Moonbug Entertainment Limited v. All Night Revelry Store

Background

Moonbug Entertainment Limited and El Bebe Productions Limited sued the listed defendants over the alleged manufacture, importation, advertising, sale, and distribution of counterfeit products using the plaintiffs' Little Baby Bum trademarks. The complaint asserted trademark infringement, counterfeiting, false designation of origin, passing off, and unfair-competition claims under the federal Lanham Act, as well as unfair-competition claims under New York common law.

The order identifies 25 defendants as the defaulting defendants. The record before the court included the complaint, proof that summonses and the complaint had been served, and a clerk's certificate stating that no answer had been filed.

Liability and Damages

The court granted judgment in favor of the plaintiffs on all claims properly pleaded against the defaulting defendants. It found that the complaint sufficiently alleged that the defendants used products identical or confusingly similar to the plaintiffs' products without authorization or consent, establishing liability as a matter of law for purposes of the default judgment.

The court awarded statutory damages of $50,000 against each of the 25 defaulting defendants under 15 U.S.C. § 1117(c), for a total of $1,250,000, plus post-judgment interest. The order also states that an order referring the case for a damages inquest would issue separately.

Permanent Injunction

The defaulting defendants, and persons acting with or under their direction who receive actual notice of the order, were permanently prohibited from manufacturing, importing, exporting, advertising, marketing, promoting, distributing, displaying, offering for sale, selling, or otherwise dealing in counterfeit products or products bearing the Little Baby Bum marks or confusingly similar marks.

The injunction also bars direct or indirect infringement; unauthorized use of reproductions, counterfeits, copies, or colorable imitations of the marks; concealment, destruction, transfer, or disposal of counterfeit products and related records; and creation or use of new entities, platforms, accounts, storefronts, or other means to avoid the order.

The defaulting defendants must deliver counterfeit products and related packaging, labels, tags, advertising, promotional materials, and other infringing materials in their possession, custody, or control for destruction under 15 U.S.C. § 1118.

Relief Affecting Third Parties and Other Provisions

Third-party service providers and financial institutions were permanently prohibited from concealing, destroying, altering, transferring, disposing of, or dealing with records or evidence relating to the defaulting defendants' frozen assets and financial accounts. They were also prohibited from knowingly instructing, aiding, or abetting conduct covered by the order.

The court dissolved the 30-day automatic stay on enforcing the judgment. The defaulting defendants may, upon a proper showing and two business days' written notice to the court and plaintiffs' counsel, seek dissolution or modification of provisions concerning restrictions on frozen or additional assets and financial accounts. Violations may be treated as contempt of court. The court released the plaintiffs' $15,000 security bond and retained jurisdiction to interpret and enforce the order.