Richloom Fabrics Group v. Dragon Claw (U.S.A.), Inc., No. 2:2009cv04013 - Document 35 (C.D. Cal. 2009)

Court Description: CONSENT DECREE AND FINAL JUDGMENT AND PERMANENT INJUNCTION PURSUAN TO SETTLEMENT AGREEMENT AS TO DEFENDANTS Dragon Claw (U.S.A.) Inc., d/b/a D.C.America, Inc.The complaint against OSH is dismissed with prejudice by Judge S. James Otero (see document for specifics).( MD JS-6. Case Terminated ) (lc)

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Richloom Fabrics Group v. Dragon Claw (U.S.A.), Inc. Doc. 35 1 2 3 4 JS-6 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA K aye S choler llp 10 11 12 RICHLOOM FABRICS GROUP, a Delaware corporation, 13 Plaintiff, 14 15 16 v. DRAGON CLAW (U.S.A.), INC., a California corporation, d/b/a D.C. AMERICA, INC., et al., 17 CASE NO. CV09-4013 SJO (VBK) CONSENT DECREE AND FINAL JUDGMENT NOTE: CHANGES HAVE BEEN MADE TO THIS DOCUMENT Defendants. 18 19 20 CONSENT DECREE AND FINAL JUDGMENT 21 22 23 24 25 WHEREAS, plaintiff Richloom Fabrics Group (“Richloom”) owns a federal copyright registration, Registration No. VA 1-324-460, for its Waterford textile design (the “Waterford Design”), which defendant Dragon Claw (U.S.A.) Inc., d/b/a D.C. 26 27 28 America, Inc. (“D.C. America”), hereby acknowledges; and WHEREAS, Richloom supplies home decor fabric to customers worldwide for 1 ~6838353.DOC [PROPOSED] CONSENT DECREE AND FINAL JUDGMENT Dockets.Justia.com 1 use with home and outdoor furnishings, including fabric that bears the Waterford 2 Design; and 3 WHEREAS, D.C. America, a supplier of outdoor living products which it sells 4 5 through retailers and catalog outlets nationwide, including Orchard Supply Hardware, 6 LLC (“OSH”), a seller of home improvement and decorative products which it sells in 7 stores located throughout California and on its website, has sold umbrellas that 8 K aye S choler llp 9 10 11 Richloom alleges bear a substantially similar design to its Waterford Design (hereinafter referred to as the “Umbrellas”); WHEREAS, on June 4, 2009, in the United States District Court for the Central 12 13 District of California, Richloom commenced this action against D.C. America, 14 alleging copyright infringement relating to the use of an allegedly infringing design on 15 16 17 18 Defendants’ Umbrellas and amended its complaint on July 14, 2009 to add OSH as a defendant (the “Litigation”); and WHEREAS, Richloom and D.C. America have agreed to entry of this Consent 19 20 21 22 Decree; WHEREAS, the parties agree to dismissal of the complaint against OSH with prejudice. 23 24 25 26 IT IS ORDERED, ADJUDGED AND DECREED THAT: 1. This Court has personal jurisdiction over Richloom and D.C. America and has subject matter jurisdiction of this action. 27 28 2 ~6838353.DOC [PROPOSED] CONSENT DECREE AND FINAL JUDGMENT 1 2 3 2. D.C. America acknowledges that Richloom is the sole owner of all rights concerning the copyright in the Waterford Design and further acknowledges that its does not own any copyright in the Waterford Design. D.C. America agrees not to 4 5 challenge or contest the validity of and/or Richloom’s ownership of the copyright in 6 the Waterford Design, Registration No. VA 1-324-460. 7 3. D.C. America, its officers, agents, servants, employees and all other 8 K aye S choler llp 9 10 11 persons, companies or other entities in privity with any of the foregoing, excluding OSH, with respect to any allegedly infringing conduct, and all other persons and entities acting in concert with any of the foregoing who receive actual notice of this 12 13 Consent Decree by personal service or otherwise, shall immediately cease and 14 permanently refrain from: 15 16 (1) printing, publishing, reproducing, distributing, displaying, transmitting, 17 selling or otherwise disseminating any fabric which bears a design that is 18 identical or substantially similar to the Waterford Design or any other design 19 20 for which Richloom is entitled to copyright protection unless D.C. America or 21 its respective vendors or suppliers have been given the express permission and 22 authority to do so by Richloom; and 23 24 (2) manufacturing, importing, exporting, distributing, selling, marketing, 25 promoting or advertising any umbrellas or other products bearing any designs 26 that are identical or substantially similar to the Waterford Design or any other 27 28 design for which Richloom is entitled to copyright protection unless D.C. 3 ~6838353.DOC [PROPOSED] CONSENT DECREE AND FINAL JUDGMENT 1 America or its respective vendors or suppliers have been given the express 2 permission and authority to do so by Richloom. 3 4. D.C. America represents that 750 umbrellas bearing the Waterford 4 5 Design were sold to OSH by D.C. America, and that OSH has sold 456 of such 6 umbrellas, that approximately 43 umbrellas were returned or otherwise defective and 7 unfit for sale, that 251 umbrellas remained in OSH’s inventory prior to their return to 8 K aye S choler llp 9 D.C. America (as described below), and that D.C. America is not in possession of any 10 other umbrellas or products which bear the Waterford Design or any design which is 11 substantially similar to the Waterford Design. 12 13 14 15 16 5. No later than October 30, 2009, D.C. America shall destroy the remaining inventory of the Umbrellas and D.C. America shall destroy all packages, labels, wrappers, containers, and advertising or promotional materials depicting any 17 umbrellas with designs that are identical or substantially similar to the Waterford 18 Design, to the extent such materials exist. 19 20 21 22 6. D.C. America shall comply with the terms of the parties’ Settlement Agreement dated as of October 27, 2009. 7. D.C. America expressly recognizes and acknowledges that a violation or 23 24 breach by it of any of the representations, covenants, conditions, agreements, or 25 undertakings in the Settlement Agreement will cause Richloom irreparable harm 26 which cannot be adequately calculated or remedied solely in money damages in an 27 28 action at law, thereby entitling Richloom to obtain (in addition to any other remedy to 4 ~6838353.DOC [PROPOSED] CONSENT DECREE AND FINAL JUDGMENT 1 which it may be entitled at law) immediate injunctive relief or other equitable 2 remedies with respect to such violation or breach, as well as its costs and attorneys 3 fees incurred in connection with applying to the court to obtain such relief. 4 5 6 7 8. Plaintiff and defendants, having settled the matter of damages, profits, costs and attorney’s fees between them, this Consent Decree is entered without any monetary award or damages to any party to this action and without taxation of costs or 8 K aye S choler llp 9 attorney’s fees. 10 9. 11 This Court shall retain continuing jurisdiction over the persons and entities identified in this Consent Decree and over the subject matter of plaintiff’s 12 13 Complaint to ensure compliance and performance with the terms of the Parties’ 14 Settlement Agreement and this Consent Decree and to modify the Consent Decree as 15 16 justice so requires. 17 10. 18 The provisions of this Consent Decree shall apply worldwide as to DC America. 19 20 11. The complaint against OSH is dismissed with prejudice. 21 22 PURSUANT TO STIPULATION, IT IS SO ORDERED. 23 24 Dated: November 4, 2009 25 _______________________________ S. JAMES OTERO UNITED STATES DISTRICT JUDGE 26 27 28 5 ~6838353.DOC [PROPOSED] CONSENT DECREE AND FINAL JUDGMENT

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