Coolmath v. Evertap - Coolmath trademark preliminary injunction granted.pdf

8/10/2019 Coolmath v. Evertap - Coolmath trademark preliminary injunction granted.pdf

1/25

UNI TED STATES DI STRI CT COURTMI DDLE DI STRI CT OF FLORI DA

TAMPA DI VI SI ON

COOLMATH. COM, LLC,

Pl ai nt i f f ,

v. Case No. 8: 14- cv- 2638- T- 33TBMEVERTAP LLC, ET AL. ,

Def endant s.______________________________/

ORDER

Thi s mat t er comes bef or e t he Cour t i n consi der at i on of

Pl ai nt i f f Cool mat h. com, LLC s ( Pl ai nt i f f ) Mot i on f or Def aul t

J udgment ( Doc. # 27) , f i l ed on December 10, 2014. For t he

r easons t hat f ol l ow, t he Cour t gr ant s t he Mot i on as set f or t h

her ei n.

I.

Background

Pl ai nt i f f i s t he owner of al l r i ght s i n t he t r ade name

and r egi st er ed mar k COOLMATH as wel l as numer ous COOLMATH-

i ncl usi ve mar ks ( col l ect i vel y r ef er r ed t o as COOLMATH

Mar k) . ( Doc. # 1 at 1, 10) . Pl ai nt i f f has used t he

COOLMATH Mar k si nce ear l y 1997 i n connect i on wi t h mat h and

sci ence educat i onal comput er games i n t he Uni t ed St ates and

ar ound t he wor l d . . . , i ncl udi ng i n connect i on wi t h

educat i onal websi t es. ( I d. at 1, 11) . Pl ai nt i f f s websi t es


2/25

2

now i ncl ude cool math. com, cool math4ki ds. com, and cool math-

games. com. ( I d. at 12) .

Accor di ng t o t he Compl ai nt , Pl ai nt i f f s websi t es have

been consi dered l eadi ng i nt ernet si t es f or math games and

educat i on. ( I d. at 13) . As a r esul t , Pl ai nt i f f t akes

gr eat pai ns t o ensure t hat ever y game on i t s s i t es has

educat i onal val ue, wi t h age- appr opr i at e cont ent and ski l l s t o

be gai ned f or t he user . ( I d. at 14) . Based i n par t on t he

car e Pl ai nt i f f has taken wi t h i t s ser vi ces, Pl ai nt i f f s

websi t es ar e wel l - r egarded by teacher s and parent s and are

appr oved f or use i n school s acr oss t he nat i on. ( I d. ) . As a

consequence of Pl ai nt i f f s extensi ve and cont i nuous use of

t he COOLMATH Mar k, t he COOLMATH Mar k enj oys consi derabl e

goodwi l l i n t he Uni t ed St at es and el sewher e, i dent i f i es and

di st i ngui shes Pl ai nt i f f s ser vi ces f r om t hose of ot her s, and

has become a val uabl e asset of Pl ai nt i f f . ( I d. at 17) .

I n addi t i on, t he COOLMATH Mark has been r egi st ered i n

t he Uni t ed St at es f or use i n connect i on wi t h Comput er

ser vi ces, namel y, pr ovi di ng on- l i ne websi t e i n t he f i el d of

mat hemat i cs and sci ence educat i on; ent er t ai nment servi ces,

namel y pr ovi di ng on- l i ne comput er games i n t he f i el d of

mat hemat i cs and sci ence [ e] ducat i on i n I nt er nat i onal Cl ass

41. ( I d. at 18; Doc. # 1- 2) . Thi s t r ademar k r egi st r at i on


3/25

3

- U. S. Regi st r at i on No. 3, 404, 699 i s val i d, subsi st i ng and

i n f ul l f or ce and ef f ect . ( Doc. # 1 at 18) .

On Apr i l 23, 2014, Def endant Ryan Wade regi st ered t he

cool mat hgamesf or f un. com domai n name. ( I d. at 20) . I n

conj unct i on wi t h r egi st er i ng t hi s domai n name, Def endant s

Wade and Ever t ap LLC f ormed a new l i mi t ed l i abi l i t y company

- Def endant Cool Math Games For Fun, LLC - a di vi si on of

Ever t ap, wi t h t he mi ssi on of of f er i ng onl i ne mat h games.

