Kaloud v. Global Hookah Trademark Complaint

Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 1 of 19 Page ID #:1
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Peter Afrasiabi (Bar No. 193336)

pafrasiabi@onellp.com
ONE LLP
4000 MacArthur Blvd
East Tower, Suite 500
Newport Beach, CA 92660
Telephone: (949) 502-2870
Facsimile: (949) 258-5081
Joanna Ardalan (Bar No. 285384)
jardalan@onellp.com
ONE LLP
9301 Wilshire Blvd
Penthouse Suite
Beverly Hills, CA 90210
Telephone: (310) 437-8665
Facsimile: (310) 943-2085
Attorneys for Plaintiff,
KALOUD, INC.
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UNITED STATES DISTRICT COURT
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CENTRAL DISTRICT OF CALIFORNIA
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KALOUD, INC., a California corporation,
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Plaintiff,
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v.
GLOBAL HOOKAH DISTRIBUTORS,
INC., a North Carolina corporation, d/b/a
SOUTH SMOKE; SHISHA
WHOLESALERS, INC., an Illinois
corporation; and DOES 1-10, inclusive,
Defendants.
Case No.
COMPLAINT FOR:
(1) TRADEMARK INFRINGEMENT
(2) TRADEMARK COUNTERFEITING
(3) FALSE DESIGNATION OF ORIGIN
(4) UNFAIR COMPETITION (CAL.
BUS. & PROF. CODE 17200 ET
SEQ.)
(5) COMMON LAW UNFAIR
COMPETITION
(6) STATE COUNTERFEITING
(7) COPYRIGHT INFRINGEMENT
DEMAND FOR JURY TRIAL
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COMPLAINT
Plaintiff Kaloud, Inc., by and through its attorneys of record, complains against
Defendants Global Hookah Distributor, Inc., d/b/a South Smoke (hereinafter referred to as
Global), Shisha Wholesalers, Inc. (hereinafter referred to as SW) and DOES 1 through
10 (Does), alleging as follows:

JURISDICTION AND VENUE
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1.
This is a civil action against Defendants for trademark infringement,
trademark counterfeiting, false designation of origin and unfair competition under the
Lanham Act, 15 U.S.C. 1051 et seq., unfair competition under California law, Cal. Bus.
& Prof. 17200 et seq., unfair competition under common law, state counterfeiting and
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copyright infringement, 17 U.S.C. 101 et seq.

2.
This court has subject matter jurisdiction under the Lanham Act, 15 U.S.C.
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1051 et seq., the Copyright act, 17 U.S.C. 101 et seq., 28 U.S.C. 1331, 28 U.S.C.
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1338(a)-(b), and supplemental jurisdiction over the remaining claims pursuant to 28 U.S.C.
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1367.
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3.
Venue is proper in this district under 28 U.S.C. 1391(b)-(c) and 28 U.S.C.
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1400(a), in that the claims arise in this Judicial District and the injury suffered by Plaintiff
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took place in this Judicial District. Defendants are subject to the general and specific
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personal jurisdiction of this Court because of its contacts with the State of California.
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4.
This Court has personal jurisdiction over Defendants. Among other things,
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Defendants have engaged in direct, contributory, or vicarious trademark and copyright
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infringement, or have otherwise induced trademark and copyright infringement in this
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judicial district. Further, Defendants have engaged in continuous and systematic business in
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California, and upon information and belief, derive substantial revenues from commercial
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activities in California. Specifically, Defendants, have (1) on information and belief,
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designed, manufactured, sourced, imported, offered for sale, sold, distributed, or shipped
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infringing and counterfeit merchandise to persons within this State in the ordinary course of
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trade; (2) engaged in acts or omissions outside of this State causing injury within the State;
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and (3) otherwise made or established contacts with this State sufficient to permit exercise
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COMPLAINT
of personal jurisdiction. For example, on information and belief, Defendants purposely
availed themselves to California when they purchased authentic Kaloud Lotuses from
Kaloud in the past to re-sell to customers. Further, they sold shoddy counterfeit Kaloud
Lotuses that were purportedly sold under Kalouds warranty. Moreover, on information and
belief, Defendants attract customer interest from all over the world, including California,
by their social media accounts and websites that advertise their goods for sale.
PARTIES
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5.
Plaintiff Kaloud, Inc. (Kaloud) is a corporation incorporated and existing
under the laws of California, with its principal place of business at 8391 Beverly Blvd.,
Suite 441, Los Angeles, California 90048.
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Defendant Global Hookah Distributors, Inc. (Global), is a North Carolina
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corporation doing business as South Smoke and is located at 3035 Horseshoe Lane, Suite
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B, Charlotte, North Carolina. Global is engaged in the unlawful importation, manufacture,
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retail and wholesale sales of counterfeit Kaloud products, including at least the Kaloud
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Lotus, through its storefront located at 3035 Horseshoe Lane, Suite B, Charlotte, NC 28208
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and its website www.southsmoke.com.
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7.
Defendant Shisha Wholesalers, Inc. (SW), is an Illinois corporation doing
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business as Shisha Distributors and is located at 75 Eisenhower Lane South Lombard,
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Illinois. SW is engaged in the unlawful importation, manufacture, retail and wholesale
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sales of counterfeit Kaloud products, including at least the Kaloud Lotus, through its
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storefront located at 75 Eisenhower Lane, South Lombard, IL 60148 and its website
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www.shishadistributors.com.
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8.
DOES 1 through 10, inclusive, are unknown to Plaintiff, who therefore sues
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said Defendants by such fictitious names. Plaintiff will ask leave of Court to amend this
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Complaint and insert the true names and capacities of said Defendants when the same have
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been ascertained. Plaintiff is informed and believes and, upon such, alleges that each of the
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Defendants designated here as a DOE is legally responsible in some manner for the
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COMPLAINT
events and happenings herein alleged and that Plaintiffs damages as alleged herein were
proximately caused by such Defendants.

