Quincy Bioscience, LLC v. Ellishbooks
957 F.3d 725
7th Cir.2020Background
- Quincy Bioscience owns the PREVAGEN® trademark (registered 2007) and sells dietary supplements in boxed packages that include product information sheets.
- Ellishbooks sold products on Amazon identified as PREVAGEN® without Quincy’s authorization; some items had altered/damaged packaging, lacked information sheets and retail-identifying codes, and bore RFID/security tags consistent with retail-origin goods.
- Quincy sued under the Lanham Act and Illinois law for trademark infringement, false advertising, dilution, unfair competition, unjust enrichment, and sought damages and injunctive relief.
- Ellishbooks failed to file a timely answer; the district court entered default, held a damages prove-up (Quincy produced Amazon sales records showing $480,968.13 in Prevagen® sales), and awarded damages and costs.
- The district court later granted Quincy’s Rule 59 motion and entered a permanent injunction barring Ellishbooks from infringing PREVAGEN® and from selling stolen PREVAGEN® products; Ellishbooks appealed asserting errors including lack of Rule 52 findings and that factual findings about stolen goods were unsupported.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 52(a) required detailed factual findings supporting the district court’s orders | Quincy: Rule 52 does not apply to motions for default judgment or other non-trial motions | Ellishbooks: Rule 52 required factual findings on decisive issues (e.g., stolen-goods determination) | Court: Rule 52(a) inapplicable to these non-trial motions; no additional findings required |
| Whether the court clearly erred in finding Ellishbooks knew or had reason to know some PREVAGEN® products were stolen | Quincy: The complaint alleged knowledge and default established those well-pled allegations; additional prove-up supported the claim | Ellishbooks: There was insufficient evidence and the finding was clear error | Court: Default established the allegation; prove-up showed Ellishbooks could not account for most products; no clear error |
| Whether injunction enjoining sale of stolen PREVAGEN® products was permissible | Quincy: Injunctive relief proper because default established knowledge and sales injured Quincy/unjustly enriched defendants | Ellishbooks: Injunction improper without proof that products were stolen | Court: Injunction proper—default and record supported the finding; Ellishbooks waived challenges by failing to raise them below |
| Whether service/personal jurisdiction were adequate and default appropriate | Quincy: Process was properly effected after multiple attempts and New Jersey statutory service; court had jurisdiction | Ellishbooks: Service was improper | Court: District court’s service efforts were sufficient; personal jurisdiction established |
Key Cases Cited
- Wehrs v. Wells, 688 F.3d 886 (7th Cir. 2012) (upon default, well-pled allegations on liability are taken as true)
- Parker v. Scheck Mech. Corp., 772 F.3d 502 (7th Cir. 2014) (standards for vacating default judgment: good cause, quick action, meritorious defense)
- United States v. DiMucci, 879 F.2d 1488 (7th Cir. 1989) (default-judgment damages require a hearing unless amount is liquidated or provable from documents)
- Fednav Int’l Ltd. v. Cont’l Ins. Co., 624 F.3d 834 (7th Cir. 2010) (arguments not presented to the district court are waived on appeal)