MEMORANDUM-DECISION and ORDER
Currently before the Court in this trademark infringement action, filed by CommScope, Inc., of North Carolina (“Plaintiff’) against Commscope (U.S.A.) International Group Co., Ltd. (“Defendant”), is Plaintiffs motion for default judgment pursuant to Fed.R.Civ.P. 55(b). (Dkt. No. 12, Attach 3.) For the reasons set forth below, Plaintiffs motion is granted.
I. RELEVANT BACKGROUND
A. Plaintiffs Complaint
Liberally construed, Plaintiffs Complaint asserts the following six claims against Defendant: (1) trademark infringement under the Lanham Act; (2) false designation of origin under the Lanham Act; (3) trademark infringement under New York State common law and N.Y. Gen. Bus. Law § 360 — k; (4) injury to business reputation and dilution under New York State common law and N.Y. Gen. Bus. Law § 360-i; (5) unfair competition under New York State common law; and (6) deceptive acts and practices under New York State common law and N.Y. Gen. Bus. Law § 349. (Dkt. No. 1.) Generally, in support of these claims, Plaintiffs Complaint alleges, among other things, that Defendant has used Plaintiffs registered trademark in association with its sale of goods or services similar to those sold by Plaintiff (i.e., communications products), without Plaintiffs permission, in both the United States and China. (Id.) Familiarity with the remaining factual allegations supporting these five claims is assumed in this Decision and Order, which is intended primarily for review by the parties.
On November 4, 2010, Plaintiff served its Complaint on Defendant. (Dkt. No. 7.) As of the date of this Decision and Order, Defendant has filed no Answer to that Complaint. (See generally Docket Sheet.)
C. Clerk’s Entry of Default and Defendant’s Non-Appearance
On December 3, 2010, Plaintiff filed and served a request that the Clerk of the Court enter Defendant’s default pursuant to Fed.R.Civ.P. 55(a). (Dkt. No. 9.) On December 6, 2010, the Clerk entered such default. (Dkt. No. 11.) As of the date of this Decision and Order, Defendant has not appeared and/or attempted to cure that entry of default. (See generally Docket Sheet.)
D. Plaintiffs Motion for Default Judgment and Defendant’s Non-Response
On January 3, 2011, Plaintiff filed and served a motion for default judgment pursuant to Fed.R.Civ.P. 55(b). (Dkt. Nos. 12-13.) As of the date of this Decision and Order, Defendant has filed no response to that motion. (See generally Docket Sheet.)
Generally, in support of its motion for default judgment, Plaintiff argues that it has satisfied the two-step default judgment process required by Fed.R.Civ.P. 55. (Dkt. No. 12, Attach 3, at 5.) Familiarity with the particular grounds of Plaintiffs motion for default judgment is assumed in this Decision and Order, which is intended primarily for review of the parties.
II. RELEVANT LEGAL STANDARD
“Federal Rule of Civil Procedure 55 provides a two-step process that the Court must follow before it may enter a default judgment against a defendant.” Robertson v. Doe, 05-CV-7046,
III. ANALYSIS
A. Liability
After carefully considering Plaintiffs unopposed motion, the Court is satisfied that Plaintiff has met its modest threshold burden in establishing entitlement to a default judgment against Defendant on the issue of liability, under the circumstances.
For example, for the reasons stated above in Part I of this Decision and Order, the Court finds that due notice of this
More specifically, Plaintiff asserts six claims in this action. As stated above in Part I.A. of this Decision and Order, two of these claims are for trademark infringement and false designation of origin under the Lanham Act, two are for trademark infringement and unfair competition under New York law, one is for injury to business reputation and dilution under New York General Business Law § 360—Z, and one is for deceptive and unfair trade practices under § 349 of New York General Business Law.
1. Plaintiffs Causes of Action for Trademark Infringement and False Designation of Origin Under the Lanham Act
A plaintiffs factual allegations, except those relating to damages, must be accepted as true where, as here, the defendant defaults. See, e.g., Transatlantic Marine Claims Agency, Inc. v. Ace Shipping Corp.,
After carefully considering the matter, the Court finds that the facts alleged in the Complaint plausibly suggest liability for trademark infringement and false designation of origin under the Lanham Act. “To succeed on ... Lanham Act claims, [a Plaintiff] must show that it has a valid mark that is entitled to protection under the Lanham Act and that [the Defendant’s] actions are likely to cause confusion with [Plaintiffs] mark.” The Sports Auth., Inc. v. Prime Hospitality Corp.,
Here, Plaintiff alleges that it is the owner of eleven (11) federally registered and common law trademarks. (Dkt. No. 1 at 4.)
