ORDER GRANTING FINAL DEFAULT JUDGMENT AND ENTERING PERMANENT INJUNCTION AGAINST DEFENDANTS
THIS CAUSE came before the Court upon Plaintiffs Motion for Final Default Judgment and Incorporated Memorandum of Law filed on April 27, 2004 [DE # 10]. The Court has reviewed the pleadings, accompanying declarations, and applicable law.
I. BACKGROUND
Plaintiff PetMed is a leading nationwide pet pharmacy that has been selling pet care medicines and products directly to consumers since 1996. PetMed advertises through direct catalogue sales, television commercials, and its website linked to its domain names www.1888PetMeds.com, www.PetMeds.com, www.l800Pet-Meds.com, and www.PetMedExpress.com. PetMed is a public company traded on the NASDAQ under the symbol “PETS” and owns the federally-registered service marks “PetMed Express, Inc.” and “1888PetMeds.” PetMed’s financial success depends largely upon its reputation among pet owners as a convenient and efficient supplier of pet care products. (See DE # 10 at 2).
Defendant MedPets also advertises and sells pet care products through its website, which is linked to www.MedPets.com and www.1888MedPets.com. Satwant Singh is the President of MedPets. (See DE # 10, Exh. A, Declaration of Steve Roadruck). Because Defendants’ domain names are almost identical to Plaintiffs, only transposing the terms “Med” and “Pet,” Plaintiff warned Defendants that www.MedPets.com and www.l888Med-Pets.com violated Plaintiffs federally-registered trademarks and demanded that Defendants cease their infringing conduct. (See DE # 10, Exh. C, Declaration of Alison Berges, Esq.). Despite Plaintiffs warnings and attempts at resolving the matter without legal action, Defendants continued to use the domain names. Consequently, Plaintiff filed its Complaint on November 10, 2003 alleging federal trademark infringement (Count I), federal unfair competition (Count II), federal trademark dilution (Count III), federal cyberpiracy (Count IV). Florida common law trademark infringement (Count V), and Florida common law unfair competition (Count VI). Defendants response was due on December 15, 2003. Since Defendants did not respond, the Clerk entered default on January 8, 2004 [DE # 8]. Thereafter, Plaintiff filed the instant Motion for Final Default Judgment on April 27, 2004, to which Defendants have also failed to respond.
*1217 II. DISCUSSION
In defaulting, Defendants “admit the plaintiffs well-pleaded allegations of fact.”
Buchanan v. Bowman,
A. Defendants are Liable for the Trademark Violations Alleged in Plaintiffs Complaint
As a result of their default, Defendants concede that they violated PetMed’s federally-registered trademarks and the Court finds them liable for federal trademark infringement (Count I), federal unfair competition (Count II), federal trademark dilution (Count III), federal cyberpiracy (Count IV), Florida common law trademark infringement (Count V), and unfair competition (Count VI).
1. Federal Trademark Infringement (Count I) and Florida Common Law Trademark Infringement (Count V)
Under § 32(a) of the Lanham Act, 15 U.S.C. § 1114(l)(a), liability for trademark infringement occurs when a person “use[s] in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark” which “is likely to cause confusion, or to cause mistake, or to deceive.” Thus, to prevail on a trademark infringement claim a plaintiff must demonstrate that (1) its mark has priority, (2) defendant used its mark in commerce, and (3) defendant’s mark is likely to cause consumer confusion.
Int’l Cosmetics Exch., Inc. v. Gapardis Health & Beauty, Inc.,
Plaintiff has satisfied the above three elements and established Defendants’ liability for federal and Florida common law trademark infringement. Plaintiffs mark has priority since PetMed has been selling its products since 1996, while Defendant created the domain names www.MedPets.com and www.1888MedPets.com in 2001.
(See
DE # 10, Exh. A, Declaration of Steve Roadruck). In establishing a website on the Internet, Defendants have used the infringing marks in commerce.
See Planetary Motion, Inc. v. Techsplosion, Inc.,
2. Federal Unfair Competition (Count II)
The elements of an unfair competition claim under § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), include the plaintiff showing (1) that it had prior rights to the mark at issue and (2) that the defendant adopted a mark or name that was the same, or confusingly similar, to plaintiffs mark such that consumers were likely to confuse the two.