( I d. at 21) .

Shor t l y af t er r egi st er i ng t he cool mat hgamesf or f un. com

domai n name, Def endants l aunched a websi t e at

cool mat hgamesf or f un. com of f er i ng onl i ne mat h- r el at ed games

under t he mar k COOL MATH GAMES FOR FUN ( t he I nf r i ngi ng

Mar k ) , whi ch was ai med at st udent s i dent i cal and/ or

cl osel y r el at ed t o t hose games of f er ed by Pl ai nt i f f under i t s

COOLMATH Mark. ( I d. at 22) . At t he same t i me, or shor t l y

t hereaf t er , Def endant s al so began market i ng math- r el ated game

appl i cat i ons under t he I nf r i ngi ng Mar k t hr ough t he Appl e

i Tunes St ore under t he t r ade name of Cool Math Games f or Fun.

( I d. at 23) .

Accor di ng t o t he Compl ai nt ,

Def endant s have never been associ at ed or af f i l i at ed

wi t h Pl ai nt i f f i n any way and Pl ai nt i f f has never


4/25

4

aut hor i zed or ot her wi se l i censed Def endant s use of

t he I nf r i ngi ng Mar k i n connect i on wi t h t he

pr ovi si on of onl i ne math games, t he t r ade name of

Def endant Cool Mat h Games For Fun, or any ot her

pr oduct s or ser vi ces i n t he Uni t ed St at es or

el sewher e.

( I d. at 24) . Ther ef or e, on October 3, 2014, Pl ai nt i f f s

counsel sent a l et t er t o Wade concer ni ng Def endant s

unaut hor i zed use of t he I nf r i ngi ng Mar k and r equest ed t hat

Def endant s i mmedi at el y cease t hei r unl awf ul act i vi t i es.

( I d. at 26) . Al t hough Def endant s ar e on act ual not i ce of

Pl ai nt i f f ' s excl usi ve r i ght s i n t he COOLMATH Mar k, Pl ai nt i f f

cont ends t hat Def endant s have nevert hel ess cont i nued t o

adver t i se and of f er , under t he I nf r i ngi ng Mar k, onl i ne mat h

games t hat ar e i dent i cal and/ or cl osel y rel at ed t o t hose

of f er ed by Pl ai nt i f f under i t s COOLMATH Mar k. ( I d. at 27) .

Pl ai nt i f f i ni t i at ed t hi s act i on on October 20, 2014,

asser t i ng cl ai ms f or ( 1) Feder al Tr ademar k I nf r i ngement under

Sect i on 32 of t he LanhamAct , 15 U. S. C. 1114( 1) , ( 2) Feder al

Unf ai r Compet i t i on under Sect i on 43( a) of t he Lanham Act , 15

U. S. C. 1125( a) , ( 3) Cyber squat t i ng Under 43( d) of t he Lanham

Act , 15 U. S. C. 1125( d) , ( 4) Unl awf ul Act s and Pr act i ces,

Fl a. St at . 501. 204, and ( 5) Unf ai r Compet i t i on under Fl or i da

Common Law. ( See Doc. # 1) . Pl ai nt i f f r equest ed t hat t he Cour t

awar d i nj unct i ve r el i ef , i ncl udi ng enj oi ni ng Def endant s f r om


5/25

5

usi ng t he I nf r i ngi ng Mar k, st at ut or y damages under 15 U. S. C.

1125( d) and ot her damages, cost s, and f ees as set f or t h i n

t he Compl ai nt . ( See I d. ) .

Pl ai nt i f f ef f ect uat ed ser vi ce of pr ocess on Def endant s

on Oct ober 29, 2014. ( Doc. ## 18- 20) . Def endant s f ai l ed t o

r espond t o t he Compl ai nt . As a r esul t , on November 21, 2014,

Pl ai nt i f f f i l ed an appl i cat i on f or Cl er k s def aul t agai nst

Def endant s ( Doc. # 22) , and t he Cl er k i ssued i t s ent r y of

def aul t on November 26, 2014, agai nst Cool Mat h Games For Fun

and on December 8, 2014, agai nst Ever t ap and Wade ( Doc. ##

24- 25) . Ther eaf t er , on December 10, 2014, t hi s Cour t ent er ed

an Or der di r ect i ng Pl ai nt i f f t o pr oceed wi t h f i l i ng i t s mot i on

f or def aul t j udgment agai nst Def endant s. ( Doc. # 26) . That

same day, Pl ai nt i f f f i l ed t he pr esent Mot i on. ( See Doc. #

27) .

