JOHN E. STEELE, Senior District Judge.
This matter comes before the Court upon plaintiff's Motion for Final Judgment After Default Against Defendant Jose Baserva (Doc. #168) filed March 4, 2015. Defendant Jose Baserva filed a Response in Opposition (Doc. #177) on April 10, 2015, which plaintiff moves to strike as untimely (Doc. #178). The Court finds that an evidentiary hearing is not required and the matter is ripe for review.
On July 15, 2013, plaintiff, Vivid Entertainment, LLC, initiated a Complaint (Doc. #1) against J&B PB, LLC (J&B) and Jose Baserva (Baserva) alleging trademark infringement, use of false designation of origin, cybersquatting, and state law claims. Defendants appeared and filed an Answer, Affirmative Defenses and Counterclaim (Doc. #26), an Amended Answer, Affirmative Defenses, Counterclaims (Doc. #31), and a Second Amended Answer, Affirmative Defenses, Counterclaims (Doc. #35). On May 6, 2014, plaintiff filed an Amended Complaint (Doc. #45) adding Vivid, LLC (Vivid) and Anthony McCarty (McCarty) as defendants and adding additional state claims. Defendants J&B and Baserva appeared and filed an Answer to Amended Complaint (Doc. #50) and adopted their previously filed Affirmative Defenses and Counterclaims.
On January 30, 2015, the Court granted plaintiff's Motion for Summary Judgment Against Baserva's Counterclaims (Doc. #117) and dismissed the counterclaims with prejudice. (Doc. #164.) The record shows that the Court entered a default against Baserva, as a sanction for his conduct which evidenced a clear pattern of delay and conscious disregard of the Court's previous orders. (
Plaintiff moves to strike Baserva's response in opposition as untimely. (Doc. #178.) Baserva did not file a Response to plaintiff's motion and the time to do so has expired.
There is no dispute that Baserva's Response is untimely. Baserva's Response was due on March 21, 2015, and the Court denied his untimely motion for extension of time (Doc. #172) and amended motion for extension of time (Doc. #179). Baserva filed a Response on April 10, 2015, twenty (20) days after it was due. However, the Court has judicial discretion to overlook plaintiff's untimeliness.
The record shows that Baserva has exhibited a clear pattern of delay and conscious disregard of the Court's previous orders and this Court has not taken such conduct lightly. However, in considering plaintiff's motion for default judgment, the Court will exercise its discretion and accept Baserva's untimely Response. Accordingly, plaintiff's Motion to Strike is
"A defendant, by his default, admits the plaintiff's well-pleaded allegations of fact, is concluded on those facts by the judgment, and is barred from contesting on appeal the facts thus established. A default judgment is unassailable on the merits, but only so far as it is supported by well-pleaded allegations. A default defendant may, on appeal, challenge the sufficiency of the complaint, even if he may not challenge the sufficiency of the proof."
Plaintiff is one of the world's largest producers of high quality adult entertainment. Plaintiff's predecessor in interest, Vivid Video, Inc. (Vivid Video), registered the mark "VIVID" with the United States Patent and Trademark Office (USPTO) for several different products and services, including for online websites and night club services. On December 26, 2000, Vivid Video was issued Registration No. 2,415,035, for the websites, and on August 7, 2001, Vivid Video was issued Registration No. 2,475,741, for night club services (collectively the Trademarks). On August 30, 2007, Vivid Video assigned the Trademarks to plaintiff under a Nunc Pro Tunc assignment effective July 26, 2002.
Plaintiff sells and distributes goods bearing the Trademarks, and plaintiff's products are famous, recognized, and distributed worldwide. Plaintiff owns over 350 domain names, which include the Trademarks prominently displayed. The Trademarks are distinctive, and the public associates the Trademarks with the goods and services of plaintiff and high quality erotic and adult entertainment. Plaintiff has granted licenses to use the Trademarks for nightclubs in Las Vegas, Nevada (Vivid), New York, NY and Los Angeles, CA (Vivid Cabaret), Charlotte, NC (Vivid's Gentleman's Club), and Miami-Dade County, FL (Vivid Live Gentlemen's Club).
