CCA and B, LLC v. 3C-World Dropshipping Store
1:24-cv-04616
N.D. Ga.Oct 25, 2024Background
- Plaintiff CCA and B, LLC (d/b/a The Lumistella Company) is the owner of "The Elf on the Shelf" brand, with registered trademarks and copyrighted works in books, plush dolls, accessories, and films.
- Plaintiff discovered that numerous defendants, primarily non-U.S. (mainly Asian) entities and individuals, were selling counterfeit products via online marketplaces such as Amazon, AliExpress, eBay, Temu, and others.
- Defendants allegedly used identical or confusingly similar marks and designs to Plaintiff’s, without authorization, targeting U.S. consumers and accepting U.S. payments.
- Plaintiff moved for an ex parte Temporary Restraining Order (TRO), asset freeze, and order to show cause, citing risk of ongoing infringement, destruction of evidence, and dissipation of profits if notice was given to defendants.
- Court reviewed evidence, including trademark registrations, copyright certificates, screen captures of defendant listings, and declarations attesting to likelihood of consumer confusion and irreparable harm to Plaintiff's business reputation and goodwill.
- The Court granted the TRO and accompanying relief, including asset freezes, finding that Plaintiff met the multi-factor test for such emergency injunctive relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| TRO Standard | Substantial likelihood of success, irreparable harm, balance/equity, public interest all favor Plaintiff | Not stated (no notice at ex parte stage) | TRO standard is met; TRO granted |
| Trademark Infringement | Defendants used counterfeits or confusingly similar marks in commerce | Not stated | Likely infringement; Plaintiff likely to succeed |
| Copyright Infringement | Defendants sold unauthorized copies/derivatives of protected works | Not stated | Likely infringement; Plaintiff likely to succeed |
| Asset Freeze & Ex Parte Relief | Notice would allow defendants to dissipate assets or destroy evidence; asset freeze necessary to secure relief | Not stated | Asset freeze and ex parte process appropriate |
Key Cases Cited
- Schiavo ex rel. Schindler v. Schiavo, 403 F.3d 1223 (11th Cir. 2005) (outlines four-factor test for TRO/quasi-injunctive relief)
- Levi Strauss & Co. v. Sunrise Int'l Trading Inc., 51 F.3d 982 (11th Cir. 1995) (authorizes asset freezes for equitable relief in IP cases)
- AT&T Broadband v. Tech Communications, Inc., 381 F.3d 1309 (11th Cir. 2004) (ex parte seizure orders appropriate when advance notice would frustrate relief)
- Louis Vuitton Malletier, S.A. v. Mosseri, 736 F.3d 1339 (11th Cir. 2013) (establishes personal jurisdiction over foreign defendants selling to U.S.)