FACTS COMMON TO ALL COUNTS
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9.
Kaloud, Inc., designs and develops innovative hookah products that converge
traditional hookah-quality with contemporary designs and novel technologies that seek to
significantly reduce the harmful effects of smoking. Kalouds mission is to connect people
through the ritual of sharing hookah, and indeed, Kaloud does just that. Kaloud has sold its
hookah products, the Kaloud Lotus, Kaloud Samsaris, and Kaloud Kouture to customers
throughout the world. Kaloud is immediately recognizable for its high quality and sleek
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aesthetics.
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In particular, the Kaloud Lotus is a hookah with a heat management system
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that was designed and engineered to regulate the transfer of heat from charcoal to the
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tobacco, and which is manufactured in the United States using high-quality non-toxic
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materials. The design reduces ash and ultra-fine particles, which results in a smoother,
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cleaner and more flavorful Hookah session. Aside from function, the Kaloud Lotus
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aesthetics incorporate an abstract lotus-blossom that adds to its intrigue. Photographs of the
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Kaloud Lotus, its packaging, and its marketing insert (Marketing Insert) is attached as
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Exhibit A.
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11.
Kaloud filed for copyright registration for the Kaloud Lotus design and owns
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all rights, including the copyright, to the Kaloud Lotus. The application number is 1-
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2071608084. Further, Kaloud filed for copyright registration for the Kaloud Lotus
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Marketing Insert and owns all rights, including the copyright, to the insert. The application
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number is 1-2389831079.
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12.
Kaloud has spent substantial time, money, and effort in developing consumer
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recognition and awareness of its trademarks. Through the extensive use of its marks,
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Kaloud has built and developed significant goodwill in its products. Kalouds marks
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include:
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COMPLAINT
a.
KALOUD (design mark) for Hookah parts, namely, containers for housing
charcoal separate from bowls while permitting heat transfer to tobacco placed
in the bowls; hookah tobacco; hookahs; smokers articles, namely, containers
for housing hookah charcoal separate from hookah bowls while permitting
heat transfer to tobacco placed in the bowls. Registration number 4762735.
b.
KALOUD (text) for Hookah parts, namely, containers for housing charcoal
separate from bowls while permitting heat transfer to tobacco placed in the
bowls; hookah tobacco; hookahs; smokers articles, namely, containers for
housing hookah charcoal separate from hookah bowls while permitting heat
transfer to tobacco placed in the bowls. Registration number 4758255.
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c.
number 4703537.
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d.
KALOUD (text mark) for flavoring for hookah base water. Registration
number 4703536.
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KALOUD (design mark) for flavoring for hookah base water. Registration
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KALOUD LOTUS (text) for Hookah parts, namely, containers for housing
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charcoal separate from bowls while permitting heat transfer to tobacco placed
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in the bowls; smokers articles, namely, containers for housing hookah charcoal
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separate from hookah bowls while permitting heat transfer to tobacco placed
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in the bowls.
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f.
The Kaloud Lotus Trade Dress for Hookah parts, namely, containers for
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housing charcoal separate from bowls while permitting heat transfer to
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tobacco placed in the bowls; hookah tobacco; hookahs; smokers articles,
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namely, containers for housing hookah charcoal separate from hookah bowls
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while permitting heat transfer to tobacco placed in the bowls.
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g.
The mark on the phrase that adorns plaintiffs products packaging-boxes,

