The Goat LLC v. Advanced Wholesale LLC
2:23-cv-01526
| E.D. Wis. | Apr 12, 2024Background
- Plaintiffs The Goat LLC, Daniel Webster, and Gary Graves sued Advanced Wholesale LLC and Nicholas Newgard alleging patent, trademark, trade dress infringement, false designation of origin, and deceptive trade practices regarding a "roof climbing tool."
- Plaintiffs own patents and registered trademarks related to the Roof Climbing Tool, including the patented design and THE GOAT® marks.
- After an initial authorized relationship, Defendants allegedly began independently manufacturing and selling counterfeit versions of the tool using Plaintiffs' intellectual property, despite cease and desist demands.
- Defendants did not respond to the complaint or participate in the litigation after service; Newgard sent a letter claiming non-service and requesting time for counsel but took no further action.
- Plaintiffs moved for default judgment, seeking statutory damages, attorneys’ fees, costs, and permanent injunctive relief due to willful infringement.
- The court entered default judgment for Plaintiffs, granting most relief sought, and ordered Defendants to cease infringing conduct, pay damages, and surrender or destroy infringing goods.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Patent Infringement | Defendants manufactured/sold copies of the patented tool without license | Denied infringement (informally via phone, then no defense) | Plaintiffs established patent infringement |
| Trademark & Trade Dress Infringement | Defendants used identical marks and trade dress, causing confusion | Denied service, requested time for counsel, no legal response | Plaintiffs established infringement and confusion |
| Damages & Statutory Relief | Sought statutory damages, fees, costs, and injunction due to willful acts | No substantive argument; failed to defend or participate | Awarded $200,000 in statutory damages, fees, costs, permanent injunction |
| Dismissal of Wisconsin Law Claim §100.20 | Sought additional relief under state law | No argument | Dismissed for lack of private right of action |
Key Cases Cited
- United States v. Di Mucci, 879 F.2d 1488 (7th Cir. 1989) (sets standard for setting aside default judgments; must show good cause, prompt action, meritorious defense)
- Dundee Cement Co. v. Howard Pipe & Concrete Prods., Inc., 722 F.2d 1319 (7th Cir. 1983) (on default, well-pleaded facts are deemed admitted, but damages must be proved)
- eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388 (2006) (four-factor test for permanent injunctions in intellectual property cases)
- C.K.S. Eng’rs, Inc. v. White Mountain Gypsum Co., 726 F.2d 1202 (7th Cir. 1984) (default judgment proper where deliberate disregard for litigation)
- Board of Regents of Univ. of Wis. Sys. v. Phoenix Int’l Software, Inc., 653 F.3d 448 (7th Cir. 2011) (likelihood of confusion is key in trademark infringement)