The court awarded $75,000 in statutory damages under the Lanham Act and permanently enjoined the defendants, their officers, and third-party service providers from manufacturing, importing, or selling products bearing the plaintiff’s marks.
Denim Tears, a high-end streetwear brand, sued the defendants for trademark infringement, counterfeiting, and unfair competition after they listed counterfeit goods on the Walmart Marketplace platform.
The defendants, including entities such as GLNaiStore LLC and Mingyangdianqi, failed to answer the complaint, leading to the entry of default and the subsequent judgment.
Judge Abrams found that the statutory damages award served both compensatory and punitive purposes due to the willful nature of the infringement.
The permanent injunction bars the defendants from using Denim Tears marks or confusingly similar artwork on any goods and requires them to deliver all counterfeit products and related materials for destruction.
The order also enjoins third-party service providers, including PayPal, Payoneer, and PingPong, from facilitating the transfer of the defendants’ assets or operating their merchant storefronts.
The court dissolved the automatic stay on enforcement under Federal Rule of Civil Procedure 62(a) and retained jurisdiction to ensure compliance with the injunction.