Aarp v. Sycle , 991 F. Supp. 2d 224 ( 2013 )


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  •                            `UNITED STATES DISTRICT COURT
    FOR THE DISTRICT OF COLUMBIA
    AARP,
    Plaintiff,
    v.                                                Civil Action No. 13-0608 (CKK)
    MICHAEL SYCLE,
    Defendant.
    MEMORANDUM OPINION
    (November 27, 2013)
    Plaintiff AARP (“AARP”) filed suit against Defendant Michael Sycle (“Sycle”) on April
    30, 2013 alleging trademark counterfeiting and infringement under the Lanham Act and District
    of Columbia law. See Compl., Dkt. No. [1]. Although properly and timely served with the
    Complaint and Summons, Defendant failed to respond to the Complaint, and the Clerk of the
    Court, upon motion by Plaintiff, entered default against Defendant on July 19, 2013. See Clerk’s
    Entry of Default as to Michael Sycle, Dkt. No [8]. Presently before the Court is Plaintiff’s [10]
    Motion for Default Judgment. Having thoroughly considered Plaintiff’s submissions 1, including
    the attachments thereto, applicable case law, statutory authority, and the record of the case as a
    whole, the Court shall GRANT IN PART AND HOLD IN ABEYANCE IN PART Plaintiff’s
    [10] Motion for Default Judgment.
    I. BACKGROUND
    Plaintiff filed a Complaint in the above-captioned case on April 30, 2013, alleging (1)
    1
    Compl., ECF No. [1]; Pl.’s Mot. for Default J., ECF No. [10] (“Pl.’s Mot.”); Mem. of Law in
    Supp. of Pl.’s Mot. for Default J., ECF No. [10] (“Pl.’s Mem.”); Decl. of Mary D. Hallerman in
    Supp. of Pl.’s Mot. for Default J., ECF No. [10-1] (“Hallerman Decl.”).
    trademark counterfeiting, trademark infringement, unfair competition, false designation of
    origin, and false advertising under the Lanham Act, 
    15 U.S.C. §§ 1114
    , 1125, and (2) trademark
    infringement, unfair competition, and false designation of origin under District of Columbia
    common law. Compl. ¶¶ 24-37. Plaintiff is a non-profit organization with its principal place of
    business in Washington, D.C. that works to promote the interests of persons age 50 and over. 
    Id. ¶¶ 7-8
    . As is relevant to the instant case, Plaintiff is the owner of all rights in and to several
    trademarks relating to insurance and insurance-related services (Reg. Nos. 1,046,998; 1,335,496;
    2,461,155; 3,236,039; 3,493,206) (hereinafter “AARP Marks”).         Pl.’s Mem. at 1; see also
    Compl. ¶ 11. Through its licensees, Plaintiff offers a wide variety of products and services under
    the AARP mark, including insurance. Compl. ¶ 9. Plaintiff receives royalties from the use of its
    marks in connection with the sale of insurance. 
    Id. ¶ 10
    .
    Defendant is an insurance broker operating under the name M&G Insurance Group, Inc.
    