Designed with love (in the heart of a baby unicorn)
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(Collectively Marks.) KALOUD (design mark) for hookah parts (registration number
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4762735) and for flavoring for hookah base water (registration number 4703537), and,
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COMPLAINT
KALOUD (text mark) for hookah parts (registration number 4758255) and for flavoring
for hookah base water (registration number 4703536), are referred to herein as the
Registered Marks. A true and correct copy of the Marks is attached as Exhibit B.
13.
Kalouds instantly recognizable products and Marks makes Kaloud the target
of counterfeiters. These unscrupulous entities tarnish Kalouds brand by unlawfully
affixing Kalouds marks to unauthentic, and potentially harmful products, leading them to
illegitimate profits. Consumers are misled when they purchase these inferior products while
under the belief the products are authentic Kaloud products. In addition, many of the
counterfeit products use materials that may be toxic when used to smoke.
DEFENDANTS UNLAWFUL ACTIVITIES
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Beginning on a date that is currently unknown to Plaintiff and continuing to
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the present, Defendants have, without the consent of Plaintiff, offered to sell and sold
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within the United States, goods that were neither made by nor authorized by Kaloud using
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reproductions, counterfeits, copies and imitations of the Kaloud Marks and products.
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Thus, Kaloud is informed and believes, and upon such, alleges that in order to
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receive higher profit margins, Defendants have held themselves outthrough the
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counterfeit and nearly identical products they carry to be sponsored by, affiliated with,
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and otherwise connected with Kaloud. Specifically, Defendants have advertised, offered for
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sale, sold, distributed, displayed, and have affixed the Kaloud Lotus Marks to hookah
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products without consent, license, or approval.
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16.
On or around June 10, 2015, Kaloud, through a third party, ordered three
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Kaloud Lotuses from Global. Defendant Global sent three counterfeit Lotuses to Kaloud.
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Upon receipt, all three items were inspected and were confirmed as counterfeits.
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17.
On or about July 4, 2015, Kaloud, through a third party, ordered ten Kaloud
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Lotuses from Global. As true and correct copy of the email receipt for the July 4, 2015
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order is attached as Exhibit C. Defendant Global sent ten counterfeit Lotuses to Kaloud.
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Upon receipt, all ten (10) items were inspected and were confirmed as counterfeits.
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COMPLAINT
18.
On or about July 17, 2015, Kaloud, through a third party, ordered 80 Kaloud
Lotuses from Global. As true and correct copy of the email receipt for the July 17, 2015
order is attached as Exhibit D. Unlike the other orders, this order was not fulfilled by
Global. SW fulfilled the order on Globals behalf by sending 80 counterfeit Lotuses to one
of Kalouds agents. A true and correct copy of the shipping label is attached as Exhibit E.
19.
The counterfeit Lotuses appear identical to the Kaloud Lotus in all material
respects. The products, including the Marks are identical, as well as the packaging, which
even used the identification of TM next to the Kaloud Marks. Moreover, the counterfeit
Lotus even included the Marketing Insert that has been registered with the Copyright
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Office. True and correct copies of photographs of the counterfeits are attached as Exhibit F.
20.
Defendants have intentionally and knowingly received payments for
unauthorized and counterfeit products.