II. Legal Standard

Feder al Rul e of Ci vi l Pr ocedur e 55( a) pr ovi des: When a

par t y agai nst whoma j udgment f or af f i r mat i ve r el i ef i s sought

has f ai l ed t o pl ead or ot her wi se def end, and t hat f ai l ur e i s

shown by af f i davi t or ot her wi se, t he cl er k must ent er t he

par t y s def aul t . A di st r i ct cour t may ent er a def aul t

j udgment agai nst a proper l y ser ved def endant who f ai l s t o

def end or ot her wi se appear pur suant t o Feder al Rul e of Ci vi l


6/25

6

Pr ocedur e 55( b) ( 2) . Di r ecTV, I nc. v. Gr i f f i n, 290 F. Supp. 2d

1340, 1343 ( M. D. Fl a. 2003) .

The mer e ent r y of a def aul t by t he Cl er k does not , i n

i t sel f , war r ant t he Cour t ent er i ng a def aul t j udgment . See

Tyco Fi r e & Sec. LLC v. Al cocer , 218 F. App x 860, 863 ( 11t h

Ci r . 2007) ( ci t i ng Ni shi mat su Const r . Co. v. Hous. Nat l Bank,

515 F. 2d 1200, 1206 ( 5t h Ci r . 1975) ) . Rat her , a Cour t must

ensur e t hat t her e i s a suf f i ci ent basi s i n t he pl eadi ngs f or

t he j udgment t o be ent ered. I d. A def aul t j udgment has t he

ef f ect of establ i shi ng as f act t he pl ai nt i f f s wel l - pl ed

al l egat i ons of f act and bar s t he def endant f r om cont est i ng

t hose f act s on appeal . I d.

Once l i abi l i t y i s est abl i shed, t he cour t t ur ns t o t he

i ssue of r el i ef . Enpat , I nc. v. Budni c, 773 F. Supp. 2d 1311,

1313 ( M. D. Fl a. 2011) . Pur suant t o Feder al Rul e of Ci vi l

Pr ocedur e 54( c) , [ a] def aul t j udgment must not di f f er i n

ki nd f r om, or exceed i n amount , what i s demanded i n the

pl eadi ngs, and a cour t may conduct hear i ngs when i t needs t o

determi ne the amount of damages, est abl i sh t he t r ut h of any

al l egat i on by evi dence, or i nvest i gat e any ot her mat t er . I d.

III. Liability

A. Trademark Infringement Under Federal Law


7/25

7

Tr ademar k i nf r i ngement i s proscr i bed by 15 U. S. C.

1114( 1) ( a) . That pr ovi si on r eads, i n r el evant par t :

( 1) Any per son who shal l , wi t hout t he consent oft he r egi st r ant

( a) use i n commer ce any repr oduct i on, count er f ei t ,copy, or col or abl e i mi t at i on of a r egi st er ed mar ki n connect i on wi t h t he sal e, of f er i ng f or sal e,di st r i but i on, or adver t i si ng of any goods orservi ces on or i n connect i on wi t h whi ch such use i sl i kel y t o cause conf usi on, or t o cause mi st ake, ort o decei ve . . . shal l be l i abl e i n a ci vi l act i onby the r egi st r ant f or t he r emedi es her ei naf t er

pr ovi ded.