    Id. ¶ 2
    . According to Plaintiff’s Complaint, Defendant uses “AARP” to advertise and promote
    his insurance business without Plaintiff’s permission. 
    Id. ¶¶ 3, 13
    . Despite the fact that he does
    not sell AARP-branded insurance, Defendant falsely offers to sell “AARP Life Insurance” on his
    website, alifetimeinsurance.com. 
    Id. ¶¶ 13-14
    . He has also falsely advertised his ability to sell
    “AARP Life Insurance” through Internet advertisements and YouTube videos directing viewers
    to his website and toll-free telephone number. 
    Id. ¶¶ 14-16
    .
    Prior to initiating this litigation, Plaintiff demanded that Defendant cease his use of the
    AARP Marks. 
    Id. ¶ 17
    . However, even after being contacted by Plaintiff, Defendant continued
    to use Plaintiff’s AARP Marks to promote his insurance business and create the false impression
    that his company sells AARP-branded insurance.          
    Id. ¶¶ 17-18
    .    Consequently, Plaintiff
    commenced this trademark counterfeiting and infringement action on April 30, 2013. Defendant
    2
    was served with the Complaint and Summons on June 14, 2013 and was therefore required to
    respond by July 5, 2013. See Return of Service/Affidavit, Dkt. No. [5]; see also Pl.’s Mot. for
    Entry of Default, Dkt. No. [6]. Defendant failed to file an answer or otherwise respond to
    Plaintiff’s Complaint, and Plaintiff moved for entry of default as to Defendant. See Pl.’s Mot.
    for Entry of Default, Dkt. No. [6]. On July 19, 2013, the Clerk of the Court entered default
    against Defendant. See Clerk’s Entry of Default as to Michael Sycle, Dkt. No. [8]. Plaintiff now
    moves for entry of default judgment. See Pl.’s Mot. As of the date of Plaintiff’s motion,
    Defendant continued to employ AARP marks on his website and maintain YouTube videos
    falsely advertising that his company offers AARP-branded insurance.
    II. LEGAL STANDARD
    Federal Rule of Civil Procedure 55(a) provides that the Clerk of the Court must enter a
    party’s request for a default “[w]hen a party against whom a judgment for affirmative relief is
    sought has failed to plead or otherwise defend, and that failure is shown by affidavit or
    otherwise.” Fed. R. Civ. P. 55(a). After a default has been entered by the Clerk, a party may
    move the court for a default judgment. Fed. R. Civ. P. 55(b)(2). “The determination of whether
    default judgment is appropriate is committed to the discretion of the trial court.” Int’l Painters &
    Allied Trades Indus. Pension Fund v. Auxier Drywall, LLC, 
    531 F. Supp. 2d 56
    , 57 (D.D.C.
    2008) (citing Jackson v. Beech, 
    636 F.2d 831
    , 836 (D.C. Cir. 1980)).
    Upon entry of default by the clerk of the court, the “defaulting defendant is deemed to
    admit every well-pleaded allegation in the complaint.” Int’l Painters & Allied Trades Indus.
    Pension Fund v. R.W. Amrine Drywall Co., Inc., 
    239 F.Supp.2d 26
    , 30 (D.D.C. 2002) (internal
    citation omitted). “Although the default establishes a defendant’s liability, the court is required
    to make an independent determination of the sum to be awarded unless the amount of damages is
    3
    certain.” 
    Id.
     (citing Adkins v. Teseo, 
    180 F.Supp.2d 15
    , 17 (D.D.C. 2001)). Accordingly, when
    moving for a default judgment, the plaintiff must prove its entitlement to the amount of monetary
    damages requested. 
    Id.
     “In ruling on such a motion, the court may rely on detailed affidavits or
    documentary evidence to determine the appropriate sum for the default judgment.” 
    Id.
    III. DISCUSSION
    A. Liability
    Where, as here, there is a complete “absence of any request to set aside the default or
    suggestion by the defendant that it has a meritorious defense, it is clear that the standard for
    default judgment has been satisfied.” Auxier Drywall, LLC, 
    531 F.Supp.2d at 57
     (internal
    quotation marks omitted). The Clerk of the Court has entered Defendant’s default, and the
    factual allegations in the Complaint are therefore taken as true. R.W. Amrine Drywall Co., Inc.,
    
