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Le-Vel Brands, LLC v. Lounge

United States District Court, E.D. Michigan

April 3, 2019

LE-VEL BRANDS, LLC, Plaintiff,
v.
LEVELZ HOOKAH LOUNGE, et al., Defendants.

          FINAL CONSENT JUDGMENT AND CONSENT PERMANENT INJUNCTION

          MATTHEW F. LEITMAN UNITED STATES DISTRICT JUDGE

         Plaintiff Le-Vel Brands, LLC (“Le-Vel”) sued Defendants Levelz Hookah Lounge, KP Kutz, Inc. d/b/a Levelz Barbershop, Kader Pattah, and Chris Pattah (collectively, the “Levelz Defendants”); Defendants Fadi Gulla (“Gulla”), Angelo's Design Solutions, Inc. d/b/a Fastsigns of Auburn Hills (the “Franchise”), Fastsigns International, Inc. (“FII”) (collectively, the “Fastsigns Defendants”); and Defendant Nawras N. Elias d/b/a “Audio Ace” for trademark infringement and unfair competition under the Lanham Act, 15 U.S.C. §§ 1114, 1125, Michigan's Consumer Protection Act, Section 445.903 et seq., and the common law.

         Le-Vel and Defendants Gulla and the Franchise now stipulate to the entry of the following Final Consent Judgment and Consent Permanent Injunction.

         Findings of Fact

          1. This Court has jurisdiction over this action pursuant to 15 U.S.C. § 1121 and 28 U.S.C. §§ 1331, 1338 (a) and (b). Pursuant to 28 U.S.C. § 1367, this Court has supplemental jurisdiction over Le-Vel's state law claims because those claims form a part of the same case or controversy. This Court has personal jurisdiction over the parties, and venue is proper in this District pursuant to 28 U.S.C. § 1391 (b) and (c). Good cause exists for the entry of this Final Consent Judgment and Consent Permanent Injunction against Defendants Gulla and the Franchise.

         2. Le-Vel is a lifestyle company that offers dietary and nutritional supplements and related coaching/lifestyle/wellness programs, conventions, and educational services under the LE-VEL house mark and trademark, which is integral to its corporate identity. Since 2012, Le-Vel has used a very unique and highly distinctive font and stylization for its LE-VEL house mark and trademark, which is depicted below (“Stylized LE-VEL Mark”):

         (Image Omitted)

         3. Le-Vel owns valid and subsisting federal Registration No. 4978163 for its Stylized Le-Vel Mark, as well as Registration Nos. 5372459, 5057064, 5169444, and 5476338 for its LE-VEL word mark. Such registrations provide constructive notice of Le-Vel's ownership of the Stylized LE-VEL Mark and LEVEL word mark.

         4. Long after Le-Vel began using the Stylized LE-VEL Mark and LEVEL word mark, and established substantial goodwill in those marks the Levelz Defendants, using the signage and advertising services provided by Gulla and the Franchise, began using a virtually identical logo to sell barbershop and hookah lounge services, which is depicted below ("Infringing LEVELZ Logo"):

         (Image Omitted)

         5. Gulla and the Franchise generated the Infringing LEVELZ Logo for the Levelz Defendants' barbershop and hookah lounge services; affixed the Infringing LEVELZ Logo to signage and other advertising/marketing materials for the Levelz Defendants; electronically transmitted a computer file containing the Infringing LEVELZ Logo to the Levelz Defendants; and shared and/or distributed the Infringing LEVELZ Logo through social media.

         Conclusions of Law

         6. Le-Vel is the owner of the Stylized LE-VEL Mark and LE-VEL word mark.

         7. Defendants Gulla and the Franchise were not authorized to use the Stylized LE-VEL Mark, LE-VEL word ...


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