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Case 1:11-cv-08653-SAS Document 22

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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK


MICHAEL KORS, L.L.C., Plaintiff,

v.
JOJ-IN DOE 1 alkJa ZHENG LITTLE; JOHN DOE 2 aJkJa SHANMUGAPRlJAN VI DONI alkJa DIANA GEORGIADIS alkJa MIRIAM HAMIL TON alk/a JON DAMBROSIO; and JOHN DOE 3 alkJa BRANDON CHESLAK: a/k/a BARBARA CAWLEY alka MONAWAR WARD alkJa RANDI BROWNING alkJa JANICE MONTGOMERYalkJaDOROTHY KLAPACZ alkJa BETHANY REAR alkJa LILIANA HOROWITZ a/kJa SARAH SHUEY alkJa KAREN SHUEY, Defendants.

Civil Action No. 11 Civ. 8653

JUDGE SCHEINDLIN DEFAULT JUDGMENT AND PERMANENT INJUNCTION

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Plaintiff Michael Kors, L.L.C. ("Michael Kors" or "Plaintiff') commenced this action on November 29, 2011, and simultaneously moved ex parte for a Temporary Restraining Order, Seizure Order, Asset Restraining Order, Domain Name Transfer Order, Order for Expedited Discovery, Order Permitting Service by Electronic Mail, and Order to Show Cause for a Preliminary Injunction ("TRO"), which this Court granted on December 1, 2011. On December 7,2011, the Plaintiff filed an Affidavit of Service on the Defendants. The Defendants, having been served with the Complaint, TRO, and related papers, did not appear or oppose the Plaintiff's application for a Preliminary Inj unction. On December 16, 2011 this Court granted the Plaintiff's application for, and entered a Preliminary Injunction against all of the Defendants. Subsequently, on January 20, 2012, the Court granted the Plaintiff's motion for an Order to Show Cause to Amend Preliminary Injunction to Include Defendants' Newly-Detected Infringing Domain Names. Though the Plaintiff served the Defendants with the Order to Show Cause, the Defendants did not appear. Consequently, the Court entered the Amended Preliminary Injunction on February 2, 2012. No Defendant has appeared following this Court's entry of the Preliminary Injunction and Amended Preliminary Injunction. No Defendant has answered the Complaint, and the time for answering the Complaint has expired. Accordingly, on May 29, 2012, the Clerk of the Court entered a certificate of default against the Defendants. Also on May 29, 2012, the Court entered an Order to Show Cause for an Entry of Default Judgment and Permanent Injunction ordering the Defendants to appear to show cause on June 7, 2012 why the Court should not enter a default judgment against the Defendants. No Defendant appeared to contest the Court's entry ofa default judgment and permanent injunction.

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Now, the Court, having reviewed the Complaint, Memoranda of Law, supporting Declaration and exhibits submitted therewith, finds that: 1. Michael Kors is the owner of numerous valid and enforceable federally registered

trademarks (the "Michael Kors Trademarks"), including without limitation the following:

Registration Number
1,977,507 2,708,259 2,520,757 2,520,758
~

Registered Trademark
MICHAEL KORS MICHAEL KORS MICHAEL KORS MICHAEL KORS

Registration Date
June 4, 1996 April 22, 2003 December 18,2001 December 18, 2001

International Classes

..

2,547,039 3,535,310 3,438,412

MICHAEL KORS MK MICHAEL KORS MK MICHAEL KORS

March 12, 2002 November 18, 2008 May 27, 2008

3,080,631

MICHAEL MICHAEL KORS

April 11, 2006

Class 25: Ladies' clothing Class 3: Cosmetics I Class 18: Handbags Class 9: Eyeglasses/Eyeglass Cases Class 35: Retail store servICes Class 14: Watches Class 9: Eyeglasses; Class 18: Handbags; Class 25: Men's and women's clothing Class 9: Eyeglasses; Class 18: Ilandbags; I Class 25: Men's and women's clothing

2.

As set forth in the Complaint and Amended Preliminary Injunction, Plaintiff has

demonstrated that the Defendants are entities and individuals that operate a large, fluid network ofInternet websites ("Infringing Web sites"), which offer for sale and/or sell products bearing counterfeits of the Michael Kors Trademarks ("Counterfeit Products") to consumers in the United States, and in this District, using various domain names, all of which incorporate one or more of the Michael Kors Trademarks, including without limitation the following thirty-five (35) domain names (collectively, the "Infringing Domain Names"): Michael-Kors-Outlet.net; MichaeIKors-Outlet.net;

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MichaelKors-Outlet.org;

MichaelKorsOutletKors.com; MichaelKorsOutletFactory .com; MichaelKorsOutletSale.com; MichaelKorsOutletStore.com; MichaeIMichaeIKorsOutlet.com; CheapMichaeIKorsOutlet.com; OnlineMichaeIKorsOutlet.com; MichaeIKorsOutletCoupon.com; MichaeIKorsOutletUSA.com; NewMichaeIKorsOutlet.com; ShopMichaeIKorsOutlet.com; USAMichaeIKorsOutlet.com; MichaeIKorsSale.com; MichaeIKorSale.com; MichaeIKorsHandbagSale.com; MichaeIKorsStores.com; 3.