    239 F.Supp.2d at 30
    . The Court finds that Plaintiff’s Complaint sufficiently alleges facts to
    support Plaintiff’s claims of (1) trademark counterfeiting, trademark infringement, unfair
    competition, false designation of origin, and false advertising under the Lanham Act, 
    15 U.S.C. §§ 1051
     et seq., and (2) trademark infringement, unfair competition, and false designation of
    origin under District of Columbia common law.
    To prevail on a claim for federal trademark infringement, unfair competition, and false
    designation of origin, “the plaintiff must show (1) that it owns a valid trademark, (2) that its
    trademark is distinctive or has acquired a secondary meaning, and (3) that there is a substantial
    likelihood of confusion between the plaintiff’s mark and the alleged infringer’s mark.”
    Globalaw Ltd. v. Carmon & Carmon Law Office, 
    452 F.Supp.2d 1
    , 26-27 (D.D.C. 2006)
    4
    (internal quotation marks omitted). 2 Plaintiff’s District of Columbia common law claims are
    evaluated under this standard as well.     See Breaking the Chain Foundation, Inc. v. Capitol
    Educational Support, Inc., 
    589 F.Supp.2d 25
    , 29 (D.D.C. 2008). See also Ward One Democrats,
    Inc. v. Woodland, 
    898 A.2d 356
    , 361 (D.C. 2006). By default, Defendant admits that Plaintiff
    has valid Marks that have a secondary meaning and that there is substantial likelihood of
    confusion. See Compl. at ¶¶ 24-32.
    Similarly, to establish false advertising under the Lanham Act, 
    15 U.S.C. § 1125
    (a)(1)(B), Plaintiff must show that Defendant’s advertising was (1) false or misleading, (2)
    actually or likely deceptive, (3) material in its effect on buying decisions, (4) connected with
    interstate commerce, and (5) actually or likely injurious to plaintiff. Aristotle Int’l, Inc. v. NGP
    Software, Inc., 
    714 F.Supp.2d 1
    , 6 (D.D.C. 2010). By default, Defendant has admitted that his
    advertising was false or misleading, deceptive, likely to influence the purchasing decision, made
    in interstate commerce, and likely injurious to Plaintiff. See Compl. at ¶¶ 24-32.
    Finally, to establish trademark counterfeiting, Plaintiff must show that Defendant
    infringed a registered trademark in violation of 
    15 U.S.C. § 1114
    (1)(a) and that Defendant
    “intentionally us[ed] a mark . . . , knowing such mark . . . is a counterfeit mark.” 
    15 U.S.C. § 1117
    (b); see also Lifted Research Group, Inc. v. Behdad, Inc., 
    591 F.Supp.2d 3
    , 7 (D.D.C.
    2008); Babbit Elec., Inc. v. Dynascan Corp., 
    38 F.3d 1161
    , 1181 (11th Cir. 1994). As discussed,
    supra, Plaintiff has established that Defendant infringed Plaintiff’s registered trademarks. On the
    issue of intentional use of such mark knowing such mark is counterfeit, Defendant has admitted
    2
    While Plaintiff “may appear to internally allege many different grievances, i.e., trademark
    infringement, false designation of origin . . . and unfair competition – courts have announced that
    the elements for each of the aforementioned causes-of-action mirror those for a claim of
    trademark infringement.” Globalaw Ltd., 
    452 F.Supp.2d at 26
    .
    5
    this fact by default. See Compl. ¶19. Furthermore, Defendant’s willfulness is shown by the fact
    that he had actual knowledge of Plaintiff’s trademark registrations for its marks, and yet
    continued to use the AARP Marks to sell insurance services after receipt of a demand letter from
    Plaintiff and after the commencement of this action. See Pl.’s Mem. at 3.
    B. Appropriate Relief
    Plaintiff requests relief in the form of injunctive relief and monetary damages, including
    attorneys’ fees and costs. The Court addresses each of these requests below.
    1.   Injunction
    Plaintiff requests the Court permanently enjoin Defendant from infringing Plaintiff’s
    marks. Pl.’s Mot. at 1. A district court has authority under the Lanham Act to grant injunctive
    relief “according to the principles of equity and upon such terms as the court may deem
    reasonable” to prevent further violation of Plaintiff’s trademark rights and copyrights. 
    15 U.S.C. § 1116
    (a). “In determining whether to enter a permanent injunction, the Court considers a
    modified iteration of the factors it utilizes in assessing permanent injunctions: (1) success on the
    merits, (2) whether the plaintiffs will suffer irreparable injury absent an injunction, (3) whether,
    balancing the hardships, there is harm to defendants or other interested parties, and (4) whether
    the public interest favors granting the injunction.” American Civil Liberties Union v. Mineta,
    
