Noco Company v. Reclaimed Assets Group LLC
1:21-cv-01833
N.D. OhioDec 20, 2022Background
- NOCO designs, manufactures, and sells battery-related products and limits distribution to direct sales and authorized resellers under reseller agreements that prohibit bulk/wholesale sales.
- NOCO alleges RA Group, a Michigan LLC, purchased NOCO products in bulk from authorized resellers and resold them on Amazon as "new" without NOCO authorization, potentially depriving purchasers of NOCO's manufacturer warranty.
- NOCO sued RA Group for federal trademark infringement (Lanham Act), trademark dilution, unfair competition, tortious interference with contract, and Ohio Deceptive Trade Practices; RA Group did not respond.
- The Clerk entered default; NOCO moved for default judgment.
- The court treated the complaint allegations as admitted, granted default judgment on trademark infringement, dilution, unfair competition, and Ohio deceptive-practices claims, denied default judgment on the tortious-interference claim for insufficient factual allegations, declined to award declaratory or injunctive relief, and awarded $8,000 in damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Trademark infringement / Unfair competition / Ohio DTPA | RA Group resold NOCO goods as "new" without authorization; first-sale defense inapplicable because presentation and warranty differences cause consumer confusion/material difference | No response; default — allegations deemed admitted | Granted default judgment on these claims (facts accepted); damages limited to $8,000; court declined injunctive/declaratory relief |
| Trademark dilution | NOCO's marks are famous/distinctive; RA Group's post-registration resale in commerce dilutes mark by selling as "new" | No response; default | Granted default judgment on dilution claim; court declined injunctive/declaratory relief |
| Tortious interference with contract | RA Group knew of reseller contracts and prohibition on bulk sales and intentionally procured breaches | No response; default — but plaintiff offered only conclusory allegations | Denied default judgment: plaintiff failed to plead facts showing RA Group's knowledge of specific contracts |
| Relief: Declaratory judgment, permanent injunction, and damages | Requests declaration of trademark violation, permanent injunction barring future sales, and disgorgement of RA Group's resale revenues | No response; default; equitable discretion applies | Court exercised discretion: denied declaratory and injunctive relief; awarded $8,000 in damages (limited because NOCO already received sale proceeds upstream and injury was marginal) |
Key Cases Cited
- Brilliance Audio, Inc. v. Haights Cross Commc'ns, Inc., 474 F.3d 365 (6th Cir. 2007) (explains first-sale exception and when reseller liability exists)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading standards: no mere conclusory allegations)
- NCR Corp. v. Korala Assocs., Ltd., 512 F.3d 807 (6th Cir. 2008) (elements for tortious interference with contract)
- Adrian Energy Assocs. v. Michigan Pub. Serv. Comm'n, 481 F.3d 414 (6th Cir. 2007) (discretion under Declaratory Judgment Act)
- Audi AG v. D'Amato, 469 F.3d 534 (6th Cir. 2006) (four-factor test for permanent injunctive relief)
- U.S. Structures, Inc. v. J.P. Structures, Inc., 130 F.3d 1185 (6th Cir. 1997) (district court discretion in awarding trademark damages)