15 U. S. C. 1114( 1) ( a) . Thus, t o succeed on a t r ademar k

i nf r i ngement cl ai m, a pl ai nt i f f must pr ove ( 1) t hat i t s val i d

mar k was used i n commer ce by the def endant wi t hout consent

and ( 2) t hat t he unaut hor i zed use was l i kel y t o cause

conf usi on, t o cause mi st ake, or t o decei ve. See Gen. Mot or s

Cor p. v. Phat Cat Car t s, I nc. , 504 F. Supp. 2d 1278, 1283

( M. D. Fl a. 2006) ; Di et er v. B&H I ndus. of S. W. Fl a. , I nc. ,

880 F. 2d 322, 326 ( 11t h Ci r . 1989) .

i. Trademark Validity and Unauthorized Use

Pl ai nt i f f cont ends t hat t her e i s no quest i on t hat

Pl ai nt i f f has a val i d mar k ( Doc. # 27 at 12) , and t hi s Cour t

agr ees. I n t he Compl ai nt , Pl ai nt i f f posi t s t hat i t has

r egi st ered t he COOLMATH Mark - U. S. Regi st r at i on No.

3, 404, 699 - f or use of t he COOLMATH Mark i n connect i on wi t h


8/25

8

Comput er servi ces, namel y, pr ovi di ng on- l i ne websi t e i n t he

f i el d of mat hemat i cs and sci ence educat i on; ent er t ai nment

servi ces, namel y, pr ovi di ng on- l i ne comput er games i n t he

f i el d of mat hemat i cs and sci ence [ e] ducat i on i n

I nt er nat i onal Cl ass 41. ( Doc. # 1 at 18; Doc. # 1- 2) . To

t hat end, Pl ai nt i f f aver s t hat U. S. Regi st r at i on No.

3, 404, 699 has become i ncont est abl e under Sect i on 15 of t he

Lanham At , 15 U. S. C. 1065, and t her ef or e serves as

concl usi ve evi dence of t he val i di t y of t he r egi st er ed mar k,

of t he r egi st r at i on of t he mar k, and of Pl ai nt i f f s excl usi ve

r i ght t o use t he mark i n commerce on or i n connect i on wi t h

t he goods and servi ces f or whi ch t he mar k i s r egi st er ed.

( Doc. # 1 at 19; Doc. # 27 at 12) . I n addi t i on, as set f or t h

i n t he Compl ai nt , si nce as ear l y as 1997, Pl ai nt i f f has

cont i nuousl y used the COOLMATH Mark t o i dent i f y i t s math and

sci ence game and educat i onal websi t es. ( Doc. # 1 at 11) .

Fur t her mor e, Pl ai nt i f f ar gues t hat i t has never

consent ed t o Def endant s use of t he I nf r i ngi ng Mar k, i n

connect i on wi t h t he pr ovi si on of onl i ne mat h games. ( I d. at

24) . I n f act , Pl ai nt i f f sent Def endant s a l et t er r equest i ng

t hat t hey cease and desi st t hei r unl awf ul act i vi t i es. ( I d.

at 26) . Ther ef or e, t he Cour t f i nds t hat Pl ai nt i f f has


9/25

9

sat i sf i ed t he i ni t i al el ement of i t s t r ademar k i nf r i ngement

cl ai m.

ii. Likelihood of Confusion

Pr oof of l i kel i hood of conf usi on i s t he sine qua non

i n act i ons f or 15 U. S. C. 1114 t r ademar k i nf r i ngement . . .

. Fi l a U. S. A. , I nc. v. Ki m, 884 F. Supp. 491, 494 ( S. D. Fl a.

1995) . Det er mi nat i on of l i kel i hood of conf usi on r equi r es

anal ysi s of t he f ol l owi ng seven f act or s: ( 1) t ype of mar k,

( 2) si mi l ar i t y of mar k, ( 3) si mi l ar i t y of t he pr oducts [ or

ser vi ces] t he mar ks r epr esent , ( 4) si mi l ar i t y of t he par t i es

r et ai l out l et s and cust omer s, ( 5) si mi l ar i t y of adver t i si ng

medi a used, ( 6) def endant s i nt ent and ( 7) act ual conf usi on.

Di et er , 880 F. 2d at 326. Al t hough l i kel i hood of conf usi on

gener al l y i s a quest i on of f act , i t may be deci ded as a mat t er

of l aw. Al l i ance Met al s, I nc. of At l ant a v. Hi nel y I ndus. ,

I nc. , 222 F. 3d 895, 907 ( 11t h Ci r . 2000) .

I n t hi s case, Pl ai nt i f f has suf f i ci ent l y al l eged t hat

Def endant s pr oduct i s l i kel y t o cause consumer conf usi on.

