Aarp v. Sycle
991 F. Supp. 2d 234
D.D.C.2014Background
- AARP sued Michael Sycle (operating as M&G Insurance Group, alifetimeinsurance.com) for willful trademark counterfeiting and infringement under the Lanham Act and D.C. law after Sycle advertised and sold insurance using the AARP mark without authorization.
- Sycle was properly served, failed to answer, and the Clerk entered default; the court previously found liability and granted injunctive relief and entitlement to fees, holding statutory damages in abeyance pending supplemental briefing.
- AARP estimated Sycle generated ~6,000 leads (based on Sycle’s MySpace statement) and used New York Life licensee conversion and commission figures to estimate Sycle’s commissions at $291,600 from the infringement.
- AARP sought statutory damages under 15 U.S.C. § 1117(c), initially $2,000,000, then revised to $583,200 (doubling the estimated $291,600) to account for lost licensee revenue, mark value, deterrence, willfulness, deceptive targeting of seniors, and Sycle’s noncooperation.
- The court awarded AARP $583,200 in statutory damages, $17,150.40 in attorneys’ fees (after AARP took a ~40% discount from billed fees), and $590 in costs, for a total money judgment of $600,940.40, and dismissed the action.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Liability for trademark counterfeiting/infringement | AARP: Sycle used AARP marks to advertise and sell non‑AARP insurance, creating consumer confusion and infringing registered marks. | Sycle did not answer or present a defense. | Court entered default; liability established. |
| Statutory damages under 15 U.S.C. § 1117(c) — amount | AARP: Estimated defendant’s commissions $291,600 and requested doubling to $583,200 to account for lost licensee revenue, mark value, deterrence, willfulness, and noncooperation. | No opposition or records produced by Sycle to rebut or refine estimates. | Court exercised discretion, accepted AARP’s estimates, and awarded $583,200. |
| Willfulness and deterrence (enhancement) | AARP: Sycle acted willfully (continued use after warnings and after injunction), targeted seniors, and persisted post‑injunction, justifying an enhanced statutory award. | No response; no cooperation. | Court found willfulness and deterrence factors supported increased statutory damages. |
| Attorneys’ fees and costs under 15 U.S.C. § 1117(a) | AARP: Requested $17,150.40 (40% discount of billed $28,584.50) plus $590 costs; submitted time entries and billing rates. | Sycle offered no opposition. | Court awarded $17,150.40 in fees and $590 in costs as reasonable. |
Key Cases Cited
- Int’l Painters & Allied Trades Indus. Pension Fund v. Auxier Drywall, 531 F. Supp. 2d 56 (D.D.C. 2008) (default-judgment discretion and procedure)
- Int’l Painters & Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co., Inc., 239 F. Supp. 2d 26 (D.D.C. 2002) (default admits well-pleaded allegations but court must independently determine damages)
- Adkins v. Teseo, 180 F. Supp. 2d 15 (D.D.C. 2001) (court must calculate damages even after default)
- Microsoft Corp. v. Compusource Distribs., Inc., 115 F. Supp. 2d 800 (E.D. Mich. 2000) (courts have broad discretion in statutory damages awards)
- Louis Vuitton Malletier & Oakley, Inc. v. Veit, 211 F. Supp. 2d 567 (E.D. Pa. 2002) (statutory damages under Lanham Act left to court’s discretion)
- Tiffany (NJ) Inc. v. Luban, 282 F. Supp. 2d 123 (S.D.N.Y. 2003) (factors for assessing statutory damages under copyright/trademark analogies)
- Fitzgerald Publ’g Co. v. Baylor Publ’g Co., 807 F.2d 1110 (2d Cir. 1986) (considerations for statutory damages calculations)
- ALPO Petfoods, Inc. v. Ralston Purina Co., 913 F.2d 958 (D.C. Cir. 1990) (attorneys’ fees awarded in exceptional cases involving willful or bad-faith conduct)