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Noco Company v. Reclaimed Assets Group LLC
1:21-cv-01833
N.D. Ohio
Dec 20, 2022
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Background

  • 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)
Read the full case

Case Details

Case Name: Noco Company v. Reclaimed Assets Group LLC
Court Name: District Court, N.D. Ohio
Date Published: Dec 20, 2022
Docket Number: 1:21-cv-01833
Court Abbreviation: N.D. Ohio