( See Doc. # 1) . I n par t i cul ar , as an i ncont est abl e mar k,

Pl ai nt i f f s COOLMATH Mark i s presumed t o be st r ong. ( Doc. #

27 at 14) ( ci t i ng Di et er v. B&H I ndus. of Sw. Fl a. , I nc. , 880

F. 2d 322, 329 ( 11t h Ci r . 1989) ( Because Di et er s mar k i s

i ncont est abl e, t hen i t i s pr esumed t o be . . . a r el at i vel y


10/25

10

st r ong mar k. ) . Li kewi se, t he si mi l ar i t y bet ween the COOLMATH

Mark and t he I nf r i ngi ng Mark i s apparent as suggest ed by

Pl ai nt i f f : Def endant s have t aken Pl ai nt i f f s COOLMATH Mar k

i n i t s ent i r et y and ar e usi ng t he i dent i cal mar k on

compet i t i ve goods wi t h t he addi t i on of t he gener i c wor ds

GAMES and FOR FUN. ( I d. ) .

Fur t her mor e, t her e i s si mi l ar i t y bet ween Pl ai nt i f f and

Def endant s goods and ser vi ces, sal es and methods, and

adver t i si ng met hods. ( I d. ) . Namel y, as al l eged i n t he

Compl ai nt , Def endant s have been and pr esent l y ar e adver t i si ng

and of f er i ng onl i ne mat h games i dent i cal or near l y i dent i cal

t o t hose of f er ed by Pl ai nt i f f t hr ough a means of di st r i but i on

i dent i cal t o t hat used by Pl ai nt i f f . ( I d. ; Doc. # 1 at 22-

23) .

Mor eover , Pl ai nt i f f has al l eged t hat Def endant s use of

t he I nf r i ngi ng Mar k i s causi ng act ual conf usi on i n t he

mar ket pl ace. ( Doc. # 27 at 15; Doc. # 1 at 32) . Thi s i s so,

because consumers mi st akenl y assume t hat Def endants and

t hei r ser vi ces of f er ed under t he I nf r i ngi ng Mar k ar e

associ at ed wi t h or sponsor ed or appr oved by Pl ai nt i f f .

( I d. ) . Ther ef or e, t aki ng Pl ai nt i f f s al l egat i ons as tr ue, t he

Cour t f i nds t hat t her e i s a st r ong l i kel i hood of conf usi on i n

t he pr esent case because consumer s may associ at e Pl ai nt i f f s


11/25

11

COOLMATH Mark wi t h t he Def endant s I nf r i ngi ng Mark.

Accor di ngl y, Pl ai nt i f f has met i t s bur den as t o i t s cl ai mf or

t r ademar k i nf r i ngement under Feder al l aw.

B. Unfair Competition Under Federal Law & Florida

Common Law

Sect i on 43( a) of t he Lanham Act , 15 U. S. C.

1125( a) ( 1) ( A) , pr ovi des i n r el evant par t :

( a) Ci vi l act i on

( 1) Any person who, on or i n connect i on wi t h anygoods or servi ces, or any cont ai ner f or goods, uses

i n commerce any word, t erm, name, symbol , or

devi ce, or any combi nat i on t her eof , or any f al se

desi gnat i on of or i gi n, f al se or mi sl eadi ng

descri pt i on of f act , or f al se or mi sl eadi ng

r epr esent at i on of f act , whi ch

( A) i s l i kel y t o cause conf usi on, or t o cause

mi st ake, or t o decei ve as t o t he af f i l i at i on,

connect i on, or associ at i on of such per son wi t h

anot her per son, or as t o t he or i gi n, sponsor shi p,

or appr oval of hi s or her goods, ser vi ces, or

commer ci al act i vi t i es by anot her per son, . . .

* * *

shal l be l i abl e i n a ci vi l act i on by any per son who

bel i eves t hat he or she i s or i s l i kel y t o be

damaged by such act .

15 U. S. C. 1125( a) ( 1) ( A) .

Fur t her mor e, t he Fl or i da Decept i ve and Unf ai r Tr ade

Pr act i ces Act , Fl a. St at . 501. 204, pr ovi des t hat [ u] nf ai r


12/25

12

met hods of compet i t i on, unconsci onabl e act s or pr act i ces, and

unf ai r or decept i ve act s or pr act i ces i n t he conduct of any

t r ade or commer ce ar e . . . unl awf ul . Fl a. St at .

