Opinion
21 Civ. 8434 (AKH) (RWL)
06-09-2022
KELLY TOYS HOLDINGS, LLC, Plaintiff, v. ALIALIALILL STORE, et al., Defendants. NO. DEFAULTING DEFENDANT'S WRONGFUL USE OF PLAINTIFF'S SQUISHMALLOWS MARKS IN THE UNDISPUTED EVIDENCE STATUTORY DAMAGES AWARD
ORDER AND OPINION ADOPTING MAGISTRATE'S REPORT AND RECOMMENDATION AND GRANTING MOTION FOR DEFAULT JUDGMENT
ALVIN K. HELLERSTEIN, U.S.D.J.:
On October 6, 2021, Plaintiff Kelly Toys Holdings, LLC (“Plaintiff”) commenced this action seeking damages and injunctive relief against 48 Defendants, allegedly engaged in marketing and selling counterfeit versions of Plaintiff's Squishmallows line of collectible dolls. (ECF No. 8). Plaintiff asserted various claims under the federal trademark and copyright laws, as well as related state law and common-law claims. Plaintiff also moved ex parte for a temporary restraining order (“TRO”), expedited discovery, and other relief. (ECF No. 14-16). On October 25, 2021, the Court granted the TRO, which included an asset restraining order on each Defendant's financial and online service accounts. (ECF No. 17). On November 12, 2021, the Court entered a preliminary injunction order, mirroring the terms of the TRO and extending through the pendency of this action (ECF Nos. 10, 21). The Defaulting Defendants, identified in the attached chart, have not appeared in this action and failed to answer or otherwise respond to the Complaint. On March 9, 2022, the Clerk of Court entered default against each Defaulting Defendant. (ECF Nos. 27).
The initial complaint named 62 Defendants; however, prior to the Magistrate issuing its Report and Recommendation (“R&R”) (ECF No. 33), Plaintiff voluntarily dismissed its claims against six, pursuant to Fed.R.Civ.P. 41(a). See ECF Nos. 28, 33. After the Magistrate issued its R&R, Plaintiff moved to dismiss its claims against eight additional defendants (ECF No. 39). The R&R included an attachment listing the Defaulting Defendants and their respective allegedly wrongful uses of Plaintiff's Squishmallow marks. See Attachment A, Report and Recommendation, ECF No. 37. I approve dismissal, and therefore attach, an edited version of the R&R's Attachment A, striking the newly dismissed defendants.
Plaintiff asserted federal claims for trademark infringement of its federally registered trademarks in violation of the Federal Trademark Act (the “Lanham Act”), 15 U.S.C. §§ 051 et seq.; counterfeiting of its federally registered trademarks in violation of 15 U.S.C. §§ 1114(1)(a)-(b), 1116(d), and 1117(b)-(c); false designation of origin, passing off, and unfair competition in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); and, copyright infringement of federally registered copyrights in violation of the Copyright Act of 1976, 17 U.S.C. §§ 101 et seq.
On March 11, 2022, Plaintiff moved pursuant to Federal Rule of Civil Procedure 55 for default judgment against the Defaulting Defendants, (ECF No. 29), seeking (1) entry of a final judgment and permanent injunction; (2) statutory damages pursuant to 15 U.S.C. § 1117(c) in the amount of $50,000 against each Defaulting Defendant along with postjudgment interest; and (3) leave to serve restraining order notices on the Defaulting Defendants and third-parties holding assets of the Defaulting Defendants pursuant to Fed.R.Civ.P. 69(a)(1) and N.Y. C.P.L.R. § 5222.
On March 17, 2022, Plaintiff's motion was referred to United States Magistrate Judge Robert W. Lehrburger for a Report and Recommendation (“R&R”). (ECF No. 34). Judge Lehrburger entered an order requiring Defendants to file any response to Plaintiff's motion no later than April 16, 2022 (ECF No. 35); Defendants failed to respond. On May 19, 2022, Judge Lehrburger issued an R&R (ECF No. 37) recommending that I enter a judgment in favor of Plaintiff against each Defaulting Defendant that (1) makes permanent the injunctive relief previously imposed by the PI Order (except for asset-freeze provisions); (2) awards Plaintiff statutory damages pursuant to 15 U.S.C. § 1117(c) in the amount of $50,000 against each Defaulting Defendant along with postjudgment interest; and, (3) grants permission to serve asset restraining order notices pursuant to N.Y. C.P.L.R. § 5222 and dissolves the 30-day stay that would otherwise delay Plaintiff's ability to serve the notices. See R&R at 27.