21.
Defendants actions have already confused and deceived, and threaten to
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further confuse and deceive, the consuming public concerning the source and sponsorship
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of the unauthorized and counterfeit Kaloud-branded products sold and distributed by
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Defendant. By its wrongful conduct, Defendants have traded upon and diminished the
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goodwill of the Kaloud Marks. Further, the sale and distribution of counterfeit goods by
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Defendants have infringed upon the above-identified Marks.
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22.
Defendants, by offering to sell, selling, importing, and encouraging others to
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import counterfeit goods in this manner, are causing and are likely to cause further
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confusion or mistake or deceive consumers who purchase the unauthorized and counterfeit
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goods.
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23.
Defendants also offered to sell, sold, import, and/or encouraged others to
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import for purpose of resale within the United States counterfeit goods consisting of
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reproductions and/or copies of the products baring the Kaloud Marks. Defendants use of
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the Kaloud Marks was done without Kalouds authorization.
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COMPLAINT
FIRST CAUSE OF ACTION
(Trademark Infringement, 15 U.S.C. 1114)
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24.
Plaintiff incorporates here by reference the allegations set forth in paragraphs
1 through 23 above.
25.
Kaloud is the legal owner of the federally registered Kaloud marks as set forth
in detail in the foregoing paragraphs.

26.
The Registered Marks are valid, protectable and distinctive trademarks that
Kaloud continuously used to promote its goods since the date of first use as designated in
the USPTO records.
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27.
Defendants have used marks confusingly similar to the Registered Marks in
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violation of 15 U.S.C. 1114. Indeed, Defendants use of confusingly similar imitations of
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the Registered Marks is likely to cause confusion, deception, and mistake by creating the
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false and misleading impression that Defendants products are manufactured, produced,
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distributed, endorsed, sponsored, approved, or connected with Kaloud. Plaintiff is
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informed and believes and thereon alleges that Defendants utilized the Registered Marks in
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order to create consumer confusion and has in fact created consumer confusion including
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but not limited to initial interest confusion and confusion as to affiliation or association
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between Kaloud on one hand and Defendants on another.
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28.
At no time did Defendants have the authorization, legal right, or consent to
engage in such activities in disregard of Kalouds rights in the Registered Marks.

29.
Defendants actions complained of herein were intentional, willful, and
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malicious with a deliberate intent to trade on the goodwill associated with the Registered
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Marks.
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30.
Plaintiff is informed and believes and thereon alleges that as a proximate result
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of the unfair advantage accruing to Defendants business from deceptively trading on
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Kalouds advertising, sales, and consumer recognition, Defendants have made substantial
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sales and profits in amounts to be established according to proof.
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COMPLAINT
31.
As a proximate result of the unfair advantage accruing to Defendants
businesses from deceptively trading on Kalouds advertising, sales, and consumer
recognition, Kaloud has been damaged and deprived of substantial sales and has been
deprived of the value of its trademark as a commercial asset, in amounts to be established
according to proof.
32.
Plaintiff is informed and believes, and thereon alleges that, unless restrained
by the Court, Defendants will continue to infringe Kalouds Registered Marks, thus
engendering a multiplicity of judicial proceedings, and that pecuniary compensation will
not afford Plaintiff adequate relief for the damage to its trademark in the public perception.
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Further, Plaintiff is informed and believes and thereon alleges that in the absence of
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injunctive relief, customers are likely to continue to be mistaken or deceived as to the true
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source, origin sponsorship, and affiliation of Defendants and their goods.
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33.
Plaintiff is informed and believes and thereon alleges that Defendants acts
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were committed, and continue to be committed, with actual notice of Kalouds exclusive
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rights and with an intent to cause confusion, to cause mistake, and/or to deceive, and cause
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injury to the reputation and goodwill associated with Kaloud and Kalouds products. At a
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minimum, Plaintiff is entitled to injunctive relief and to recover Defendants profits,
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whichever is greater, together with Plaintiffs attorneys fees pursuant to 15 U.S.C. 1117.
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In addition, pursuant to 15 U.S.C. 1118, Plaintiff is entitled to an order requiring
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destruction of all infringing materials in Defendants possession.
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SECOND CAUSE OF ACTION
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(Trademark Counterfeiting, 15 U.S.C. 1116)
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34.
Plaintiff
incorporates here by reference the allegations in paragraphs 1
through 33 above.
35.
Counterfeiting has been recognized as a serious issue resulting in tremendous
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losses to American businesses. To combat counterfeits, Congressed pass the Anti-
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counterfeiting Consumer Protection Act of 1966 (ACPA).

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COMPLAINT
36.
California has a similar statute in Business and Profession Code 14250.
37.
Defendants actions also constitute use of one or more counterfeit marks as
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defined in 15 U.S.C. 1116(d)(1)(B).

