8:21-cv-01082
M.D. Fla.Feb 23, 2022Background
- Ain Jeem, Inc. owns a registered trademark and logo associated with Kareem Abdul‑Jabbar used on athletic apparel.
- Ain Jeem investigated numerous internet-based seller IDs and ordered items that were determined to be counterfeit or unauthorized uses of the Marks.
- Defendants operated e‑commerce stores offering/promoting those counterfeit goods in the U.S.; they were not authorized licensees.
- The court authorized alternative service; Defendants were served but failed to answer and a clerk’s default was entered.
- Ain Jeem moved for default judgment seeking statutory damages ($100,000 per Defendant), a permanent injunction, removal/seizure of infringing listings and goods, and turnover of restrained funds.
- The magistrate judge recommended granting the motion: $100,000 statutory damages per Defendant, a broad permanent injunction, removal/seizure directives to marketplace operators, and transfer of restrained funds to Ain Jeem.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction & service | Defendants transact business in U.S./Florida and were validly served via court‑authorized alternative service | No response/default | Court has subject‑matter and personal jurisdiction; service proper. |
| Liability for trademark counterfeiting/infringement | Defendants sold counterfeit goods using Ain Jeem’s registered mark causing likelihood of consumer confusion | No response/default | Complaint and investigator/declaration evidence sufficiently plead Lanham Act and Florida common‑law claims; liability found. |
| Statutory damages amount | Requests $100,000 per Defendant as just, punitive, and deterrent—within §1117(c) range | No response/default | $100,000 per Defendant awarded (within statutory range; willful counterfeiting found for purposes of enhanced cap potential). |
| Permanent injunction & equitable relief | Monetary relief inadequate; irreparable harm, balance of hardships favors Ain Jeem; public interest supports injunction and directives to marketplaces/financial institutions | No response/default | Permanent injunction granted with detailed prohibitions; marketplaces ordered to remove listings and sequester/surrender goods; restrained funds to be transferred to Ain Jeem. |
Key Cases Cited
- Cotton v. Massachusetts Mutual Life Insurance Co., 402 F.3d 1267 (11th Cir. 2005) (treats well‑pleaded allegations as true on default).
- Surtain v. Hamlin Terrace Foundation, 789 F.3d 1239 (11th Cir. 2015) (default judgment requires sufficient basis in the pleadings).
- Nishimatsu Construction Co. v. Houston National Bank, 515 F.2d 1200 (5th Cir. 1975) (pleading sufficiency standard for default judgments).
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading must state a plausible claim).
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) (plausibility pleading standard).
- North American Medical Corp. v. Axiom Worldwide, Inc., 522 F.3d 1211 (11th Cir. 2008) (elements of trademark infringement under §32).
- PetMed Express, Inc. v. MetPets.com, Inc., 336 F. Supp. 2d 1213 (S.D. Fla. 2004) (statutory damages appropriate in default trademark cases).
- McDonald’s Corp. v. Robertson, 147 F.3d 1301 (11th Cir. 1998) (likelihood of confusion can demonstrate irreparable harm).
- International Shoe Co. v. Washington, 326 U.S. 310 (1945) (personal jurisdiction due process principles).
- Securities and Exchange Commission v. Smyth, 420 F.3d 1225 (11th Cir. 2005) (hearing on damages unnecessary where evidence is already of record).