Planetary Motion, Inc.,
3. Federal Trademark Dilution (Count III)
To prevail on a federal trademark dilution claim under § 43(c) of the Lanham Act, 15 U.S.C. § 1125(c), a Plaintiff must demonstrate that (1) its mark is famous, (2) the defendant adopted the mark after the plaintiffs mark became famous, (3) the defendant’s mark diluted the plaintiffs mark, and (4) the defendant’s use is commercial and in commerce.
Victoria’s Cyber Secret, Ltd. v. V Secret Cataiogue, Inc.,
Jt. Federal Cyberpiracy (Count IV)
The Cyberpiracy prevention section of the Lanham Act, 15 U.S.C. § 1125(d), makes a person liable for the “bad faith intent to profit” from a protected mark by using a domain name that is identical or confusingly similar. Liability for federal cyberpiracy occurs when a plaintiff proves that (1) its mark is a distinctive or famous mark entitled to protection, (2) the defendant’s domain names are identical or confusingly similar to the plaintiffs marks, and (3) the defendant registered the domain names with the bad faith intent to profit from them.
Shields v. Zuccarini,
5. Florida Common Law Unfair Competition (Count VI)
To prevail on a Florida common law unfair competition claim, a plaintiff must prove that (1) the plaintiff is the prior user of the trade name or service mark, (2) the trade name or service mark is arbitrary or suggestive or has acquired secondary meaning, (3) the defendant is using a confusingly similar trade name or service mark to indicate or identify similar services rendered (or similar goods marketed) by it in competition with plaintiff in the same trade area in which plaintiff has already established its trade name or service mark, and (4) as a result of the defendant’s action or threatened action, consumer confusion as to the source or sponsorship of the defendant’s goods or services is likely.
American United Life Ins. Co. v. American United Ins. Co.,
Plaintiff has proved these elements. Plaintiff is clearly the prior user of the mark as it began using the registered marks in 1996, five years before Defendants. Secondly, Defendants’ default establishes that Plaintiffs trademarks have acquired secondary meaning in the pet industry as the source of high quality pet care products. Indeed, Defendants even chose a domain name that is similar to Plaintiffs “1888PetMeds” mark, but which does not correspond to Defendants’ telephone number. Thirdly, and as previously discussed, Defendants domain names are confusingly similar to Plaintiffs registered trademarks. Fourthly, Defendants’ default also establishes that due to their conduct consumer confusion as to the source or sponsorship of Defendants’ goods or services is likely to result.
B. Statutory Damages
Having established liability as to all of the counts in Plaintiffs complaint, the Court must conduct an inquiry to ascertain the amount of damages. Plaintiff seeks statutory damages under 15 U.S.C. § 1117(c) and 15 U.S.C. § 1117(d). District courts have wide discretion in awarding statutory damages.
Cable/Home Communication Corp. v. Network. Prod., Inc.,
1. 15 U.S.C. § 1117(c)
Plaintiff has exercised its option to seek statutory damages per counterfeit mark pursuant to 15 U.S.C. § 1117(c) rather than seeking actual damages. The statutory damage provision, § 1117(c), was added in 1995 because “counterfeit records are frequently nonexistent, inadequate, or deceptively kept ... making proving actual damages in these cases extremely difficult
*1220
if not impossible.”
Tiffany Inc. v. Luban,
Section 1117(c) states that “[i]n a case involving a counterfeit mark (as defined in section 1116(d) of this title)” a Plaintiff may elect “an award of statutory damages.” Section 1116(d) states that in cases arising under 15 U.S.C. § 1114(1)(a) with respect to a violation that consists of using a counterfeit mark, a counterfeit mark means “a counterfeit of a mark that is registered on the principal register in the United States Patent and Trademark Office.” 15 U.S.C. § 1116(d). As discussed above, Plaintiff has established liability for federal trademark infringement pursuant to 15 U.S.C. § 1114(l)(a) and thus, has demonstrated that Defendants’ domain names are counterfeit marks likely to confuse consumers into thinking that www.MedPets.com and www.1888Med-Pets.com are associated with PetMed. In determining the statutory damage award, § 1117(c) further specifies that the amount varies depending on whether or not the use of the counterfeit mark was willful.
