Rolex Watch U.S.A. Inc. v. City Styles 313 LLC

U.S. DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
Intellectual Property

New York Law Journal

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Judge Alison Nathan

A purported "Rolex" brand watch that Rolex Watch USA bought from defendant Leonard's web site for $250 was found to be counterfeit. Leonard did not timely respond to a summons and complaint that the court permitted Rolex to serve by email on June 25, 2012. Leonard's "Affidavit of Fact Notice to Dismiss from Subject matter of Jurisdiction" was emailed Nov. 8, 2012, more than three months after a responsive pleading was due. Analyzing the three factors set out by the Second Circuit in SEC v. McNulty, district court did not accept Leonard's untimely submission, and entered a final judgment and injunction by default against Leonard. Rolex was awarded $1 million in statutory damages—at a rate of $200,000 per infringed mark—under 15 USC §1117(c)(2). The court also deemed an award of $21,874 in legal fees and $600 in costs under the Lanham Act to be reasonable. Further, the court issued a permanent injunction barring Leonard from selling counterfeit Rolex watches. In awarding $1 million in statutory damages the court inferred the unexplained lateness of Leonard's submission to have been willful. Understanding Leonard's motion as asserting lack of jurisdiction, the court rejected such an assertion as without merit.

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