J. MICHELLE CHILDS, District Judge.
Plaintiff Nutramax Laboratories, Inc. ("Nutramax" and/or "Plaintiff") filed this action against Defendants Nutra Max Labs Inc ("NMLI" and/or "Defendant") and Namecheap, Inc. d/b/a WhoisGuard ("Namecheap") (together "Defendants") alleging claims of infringement on its registered trademark/intellectual property. (ECF No. 1.)
This matter is before the court on Nutramax's unopposed Motion for Preliminary Injunction. (ECF No. 8.) After full consideration of Nutramax's Motion, Verified Complaint and all other matters presented, the court
1. Nutramax researches, markets, distributes, and sells "high quality nutritional supplement products for use by humans and animals throughout the United States and internationally, under its trademarked name, NUTRAMAX LABORATORIES®." (ECF No. 1 at 1 ¶ 1.)
2. "Nutramax uses, owns, and has registered on the Principal Register of the United States Patent and Trademark Office the following mark relevant to this action (the "Mark"):
(ECF No. 1 at 4 ¶ 18 (referencing ECF No. 18-2 at 1).)
3. NMLI also "manufactures, markets, and distributes `natural' supplements . . . through the website
4. NMLI "offers `free' trials" of "Steelcut Testosterone" and "Muscle Boost XT" and "represents that it will not charge the consumer the full bottle price until the trial period has expired." (
5. "But consumers across the country complain that Defendant [NMLI] charges the approximately $95 full bottle price before the expiration of the trial period, and also complain that they are unable to obtain a refund or cancel the recurring monthly subscription that follows." (
6. "Bottles of Steelcut Testosterone and Muscle Boost XT contain contact information for `Nutra Max Labs Incorporated, P.O. [Box] 23793, St. Petersburg, FL 33742' and direct consumers to the Infringing Website, but do not contain a phone number to contact the manufacturer." (
7. NMLI "employs various iterations of the Plaintiff Nutramax's name and the Mark, as defined herein, on its Infringing Website." (
8. As a result of the foregoing, consumers are fraudulently led to believe that Plaintiff Nutramax is the perpetrator of the scam.
9. "Consumers mistakenly believe that Plaintiff Nutramax sells the Products on the Infringing Website and is the entity behind this scam." (
10. NMLI "is using Nutramax's registered Mark to carry out this scam and to capitalize and profit on it to the detriment of Nutramax." (
11. On July 20, 2017, Nutramax filed a Verified Complaint alleging claims against NMLI for trademark infringement, trademark dilution, false designation of origin, common law fraud, violation of the South Carolina Unfair Trade Practices Act, and for preliminary and permanent injunction. (ECF No. 1 at 8 ¶ 42-10 ¶ 55 & 11¶ 64-13 ¶ 84.)
12. Additionally, Nutramax alleged a claim against Defendants for violation of the Anti-Cybersquatting Consumer Protection Act ("ACPA"). (
13. Thereafter, Nutramax filed a Motion for Preliminary Injunction (ECF No. 8) on July 26, 2017, and a Motion to Expedite Hearing on the Motion for Preliminary Injunction on July 28, 2017.
14. Nutramax served its Motion for Preliminary Injunction on Defendants on July 27, 2017. (ECF No. 9.)
15. Nutramax and Namecheap resolved their dispute by stipulation on August 21, 2017. (ECF No. 15.) "Namecheap [] agreed to promptly transfer the Domain [nutramax-labsinc.com] into Nutramax's possession upon being presented with either an Order from this Court, or a fully executed written agreement between Nutramax and the registered user of the Domain, directing such action." (
16. Nutramax served a Notice of Hearing on NMLI regarding the Motion for Preliminary Injunction on September 21, 2017. (ECF No. 31-1.)
17. On October 10, 2017, the court held a hearing on Nutramax's Motion for Preliminary Injunction. (ECF No. 32.) NMLI did not appear at the October 10, 2017 hearing.
18. The court's authority to issue a preliminary injunction arises from Rule 65,
19. The Fourth Circuit no longer recognizes a "flexible interplay among the four criteria for a preliminary injunction."
20. "The traditional purpose of a preliminary injunction is to protect the status quo and to prevent irreparable harm during the pendency of the lawsuit ultimately to preserve the court's ability to render a meaningful judgment on the merits."
21. Nutramax seeks a preliminary injunction that: (a) enjoins NMLI "from infringing Plaintiff's registered trademarks in connection with its `Steelcut Testosterone' and `Muscle Boost XT' and trial offers of both, and any other products marketed, distributed, or sold . . ."; (b) enjoins NMLI "from making false and misleading statements of fact in connection with its `Steelcut Testosterone' and `Muscle Boost XT' and trial offers of both, and any other products marketed, distributed, or sold, . . ."; and (c) requires NMLI to "[i]mmediately take appropriate corrective actions to cure the misperceptions its false statements and trademark infringement have caused in the marketplace, by . . . [l]isting appropriate contact information on the Infringing Website and any other websites on which Defendant [NMLI] sells `Steelcut Testosterone' and/or `Muscle Boost XT'; and . . . [c]ontacting consumers of any trial offers for `Steelcut Testosterone' and/or `Muscle Boost XT' and informing them that Defendant [NMLI] is in no way affiliated with Plaintiff and providing them accurate contact information for Defendant [NMLI]; . . . ." (ECF No. 8 at 1-2.)