In August 2010, J&B purchased "Club Goddess," a night club located in Palm Bay, Florida. "Club Goddess" remained open for at least a month, possibly two, before it was shut down for renovations. Before reopening the club in January 2011, J&B changed the name to "Vivid Cabaret." Baserva is the sole owner of J&B and is the registered owner of the domain name vividcabaret.com. Prior to renaming "Club Goddess," Baserva had never used "Vivid" or "Cabaret" in connection with night club services.
On October 19, 2011, J&B sold the assets of Vivid Cabaret, including the trade name, to Vivid. Baserva also turned over the social media page he created for Vivid Cabaret and the Vivid Cabaret website. On April 10, 2013, plaintiff sent J&B a cease and desist letter demanding that it discontinue its use of the Trademarks and to transfer the vividcabaret.com domain name to plaintiff. Baserva responded and admitted to registering the domain name, and offered to sell his rights to Vivid Cabaret to plaintiff. On April 23, 2013, Baserva filed a trademark application for "Vivid Cabaret," however, in February 2014, the application was refused because of the likelihood of confusion with plaintiff's Trademarks and suspended based on the pendency of this action.
The Amended Complaint contains the following claims against Baserva:
"A district court may enter a default judgment against a properly served defendant who fails to defend or otherwise appear pursuant to Federal Rule of Civil Procedure 55(b)(2).
"Once liability is established, the court turns to the issue of relief."
In Count I, plaintiff alleges Baserva infringed on its registered Trademarks in violation of the Lanham Act, 15 U.S.C. § 1114. "[I]n order to prevail on a trademark infringement claim, a plaintiff must show that its mark was used in commerce by the defendant without the registrant's consent and that the unauthorized use was likely to deceive, cause confusion, or result in mistake.
For the false designation of origin claim plaintiff alleges in Count II, "plaintiff must establish that the defendant adopted a mark confusingly similar to the plaintiff's mark such that there was a likelihood of confusion as to the origin of the goods."
The Court has previously determined that the well pled allegations in the Amended Complaint, set forth in paragraphs 47-54, 57-64, 76-83, 86-93, and 96-101, establish a likelihood of confusion and support a default judgment against co-defendants J&B and Vivid. (Doc. #148, pp. 7-9.) The Court now finds plaintiff's pleading establishes a likelihood of confusion and support a default judgment against Baserva who directed and controlled J&B at the time of the infringement. (Doc. #45, ¶¶ 13-17, 23-32, 38-44.)
The Amended Complaint alleges plaintiff owns the registered Trademarks which it used or otherwise licensed to night clubs around the country, including in Florida. Baserva is J&B's sole owner and shareholder. Baserva used and infringed upon plaintiff's trademark and directed and controlled J&B in such infringing activity. Baserva continued to do so after plaintiff demanded both Baserva and J&B cease and desist. Baserva attempted to register a mark and sell it to plaintiff but the USPTO found Baserva's mark to be confusingly similar to plaintiff's mark. Deeming all factual allegations as true and admitted, the Court finds that the Amended Complaint is adequately pled to support the entry of a default judgment against Baserva as to Counts I, II, IV, V, and VI.
In Count III plaintiff alleges Baserva knowingly infringed on plaintiffs website Trademark in violation of 15 U.S.C. § 1125(d). To establish a claim under the Anticybersquatting Consumer Protection Act ("ACPA"), 15 U.S.C. § 1125(d), a plaintiff must establish that "(1) it has a valid trademark entitled to protection; (2) its mark is distinctive or famous; (3) the defendant's domain name is identical or confusingly similar to ... the owner's mark; and (4) the defendant used, registered, or trafficked in the domain name (5) with a bad faith intent to profit."
