CARL J. BARBIER, District Judge.
Before the Court is a Motion for Default Judgment
This action derives from a trademark dispute between AutoZone IP LLC, a nationwide retailer and distributer of automobile parts, and United AutoZone Inc., a used car dealership in Gretna Louisiana, and United Autozone's owner, Mr. Adnan Awad. As this is a motion for default judgment, the Court accepts all well-pleaded allegations as true. Plaintiff has used its AUTOZONE and extended family of ZONE marks since 1987, branding automotive parts and accessories as well as its retail stores selling these items.
According to Plaintiff, Defendants began operating a used car dealership under the name United Autozone in October of 2015.
Plaintiff filed its complaint on November 22, 2017, alleging trademark infringement in violation of 15 U.S.C. §1114; unfair competition in violation of 15 U.S.C §1125(a); unfair trade practices in violation of La. Rev. Stat. § 1401, trademark dilution in violation of 15 U.S.C. § 1125(c) and La. Rev. Stat. Ann. § 51:223.1; and cyberpiracy in violation of 15 U.S.C. §1125(d).
Under Rule 55(b) of the Federal Rules of Civil Procedure, a default judgment may be entered against a party when it fails to plead or otherwise respond to the plaintiff's complaint within the required time period. Fed. R. Civ. P. 55(b). A plaintiff who seeks a default judgment against an uncooperative defendant must proceed through two steps. First, the plaintiff must petition the court for the entry of default, which is "a notation of the party's default on the clerk's record of the case." Dow Chem. Pac. Ltd. v. Rascator Mar. S.A., 782 F.2d 329, 335 (2d Cir. 1986). To obtain an entry of default, the plaintiff must show "by affidavit or otherwise" that the defendant "has failed to plead or otherwise defend" the complaint within the required time period. Fed. R. Civ. P. 55(a). Beyond that requirement, however, the entry of default is largely mechanical. See United States v. Hansen, 795 F.2d 35, 37 (7th Cir. 1986) (describing the entry of default as "an intermediate, ministerial, nonjudicial, virtually meaningless docket entry").
After the clerk has entered the default, the plaintiff may move for default judgment. Fed. R. Civ. P. 55(b). When considering whether there is a "sufficient basis in the pleadings" for the entry of a default judgment, the court must accept as true "the well-pleaded factual allegations in the plaintiff's complaint." Meyer v. Bayles, 559 F. App'x 312, 313 (5th Cir. 2014) (quoting Nishimatsu Const. Co. v. Hous. Nat'l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)). However, the defaulting defendant "is not held to admit facts that are not well-pleaded or to admit conclusions of law." Nishimatsu, 515 F.2d at 1206. No party is entitled to a default judgment as a matter of right, even where the defendant is technically in default. Lewis v. Lynn, 236 F.3d 766, 767 (5th Cir. 2001). The disposition of a motion for the entry of default judgment ultimately rests within the sound discretion of the district court. Mason v. Lister, 562 F.2d 343, 345 (5th Cir. 1977).
Before entering a default judgment, the district court must "look into its jurisdiction both over the subject matter and the parties." Sys. Pipe & Supply, Inc. v. M/V Viktor Kurnatovskiy, 242 F.3d 322, 324 (5th Cir. 2001) (quoting Williams v. Life Sav. & Loan, 802 F.2d 1200, 1203 (10th Cir. 1986)). Judgment entered in the absence of jurisdiction is void, and the court must therefore refrain from entering judgment if its jurisdiction is uncertain.
The instant matter is a suit for trademark dilution and infringement and cyberpiracy under the Lanham Act; the Court has jurisdiction pursuant to 15 U.S.C. § 1121 and 28 U.S.C. §§ 1331, 1337, and 1338. The Court has supplemental jurisdiction over Plaintiff's state law claims pursuant to 28 U.S.C. § 1367(a). The Court has personal jurisdiction over United Autozone as an incorporated entity with its principal place of business in Louisiana and Mr. Awad because he is a citizen of Louisiana. Additionally, the alleged tortious acts committed by the Defendants were committed in this judicial district of Louisiana.
The complaint alleges that (1) Plaintiff has valid marks that are entitled to protection under the Lanham Act,
Furthermore, the Fifth Circuit has concluded that the Louisiana Unfair Trade Practices Act ("LUTPA") prohibits trademark infringement as a variation of an unfair trade practice and that, "[l]ikelihood of confusion is the essential ingredient for claims of unfair competition under both the Lanham Act and the Louisiana statute." Louisiana World Exposition, Inc. v. Logue, 746 F.2d 1033, 1039 (5th Cir. 1984). Thus, the elements of Plaintiff's LUTPA claim are met. Finally, the requirements for dilution under state law are the same as the requirements for dilution under the Lanham Act, see Nola Spice Designs, LLC v. Haydel Enterprises Inc., 969 F.Supp.2d 688, 703 (E.D. La. 2013), and therefore Plaintiff has proved a violation of Louisiana's anti-dilution law as well.
Plaintiff has requested a permanent injunction and the Court agrees that Plaintiff would be irreparably harmed if Defendant were allowed to continue using the UNITED AUTOZONE mark. Keeping in mind that "an equitable remedy for trademark infringement should be no broader than necessary to prevent the deception," Abraham v. Alpha Chi Omega, 708 F.3d 614, 620 (5th Cir. 2013) (quoting Westchester Media et al. v. PRL USA Holdings, et al., 214 F.3d 658, 671 (2000)), the Court shall enjoin Defendants from employing the UNITED AUTOZONE mark—or any other mark confusingly similar to Plaintiff's marks—to promote its used car business. This injunction shall prohibit Defendant from using the UNITED AUTOZONE mark as its trade name for its used vehicle business or in its domain name.
Plaintiff has also requested damages. While all well-pleaded factual allegations are considered true for purposes of default judgment, this does not include allegations as to damages. U.S. For Use of M-CO Const., Inc. v. Shipco Gen., Inc., 814 F.2d 1011, 1014 (5th Cir. 1987). The Court finds an evidentiary hearing is required before the Court can grant monetary damages pursuant to 15 U.S.C. § 1117.
Finally, Plaintiff requests that the Court direct the Defendants to deliver all physical promotional materials which bear the UNITED AUTOZONE mark, so that they may be destroyed pursuant to 15 U.S.C. § 1118. However, Plaintiff provides no evidence of the existence of any such materials. Thus, Defendants shall deliver such materials to the extent they exist or an affidavit averring that such materials do not exist, if in fact they do not.
Accordingly,