Affliction Holdings LLC v. Ying Tao et al

Filing 26

PRELIMINARY INJUNCTION by Judge Cormac J. Carney. IT IS FURTHER ORDERED that this Preliminary Injunction shall remain in effect during the pendency of this action, or until such further date as set by the Court or stipulated to by the parties.IT IS FURTHER ORDERED that the bond posted on or about May 4, 2012,in the amount of $10,000.00 shall continue to be in effect during the pendency ofthis preliminary injunction. (twdb)

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1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 SOUTHERN DIVISION 11 12 ) ) California limited liability company, ) ) Plaintiff(s), ) vs. ) ) YING TAO; LINYIZHE; PAN ) YINGDONG; BAILEY BLAKE; ) KAILONG WEN; and DOE 1 through ) DOE 10, inclusive; ) ) Defendant(s). ) ) 13 AFFLICTION HOLDINGS, LLC, a CASE NO. SACV12-408-CJC(MLGX) 14 Assigned to Judge Cormac J. Carney Magistrate Judge Marc L. Goldman 15 16 17 18 19 PRELIMINARY INJUNCTION 20 21 22 23 24 25 26 27 28 This Cause came for hearing on May 14, 2012, pursuant to this Court’s April 2, 2012, Temporary Restraining Order and Order to Show Cause Why a Preliminary Injunction Should Not Issue. (Dkt. No. 18). For the Reasons that follow, the preliminary injunctive relief sought in Plaintiff’s Ex Parte Application for Entry of a Temporary Restraining Order and Order to Show Cause Why a Preliminary Injunction Should Not Issue (“Ex Parte Application”) (Dkt. No. 15) is GRANTED. 1 PRELIMINARY INJUNCTION BACKGROUND 1 2 On April 5, 2012, Plaintiff, Affliction Holdings, LLC (“Affliction” or 3 “Plaintiff”) filed its First Amended Complaint (Dkt. No. 7) against Defendants 4 Ying Tao, Linyizhe, Pan Yingdong, Bailey Blake, Kailong Wen, and Doe 1 5 through Doe 10, inclusive (collectively the “Defendants”) for alleged violations of 6 trademark counterfeiting and infringement, false designation of origin, and 7 cyberpiracy. On April 28, 2012, Plaintiff filed its Ex Parte Application for Entry 8 of a Temporary Restraining Order and Order to Show Cause Why a Preliminary 9 Injunction Should Not Issue (Dkt. No. 15), and this Court entered an Order 10 directing Defendants to show cause why Plaintiff’s request for a Preliminary 11 Injunction would not be granted. (Dkt. No. 18). The Court further ordered Plaintiff 12 to serve a copy of the Court’s Order on the Defendants via email. A Declaration 13 regarding Plaintiff’s compliance with the Court’s Temporary Restraining Order 14 was filed by Plaintiff on May 6, 2012. (Dkt. No. 22). 15 The Court convened the hearing on May 14, 2012, at which only counsel for 16 Plaintiff was present and available to present evidence supporting the Ex Parte 17 Application. No written response has been filed by the Defendants to the Ex Parte 18 Application, nor have Defendants appeared individually or through counsel in this 19 matter. CONCLUSIONS OF LAW 20 21 The declarations and supporting evidentiary submissions Plaintiff submitted 22 in support of its Ex Parte Application and the facts presented at oral argument 23 support the following conclusions of law: 24 A. 25 Defendants Plaintiff has shown a likelihood of success on its claims against for federal trademark infringement and counterfeiting, false 26 designation of origin, and cyberpiracy; 27 B. Plaintiff will suffer irreparable harm unless Defendants are enjoined; 28 2 PRELIMINARY INJUNCTION 1 C. A preliminary injunction is necessary to prevent irreparable injury to 2 Plaintiff’s reputation and business; and 3 D. The balance of equities and the interests of justice support granting 4 such relief. 5 Accordingly, IT IS HEREBY ORDERED that Defendants, their respective 6 officers, directors, employees, agents, subsidiaries, distributors, and all persons in 7 active concert or participation with Defendants having notice of this Order are 8 preliminarily restrained from manufacturing, importing, advertising, promoting, 9 offering to sell, selling, distributing, or transferring any products bearing the 10 Affliction trademarks which include the terms AFFLICTION, SINFUL, 11 AFFLICTION LIVE FAST, AFFLICTION AMERICAN CUSTOMS, or any 12 confusingly similar trademark; from secreting, concealing, destroying, selling off, 13 transferring, or otherwise disposing of: (i) any products, not manufactured or 14 distributed by Affliction, bearing the Affliction trademarks, or any confusingly 15 similar trademarks; or (ii) any evidence relating to the manufacture, importation, 16 sale, offer for sale, distribution, or transfer of any products bearing the Affliction 17 trademarks, or any confusingly similar trademarks. 