    319 F.Supp.2d 69
    , 87 (D.D.C. 2004).
    As discussed, supra, Plaintiff has succeeded, by default, on the merits of the instant
    action.    On the issue of irreparable injury, Plaintiff has shown, in its Motion for Default
    Judgment and the attached affidavits, that Defendant has continued to use the AARP Marks to
    sell insurance services, despite issuance of a demand letter and filing of the instant lawsuit. See
    Pl.’s Mem. at 3. “Generally, trademark infringement, by its very nature, carries a presumption of
    6
    harm.” Hanley-Wood LLC v. Hanley Wood LLC, 
    783 F.Supp.2d 147
    , 151 (D.D.C. 2011) (citing
    Health Ins. Ass’n of America v. Novelli, 
    211 F.Supp.2d 23
    , 28 (D.D.C. 2002)). Moreover,
    “Defendant’s continuing disregard for Plaintiff’s rights demonstrates that Defendant will
    continue to infringe on Plaintiff’s rights, absent an injunction.    This finding alone entitles
    Plaintiff to a permanent injunction.” Lifted Research Group, 
    591 F.Supp.2d at 8
     (D.D.C. 2008).
    The Court further finds that an injunction would not harm others, and that the public interest
    favors protecting against further violation of federal trademark law. Accordingly, the Court
    concludes that Plaintiff is entitled to a permanent injunction against Defendant’s infringement of
    its Marks, as requested in its Motion for Default Judgment.
    2. Monetary Damages
    Plaintiff requests that the Court award it $2,000,000 in statutory damages for violations
    of the Lanham Act. Pl.’s Mem. at 18-21. The Lanham Act provides for statutory damages of not
    less than $1,000 or more than $200,000 per counterfeit mark per type of goods, with an increased
    limit of $2,000,000 for willful infringement.       
    15 U.S.C. § 1117
    (c).   In general, “statutory
    damages are appropriate in default judgment cases because the information needed to prove
    actual damages is within the infringer’s control and is not disclosed.” Microsoft Corp. v. McGee,
    