See
15 U.S.C. § 1117(c)(1)-(2). If use of the counterfeit mark was willful, then the statute allows an award “not more than $1,000,000 per counterfeit mark.” 15 U.S.C. § 1117(c)(2). This Court has defined willful infringement “as when the infringer acted with actual knowledge or reddess disregard for whether its conduct infringed upon the plaintiffs copyright.”
Arista Records, Inc. v. Beker Enter., Inc.,
Here, Defendants’ willfulness can be established for several reasons. First, while PetMed’s federally registered mark “1888PetMeds” is a PetMed telephone number, “1888MedPets” does not represent a phone number that connects to MedPets. (DE # 10, Exh. A, Declaration of Steve Roadruck). Thus, the Court infers from Defendants’ use of such a confusingly similar mark that Defendants had the specific intent to confuse consumers into believing that www.1888MedPets.com was affiliated with PetMed. Second, Defendants continued using the infringing marks after Plaintiff notified them that their use violated PetMed’s trademark rights. Specifically, Plaintiff sent Defendants letters on three separate occasions: January 28, 2003, February 25, 2003, and March 3, 2003.
{See
DE # 10, Exh. C, Declaration of Alison Berges, Esq.). Despite Plaintiffs attempts at amicably resolving the matter, Defendants refused to cooperate and continued operating the websites.
See Arista Records,
Having established Defendants’ willfulness, Plaintiff is entitled to statutory damages under 15 U.S.C. § 1117(c)(2). Plaintiff has requested $400,000 for each of the two infringing marks, www.MedPets.com and www.1888MedPets.com, for a total of $800,000. Statutory damages under
*1221
§ 1117(c) are intended not just for compensation for losses, but also to deter wrongful conduct.
See Louis Vuitton,
2. 15 U.S.C. § 1117(d)
Having established liability for federal cyberpiracy pursuant to 15 U.S.C. § 1125(d)(1), Plaintiff also seeks statutory damages under 15 U.S.C. § 1117(d). Section 1117(d) states that in a case involving a violation of section 1125(d)(1), “a plaintiff may elect ... to recover, instead of actual damages and profits, an award of statutory damages in the amount of $1,000 and not more than $100,000 per domain name.” The statutory damages provision serves to deter wrongful conduct and to provide adequate remedies for trademark owners who seek to enforce their rights in court.
See Pinehurst, Inc. v. Wick,
Plaintiff argues that since Defendants registered their infringing domain names in bad faith, the Court should award Pet-Med the maximum amount permitted under the statute for each infringing mark for a total of $200,000. In
Victoria’s Cyber Secret Ltd. P’ship v. V Secret Catalogue, Inc,
this court awarded statutory damages for cyberpiracy.
Here, Defendants have also registered domain names confusingly similar to Plaintiffs registered marks that also sell pet care products with the bad faith intent to profit from Plaintiffs federally-registered marks. Other than providing a range amount from $1,000 to $100,000, the statute provides little guidance in determining the damage amount. Moreover, Victoria’s Cyber Secret is the only case in the Eleventh Circuit to have dealt with statutory damages pursuant to § 1117(d). In Victoria’s Cyber Secret, the court awarded $40,000, or $10,000 per infringing domain name despite having found the existence of bad faith. Here, Plaintiff requests $100,000 per domain name. Even though Plaintiff cites cases from other jurisdictions where courts have awarded the statu *1222 tory maximum of $100,000, the Court finds the circumstances in many of those cases to be distinguishable. 4 Therefore, the Court finds that $100,000 ($50,000 per domain name), rather than the maximum amount per domain name, is reasonable and serves the dual purpose of deterring wrongful conduct and compensating Plaintiff. .
C. Attorney’s Fees
Plaintiff also seeks an award of attorney’s fees pursuant to 15 U.S.C. § 1117(a), which allows an award of attorney’s fees and costs for violation of sections 1125(a), (c), or (d). With respect to attorney’s fees, the statute specifies that a court may award them “in exceptional cases.” 15 U.S.C. § 1117(a). The Eleventh Circuit has defined an exceptional case as a case that can be characterized as malicious, fraudulent, deliberate, and willful.
