Judge Kendall Severs Six Defendants in Chrome Hearts Trademark Case, Rejecting 'Swarm' Joinder Theory

CHICAGO (LN) — Chief Judge Virginia M. Kendall severed six jewelry companies from luxury brand Chrome Hearts LLC’s mass trademark infringement lawsuit, ruling the plaintiff failed to show the defendants were part of the same coordinated network as the other 86 defendants.

Chrome Hearts sued 92 e-commerce entities, alleging they sold counterfeit goods infringing on the brand’s trademarks and copyrights. After the court entered a preliminary injunction and default judgments against most defendants, six entities—CYGG Jewelry, JUYANG Jewelry, LCYZ Jewelry, Radiant Jewelry Trade, WLCL Jewelry, and ZRRS Jewelry—appeared and moved to be severed.

The Moving Defendants, who are co-owned by a single individual, argued they were improperly joined with the other defendants because they operated independently and had no relationship with the remaining defendants.

Kendall granted the motion, finding that Chrome Hearts did not establish a "logical relationship" between the six defendants and the rest of the group under Federal Rule of Civil Procedure 20.

The plaintiff had relied on a "swarm" theory of joinder, arguing that the defendants collectively created a negative consumer impression by selling similar counterfeit goods time. Kendall rejected this argument, noting that the "swarm" theory from the case Bose Corp. v. P’ships does not apply when defendants appear and distinguish themselves network.

"Moving Defendants appeared to challenge joinder and have distinguished themselves as six jointly owned companies with no connection to the Defaulted Defendants," Kendall wrote.

The judge noted that while the six defendants shared similar storefronts with each other, their product images and descriptions differed from those of the defaulting defendants. Allegations that defendants used similar marketing tactics or sold on the same platforms were insufficient to prove coordination.

Kendall ordered the clerk to open a new case against the six severed defendants and directed Chrome Hearts to file an amended complaint containing only its claims against them.