    490 F.Supp.2d 874
    , 882 (S.D. Ohio 2007) (collecting cases).         Here, since Sycle “has not
    responded to the Complaint or otherwise participated in litigation of this case, actual damages
    are difficult to determine. Thus, [AARP] has appropriately requested statutory damages.” Lifted
    Research Group, Inc. v. Behdad, Inc., No. 08-390, 
    2010 WL 2662277
    , at *3 (D.D.C. June 30,
    2010). Nevertheless, when moving for a default judgment, the plaintiff must still prove its
    entitlement to the amount of monetary damages requested. R.W. Amrine Drywall Co., Inc., 
    239 F.Supp.2d at 30
    .
    7
    “Courts have substantial discretion in awarding statutory damages.” Lifted Research
    Group, 
    2010 WL 2662277
    , at *4 (citing Microsoft Corp v. Compusource Distribs, Inc., 
    115 F.Supp.2d 800
    , 811 (E.D. Mich. 2000)).       Indeed “the statute does not provide guidelines for
    courts to use in determining an appropriate award,” Louis Vuitton Malletier & Oakley, Inc. v.
    Veit, 
    211 F.Supp.2d 567
    , 583 (E.D. Pa. 2002), but rather leaves it to each court’s discretion to
    award an amount it “considers just,” 
    15 U.S.C. § 1117
    (c)(2).
    “In the absence of any guidelines for determining the appropriate award for willful
    trademark infringement,” courts outside this circuit “have looked for guidance to the better
    developed case law for willful copyright infringement.” Lyons Partnership, L.P. v. D & L
    Amusement & Entertainment, Inc., 
    702 F.Supp.2d 104
    , 117 (E.D.N.Y. 2010). In these copyright
    cases, courts have generally considered the following factors: (1) expenses saved and profits
    reaped; (2) the revenue lost by the plaintiffs; (3) the value of the copyright or trademark; (4) the
    deterrent effect on others besides the defendant; (5) whether the defendant’s conduct was
    innocent or willful; (6) whether a defendant cooperated in providing particular records from
    which to assess the value of the infringing material product; and (7) the potential for
    discouraging the defendant. Tiffany (NJ) Inc. v. Luban, 
    282 F.Supp.2d 123
    , 125 (S.D.N.Y. 2003)
    (citing Fitzgerald Publishing Co., Inc. v. Baylor Publishing Co., 
    807 F.2d 1110
    , 1117 (2d Cir.
    1986)). “The Supreme Court has held that deterrence of future infringement is an important
    factor in determining damages under the Copyright Act, and therefore an award of statutory
    damages need not equal the amount of a plaintiff’s actual damages.” Philip Morris USA, Inc. v.
    Castworld Products, Inc., 
    219 F.R.D. 494
    , 501 (C.D. Cal. 2003) (citing F.W. Woolworth Co. v.
    Contemporary Arts, Inc., 
    344 U.S. 228
    , 233, 
    73 S.Ct. 222
    , 
    97 L.Ed. 276
     (1952)). Similarly,
    “[s]tatutory damages under the Lanham Act serve to compensate trademark holders for their
    8
    losses and deter wrongful conduct.” Lifted Research Group, 
    2010 WL 2662277
    , at *4 (emphasis
    added) (citing PetMed Express, Inc. v. MedPets.com, Inc., 
    336 F.Supp.2d 1213
    , 1220-21 (S.D.
    Fla. 2004)).
    Here, Plaintiff seeks the maximum damages permitted under the statute – $2,000,000.3
    As an initial matter, Plaintiff has established that Defendant’s infringement of its marks is
    willful, making the higher $2,000,000 maximum amount applicable here. See Louis Vuitton
    Malletier & Oakley, 211 F.Supp.2d at 583 (“Willfulness can be inferred by the fact that a
    defendant continued infringing behavior after being given notice.”). However, Plaintiff has
    provided little else in support of this request for the maximum amount of statutory damages. The
    Court recognizes the difficulty encountered by Plaintiff due to Defendant’s failure to take part in
    this matter. Since Defendant has refused to participate in this litigation and has not provided any
    information to Plaintiff or the Court regarding his sales, revenues, profits or expenses, Plaintiff
    lacks the ability to make detailed estimates of Defendant’s gains.
    Nevertheless, Plaintiff’s present showing is clearly lacking. In ruling on a motion for
    default judgment “the court may rely on detailed affidavits or documentary evidence to
    determine the appropriate sum for the default judgment.” Auxier Drywall, LLC, 
    239 F.Supp.2d at 30
    . Here, the affidavit and documentary evidence accompanying Plaintiff’s motion contain
    only one fact concerning the scope of Defendant’s business. Plaintiff points to a YouTube video
    uploaded by Defendant which falsely advertises AARP Life Insurance and encourages viewers to
    3
    Although 
    15 U.S.C. § 1117
    (c) authorizes “not more than $2,000,000 per counterfeit mark” and
    Plaintiff has identified five federally registered trademarks, Plaintiff appears not to be seeking
    $2,000,000 for each of these insurance related trademarks. Rather, Plaintiff refers to $2,000,000
    – the amount it requests – as “maximum statutory damages” implying that it views one
    generalized counterfeit mark at issue here – Defendant’s use of the “AARP” designation.
    Accordingly, the Court considers $2,000,000 and not $10,000,000 as the applicable statutory
    maximum here.
    9
    visit his website and call his toll-free telephone number. Pl.’s Mem. at 19; Hallerman Decl. ¶ 13;
    