MichaelKorsOutletsKors.com; TopKorsHandbags.com;
My MichaeIKorsOutlet.com;

MichaelKorsHandbagsO .com; MichaelKorsOutletSales.com; MichaeIKorsOutletsSales.com; MichaeIKorsHandbagsSales.com; MichaeIKorsCenter.com; TopMichaeIKorsHandbags.com; MichaelKorsTotes.com; MichaeIKors-Outlets.com; TopMichaeIKors.com; VipMichaeIKors.com; MichaeIKorsOutletote.com; KorsOutletSale.com; and MichaelKorsFaxctory .com.

Collectively, the Defendants sold and offered for sale at least seven (7) distinct

types of goods, each bearing numerous counterfeits of the Michael Kors Trademarks. 4. The Defendants have disregarded the TRO, Preliminary Injunction, and Amended

Preliminary Injunction issued by this Court; and so the Court:


HEREBY FINDS that Defendants are liable for federal trademark counterfeiting and

infringement under 15 U.S.c. 1114, false designation of origin under 15 U.S.C. 1125(a), trademark dilution under 15 U.S.C. 1125(c), and cybersquatting under 15 U.S.c. 1125(d)(1), trademark dilution under New York Gen. Bus. Law 360-1, deceptive acts and practices under New York Gen. Bus. Law 349-350, and trademark infringement and unfair competition in violation of federal and New York common law; and so it is
ORDERED, ADJUDGED, AND DECREED that, pursuant to 15 U.S.C. 1117(c)(2),

the Plaintiff be awarded statutory damages from the Defendants in the liquidated amount of

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IT IS FURTHER ORDERED that all monies currently restrained in Defendants'


accounts held by Pay Pal, Inc. be released to Plaintiff as partial payment of the above-mentioned damages; and

IT IS FURTHER ORDERED that in whole or partial satisfaction of the judgment


Plaintiff is entitled to any of the Defendants' monies and property, including domain names incorporating one or more of the Michael Kors Trademarks, wherever they may be found; and

IT IS FURTHER ORDERED that Defendants, and their officers, agents, servants,


employees, attorneys, and all those in active concert or participation with them, are hereby

PERMANENTL Y ENJOINED from:


a. Using any reproduction, counterfeit, copy, or colorable imitation of the Michael Kors Trademarks for and in connection with any goods or their packaging not authorized by Michael Kors; b. Engaging in any course of conduct likely to cause confusion, deception, or mistake, or to injure Plaintiff's business reputation or dilute the distinctive quality of the Michael Kors Trademarks; c. Using any false description or representation, including words or other symbols tending falsely to describe or represent Defendants' unauthorized goods or their packaging as being those of Michael Kors, or sponsored by or associated with Michael Kors, and from offering such goods into commerce; d. Further infringing the Michael Kors Trademarks by manufacturing, producing, distributing, circulating, selling, marketing, offering for sale, advertising, promoting, renting, displaying, or otherwise disposing of any products or their packaging not authorized by Michael Kors that bear any

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simulation, reproduction, counterfeit, copy, or colorable imitation of the Michael Kors Trademarks; e. Using any simulation, reproduction, counterfeit, copy, or colorable imitation of the Michael Kors Trademarks in connection with the promotion, advertisement, display, sale, offering for sale, manufacture, production, circulation, or distribution of any unauthorized products or their packaging in such fashion as to relate or connect, or tend to relate or connect, such products in any way to Michael Kors, or to any goods sold, manufactured, sponsored, approved by, or connected with Michael Kors; f. Making any statement or representation whatsoever, or using any false designation of origin or false description, or performing any act, which mayor is likely to lead the trade or public, or individual members thereof, to believe that any products manufactured, distributed, or sold by Defendants are in any manner associated or connected with Michael Kors, or are sold, manufactured, licensed, sponsored, approved, or authorized by Michael Kors; g. Infringing the Michael Kors Trademarks or Plaintiffs rights therein, or using or exploiting the Michael Kors Trademarks, or diluting the Michael Kors Trademarks; h. Secreting, destroying, altering, removing, or otherwise dealing with the unauthorized products or any books or records that contain any information relating to the importing, manufacturing, producing, distributing, circulating, selling, marketing, ofTering for sale, advertising, promoting, renting, or

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displaying of all unauthorized products that infringe or dilute the Michael Kors Trademarks;
1.