To satisfy the second prong, Plaintiff alleges as follows: (1) it sells the same products as does Defendant; (2) its name is almost identical to Defendant’s name; (3) it is “an industry leader in the innovation, development, manufacture and sale of communications infrastructure products[,] ... [generating] billions of dollars in sales of these products each year worldwide ....”;
Accepting these allegations as true, the Court finds that Plaintiff has plausibly suggested a likelihood of confusion between the parties’ business names. As a result, Defendant is liable for trademark infringement and false designation of origin under the Lanham Act.
2. Plaintiffs Causes of Action for Trademark Infringement and Unfair Competition Under New York Law
Having established Defendant’s liability for trademark infringement under the Lanham Act, Plaintiff has also established liability under New York State common law. See Artemis Mktg. Corp. v. Rooms 2 Go Furniture, Inc., 09-CV-2413,
Here, Plaintiff has alleged facts plausibly suggesting that Defendant willfully adopted (and used in commerce) a name that it almost identical to Plaintiffs trademark, which is well-known in the communications industry. Plaintiff has further alleged facts plausibly suggesting that Defendant selected and registered its corporate name to be confusingly similar to Plaintiffs CommScope trademark.
Accepting these allegations as true, the Court finds that Plaintiff has plausibly
As a result, Defendant is liable for trademark infringement and unfair competition under New York State common law.
3. Plaintiffs Cause of Action for Injury to Business Reputation and Dilution Under New York General Business Law § 360 — Z
Section 360 — Z of New York’s General Business Law provides a plaintiff with injunctive relief in cases where there is a “[Likelihood ... of dilution of the distinctive quality of a mark or trade name.” N.Y. Gen. Bus. Law § 360 — Z. The Second Circuit has defined dilution “as either the blurring of a mark’s product identification or the tarnishment of the affirmative associations a mark has come to convey.” Deere & Co. v. MTD Prods., Inc.,
Plaintiff has alleged ownership of U.S. Trademark Registration No. 1,865,-198 for the trademark “COMMSCOPE.” (Dkt. No. 1 at ¶ 8.) Plaintiff has further alleged that “[t]he use of the name ‘Commscope’ by Defendant in connection with goods and services, the use of the corporate name Commscope (U.S.A.) International Group Co., Ltd by Defendant, and the licensing by Defendant of the word ‘Commscope’ to third parties both in the United States and abroad are likely to injure the business reputation and/or dilute the distinctive quality of Plaintiffs marks and trade name.” (Id. at ¶29.)
Accepting these allegations as true, the Court finds that Plaintiff has plausibly suggested that Defendant’s registration and use of its corporate name has diluted Plaintiff’s business name and reputation.
As a result, Defendant is liable for injury to business reputation and dilution under § 360 — Z of New York General Business Law.
4. Plaintiffs Cause of Action for Deceptive and Unfair Trade Practices Under § 349 of New York General Business Law
Section 349 of the New York General Business Law proscribes “[deceptive acts and practices in the conduct of any business, trade or commerce or in the furnishing of any service” in New York. “A party challenging an act or practice under Section 349 must show that[] (1) defendant engaged in a consumer-oriented act, (2) that the consumer-oriented act was misleading in a material way, and (3) that plaintiff consequently suffered injury.” GTFM, Inc. v. Solid Clothing, Inc.,
As a result, Defendant is liable for deceptive and unfair trade practices under § 349 of New York General Business law.
For these reasons, the Court grants Plaintiffs motion for the issuance of a default judgment on the issue of liability with regard to the five above-referenced claims pursuant to Fed.R.Civ.P. 55(b).
B. Requested Relief
In its Complaint, Plaintiff requests that the Court (1) permanently enjoin Defendant from further violating Plaintiffs trademark rights,
“A court may issue an injunction on a motion for default judgment provided that the moving party shows that (1) it is entitled to injunctive relief under the applicable statute, and (2) it meets the prerequisites for the issuance of an injunction.” Pitbull Prods., Inc. v. Univ. Netmedia, Inc., 07-CV-1784,
To satisfy the second condition, “a party seeking a[n] ... injunction must demonstrate irreparable harm and the absence of an adequate remedy at law.” Kingvision Pay-Per-View Ltd.,
Defendant’s default constitutes an admission of liability. As a result, Plaintiff has established success on the merits. See Pitbull Prods., Inc.,
The remaining inquiry is whether there is an adequate remedy at law. Plaintiff alleges that there is no adequate remedy at law with respect to its request that the Court order Defendant to cease using its corporate name, or any other name which includes the term “Commseope,” inasmuch as Defendant’s infringing use of its corporate name will continue unless Defendant is restrained. Plaintiff also alleges that Defendant’s infringement was (and is) willful. Finally, in its memorandum of law, Plaintiff argues that its damages are difficult, if not impossible, to calculate, because the damages involve Plaintiffs reputation.