    id.,
     Exhibit H (screenshot of YouTube video). In arguing for the maximum statutory award,
    Plaintiff cites the fact that this video has had approximately 65,000 views since being published
    on July 31, 2012. 
    Id.
     Plaintiff’s affidavits and documentary evidence provide no other evidence
    from which the Court can estimate the scope of Defendant’s gains. To be sure, Plaintiff’s
    Motion points to additional facts – namely that Defendant has stated on his MySpace page that
    his website generated 300 leads per month for 20 months – but these statements are not
    supported by either an affidavit or documentary evidence in the record. Compl. ¶ 20; Pl.’s Mem.
    at 19. Accordingly, they cannot form the basis of the Court’s award of statutory damages. 4
    Similarly, Plaintiff’s Motion and Complaint state that “[o]n information and belief, Defendant
    and certain of the insurance companies with which he is connected, have made substantial
    monies through Defendant’s unauthorized and intentionally deceptive use of Plaintiff’s AARP
    Marks.” Compl. ¶ 22; Pl.’s Mem. at 19. Again, this statement is not shown by affidavits or
    documentary evidence and cannot form the basis of the Court’s award of damages. Furthermore,
    even if it were, Plaintiff never identifies these insurance companies connected with Plaintiff,
    estimates how many insurance companies are connected with Plaintiff, or states an approximate
    number of new customers who have signed up for these companies since Defendant’s infringing
    activity began. While the Court recognizes that Plaintiff may lack some of this information due
    to Defendant’s non-participation, some additional information, not all of which is concealed by
    Defendant, would prove extremely useful in determining an appropriate level of statutory
    4
    The Court notes that this information, if included in a revised affidavit, could be supplemented
    by information in Plaintiff’s possession or in the public domain that would help provide a better
    estimate of reasonable statutory damages. For example, the conversion rate on advertising used
    by other insurance websites, or websites generally, could provide some estimate of the number of
    interested users who eventually enroll in one of Defendant’s insurance products.
    10
    damages.
    Moreover, there is significant information in Plaintiff’s control that could be useful in
    setting the amount of statutory damages here. Most obviously, the Court has no sense of
    Plaintiff’s licensing fees and royalties related to the use of its marks, which could provide a
    clearer sense of the amount of revenue lost by Plaintiff and its licensees. All Plaintiff offers in
    support of damages on this point is the statement in its Complaint that “Plaintiff’s licensees have
    spent significant money in advertising and promoting insurance under AARP’s marks and
    Plaintiff has received substantial royalties from its licensees.” Pl.’s Mem. at 20 (citing Compl. ¶
    10). This statement is plainly inadequate. First, it provides no estimate of the amount of funds
    spent in support of and received due to the marks at issue. Second, as noted above, since this
    statement does not appear in an affidavit and is not shown by documentary evidence, it is not
    properly considered in assessing the amount of damages here.       See Auxier Drywall, LLC, 
    239 F.Supp.2d at 30
     (“In ruling on such a motion, the court may rely on detailed affidavits or
    documentary evidence to determine the appropriate sum for the default judgment.”).
    The paucity of the record is particularly glaring given that Plaintiff is seeking the
    maximum amount of statutory damages.           In other cases where judges have awarded the
    maximum penalty permitted under the statute “there was reason to believe that the defendant’s
    sales were substantial.” Tiffany (NJ) LLC v. Dong, No. 11-2183, 
    2013 WL 4046380
    , at *6
    (S.D.N.Y. Aug. 9, 2013) (citing Gucci Am. Inc. v. Curveal Fashion, No. 09-8458, 
    2010 WL 308303
    , at *5 (S.D.N.Y. Jan 20, 2010); Nike, Inc. v. Top Brand Co., No. 00-8179, 
    2006 WL 2946472
    , at *3 (S.D.N.Y. Feb. 27, 2006); Gucci Am., Inc. v. Duty Free Apparel Ltd., 
    315 F.Supp.2d 511
    , 521-22 (S.D.N.Y. 2004)). For example, in Nike, the court focused on evidence
    of “the size of the defendant’s infringing operations, which led to the production of millions of
    11
    infringing goods.” Nike, 
    2006 WL 2946472
    , at *2. Similarly, in Philip Morris USA, 219 F.R.D.
    at 501-502, the court awarded $2,000,000 in statutory damages where the defendant willfully
    imported 8,000,000 counterfeit cigarettes having a street value of millions of dollars.
    By contrast, where there is limited evidence of the large extent of the Defendant’s
    operations and profits, a large award of statutory damages appears less appropriate.            See
    Sennheiser Electronic Corp. v. Bielski, No. 11-7892, 
    2012 WL 2006011
    , at *3 (C.D. Cal. June 4,
    2012) (“Although Plaintiffs’ exact damages cannot be determined because of Defendant’s failure
    to take part in the present litigation, such a steep award is clearly excessive, and does not bear a
    plausible relationship to Defendant’s profits from infringement.”); E.I. DuPont de Nemours and
    Co. v. Drabek, No. 12-10574, 
    2013 WL 4033630
    , at *7 (C.D. Cal. May 3, 2013) (“Plaintiff has
    presented no evidence regarding the extent of sales and no evidence that Defendant sold
    infringing products to a wide market.”)
    Consequently, although Plaintiff need not prove its actual damages under 
    15 U.S.C. § 1117
    (c), here the Court lacks even the most basic estimates as to an appropriate amount of
    statutory damages. Furthermore, there is insufficient evidence that the scope of Defendant’s
    operation matches that of past infringers against whom courts have imposed the maximum
    statutory award. Accordingly, in light of the limited evidence presented by Plaintiff in support
    its claim for the maximum amount of statutory damages, the Court will hold Plaintiff’s request
    for statutory damages in abeyance. If Plaintiff continues to seek statutory damages pursuant to
    