18 IT IS FURTHER ORDERED that Defendants, their respective officers, 19 directors, employees, agents, subsidiaries, distributors, and all persons in active 20 concert or participation with Defendants having notice of this Order shall, until the 21 conclusion of this action, discontinue the use of the Affliction trademarks which 22 include the terms AFFLICTION, SINFUL, AFFLICTION LIVE FAST, 23 AFFLICTION AMERICAN CUSTOMS, and which are further identified in the 24 attached Schedule A (“Affliction Marks”), or any confusingly similar trademarks 25 in any manner, including on or in connection with Internet website businesses 26 owned and operated or controlled by them, specifically including the Internet 27 websites operating under the domain names listed on the attached Schedule B 28 3 PRELIMINARY INJUNCTION 1 (collectively referred to herein as the “Subject Domain Names”). 2 IT IS FURTHER ORDERED that Defendants, their respective officers, 3 directors, employees, agents, subsidiaries, distributors, and all persons in active 4 concert or participation with Defendants having notice of this Order shall, until the 5 conclusion of this action, discontinue the use of the Affliction Marks (1) within 6 domain names, domain name extensions, metatags or other markers within their 7 websites’ source code, (2) on any webpage (including as the title of any web page), 8 (3) in any advertising links to other websites, from search engines’ databases or 9 cache memory, and (4) in any other manner of use in which such Affliction Marks 10 are visible to a computer user or serve to direct computer searches on search 11 engines to websites registered by, owned, or operated by Defendants, including the 12 Internet websites operating under the Subject Domain Names. 13 IT IS FURTHER ORDERED that Defendants shall not transfer ownership 14 of the Subject Domain Names during the pendency of this Action, or until further 15 Order of the Court. 16 IT IS FURTHER ORDERED that the Registrar(s) for the Subject Domain 17 Names, shall continue to lock the Subject Domain Names and, to the extent not 18 already done, provide to Plaintiff’s counsel, for deposit with this Court, a Registrar 19 Certificate for each of the Subject Domain Names. 20 IT IS FURTHER ORDERED that the top level domain (TLD) Registries for 21 the Subject Domain Names, Verisign, Inc. (for the .net domains) and the Public 22 Interest Registry (for the .org domains), if any, shall immediately, or to the extent 23 already done continue to, maintain the Subject Domain Names on Registry Hold 24 status, thus removing them from the TLD zone files maintained by the respective 25 Registry which link the Subject domain Names to the IP addresses where their 26 associated websites are hosted. 27 IT IS FURTHER ORDERED that Defendants shall continue to preserve 28 4 PRELIMINARY INJUNCTION 1 copies of all their computer files relating to the use of any of the Subject Domain 2 Names and shall take all steps necessary to retrieve and preserve computer files 3 relating to the use of any of the Subject Domain Names and\or the website 4 operating thereunder which may have been deleted before the entry of this Order. 5 IT IS FURTHER ORDERED that this Preliminary Injunction shall remain in 6 effect during the pendency of this action, or until such further date as set by the 7 Court or stipulated to by the parties. 8 IT IS FURTHER ORDERED that the bond posted on or about May 4, 2012, 9 in the amount of $10,000.00 shall continue to be in effect during the pendency of 10 this preliminary injunction. 11 12 13 14 DATED: May 14, 2012 ________________________________ HONORABLE CORMAC J. CARNEY UNITED STATES DISTRICT JUDGE 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 PRELIMINARY INJUNCTION SCHEDULE A 1 2 3 Mark Registration No. Registration Date 4 SINFUL 2,639,453 October 22, 2002 AFFLICTION 3,109,069 June 27, 2006 AFFLICTION 3,706,917 November 3, 2009 AFFLICTION 3,747,346 February 9, 2010 AFFLICTION (stylized) 3,790,247 May 18, 2010 AFFLICTION LIVE FAST 3,888,936 December 14, 2010 AFFLICTION LIVE FAST 3,906,589 January 18, 2011 AFFLICTION AMERICAN CUSTOMS 4,032,767 September 27, 2011 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 PRELIMINARY INJUNCTION 1 SCHEDULE B 2 SUBJECT DOMAIN NAMES 3 4 afflictionclothingwholesale.com 5 afflictionclothingwholesale.net 6 afflictionaustralia.net 7 afflictionsweden.com 8 afflictionsverige.com 9 afflictionstock.com 10 afflictionmall.com 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 PRELIMINARY INJUNCTION

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