Smart Study Co., LTD. v. Acuteye-US

Background

Smart Study Co., Ltd. sought a final partial default judgment and permanent injunction against numerous defendants. The claims concerned the defendants’ alleged unauthorized use of Smart Study’s Baby Shark trademarks and copyrighted works in connection with manufacturing, importing, advertising, offering for sale, and selling counterfeit products. The order states that the court considered Smart Study’s supporting legal memorandum, affidavit, proof of service, the clerk’s certificate that no answer had been filed, and the other papers in the case.

The order identifies 49 “Defaulting Defendants,” including Acuteye-US. It does not provide a separate merits analysis for each claim; instead, it enters judgment based on the defendants’ defaults. The court found that partial judgment was appropriate under Rule 54(b) and that there was no just reason to delay entry of judgment.

Rulings

The court granted judgment in Smart Study’s favor on all claims properly pleaded against the Defaulting Defendants. The order describes those claims as trademark infringement, trademark counterfeiting, false designation of origin, passing off, unfair competition, and related state and common-law claims.

The court awarded statutory damages under 15 U.S.C. § 1117(c) of the Lanham Act. Each of the 49 Defaulting Defendants was assessed $50,000, for a total award of $2,450,000, plus post-judgment interest.

The court permanently enjoined the Defaulting Defendants, their officers, agents, employees, and persons acting with them who receive actual notice of the order from manufacturing, importing, exporting, marketing, distributing, offering for sale, selling, or otherwise dealing in counterfeit or infringing products. The injunction also prohibits conduct involving confusingly similar marks or artwork, false designations or descriptions of origin, and efforts to conceal or transfer counterfeit products, records, assets, accounts, or storefronts to evade the order.

The Defaulting Defendants were ordered to deliver counterfeit products and related packaging, labels, tags, advertising, promotional materials, and other infringing materials in their possession, custody, or control to Smart Study for destruction. The order also permanently restricts third-party service providers and financial institutions from concealing, destroying, altering, selling, transferring, or otherwise disposing of records concerning the Defaulting Defendants’ frozen assets and financial accounts, and from knowingly helping others engage in the prohibited activities.

Judge Gregory Woods dissolved the 30-day automatic stay on enforcement of the judgment under Federal Rule of Civil Procedure 62(a). The order states that violating its terms may constitute contempt of court and may lead to remedies including fines and property seizure. The court retained jurisdiction over the case and parties to interpret and enforce the order.