    15 U.S.C. § 1117
    (c), it shall submit further briefing by no later than December 20, 2013 setting
    out, if necessary, a revised estimate for these damages that more reasonably reflects all available
    information relevant to the seven factors identified above. If Plaintiff is unable to obtain certain
    potentially useful information due to Defendant’s intransigence, it should indicate how it has
    12
    sought to obtain this information and why Defendant’s actions have blocked its acquisition.
    Plaintiff will not be permitted to submit additional briefing on this subject after this date, and the
    Court will make its ruling as to statutory damages on the record as it exists on this date.
    3. Attorneys’ Fees
    Finally, AARP has requested attorneys’ fees and costs in this matter. The Lanham Act
    permits a plaintiff to recover “the costs of the action,” but provides for the award of reasonable
    attorneys’ fees to the prevailing party only “in exceptional cases.”          
    15 U.S.C. § 1117
    (a).
    Although the Act itself does not define the term “exceptional,” courts have generally held that
    willful infringement by the defendant constitutes an “exceptional case[]” under the Act for which
    attorneys’ fees may be awarded. See ALPO Petfoods, Inc. v. Ralston Purina Co., 
    913 F.2d 958
    ,
    961 (D.C. Cir. 1990) (“Attorneys’ fees . . . are available under section 35(a) only ‘in exceptional
    cases,’ which this court has defined as cases involving willful or bad-faith conduct.”); Lindy Pen.
    Co. v. Bic Pen Corp., 
    982 F.2d 1400
    , 1409 (9th Cir. 1993) (“[G]enerally a trademark case is
    exceptional for purposes of an award of attorneys’ fees when the infringement is malicious,
    fraudulent, deliberate or willful.”); Microsoft Corp. v. Black Cat Computer Wholesale, 
    269 F.Supp.2d 118
    , 124 (“A willful infringement may be considered an exceptional case under the
    Lanham Act.”) (citing Bambu Sales, Inc. v. Ozak Trading, Inc., 
    58 F.3d 849
    , 854 (2d Cir. 1995).
    Here, as discussed, Defendant’s infringing actions were willful and thus awarding reasonable
    attorneys’ fees and costs is appropriate under the Lanham Act.            Plaintiff shall submit the
    appropriate documentation of these fees and costs for the Court’s review by no later than
    December 20, 2013.
    IV. CONCLUSION
    For the foregoing reasons, the Court shall GRANT IN PART AND HOLD IN
    13
    ABEYANCE IN PART Plaintiff’s [10] Motion for Default Judgment. Specifically, the Court
    grants Plaintiff’s motion as to liability and its request for injunctive relief and reasonable
    attorneys’ fees and costs. The Court holds in abeyance Plaintiff’s motion as to its request for
    statutory damages pursuant to 
    15 U.S.C. § 1117
    (c). Plaintiff shall file with the Court, no later
    than December 20, 2013, supplemental briefing setting out additional evidence, via affidavits
    and documentary evidence, supporting its request for statutory damages. This supplemental
    briefing should also contain the appropriate documentation as to Plaintiff’s request for attorneys’
    fees and costs. An appropriate Order accompanies this Memorandum Opinion.
    /s/
    COLLEEN KOLLAR-KOTELLY
    UNITED STATES DISTRICT JUDGE
    14
    