38.
Defendants unauthorized use of the Kaloud Marks on counterfeit products
that they have distributed has caused and is causing consumer confusion about the source
and sponsorship of these counterfeit goods.
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39.
Defendants sale of these counterfeit products has caused considerable damage
to the goodwill of Kaloud and diminished the brand recognition of the Registered Marks.
40.
The sales of these counterfeit products by Defendants have further resulted in
lost profits to Kaloud and have resulted in a windfall for Defendants.

41.
Plaintiff reserves the right to elect, at any time before final judgment is entered
in this case, an award of statutory damages pursuant to 15 U.S.C. 1117(c)(1) and/or (2).
42.
Because of the willful nature of the counterfeiting, Plaintiff is entitled to an
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award of statutory damages of up to $2,000,000 per mark infringed under 15 U.S.C.
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1117(c)(2).
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43.
In the alternative, and at a minimum, Plaintiff is entitled to injunctive relief
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and to recover Defendants profits, actual damages, enhanced profits, and treble damages,
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cost, and reasonable attorneys fees under 15 U.S.C. 1117(b).
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44.
On information and belief, the Defendants corporate officers and directors,
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had actual knowledge of the business activities of the respective defendant, such as the
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importation of counterfeit goods, or were willfully blind to the same. The Defendants
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corporate officers and directors directed and materially profited from the activities of their
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companies counterfeiting, in the form of increased salaries, benefits, and share price. As
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such, the corporate officers and directors are further jointly and severally liable for the
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counterfeiting.
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45.
The acts of direct and/or contributory counterfeiting committed by the
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Defendants have caused and will continue to cause, Plaintiff irreparable harm unless
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enjoined by this Court.

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COMPLAINT
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THIRD CAUSE OF ACTION
(False Designation of Origin/Unfair Competition, 15 U.S.C. 1125(a))
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46.
Plaintiff incorporates here by reference the allegations set forth in paragraphs
1 through 45 above.
47.
Kaloud is informed and believes and thereon alleges that unregistered Kaloud
Marks have become associated in the minds of consumers with Kaloud and its respective
goods.
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48.
Defendants have caused to enter into interstate commerce hookahs that
Defendants marketed through use of marks that are likely to cause confusion to the Marks.
49.
The marketing and sale of Defendants; hookahs constitutes false designation
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of origin, which is likely to cause confusion and mistake and to deceive consumers as to the
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source or origin of such goods or sponsorship or approval of such goods by Kaloud.
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50.
Kaloud is informed and believes and thereon alleges that as a proximate result
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of Defendants false designation of origin, Defendants stand to make substantial sales and
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profits in amounts to be established according to proof.
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51.
Kaloud is informed and believes and thereon alleges that unless restrained by
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this Court, Defendants will continue to designate falsely the origin of their goods, causing
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irreparable damage to Plaintiff and engendering a multiplicity of lawsuits. Pecuniary
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compensation will not afford Kaloud adequate relief for its resulting damages. Further,
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Plaintiff is informed and believes and thereon alleges that in the absence of injunctive
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relief, customers are likely to continue being mistaken or deceived as to the true source,
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origin, sponsorship, and affiliation of Defendants goods and services.
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52.
Kaloud is informed and believes and thereon alleges that Defendants acts
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were committed, and continue to be committed, with actual notice of Kalouds Marks and
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with an intent to cause confusion, to cause mistake, and to deceive, and to cause injury to
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the reputation and goodwill associated with Kaloud and Kalouds genuine products.
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COMPLAINT
FOURTH CAUSE OF ACTION
(Unfair Competition California Business & Professions Code 17200 et seq.)
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53.
Plaintiff incorporates here by reference to the allegations as set forth in
paragraphs 1 through 52 above.

54.
Defendants conduct as alleged herein constitutes unfair and deceptive acts or
practices in the course of a business, trade, or in commerce, in violation of Cal. Bus. &
Prof. Code 17200 and 17500, et seq.
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55.
Plaintiff is informed and believes and thereon alleges that as a direct and
proximate result of Defendants wrongful conduct as described above, Defendants have
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gained property and revenues properly belonging to Kaloud. Kaloud therefore seeks
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restitution of these amounts. Kaloud also seeks injunctive relief restraining Defendants,
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their officers, agents, and employees, and all persons acting in concert with them, from
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further engaging in acts of unfair competition and/or fraudulent business acts against
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Kaloud and its intellectual property.
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FIFTH CAUSE OF ACTION
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(Common Law Unfair Competition)
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56.
Plaintiff incorporates here by reference the allegations as set forth in

57.
Upon information and belief, Defendants will continue to infringe the Kaloud
Marks.
58.
By the acts and activities of Defendants complained of herein, Defendants
have been unjustly enriched.

