Skyrocket, LLC d/b/a Skyrocket Toys LLC v. Comeyun

Background

Skyrocket, LLC brought a trademark-infringement action alleging that Comeyun, F2TOYDH, HELLOTANGTANG, HUANGCC31, JOY4TOY, ONETOYS, PINK350, PINK700, PINKTN, VMNICE, YAN350, and YUN350 marketed and sold counterfeit versions of Skyrocket’s Blume line of collectible dolls. Skyrocket sought damages and attorneys’ fees, but later stated that it was not seeking attorneys’ fees.

The clerk issued certificates of default against the defendants. Skyrocket voluntarily dismissed its claims against Huangcc31. After a hearing, the court found that Skyrocket had not established a basis for personal jurisdiction over Pink700 and gave Skyrocket an opportunity to provide additional support. Skyrocket made no further submission addressing personal jurisdiction. The court therefore later dismissed the claims against Pink700 without prejudice.

The court entered an order of default and a permanent injunction against the remaining ten defendants: Comeyun, F2toydh, Hellotangtang, Joy4toy, Onetoys, Pink350, Pinktn, Vmnice, Yan350, and Yun350. The court referred the damages question to Magistrate Judge Robert W. Lehrburger for an inquest, meaning a proceeding to determine the amount of damages after default.

Report and Recommendation

Judge Lehrburger recommended statutory damages of $50,000 against each of the ten defaulting defendants, totaling $500,000, plus post-judgment interest. He concluded that no hearing was necessary and that the damages question could be decided using Skyrocket’s written submissions and the earlier proceedings. Skyrocket served the recommendation on the defaulting defendants, and no party filed objections.

Court’s Review and Ruling

Because no objections were filed, the court reviewed the report and recommendation for clear error on the face of the record. Judge Paul G. Gardephe found the report thorough, well-reasoned, and free of clear error, and adopted it in its entirety.

The court awarded Skyrocket $50,000 in statutory damages against each defaulting defendant. It also awarded post-judgment interest at the federal rate under 28 U.S.C. § 1961, calculated from the date the clerk enters judgment until payment. Separately, because Skyrocket had not established personal jurisdiction over Pink700, the court dismissed the claims against Pink700 without prejudice. The clerk was directed to enter judgment and close the case.