501. 204( 1) ; see al so Bavar o Pal ace, S. A. v. Vacat i on Tour s,

I nc. , 203 F. App x 252, 256 ( 11t h Ci r . 2006) .

To est abl i sh ei t her f eder al unf ai r compet i t i on under

Sect i on 43 of t he Lanham Act , a vi ol at i on of t he Fl or i da

common l aw of unf ai r compet i t i on, or a vi ol at i on of t he

Fl or i da Decept i ve and Unf ai r Tr ade Pr act i ces Act , Fl or i da

St at . 501. 204, t he al l egat i ons of t he Compl ai nt must

demonst r at e t hat Pl ai nt i f f ( 1) had pr i or r i ght s t o t he mar k

at i ssue and (2) t hat t he def endant had adopt ed a mark or

name t hat was t he same, or conf usi ngl y si mi l ar t o i t s mar k,

such t hat consumer s were l i kel y to conf use the t wo. Pl anetar y

Mot i on, I nc. v. Techspl osi on, I nc. , 261 F. 3d 1188, 1193 ( 11t h

Ci r . 2001) ; Sunt r ee Techs. , I nc. v. Ecosense I nt ' l , I nc. , 693

F. 3d 1338, 1345 ( 11t h Ci r . 2012) ( f i ndi ng t hat t he di st r i ct

cour t di d not er r i n concl udi ng t hat t he l egal anal ysi s was

t he same f or unf ai r compet i t i on under t he Lanham Act ,

vi ol at i on of t he st at e l aw of unf ai r compet i t i on, and

vi ol at i on of t he Fl or i da Decept i ve and Unf ai r Tr ade Pr act i ces

Act ) .


13/25

13

The f act s al l eged i n t he Compl ai nt est abl i sh t hat

Pl ai nt i f f has pr i or r i ght s i n t he COOLMATH Mar k. To begi n,

Pl ai nt i f f has been usi ng i t s COOLMATH Mar k si nce at l east

1997. ( Doc. # 1 at 1, 11) . Fur t her , i n connect i on wi t h

enf or ci ng i t s r i ght s i n t he COOLMATH Mar k, Pl ai nt i f f owns an

i ncont est abl e r egi st r at i on f or t he COOLMATH Mar k. ( I d. at

18- 19) . Def endant s, however , di d not begi n usi ng t he

I nf r i ngi ng Mar k unt i l appr oxi mat el y Apr i l of 2014, when Wade

r egi st ered t he cool mathgamesf or f un. com domai n name and

Def endant s l aunched a websi t e at t hat domai n name of f er i ng

onl i ne mat h- r el at ed games under t he I nf r i ngi ng Mar k. ( I d.

at 20, 22) . Accor di ngl y, t he Cour t f i nds t hat t he wel l -

pl ed al l egat i ons, t aken as t r ue, demonst r at e t hat Pl ai nt i f f s

COOLMATH Mark has pr i or i t y. ( See Doc. # 27 at 16- 18) ( ci t i ng

Pet Med Expr ess, I nc. v. MedPet s. Com, I nc. , 336 F. Supp. 2d

1213, 1218 ( S. D. Fl a. 2004) ( Pl ai nt i f f s mar k has pr i or i t y

si nce Pet Med has been sel l i ng i t s pr oduct s si nce 1996, whi l e

Def endant cr eat ed t he domai n names www. MedPets. com and

www. 1888MedPet s. com i n 2001. ) ) .

Li kewi se, as set f or t h above, t he al l egat i ons i n t he

Compl ai nt ar e suf f i ci ent t o est abl i sh t hat t he I nf r i ngi ng

Mar k i s conf usi ngl y si mi l ar t o Pl ai nt i f f s COOLMATH Mar k. See

I d. ( f i ndi ng t hat a showi ng of l i kel i hood of conf usi on f or


14/25

14

pur poses of cl ai m under Sect i on 32( 1) wi l l al so est abl i sh

l i kel i hood of conf usi on under Sect i on 43( a) ) . Ther ef or e,

Pl ai nt i f f has est abl i shed t hat Def endant s mar ket i ng,

adver t i si ng, and of f er i ng of onl i ne mat h- r el at ed games under

t he I nf r i ngi ng Mar k amount s t o unf ai r compet i t i on i n

vi ol at i on of 15 U. S. C. 1125( a) ( 1) ( A) and Fl a. St at .