59.
As a direct and proximate result of the acts and activities of Defendants
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complained of herein, Kaloud has been damaged in an amount not yet ascertainable. When
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Kaloud has ascertained the full amount of damages, it will seek leave of court to amend this
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Complaint accordingly.
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COMPLAINT
60.
Plaintiff in informed and believes, and based thereon alleges, that Defendants,
in doing the things herein alleged, acted willfully, maliciously, and oppressively, with full
knowledge of the adverse effect of their actions on Kaloud, and with willful and deliberate
disregard for the consequences to Kaloud.
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SIXTH CAUSE OF ACTION
(State Statutory Counterfeiting, Cal. Bus. & Prof. Code 14250)
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61.
Plaintiff incorporates here by reference to the allegations as set forth in

62.
Defendants products identified above are counterfeits utilizing Plaintiffs
Marks.
63.
Plaintiff is injured and entitled to the statutory remedies of trebled damages
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and trebled profits, destruction of all products bearing counterfeit marks, destruction of all
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equipment used to make counterfeit products, punitive damages, and attorneys fees given
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the bad faith acts described above.
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SEVENTH CAUSE OF ACTION
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(Copyright Infringement 17 U.S.C. 101, et seq.)
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64.
Plaintiff incorporates hereby reference the allegations as set forth in

65.
Kaloud is the rightsholder to the copyrights of a unique, original design
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appended to Kalouds product (Copyright), which substantially consists of wholly
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original material and is copyrightable under the laws of the United States. Kaloud has
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complied in all respects with the Copyright Act and all of the laws of the United States
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governing copyrights.
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66.
Defendants have directly, vicariously, and/or contributory infringed, and
unless enjoyed, will continue to infringe Kalouds copyrights by reproducing, displaying,
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COMPLAINT
distributing, and utilizing the Copyright for purposes of trade in violation of 17 U.S.C.
501 et seq.
67.
On information and belief, Defendants acts of infringement are willful
because, inter alia, the Defendants are sophisticated sellers of products and knew that the
unauthorized and counterfeit products were substantially similar to plaintiffs products.
Indeed, Defendants knew that the design and marketing insert on the counterfeit products
were exact replicas of the plaintiffs Copyright. Thus, the copyright infringement was an
exact replica and other non-copyrightable elements were also copied lock, stock and barrel
further demonstrating substantial similarity and willful intent.

68.
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On information and belief, Defendants, despite such knowledge, willfully
publically distributed and publically displayed the Copyright.

69.
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Defendants have received substantial benefits in connection with the
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unauthorized display and distribution of the Copyright in the Kaloud product for purposes
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of trade, including by supplying customers with products that purport to be a sought-after
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brand.
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70.
The actions of Defendants were and are continuing to be performed without
permission, license, or consent of Kaloud.

71.
The wrongful acts of Defendants has caused, and is causing, great injury to
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Plaintiff, of which damages cannot be accurately computed, and unless this Court restrains
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Defendants from further commission of said acts, Kaloud will suffer irreparable injury, for
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which it is without an adequate remedy at law. Accordingly, Plaintiff seeks a declaration
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that Defendants are infringing Kalouds copyrights and an order under 17 U.S.C. 502
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enjoining Defendants from any further infringement of Plaintiffs copyrights.
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72.
As a result of the acts of Defendants alleged herein, Kaloud has suffered and is
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suffering substantial damage to its business in the form of diversion of trade, loss of profits,
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injury to goodwill and reputation, and the dilution of the value of its rights, all of which are
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not yet fully ascertainable.
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COMPLAINT
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73.
Kaloud is entitled to actual damages in an amount to be proven at trial for the
infringement of all works at issue.

