunction.
Judge Daniels adopted the magistrate judge’s recommendation after finding no clear error and directed the Clerk of Court to close the case.
The detailed version
- Off-White LLC v. 6014350 · No. 1:18-cv-05322-GBD-GWG
- George Daniels
- Oct. 27, 2021
Background
Off-White LLC sued various entities that it alleged were selling counterfeit goods over the Internet using the Off-White and Off-White c/o Virgil Abloh trademarks. The opinion states that the defendants conducted business in the United States through eBay accounts and storefronts, sold counterfeit Off-White products shipped to consumers including in New York, and were not authorized to use the marks. The counterfeit products were described as nearly indistinguishable from Off-White’s products.
One hundred eight defendants defaulted. Off-White moved for default judgment, a permanent injunction, individual statutory damages under 15 U.S.C. § 1117(c), post-judgment interest, continuation of an asset-restraint order after judgment, and transfer of the restrained assets to satisfy the damages award.
Court’s Review
Magistrate Judge Gorenstein had recommended granting Off-White’s motion. Because no party objected, Judge Daniels reviewed the recommendation for clear error. The court explained that a default admits the complaint’s properly pleaded allegations, but the court must still determine whether those allegations establish the defendants’ legal liability.
Ruling
The court granted Off-White’s motion for default judgment. It adopted the recommendation for tiered statutory damages under the Lanham Act, based in part on the number of sales identified in eBay discovery responses and the factors used to determine a just award. The total award was $25,650,000, plus post-judgment interest under 28 U.S.C. § 1961(a). The individual awards ranged from $100,000 to $2,000,000 per defendant.
The court also approved a permanent injunction with the same terms as the preliminary injunction previously issued. It concluded that the alleged counterfeit sales supported a finding of irreparable harm because of possible marketplace confusion, reputational harm, and lost sales; that money damages alone would not fully compensate Off-White; and that the balance of hardships and public interest favored an injunction. The pre-judgment restraint on the defendants’ assets was continued after judgment, and those assets were ordered transferred to Off-White. The Clerk of Court was instructed to close the case.
Read the full 8-page opinion on CourtListener, the free public archive maintained by the Free Law Project.