Judge Andrew L. Carter, Jr. entered a final default judgment and permanent injunction against nineteen Chinese manufacturers for selling counterfeit Sp5der apparel.
The Southern District of New York awarded $75,000 in statutory damages against each of the nineteen defaulting defendants for trademark infringement and counterfeiting.
The dispute centers on King Spider LLC, the owner of the Sp5der streetwear brand and its associated trademarks. The defendants manufactured, imported, exported, advertised, marketed, promoted, distributed, and sold counterfeit products bearing the Sp5der marks.
The court granted judgment on all claims properly pled in the complaint, including trademark infringement, copyright infringement, false designation of origin, passing off, and unfair competition.
The ruling relies on Section 15 U.S.C. § 1117(c) of the Lanham Act to impose statutory damages, finding the amount reasonable given the compensatory and punitive purposes of the statute.
The permanent injunction bars the defendants from manufacturing, importing, exporting, advertising, marketing, promoting, distributing, displaying, offering for sale, or selling any products bearing the Sp5der marks.
The order also enjoins the defendants from operating their user accounts and merchant storefronts on online marketplace platforms.
Defendants must deliver counterfeit products, packaging, labels, tags, and promotional materials to King Spider LLC for destruction.
The court dissolved the automatic thirty-day stay on enforcing the judgment under Federal Rule of Civil Procedure 62(a).
Failure to comply with the order constitutes contempt of court, subjecting defendants to fines and seizure of property.