Effecting assignments or transfers, forming new entities or associations, or utilizing any other device for the purpose of circumventing or otherwise avoiding the prohibitions set forth in any Final Judgment or Order in this action; and

J. Creating, registering, using, linking, transferring, selling, exercising control

over, or otherwise owning the Infringing Domain Names, or any domain name that incorporates, in whole or in part, any of the Michael Kors Trademarks; and IT IS FURTHER ORDERED that the Internet registry for each of the Infringing Domain Names transfer the Infringing Domain Names to a domain name registrar of Plaintiffs choice; and IT IS FURTHER ORDERED that the Infringing Domain Names that were transferred to Plaintiff pending trial pursuant to the Preliminary Injunction or Amended Preliminary Injunction shall remain permanently in the Plaintiffs control; IT IS FURTHER ORDERED that any Internet registry or other third party providers, including without limitation domain name registrars, Internet Service Providers ("ISPs"), back end service providers, web designers, sponsored search engine or ad-word providers, merchant account providers, third party processors and other payment processing services, or shippers who receive actual notice of the terms of this Permanent Injunction, immediately and permanently cease rendering any services to the Defendants in connection with any of the Infringing Websites and Infringing Domain Names owned or operated by the Defendants; and

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IT IS FURTHER ORDERED that on notice to any Internet registry or domain name


registrar of any Defendant's creating, registering, using, linking, transferring, selling, exercising control over, or otherwise owning any domain name that incorporates, in whole or in part, any of the Michael Kors Trademarks ("Additional Infringing Domain Names") in contempt of this Court's Order, such Internet registry or domain name registrar shall, subject to an order of this Court finding the Defendant(s) in contempt and listing the Additional Infringing Domain Names associated with the Defendant(s), place the Additional Infringing Domain Names on registry or registrar lock, making them non-transferable by the Defendant-Registrants, and on hold, which prevents websites associated with the Additional Infringing Domain Names from resolving when queried by a browser, and shall transfer such Additional Infringing Domain Names to the Plaintiff: and

IT IS FURTHER ORDERED that on notice to any third party providers, including


without limitation domain name registrars, ISPs, back-end service providers, web designers, sponsored search engine or ad-word providers, merchant account providers, third party payment processors and other payment processing services, or shippers, of any Defendant's creating, registering, using, linking, transferring, selling, exercising control over, or otherwise owning or operating any Additional Infringing Domain Names and any related websites in contempt of this Court's Order, such third party provider shall immediately and permanently cease rendering any services to the Defendants in connection with any Additional Infringing Domain Names and their related websites; and

IT IS FURTHER ORDERED that on notice to any Internet search engines including,


but not limited to, Google, Bing, and Yahoo, and any social media web sites including, but not limited to, Facebook, Google+, and Twitter, (collectively "Internet Search and Social Media

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Websites") of any Additional Infringing Domain Names and their related websites appearing on or listed by their websites, such Internet Search and Social Media Websites shall, subject to an order of this Court finding the Defendant(s) in contempt and listing the Additional Infringing Domain Names and their related websites associated with the Defendant(s), de-index and remove from any search results pages any Additional Infringing Domain Names and their related websites unless otherwise instructed by this Court or by the Plaintiff that any such domain name is authorized to be reinstated, at which time it shall be reinstated to its former status within each search engine index from which it was removed; and

IT IS FURTHER ORDERED that Plaintiff may complete service of this Order on


Defendants by electronic mail to the addresses set forth in Exhibit 1 hereto, which Plaintiffhas demonstrated will provide adequate notice to Defendants pursuant to Fed. R. Civ. P. 4(t)(3); and

IT IS FINALLY ORDERED that pursuant to Fed. R. Civ. P. 4(t)(3) Plaintiff is


permitted to complete service of this Order on the Defendants by publishing notice of this Order on websites associated with the Infringing Domain Names seized and transferred to Plaintiff. Defendants are hereby given further notice that they shall be deemed to have actual notice of the issuance and terms of such Permanent Injunction and any act by them or anyone of them in violation of any of the temlS thereof may be considered and prosecuted as contempt of this Court.

so:~*
Dated:

____~
9

Hon. Shira A. Scheindlin United States District Court Judge

6/27/1 L

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Michael Kors, L.L.C. v. John Does 1-3, et al., 11 Civ. 8653 (SAS) (S.D.N.Y.)
Default Judgment and Permanent Injunction
Exhibit 1 - Defendants' Email Addresses

michaelkorsoutletsale michaelkorsoutletstore mlchaelkorsoutletusa mail.com

zhen

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