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Coach, Inc. v. Source II, Inc.

United States District Court, E.D. Michigan, Southern Division

April 21, 2017

COACH, INC. and COACH SERVICES, INC., Plaintiffs,
v.
SOURCE II, INC. and CERHUE ANDRE WALKER, individually and d/b/a SOURCE II, INC., Defendants. Registration No. Mark Classes Date of Registration Image

          JUDGEMENT AND PERMANENT INJUNCTION

          ROBERT H. CLELAND UNITED STATES DISTRICT JUDGE.

         Upon consideration of Plaintiffs Coach, Inc. and Coach Services, Inc.'s (hereinafter collectively referred to as “Coach” or “Plaintiffs”) Motion for Summary Judgment and Supplemental Briefing Regarding Plaintiffs' Election of Statutory Damages against Defendants Source II, Inc. (“Source II”) and Cerhue Andre Walker, individually and d/b/a Source II, Inc. (“Walker”) (hereinafter collectively referred to as “Defendants”), having granted Plaintiffs' Motion for Summary Judgment and having heard the evidence before it and having considered this case's docket, pleadings, exhibits, and memoranda filed, this Court hereby states and finds as follows:

FINDINGS
1. Defendant Walker is the sole member and owner of Defendant Source II, which operates a clothing and accessory store, The Source Apparel.
2. On December 4, 2014, law enforcement officials executed a search warrant at the Source Apparel and seized thousands of counterfeit handbags, wallets, and accessories worth approximately $1, 671, 040. Four counterfeit Coach purses were among the products seized. An investigator for Coach examined the purses and concluded they were counterfeit.
3. Prior to that, on February 21, 2014, Defendants sold to a confidential informant twenty-eight items, including a Coach wallet, which was determined to be counterfeit.
4. Defendants' entire course of conduct demonstrates willfulness. Undisputed evidence in the record shows that Defendants' superficially legitimate business was merely a front - Defendants' store concealed a hidden backroom where Defendants traded in counterfeit products. Defendants have not disputed the existence of or their involvement in this illicit enterprise. Defendants' willfulness is further evidenced by the scale of their illegitimate business. The Court can scarcely conceive of stronger evidence of willful infringement than Defendants' underhanded efforts to illegally acquire, quietly transport, display out of easy sight in the “back room, ” and offer for sale what amount to - literally - a small fortune in counterfeit goods.
5. Defendants are not licensed or otherwise authorized to use Coach's Trademarks.
6. Defendants infringed on the Coach Trademarks at issue in this action and are liable for federal trademark infringement and counterfeiting (15 U.S.C. § 1114), false designations of origin (15 U.S.C. § 1125(a)), and violation of the Michigan Consumer Protection Act (Mich. Comp. Laws § 445.903(1)).
7. Coach has shown a tangible risk of irreparable harm and that it will lack an adequate legal remedy if this Permanent Injunction is not entered. The Lanham Act authorizes courts to grant injunctions “under principals of equity and upon such terms as the court may deem reasonable” to prevent future infringement;
8. Weighing the equities favors Coach's requested relief;
9. It is in the public interest that the Court enter a Permanent Injunction; and
10. Defendants do not contest the suitability of entry of a Permanent Injunction in this case.

         IT IS, THEREFORE, HEREBY ORDERED that a Permanent Injunction is entered against Defendants pursuant to Fed.R.Civ.P. 65, forever enjoining the Defendants, their respective officers, agents, servants, employees, and attorneys and ...


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