74.
Plaintiff is also entitled to its attorneys fees in prosecuting this action.
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PRAYER FOR RELIEF
WHEREFORE, Plaintiff Kaloud, Inc., respectfully requests the following relief
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against Defendant as follows:

1.
With regard to Kalouds claim for counterfeiting:

a.
Defendants profits and statutory damages of $2,000,000 per defendant

under ACPA;
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b.
Defendants profits, these profits being trebled;
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c.
Attorneys fees;
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d.
Costs of suit;
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e.
Joint and several liability for landlords, officers, and directors for the
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knowing participation in the counterfeiting activities of the respective
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Defendants;
f.
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The impoundment and destruction of all counterfeit products, as well as
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the destruction of all tools, machines or other instrumentalities that were
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used to manufacture and display the counterfeit products;
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2.
With regard to Kalouds claim for state counterfeiting:
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a.
Defendants profits, plaintiffs damages, all trebled;
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b.
Punitive damages of up to ten times the actual damages or higher as

permitted by the Constitution;
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c.
Attorneys fees;
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d.
Costs of suit;
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e.
Joint and several liability for landlords, officers, and directors for the
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knowing participation in the counterfeiting activities of the respective
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Defendants
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COMPLAINT
f.
The impoundment and destruction of all counterfeit products, as well as
the destruction of all tools, machines or other instrumentalities that were
used to manufacture and display the counterfeit products;

3.
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With regard to Kalouds claim against Defendants for trademark infringement
and false designation of origin:
a.
Defendants profits pursuant to the Lanham Act;
b.
Damages sustained by the Plaintiff for trademark infringement;
c.
Trebling for a willful violation;
d.
Attorneys fees;
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e.
Costs of suit;
4.
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For restitution in an amount to be proven at trial for unfair, fraudulent, and
illegal business practices under California Business & Professions Code 17200;
5.
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Preliminarily and permanently enjoining Defendants and their agents,
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employees, officers, directors, owners, representatives, successor companies, related
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companies, and all persons acting in concert or participation with them and each of them
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from:
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The import, export, making, manufacture, reproduction, assembly, use,
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acquisition, purchase, offer, sale, transfer, brokerage, consignment,
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distribution, storage, shipment, licensing, development, display, delivery,
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marketing, advertising or promotion of the unauthorized and counterfeit
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Kaloud products as identified in the complaint and any other unauthorized
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Kaloud product or colorful imitation thereof;
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6.
Pursuant to 15 U.S.C. 1116(a), directing Defendants to file with the court
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and serve on Kaloud within thirty (30) days after issuance of an injunction, a report in
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writing and under oath setting forth in detail the manner and form in which Defendants
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have complied with the injunction;
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7.
For an order from the Court requiring that Defendants provide complete
accountings and for equitable relief including that Defendants disgorge and return or pay
15
COMPLAINT
their ill-gotten gains obtained from the illegal transactions entered into and pay restitution,
including the amount of monies that should have been paid if Defendants have complied
with their legal obligations, or as equity requires;

8.
Pursuant to 15 U.S.C. 1118, requiring that Defendants and all others acting
under Defendants authority, at their cost, be required to deliver to Plaintiff for destruction
of all products, accessories, labels, signs, prints, packages, wrappers, receptacles,
advertisements, and other material in their possession, custody or control baring any of the
Kaloud Marks.
9.
For damages in an amount to be proven at trial for unjust enrichment;
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10.
For an award of exemplary and punitive damages in amount to be determined
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by the Court;
11.
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With regard to Kalouds claim against Defendants for copyright infringement,
that:
a.
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An accounting be made for all profits, income, receipts or other benefit
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derived by Defendants from the reproduction, copying, display,
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promotion, distribution or sale of products and services, or other media,
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either now known or hereafter devised, that improperly or unlawfully
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infringes upon Plaintiffs copyrights pursuant to 17 U.S.C. 504 (a)(1)
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& (b).
b.
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Requiring Defendants to account for and pay over to Plaintiff all profits
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derived by Defendants from its acts of copyright infringement and to
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reimburse Plaintiff for all damages suffered by Plaintiff by reasons of
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Defendants acts, pursuant to 17 U.S.C. 504 (a)(1) & (b).

c.
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Actual damages for copyright infringement pursuant to 17 U.S.C.

