JOHN E. STEELE, Senior District Judge.
This matter comes before the Court on Plaintiff's Motion for Entry of Default Judgment (Doc. #23) and Memorandum in Support (Doc. #24), both filed on November 10, 2015. Defendants neither appeared nor responded. For the reasons set forth below, the motion is granted on all counts.
On July 24, 2015, The American Automobile Association, Inc. ("Plaintiff") filed a Complaint for Injunctive Relief and Damages (Doc. #1) against AAA Locksmith, Inc. and Adam Cooper ("Defendants"), alleging claims of trademark infringement, unfair competition and false designation of origin, trademark dilution, and trademark cyberpiracy. After Defendants failed to respond, Plaintiff filed a Motion for Entry of Clerk's Default against Defendants on August 21, 2015. (Doc. #16.) On September 21, 2015, Plaintiff filed an Amended Motion for Clerk's Default against Defendants (Doc. #20), which was granted (Doc. #21) and a Clerk's Entry of Default (Doc. #22) was entered against Defendants on October 23, 2015. Subsequently, on November 10, 2015, Plaintiff filed its Motion for Default Judgment (Doc. #23) and Memorandum in Support (Doc. #24), along with two declarations in support (Docs. ##25-26). Therefore, Plaintiff has fulfilled the necessary prerequisites for a default judgment against Defendants.
When a defendant defaults, he "admits the plaintiff's well-pleaded allegations of fact" and those facts become the basis of a court's analysis of "the sufficiency of the complaint."
Based upon facts presented to the Court, Plaintiff provides auto repair and maintenance, emergency roadside assistance (including locksmith services), and other automotive-related services and products. (Doc. #1, ¶ 10.) Plaintiff has over one hundred registered trademarks, and has used its "AAA" trademarks in commerce since 1916. (
5). Plaintiff's applicable registered trademarks, through the United States Patent and Trademark Office, include: AAA Mark (Reg. No. 829,265), AAA Mark and Design (Reg. No. 2,158,654), AAA Premier Mark (Reg. No. 2,900,596), and AAA Premier Mark and Design (Reg. No. 2,935,481). (Doc. #1, ¶ 22.) Also, Plaintiff has maintained a service office in Naples, Florida since 1995. (
On August 13, 2014 and September 24, 2014, Plaintiff sent cease-and-desist letters to Defendants through email and certified mail. (
Count I alleges a claim for trademark infringement under the Lanham Act § 32, 15 U.S.C. § 1114(1). (Doc. #1, pp. 14-15.) To allege trademark infringement under the Lanham Act, "a plaintiff must show (1) that it had trademark rights in the mark or name at issue and (2) that the other party had adopted a mark or name that was the same, or confusingly similar to its mark, such that consumers were likely to confuse the two."
Under the Lanham Act, trademark registration provides "prima facie evidence of the validity of the registered mark," 15 U.S.C. § 1057(b), creating a rebuttable presumption "and ordinarily renders the registered mark incontestable after five years of the continuous use."
In evaluating whether there is a likelihood of confusion between two marks, the following seven factors are considered:
First, Plaintiff has alleged that its trademarks are strong marks, because the AAA trademarks have been used by Plaintiff in commerce for about a century (Doc. #1, ¶¶ 22, 25; Doc. #24, p. 6) to millions of members nationwide (Doc. #1, ¶¶ 10, 22).
Second, both marks predominately display the three A's without spaces in their company signifiers—"AAA" and "AAA Locksmith"—as well as in their websites—"AUTOCLUBSOUTH.AAA.COM" and "AAALOCKSMITHNAPLES.COM." (
Third and fourth, Plaintiff has further alleged that "both Plaintiff and Defendants offer automobile locksmith services" through "service outlets in Naples, Florida and target the same customers—motorists in need of automobile locksmith services." (Doc. #24, p. 8;
Fifth, Plaintiff and Defendant both advertise on the internet. (Doc. #1, ¶¶ 20-21, 33; Doc. #1-1.)
Sixth, Plaintiff has alleged that "Defendants' bad faith intent is evidenced by their attempt to capitalize on Plaintiff's reputation and good will, Defendants began using the AAA Marks decades after such marks were in wide circulation, and Defendants did not respond to AAA's warning letters." (Doc. #24, p. 8.) Plaintiff has also alleged:
(Doc. #1, ¶ 33.)
Seventh, although Plaintiff has not alleged a specific instance of actual confusion, it is not necessary to prove actual confusion in order to properly allege likelihood of confusion.
As such, the Court finds that Plaintiff has sufficiently alleged the likelihood-of-confusion element. Accordingly, Plaintiff has alleged facts sufficient to support default judgment as to Count I.
Count II alleges a claim for unfair competition and false designation of origin under the Lanham Act § 43(a), 15 U.S.C. § 1125(a). (Doc. #1, pp. 15-16.) The analysis for trademark infringement and unfair competition is "practically identical."
Considering the same elemental analysis for Count I, Plaintiff has alleged facts sufficient to support default judgment as to Count II.
Count III alleges a claim for trademark dilution under the Lanham Act § 43(c), 15 U.S.C. § 1125(c). (Doc. #1, p. 16.) To state a federal dilution claim, the plaintiff must allege that: "(1) the plaintiff's mark is famous; (2) the defendant used the plaintiff's mark after the plaintiff's mark became famous; (3) the defendant's use was commercial and in commerce; and (4) the defendant's use of the plaintiff's mark has likely caused dilution."
Plaintiff has alleged that its AAA signifier has been in commerce for about a century, promoting its services to millions of members and non-members throughout the United States. (Doc #1, ¶¶ 10, 22.) Defendants' use of the AAA signifier to sell similar services reduced the distinctiveness of Plaintiff's mark, thereby diluting Plaintiff's trademark. (
Count IV alleges a claim for trademark cyberpiracy under the Lanham Act § 43(d), 15 U.S.C. § 1125(d). (
Plaintiff has alleged that its marks "were distinctive and famous at the time of registration of the AAALOCKSMITHNAPLES.COM domain name," that Defendant's "domain name is identical or confusingly similar to Plaintiff's AAA Marks and is dilutive of Plaintiff's AAA Marks," and Defendants "used Plaintiff's AAA Marks and the AALOCKSMITHSAPLES.COM domain name in commerce with a bad faith intent to profit from Plaintiff's famous and distinctive AAA Marks." (Doc. #1, ¶ 64.) Accordingly, Plaintiff has alleged facts sufficient to support default judgment as to Count IV.
Plaintiff is "not by this motion seeking any form of monetary relief" (Doc. #24), but requests an "entry of Judgment by Default and a permanent injunction against Defendants" (Doc. #23) with regard to the trademark infringement, unfair competition and false designation of origin, trademark dilution, and trademark cyberpiracy allegations. The Eleventh Circuit has explained that:
1. Plaintiff's Motion for Entry of Default Judgment (Doc. #23) is
2. The Clerk is further directed to terminate all deadlines and to close the file.
3. Plaintiff shall serve a copy of this Order upon Defendants.