22. Additionally, Nutramax seeks an order requiring "Namecheap [to] immediately transfer the domain name `www.nutramax-labs-inc.com' to Plaintiff Nutramax, or, in the alternative, immediately disable the domain name `www.nutramax-labs-inc.com.'" (
23. In support of its Motion for Preliminary Injunction, Nutramax relies on its Verified Complaint (ECF No. 1-1), a copy of a search document authenticating its Trademark Registration Number (ECF No. 8-2), a copy of a document demonstrating the search results for "nutramax" in the U.S.P.T.O. Trademark Electronic Search System (ECF No. 8-3) and consumer complaints filed with Nutramax's customer service department (ECF No. 8-4 at 4-10).
24. The court heard oral argument from Nutramax's counsel on October 10, 2017. (ECF No. 32.) Even though Nutramax served NMLI with a copy of the Motion for Preliminary Injunction and Notice of the Hearing (ECF Nos. 9 & 31-1), NMLI did not appear at the October 10, 2017 hearing.
25. The court addresses below the vitality of Nutramax's assertions under each of the four requirements set forth in
26. "[P]laintiffs seeking preliminary injunctions must demonstrate that they are likely to succeed on the merits."
27. Nutramax is likely to succeed on all of its claims alleging that NMLI has used and continues to use the "Nutra Max" trademark without authorization in connection with its free trial scam.
28. Specifically, Nutramax is likely to succeed on its trademark infringement
29. Nutramax is likely to succeed on its trademark dilution claim
30. Nutramax is likely to succeed on its claim alleging violation of the ACPA
31. Finally, Nutramax is likely to succeed on its common law fraud
32.
33. "When analyzing the irreparable harm element, there are two inquiries: 1) whether the plaintiff is indeed suffering actual and imminent harm; and 2) whether that harm is truly irreparable, or whether it can be remedied at a later time with money damages."
34. Upon its review, the court finds that Nutramax has clearly shown it will suffer irreparable harm in the event its Motion is denied.
35. Nutramax's irreparable harm is demonstrated by the fact that NMLI's conduct has misled customers. (ECF No. 8-1 at 25.) Unless a preliminary injunction is granted that prohibits NMLI from using Nutramax's registered trademarks, NMLI will continue to use Nutramax's Mark to deceive customers into believing that Nutramax is the entity behind the free trial scam. Such conduct has caused and is likely to cause Nutramax irreparable harm.
36. "[P]roof of actual consumer deception alone is sufficient for a showing of irreparable harm." (
37. In consideration of the foregoing, the court is able to infer both the actuality and imminency of the irreparable harm suffered by Nutramax.
38. To demonstrate a need for injunctive relief, a plaintiff must show how the harm suffered is such that other forms of damages available in the normal course of litigation are not enough. "Mere injuries, however substantial, in terms of money, time and energy necessarily expended in the absence of a stay, are not enough," because of the "the possibility that adequate compensatory or other corrective relief will be available at a later date."
39. "A preliminary injunction is not normally available where the harm at issue can be remedied by money damages."
40. In the context of this matter, the court is persuaded that the continued infringement on its Mark causing actual customer confusion cannot be remedied by money damages. In this regard, the court finds that money damages in the instant case would not be adequate based on the current evidence of record.
41. Generally, in determining whether to grant a motion for injunctive relief, "[t]he court must also consider the balance of hardships between the litigants and the impact on the public at large prior to issuing an injunction."
42. Above, the court found that Nutramax will suffer irreparable harm without an injunction. Alternatively, there is no evidence that NMLI will suffer any harm if Nutramax's Motion is granted.
43. The balance of equities tips in Nutramax's favor because on one hand it has "invested millions of dollars and significant time and effort in advertising, promoting, and developing its trademarks, and establishing substantial goodwill in its intellectual property, including the Mark." (ECF No. 8-1 at 26.) "On the other hand, Defendant [NMLI]'s unauthorized use of Nutramax's registered Mark is a calculated and purposeful attempt to confuse consumers into thinking that Nutramax, rather than Defendant [NMLI], is the entity behind the Defendant's free trial scams." (
44. Finally, an injunction is in the public interest because it would "prevent customer confusion in the marketplace" and ensures that "manufacturers accurately represent their products." (ECF No. 8-1 at 27 (citing,
45. Accordingly, the court finds that granting Nutramax injunctive relief is in the public's interest.
46. Rule 65 provides that "[t]he court may issue a preliminary injunction or a temporary restraining order only if the movant gives security in an amount that the court considers proper to pay the costs and damages sustained by any party found to have been wrongfully enjoined or restrained." Fed. R. Civ. P. 65(c).
47. After considering the circumstances alleged in instant Motion, the court will require Nutramax to post a modest bond of one thousand dollars ($1,000.00) to take advantage of the relief granted in this Order.
48. Having found that Nutramax has satisfied all of the requirements for preliminary injunctive relief, the court
49. In furtherance of the aforementioned Preliminary Injunction, the court further
50. The preliminary injunction will become effective upon Nutramax's posting of the required one thousand dollars ($1,000.00) security/bond with the Clerk of Court. The Clerk of Court is directed to place any funds received from Nutramax in a non-interest-bearing account.