This case was originally assigned to Judge Alison Nathan but was reassigned to me on April 6, 2022, after Judge Nathan was elevated to the Court of Appeals for the Second Circuit.
No party has objected to the R&R, and the time to do so has passed. See Fed.R.Civ.P. 72(b)(2) (requiring specific written objections to an R&R to be served and filed within 14 days after being served with a copy of the recommended disposition); see also ECF No. 37 (requiring written objections to the R&R be filed by June 2, 2022). Accordingly, I review the R&R for clear error. See Urena v. New York, 160 F.Supp.2d 606, 609-10 (S.D.N.Y. 2001) (“To accept the report and recommendation of a magistrate, to which no timely objection has been made, a district court need only satisfy itself that there is no clear error on the face of the record.”); Porter v. Potter, 219 Fed. App'x 112, 113 (2d Cir. 2007) (summary order) (“Failure to object timely to a magistrate's report operates as a waiver of any further review of the magistrate's decision.”); see also Thomas v. Arn, 474 U.S. 140, 150 (1985) (noting that Congress provided for a “clearly erroneous or contrary to law” standard where parties fail to object).
I have reviewed both the record and the R&R, and finding no clear error, adopt the R&R (ECF No. 37). The Clerk shall enter judgment in favor of Plaintiff against each Defaulting Defendant that (1) makes permanent the injunctive relief previously imposed by the preliminary injunction order (ECF No. 10) (except for asset-freeze provisions); (2) awards statutory damages pursuant to 15 U.S.C. § 1117(c) in the amount of $50,000 against each Defaulting Defendant along with postjudgment interest; and (3) provides for immediate execution and grants costs to Plaintiff as taxed by the Clerk. Plaintiff shall provide forms of judgment to the Clerk.
Plaintiff's request to voluntarily dismiss its claims against the 8 remaining Defendants named in its Notice of Voluntary Dismissal (ECF No. 39) is granted. The Clerk of Court shall terminate the motion (ECF No. 29) and close the case.
SO ORDERED.
21-CV-8434 ATTACHMENT A: DEFAULTING DEFENDANTS
NO. DEFAULTING DEFENDANT DEFAULTING DEFENDANT'S WRONGFUL USE OF PLAINTIFF'S SQUISHMALLOWS MARKS IN THE UNDISPUTED EVIDENCE STATUTORY DAMAGES AWARD 1 alialialiLL Store Twenty (20) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.3-22). $50,000.00 2 baby -shopping Store Seventeen (17) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.31-47). $50,000.00 3 Bazinga Store Twenty-One (21) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.56-76). $50,000.00 4 BBOTTRUOYS Toy Store Twenty (20) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.85-104). $50,000.00 5 boboniu Store Twenty (20) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.113-132). $50,000.00 6 chenwanju Store Eighteen (18) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.141-158). $50,000.00 7 Children Growing Tree Store Twenty-One (21) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.167-187). $50,000.00 8 Chinese Plush Toy Store Twenty-One (21) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.196-216). $50,000.00 6 9 Dongguan Shengen Hardware Plastic Co., Ltd. One (1) infringing use of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.225). $50,000.00 10 Dongguan Woodfield Baby Products Company Limited Five (5) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.232-236). $50,000.00 11 Dongguan Xingke Gift Co., Ltd. One (1) infringing use of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.243). $50,000.00 12 Dropshipping-Toys Store Seven (7) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.250-256). $50,000.00 13 Fairylands Toy Store Twenty-One (21) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.265-285). $50,000.00 14 FCOT Store Fifteen (15) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.292-306). $50,000.00 15 Fourtry Store Twenty-One (21) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.313-333). $50,000.00 16 Francis 001 Store Six (6) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.342-344, 350-352). $50,000.00 17 Fun Game Fun Store Twenty-One (21) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.361-381). $50,000.00 18 Guangdong Sansan Supply Chain Co., Ltd. Twelve (12) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.390-402). $50,000.00 7 19 Guangzhou Little Talent Toys Co., Ltd. Two (2) infringing use of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.409-410). $50,000.00 20 Guangzhou Yimai Trading Co., Ltd. Twenty-One (21) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.417-437). $50,000.00 