Burger King Corp. v. Pilgrim’s Pride Corp.,
For the foregoing reasons, the Court finds that Plaintiff PetMed Express, Inc., as the prevailing party, is entitled to reasonable attorney’s fees and costs in the amount of $16,553.10. 5
D. Permanent Injunction
Plaintiff is further entitled to an order enjoining Defendants from further infringing any of Plaintiffs federally-registered trademarks pursuant to 15 U.S.C. § 1116(a). Section 1116(a) states that the court:
*1223 shall have power to grant injunctions, according to the principles of equity and upon such terms as the court may deem reasonable, to prevent the violation of any right of the registrant of a mark registered in the Patent and Trademark Office or to prevent a violation under subsection (a), (c), or (d) of section 1125 of this title. Any such injunction may include a provision directing the defendant to file with the court and serve on the plaintiff within' thirty days after the service on the defendant of such injunction, or such extended period as the court may direct, a report in writing under oath setting forth in detail the manner and form in which the defendant has complied with the injunction.
Under the statute, a plaintiff is entitled to permanent injunctive relief if the plaintiff succeeds on the merits of his or her claims and if the equities involved favor injunctive relief.
Neva, Inc. v. Christian Duplications Int’l, Inc.,
Therefore, despite Defendants’ discontinued use, this Court will issue a permanent injunction to prevent Defendants from resuming their infringing use.
See Nutrivida, Inc. v. Inmuno Vital, Inc.,
III. CONCLUSION
For the foregoing reasons, it is ORDERED AND ADJUDGED as follows:
(1) Plaintiffs Motion for Final Default Judgment Against Defendants [DE # 10] is hereby GRANTED.
(2) FINAL JUDGMENT is hereby entered in favor of Plaintiff and against Defendants. MedPets.com, Inc. and Satwant Singh, jointly and severally, in the total amount of $916,553.10, for which let execution issue. This award encompasses the following amounts: (a) statutory damages pursuant to 15 U.S.C. § 1117(c) in the amount of $800,000, (b) statutory damages pursuant to 15 U.S.C. § 1117(d) in the amount of $100,000, and (c) attorney’s fees and costs in the amount of $16,553.10.
(3) A PERMANENT INJUNCTION is hereby entered in favor of Plaintiff Pet-Med Express, Inc. and against Defendants, MedPets.com, Inc. and Satwant Singh, their respective agents, servants, employees, officers, successors, licensees and assigns and all persons acting in concert or participation with each or any one of them, to (a) cease and desist any present or future use of MedPets or 1888MedPets or any other marks or names confusingly similar to Plaintiffs federally-registered trademarks and (b) file with this Court and serve on Plaintiff within thirty (30) days after entry of this Order a report in writing under oath setting forth in detail the manner and form of compliance herewith.
(4) This action is hereby DISMISSED;
(5) Any other pending motions are hereby denied as MOOT;
*1224 (6) The Clerk of the Court shall CLOSE this ease.
Notes
. Plaintiff has attached evidence in the form of declarations rather than affidavits. Affidavits are sworn to before a notary public or other official, whereas unsworn declarations are not. In this instance, however, the declarations attached to Plaintiffs motion were declared under penalty of perjury and, thus, may be considered as evidence in support of the motion. Under 28 U.S.C. § 1746 un-sworn declarations which are in writing and which are subscribed by the declarant "as true under penalty of perjury, and dated” can be treated with like force and effect as sworn declarations and affidavits.
See also Trammell Real Estate Corp. v. Trammell,
. See United Greeks, Inc. v. Klein,
No.OO-CV-0002,
.
Louis Vuitton,
. Plaintiff cited the following cases as authority for awarding the maximum amount for each infringing mark:
Aztar Corp. v. MGM Casino,
No. 00-833-A,
. In awarding this amount, the Court has considered and accepted Plaintiff’s Declaration of Attorney Fees and Costs [DE #11] submitted to the Court on April 28, 2004.