Document Info

Docket Number: Civil Action No. 2013-0608

Citation Numbers: 991 F. Supp. 2d 224

Judges: Judge Colleen Kollar-Kotelly

Filed Date: 11/27/2013

Precedential Status: Precedential

Modified Date: 8/31/2023

Authorities (25)

babbit-electronics-inc-sol-steinmetz-and-robert-steinmetz , 38 F.3d 1161 ( 1994 )

Bambu Sales, Inc. v. Ozak Trading Incorporated and Doron ... , 58 F.3d 849 ( 1995 )

David Nathaniel Jackson v. Malcolm Beech David Nathaniel ... , 636 F.2d 831 ( 1980 )

Lindy Pen Company, Inc. Blackfeet Plastics, Inc., Cross-... , 982 F.2d 1400 ( 1993 )

fitzgerald-publishing-co-inc-cross-appellee-v-baylor-publishing-co , 807 F.2d 1110 ( 1986 )

Alpo Petfoods, Inc. v. Ralston Purina Company , 913 F.2d 958 ( 1990 )

Ward One Democrats, Inc. v. Woodland , 898 A.2d 356 ( 2006 )

American Civil Liberties Union v. Mineta , 319 F. Supp. 2d 69 ( 2004 )

International Painters and Allied Trades Industry Pension ... , 239 F. Supp. 2d 26 ( 2002 )

International Painters & Allied Trades Industry Pension ... , 531 F. Supp. 2d 56 ( 2008 )

Breaking the Chain Foundation, Inc. v. Capitol Educational ... , 589 F. Supp. 2d 25 ( 2008 )

Aristotle International, Inc. v. NGP Software, Inc. , 714 F. Supp. 2d 1 ( 2010 )

Health Insurance Ass'n of America v. Novelli , 211 F. Supp. 2d 23 ( 2002 )

Lifted Research Group, Inc. v. Behdad, Inc. , 591 F. Supp. 2d 3 ( 2008 )

Microsoft Corp. v. Compusource Distributors, Inc. , 115 F. Supp. 2d 800 ( 2000 )

Lyons Partnership, L.P. v. D & L Amusement & Entertainment, ... , 702 F. Supp. 2d 104 ( 2010 )

Hanley-Wood LLC v. Hanley Wood LLC , 783 F. Supp. 2d 147 ( 2011 )

Globalaw Ltd. v. Carmon & Carmon Law Office , 452 F. Supp. 2d 1 ( 2006 )

Adkins v. Teseo , 180 F. Supp. 2d 15 ( 2001 )

PetMed Express, Inc. v. MedPets.Com, Inc. , 336 F. Supp. 2d 1213 ( 2004 )

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