21 Hangzhou Agreat Import & Export Co. Ltd Eleven (11) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.444-454). $50,000.00 22 Hebei Kuni Animation Industry Co., Ltd. Two (2) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.461-462). $50,000.00 23 Henan Yinghuozhiguang Culture Media Co., Ltd. Two (2) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.469-470). $50,000.00 24 Mikecrack Store Sven (7) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.477-483). $50,000.00 25 Monster Jellie Culture Co., Ltd. One (1) infringing use of Plaintiff's Squishmallows Marks (Complaint, Ex. D, p.490). $50,000.00 26 Nanjing Ruifutong Arts And Toys Manufacturing Co., Ltd. Six (6) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.504-508, 510). $50,000.00 27 QWJA Store Five (5) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.517-521). $50,000.00 28 Shanghai Qianjiu Trading Co., Ltd. Two (2) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.528-529). $50,000.00 8 29 Shenzen Tongfei International Trade Co., Ltd. Twenty-One (21) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.536-556). $50,000.00 30 Shenzhen Hechun Technology Co., Ltd. Eleven (11) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp. 563-573). $50,000.00 31 Shenzhen Qinghong Toys Co., Ltd. One (1) infringing use of Plaintiffs Squishmallows Marks (Complaint, Ex. D, pp. 582). $50,000.00 32 Shop5477120 Store Eighteen (18) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.589-606). $50,000.00 33 Shop910893006 Store Nineteen (19) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.615-633). $50,000.00 34 SI TING Store Twenty (20) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.640-659). $50,000.00 35 SZ Gteak Technology Co., Limited One (1) infringing use of Plaintiff's Squishmallows Marks (Complaint, Ex. D, p.666). $50,000.00 36 TC XRC Store Store Seventeen (17) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp. 673-689). $50,000.00 37 TIKTOK IP Store Twenty (20) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp. 696-715). $50,000.00 38 VL Store Twenty (20) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.722-741). $50,000.00 9 39 Xinxiang Puruige Import And Export Trading Co., Ltd. One (1) infringing use of Plaintiffs Squishmallows Marks (Complaint, Ex. D, p.748). $50,000.00 40 YaMong Store Twenty (20) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.755-774). $50,000.00 41 Yangzhou Aixini International Trade Import And Export Co., Ltd. Three (3) infringing uses of Plaintiffs Squishmallows Marks (Complaint, Ex. D, p.781). $50,000.00 42 Yangzhou Aorunju Gifts Co., Ltd. Twelve (12) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.788-799). $50,000.00 43 Yangzhou Babyjoy Arts & Crafts Co. One (1) infringing use of Plaintiff's Squishmallows Marks (Complaint, Ex. D, p.806). $50,000.00 44 Yangzhou Cuteshoot Plushies Co., Ltd Four (4) infringing uses of Plaintiffs Squishmallows Marks (Complaint, Ex. D, pp.813-816). $50,000.00 45 Yangzhou Dulala Crafts Ltd. One (1) infringing use of Plaintiffs Squishmallows Marks (Complaint, Ex. D, p.823). $50,000.00 46 Yangzhou Kingstone Toys Co., Ltd. Eleven (11) infringing uses of Plaintiffs Squishmallows Marks (Complaint, Ex. D, pp.830 840). $50,000.00 47 Yangzhou Marisa Toy Gifts Co., Ltd. One (1) infringing use of Plaintiffs Squishmallows Marks (Complaint, Ex. D, pp.847). $50,000.00 48 Yangzhou SCS Hometextile Co., Ltd One (1) infringing use of Plaintiffs Squishmallows Marks (Complaint, Ex. D, pp.854). $50,000.00 10 49 Yangzhou Wosen Toys Co., Ltd. Thirteen (13) infringing uses of Plaintiffs Squishmallows Marks (Complaint, Ex. D, pp.871 883). $50,000.00 50 Twelve (12) infringing uses of Plaintiffs Squishmallows Marks (Complaint, Ex. D, pp.890 901). $50,000.00 Y i wuciiuanyu unpor t AndExpor t f trm 51 Yiwu Duotong E-Commerce Co., Ltd One (1) infringing use of Plaintiff's Squishmallows Marks (Complaint, Ex. D, p.915). $50,000.00 52 Yiwu Fuguan Household Supplies Co., Ltd. Seventeen (17) infringing uses of Plaintiffs Squishmallows Marks (Complaint, Ex. D, pp.922-938). $50,000.00 53 Yiwu Haiping Bag Factory One (1) infringing use of Plaintiff's Squishmallows Marks (Complaint, Ex. D, p.945). $50,000.00 54 Yiwu Quanfa Import & Export Company Limited One (1) infringing use of Plaintiff's Squishmallows Marks (Complaint, Ex. D, p.952). $50,000.00 One (1) infringing use of Plaintiff's Squishmallows Marks (Complaint, Ex. D, p.959). $50,000.00 5 5 56 Yiwu Xintu Import And Export Co., Ltd. Nine (9) infringing uses of Plaintiff's Squishmallows Marks (Complaint, Ex. D, pp.966-974). $50,000.00