Here, plaintiff's allegations are sufficient to establish a cybersquatting claim against Baserva. As set forth above, plaintiff's valid trademark for online websites is distinctive and famous. Baserva registered the infringing domain name vividcabaret.com knowing it was identical and/or confusing similar to plaintiff's trademark. Baserva registered, trafficked, and/or used the trademark with the bad faith intent to profit from plaintiff's trademark. Plaintiff presents all the necessary elements for a cybersquatting claim. Therefore, the Court will grant a default judgment in favor of plaintiff as to Count III against Baserva.
Plaintiff seeks statutory damages under the Lanham Act, permanent injunctive relief, and attorneys' fees. For damages, plaintiff asks that Baserva be held jointly and severally liable for the $500,000 statutory damages judgment awarded against J&B or alternatively, an independent award of statutory damages in the amount of $500,000. Plaintiff seeks an additional award of $50,000 for the cybersquatting claim. Plaintiff also seeks reasonable attorney's fees to be determined at a later date upon a finding of entitlement.
Upon establishing a violation of infringement and/or false designation of origin, plaintiff is entitled to injunctive relief. 15 U.S.C. § 1116. "Under traditional equitable principles, a plaintiff seeking a permanent injunction must demonstrate (1) it has suffered an irreparable injury; (2) remedies available at law, such as monetary damages, are inadequate to compensate for that injury; (3) considering the balance of hardships between the plaintiff and defendant, a remedy in equity is warranted; and (4) the public interest would not be disserved by a permanent injunction."
Considering the well pled admitted facts in this case, the Court finds that injunctive relief is appropriate in this case.
The Court has already found that Baserva knowingly infringed on the plaintiff's Trademarks which makes him personally liable for trademark infringement.
Plaintiff also seeks statutory damages in light of its cybersquatting claim, 15 U.S.C. § 1125(d), against Baserva. "In a case involving a violation of [15 U.S.C. § 1125(d)(1)], the plaintiff may elect, at any time before final judgment is rendered by the trial court, to recover, instead of actual damages and profits, an award of statutory damages in the amount of not less than $1,000 and not more than $100,000 per domain name, as the court considers just."
The Court has considerable discretion in determining a "just" amount of damages. When entering default judgments, courts in this circuit have awarded statutory damages well in excess of the ACPA's $1,000 minimum.
Plaintiff seeks an award of $50,000 in statutory damages. The Court has found that Baserva's use and infringement of the Trademarks was willful, and therefore the cap on the amount of statutory damages is $100,000 per domain name. Through his default, Baserva has admitted to infringing on plaintiff's trademark in bad faith and with intent to profit from plaintiff's goodwill and wide recognition. Therefore, the Court finds that $50,000 in statutory damages against Baserva for plaintiff's cybersquatting claim is just in this case.
Plaintiff seeks attorney's fees under the Lanham Act, 15 U.S.C. § 1117(a), arguing that this case qualifies as an exceptional case warranting an award. Plaintiff also seeks attorney's fees pursuant to FDUTPA, which permits an award of reasonable attorney's fees to a prevailing party, Fla. Stat. § 501.2105.
To qualify as an exceptional case, defendant's infringing acts must have been malicious, fraudulent, deliberate, or willful.
For an award of attorney's fees under FDUTPA, the Court considers certain factors relevant to the inquiry, including the ability to pay, the scope and history of the litigation, and whether the claim was brought to resolve a significant legal question under FDUTPA.
Plaintiff discusses the factors relevant to the appropriateness of a fee award under FDUTPA in its motion. Plaintiff asserts that due to Baserva's conduct, this case has included many unnecessary filings and delays that have extended litigation and caused plaintiff to incur considerable fees. Plaintiff also asserts Baserva needlessly expanded litigation by filing meritless counterclaims which fell to summary judgment. Plaintiff contends that due to Baserva's intentional and willful infringement, fees should be awarded. The Court agrees and finds that an award of fees under FDUTPA is appropriate as to Count V.
Plaintiff will be required to file a separate motion as to the amount of fees after the entry of judgment.
Accordingly, it is hereby