Patagonia, Inc. v. Does
2:25-cv-03283
| C.D. Cal. | Jun 5, 2025Background
- Patagonia alleges Defendants conspired to import, promote, and sell counterfeit Patagonia products bearing Patagonia's registered trademarks, sourcing from unauthorized suppliers in China and selling using online platforms and payment processors.
- In December 2024, U.S. Customs and Border Protection seized 60 counterfeit Patagonia products, triggering Patagonia's investigation and this lawsuit.
- The District Court initially entered a Temporary Restraining Order (TRO) enjoining alleged infringing conduct, freezing assets, ordering record preservation, and involving several non-party platforms (PayPal, Meta, Shopify, Telegram).
- Patagonia moved for a preliminary injunction to maintain restrictions and asset freezes, aiming to prevent ongoing trademark abuse, irreparable harm, and dissipation of ill-gotten gains while litigation proceeds.
- Defendants opposed, arguing no irreparable harm existed and claiming alleged efforts to halt infringing sales; non-parties Meta and Shopify also raised objections regarding the scope and enforceability of the order.
- The Court granted the preliminary injunction against served Defendants and included certain non-parties (Meta and Shopify), finding all Winter factors favored Patagonia and holding expedited discovery and asset freeze appropriate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Likelihood of Success on the Merits | Patagonia owns valid marks, Defendants' conduct is unlawful counterfeiting likely to confuse consumers | No argument contesting likelihood of success | Court finds Patagonia likely to succeed; evidence unchallenged |
| Irreparable Harm | Harm to goodwill, brand, and consumer trust is irreparable and not compensable by damages; presumption applies under Lanham Act | Harm is monetary and compensable; have ceased or will cease infringing conduct | Irreparable harm presumed and unrebutted; Defendants' assurances insufficient |
| Balance of Equities | Continued infringement harms Patagonia; Defendants gain no equitable advantage from unlawful conduct | Argue for mitigating harm via cease of activities, claim prejudice from asset freeze | Balance of equities favors Patagonia; no legitimate prejudice to Defendants |
| Public Interest | Public interest in preventing consumer deception and confusion supports injunction | No forceful argument; mainly focus on procedural and jurisdictional issues | Injunction favors public interest by reducing confusion and upholding trademark rights |
| Scope and Non-Party Inclusion | Non-parties are integral to counterfeiting operations, should be bound by injunction for effective relief | Meta/Shopify claim overbreadth, lack of jurisdiction, procedural concerns | Meta and Shopify included (due to notice/active assistance), PayPal not, Telegram excluded for lack of notice |
Key Cases Cited
- Munaf v. Geren, 553 U.S. 674 (sets standard for extraordinary preliminary injunction remedy)
- Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7 (sets the four-factor test for preliminary injunctions)
- Brookfield Commc’ns, Inc. v. West Coast Ent. Corp., 174 F.3d 1036 (registration as prima facie evidence of trademark validity/exclusivity)
- Grocery Outlet, Inc. v. Albertson’s, Inc., 497 F.3d 949 (elements for trademark infringement)
- Lahoti v. VeriCheck, Inc., 586 F.3d 1190 (likelihood of confusion test)
- State of Idaho Potato Comm’n v. G & T Terminal Packaging, Inc., 425 F.3d 708 (intentional counterfeiting standard)
- JL Beverage Co., LLC v. Jim Beam Brands Co., 828 F.3d 1098 (Sleekcraft factors for consumer confusion)
- Brookfield Commc’ns, Inc. v. West Coast Ent. Corp., 174 F.3d 1036 (intent to confuse/deceive in trademark use)
- Reebok Int’l, Ltd. v. Marnatech Enters., Inc., 970 F.2d 552 (asset freezes and broad injunctive powers in trademark cases)
- Triad Sys. Corp. v. Southeastern Express Co., 64 F.3d 1330 (infringer’s lack of equitable claim to continue infringement)
- Conn. Gen. Life Ins. Co. v. New Images of Beverly Hills, 321 F.3d 878 (discretion over security bond in injunctions)