Accepting Plaintiffs allegations as true, the Court finds that an injunction requiring Defendant to cease using its corporate name, or any other name which includes the term “Commseope,” should be granted. Other courts have similarly required infringers to cease using a company name
Given Defendant’s default in this action and willful infringement, such injunctive relief is necessary to protect Plaintiffs rights.
As a result, Plaintiffs request for injunctive relief is granted to the extent such relief is requested against Defendant. Defendant (as well as its agents and assigns) are hereby permanently enjoined from (1) using the CommScope trademark, and any other trademark owned by Plaintiff, and any other trademark that is likely to cause confusion with the CommScope trademark or any other trademark owned by Plaintiff, (2) granting licenses, assignments, and/or any other contractual rights to others to use Defendant’s corporate name, or any other name which includes the term “Commscope,” or any confusingly similar variations thereof, and (3) filing one or more future corporate names that include the term “Commscope” or confusingly similar variations thereof. Within thirty (30) days of the date of this Decision and Order, Defendant must take any and all actions necessary to remove the term “Commscope” from the register of corporations maintained by the New York Department of State.
In the event that Defendant fails to do so, and/or continues using its corporate name, or any other name that is confusingly similar to any of Plaintiffs marks, Defendant may be held in contempt, subject to a penalty. See Manhattan Indus., Inc. v. Sweater Bee by Banff, Ltd.,
However, the Court declines to direct the Secretary of State to dissolve Defendant’s corporate name in the event that Defendant fails to do so. This is because, among other things, injunctive relief may not ordinarily be issued against non-parties and Plaintiff “has not briefed the legal standards for issuing injunctions against non-parties, ... or discussed how those standards would support the injunction requested here.” Pitbull Prod., Inc.,
ACCORDINGLY, it is
ORDERED that the Clerk of the Court is directed to enter DEFAULT JUDGMENT in Plaintiffs favor against Defendant pursuant to Fed.R.Civ.P. 55(b); and it is further
ORDERED that Defendant (as well as its agents and assigns) are hereby PERMANENTLY ENJOINED from (1) using the CommScope trademark, and any other trademark owned by Plaintiff, and any other trademark that is likely to cause confusion with the CommScope trademark or any other trademark owned by Plaintiff, (2)granting licenses, assignments, and/or any other contractual rights to others to use Defendant’s corporate name, or any other name which includes the term “Commscope,” or any confusingly similar variations thereof, and (3) filing one or more future corporate names that include the term “Commscope” or confusingly similar variations thereof; and it is further
ORDERED that, within THIRTY (30) DAYS of the date of this Decision and Order, Defendant take any and all actions necessary to REMOVE the term “Commscope” from the register of corporations maintained by the New York Department of State. In the event Defendant fails to do so, and/or continues using its corporate name, or any other name that is confusingly similar to any of Plaintiffs marks, Defendant may be held in CONTEMPT, and subject to penalty.
Notes
. In this District, a movant's burden with regard to an unopposed motion is lightened such that, in order to succeed, the movant need only show its entitlement to the relief requested in its motion, which has appropriately been characterized as a "modest” burden. See N.D.N.Y. L.R. 7.1(b)(3) ("Where a properly filed motion is unopposed and the Court determines that the moving party has met its burden to demonstrate entitlement to the relief requested therein....”); Rusyniak v. Gensini, 07-CV-0279,
. Plaintiff attached as Exhibit B to its motion for default judgment a Principal Trademark Register from the U.S. Patent and Trademark Office showing the "COMMSCOPE” name and date of registration. (Dkt. No. 12, Attach 7.)
. (Dkt. No. 12, Attach. 8.)
. (Dkt. No. 1 at ¶ 6.)
. (Dkt. No. 1 at ¶ 7.)
. More specifically, Plaintiff requests that the Court order Defendant to permanently (1) cease using its corporate name, or any other name which includes the term "Commscope,” or any confusingly similar variations, (2) cease granting licenses to others to use its corporate name or any other name which includes the term “Commscope,” or any confusingly similar variations, and (3) abstain from filing with New York State in the future a corporate name that includes the term "Commscope” or confusingly similar variations.
. See Shigoto Int’l Corp. v. Cuomo,
