3:19-cv-00277
E.D. Tenn.Sep 12, 2023Background
- Plaintiff Systematic Power Solutions, LLC (doing business as XS Power) sued defendants Fullriver Battery Manufacture Co., Ltd. and Fullriver Industry Co., Ltd.; related counterclaims and motions were referred to Magistrate Judge Debra C. Poplin.
- Defendants failed to respond, leading Systematic Power to move for default judgment, attorneys’ fees and costs, and a permanent injunction; Systematic Power also moved to voluntarily dismiss several counterclaims.
- Judge Poplin issued a Report and Recommendation granting much of Systematic Power’s relief (liability, damages, fees, and an injunction) and recommending dismissal without prejudice of five counterclaims; no party objected.
- The District Court (Judge Katherine A. Crytzer) adopted the Report in full and entered final orders: default judgment on multiple claims, awards of compensatory and punitive damages, fee and cost awards, and a permanent injunction; trade-dress dilution claim was denied as to default judgment.
- Awards: $250,000 compensatory for conversion (with 10% prejudgment interest for specified periods), $750,000 punitive for conversion, $80,695.50 in attorney’s fees, and $396.72 in costs.
- Permanent injunction: enjoins Fullriver and related persons from producing, selling, advertising, or representing batteries that imitate XS Power trade dress (detailed nonfunctional design elements listed) and requires compliance within 60 days; contempt penalties for noncompliance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Voluntary dismissal of counterclaims 6, 10, 12, 13, 14 | Systematic Power sought dismissal without prejudice under Rule 21 | No opposition presented | Granted; those counterclaims dismissed without prejudice |
| Entry of default judgment on multiple counterclaims (breach, trade dress infringement, unfair competition, false advertising, conversion, TCPA) | Systematic Power sought default judgment and liability findings on listed counterclaims based on defendants’ default | Defendants did not contest (default) | Granted in part: default judgment and liability entered on breach of contract; trade dress infringement (claims 2 and 7) and common-law equivalents; unfair competition/false designation (4 and 8); false advertising (5); conversion (9); Tennessee Consumer Protection Act (11) |
| Trade-dress dilution (15 U.S.C. § 1125(c)) | Systematic Power sought judgment for dilution as well as infringement | Defendants absent/no showing | Denied as to trade-dress dilution claim (counterclaim 3) |
| Damages for conversion | Sought compensatory and punitive damages for conversion of batteries | Defendants absent | Awarded $250,000 compensatory plus 10% prejudgment interest (specified periods) and $750,000 punitive damages |
| Attorneys’ fees and costs | Requested fees and costs as prevailing party | Defendants absent | Awarded $80,695.50 in fees and $396.72 in costs |
| Permanent injunction scope and compliance | Sought broad injunction prohibiting manufacture, sale, and representations regarding batteries that infringe XS Power trade dress; proposed specific design elements | Defendants absent | Granted in part: permanent injunction entered prohibiting specified acts and representations, defines XS Power trade dress by listed nonfunctional elements, requires compliance within 60 days; contempt for noncompliance |
Key Cases Cited
- No officially reported cases are cited in the excerpted opinion.