504 (a)(1) & (b).
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d.
Attorneys fees;
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e.
Costs of suit;
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12.
For Plaintiffs reasonable attorneys fees;

16
COMPLAINT
13.
For all costs of suit;
14.
For such other and further relief as the Court may deem just and equitable.
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Dated: September 29, 2015
ONE LLP
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By: /s/ Joanna Ardalan

Joanna Ardalan
KALOUD, INC.
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17
COMPLAINT
DEMAND FOR JURY TRIAL
Plaintiff Kaloud Inc. hereby demands trial by jury of all issues so triable under the
2
3
law.
4
5
Dated: September 29, 2015
ONE LLP
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8
9
By: /s/ Joanna Ardalan

Joanna Ardalan
KALOUD, INC.
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12
13
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18
COMPLAINT

Kaloud v. Global Hookah Trademark Complaint

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Kaloud v. Global Hookah Trademark Complaint

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Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 1 of 19 Page ID #:1

Peter Afrasiabi (Bar No. 193336)

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

KALOUD, INC., a California corporation,

Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 2 of 19 Page ID #:2

10 (Does), alleging as follows:

This is a civil action against Defendants for trademark infringement,

copyright infringement, 17 U.S.C. 101 et seq.

Venue is proper in this district under 28 U.S.C. 1391(b)-(c) and 28 U.S.C.

Defendants have engaged in direct, contributory, or vicarious trademark and copyright

infringement, or have otherwise induced trademark and copyright infringement in this

activities in California. Specifically, Defendants, have (1) on information and belief,

Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 3 of 19 Page ID #:3

of personal jurisdiction. For example, on information and belief, Defendants purposely

Plaintiff Kaloud, Inc. (Kaloud) is a corporation incorporated and existing

Defendant Global Hookah Distributors, Inc. (Global), is a North Carolina

B, Charlotte, North Carolina. Global is engaged in the unlawful importation, manufacture,

and its website www.southsmoke.com.

Defendant Shisha Wholesalers, Inc. (SW), is an Illinois corporation doing

business as Shisha Distributors and is located at 75 Eisenhower Lane South Lombard,

Illinois. SW is engaged in the unlawful importation, manufacture, retail and wholesale

Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 4 of 19 Page ID #:4

proximately caused by such Defendants.

In particular, the Kaloud Lotus is a hookah with a heat management system

Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 5 of 19 Page ID #:5

in the bowls; hookah tobacco; hookahs; smokers articles, namely, containers

heat transfer to tobacco placed in the bowls. Registration number 4762735.

bowls; hookah tobacco; hookahs; smokers articles, namely, containers for

housing charcoal separate from bowls while permitting heat transfer to

tobacco placed in the bowls; hookah tobacco; hookahs; smokers articles,

while permitting heat transfer to tobacco placed in the bowls.

The mark on the phrase that adorns plaintiffs products packaging-boxes,

Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 6 of 19 Page ID #:6

of counterfeiters. These unscrupulous entities tarnish Kalouds brand by unlawfully

Beginning on a date that is currently unknown to Plaintiff and continuing to

products without consent, license, or approval.

Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 7 of 19 Page ID #:7

Defendants have intentionally and knowingly received payments for

unauthorized and counterfeit products.

Defendants actions have already confused and deceived, and threaten to

of the unauthorized and counterfeit Kaloud-branded products sold and distributed by

Defendants have infringed upon the above-identified Marks.

Defendants, by offering to sell, selling, importing, and encouraging others to

Defendants also offered to sell, sold, import, and/or encouraged others to

the Kaloud Marks was done without Kalouds authorization.

Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 8 of 19 Page ID #:8

FIRST CAUSE OF ACTION

(Trademark Infringement, 15 U.S.C. 1114)

Plaintiff incorporates here by reference the allegations set forth in paragraphs

in detail in the foregoing paragraphs.

the USPTO records.

Defendants have used marks confusingly similar to the Registered Marks in

violation of 15 U.S.C. 1114. Indeed, Defendants use of confusingly similar imitations of

distributed, endorsed, sponsored, approved, or connected with Kaloud. Plaintiff is

between Kaloud on one hand and Defendants on another.

At no time did Defendants have the authorization, legal right, or consent to

engage in such activities in disregard of Kalouds rights in the Registered Marks.

Defendants actions complained of herein were intentional, willful, and

of the unfair advantage accruing to Defendants business from deceptively trading on

sales and profits in amounts to be established according to proof.

Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 9 of 19 Page ID #:9

As a proximate result of the unfair advantage accruing to Defendants