501. 204.

C. Cybersquatting

To est abl i sh a cl ai m under t he Ant i cyber squat t i ng

Consumer Protect i on Act ( ACPA) , 15 U. S. C. 1125( d) , a

pl ai nt i f f must est abl i sh t hat ( 1) i t has a val i d t r ademar k

ent i t l ed t o pr ot ect i on; ( 2) i t s mar k i s di st i nct i ve or f amous;

( 3) t he def endant ' s domai n name i s i dent i cal or conf usi ngl y

si mi l ar t o . . . t he owner ' s mar k; and ( 4) t he def endant used,

r egi st er ed, or t r af f i cked i n t he domai n name ( 5) wi t h a bad

f ai t h i nt ent t o pr of i t . Sound Sur gi cal Techs. , LLC v. Leonar d

A. Rubi nst ei n, M. D. , P. A. , 734 F. Supp. 2d 1262, 1275 ( M. D.

Fl a. 2010) ( i nt er nal quot at i on omi t t ed) .

Her e, Pl ai nt i f f has al l eged suf f i ci ent f act s t o

est abl i sh i t s Cyber squat t i ng cl ai m. As set f or t h above,

Pl ai nt i f f s COOLMATH Mar k i s i ncont est abl e. ( Doc. # 1 at

19) . To t hat end, U. S. Regi st r at i on No. 3, 404, 699 serves as

concl usi ve evi dence of t he val i di t y of t he r egi st er ed mar k,


15/25

15

of t he r egi st r at i on of t he mar k, and of Pl ai nt i f f s excl usi ve

r i ght t o use t he mark i n commerce on or i n connect i on wi t h

t he goods and servi ces f or whi ch t he mar k i s r egi st er ed.

( Doc. # 27 at 18; Doc. # 1 at 48) . Fur t her , Pl ai nt i f f has

al l eged t hat i t s COOLMATH Mar k was di st i nct i ve at t he t i me of

Def endant s r egi st r at i on of t he cool mat hgamesf or f un. com

domai n name. ( I d. ) ( ci t i ng Pet MEd Expr ess, 336 F. Supp. 2d at

1219 ( Pl ai nt i f f has est abl i shed t he di st i nct i veness of i t s

t r ademar ks not onl y thr ough Def endant s def aul t , but al so by

havi ng r egi st er ed t he mar ks. ) ) .

Pl ai nt i f f has al so al l eged t hat , wi t hout aut hor i zat i on

f r om Pl ai nt i f f , Def endant s l aunched a websi t e at

cool mat hgamesf or f un. com of f er i ng onl i ne mat h- r el at ed games

under t he I nf r i ngi ng Mark. ( Doc. # 1 at 22- 24; Doc. # 27

at 19) . Def endant s websi t e i s vi r t ual l y i dent i cal t o

Pl ai nt i f f s COOLMATH Mark, and adds onl y t he gener i c words

GAMES and FOR FUN. ( Doc. # 27 at 19; Doc. # 1 at 49) ;

Sound Sur gi cal Techs. , 734 F. Supp. 2d at 1275 ( ci t at i on

omi t t ed) ( Sl i ght di f f erences bet ween domai n names and marks,

such as t he addi t i on of gener i c wor ds or wor ds descr i bi ng t he

pr oduct or ser vi ce, or di nar i l y wi l l not pr event a l i kel i hood

of conf usi on. ) .


16/25

16

Pl ai nt i f f has al so aver r ed t hat Def endant s used t he

cool mathgamesf or f un. comdomai n name wi t h t he bad f ai t h i nt ent

to :

pr of i t f r om t he COOLMATH Mark and t o reap t he

benef i t of Pl ai nt i f f s s i gni f i cant goodwi l l i n t he

COOLMATH Mar k, t o di ver t consumer s t o t he

cool mathgamesf or f un. com domai n name f or t hei r own

commer ci al gai n, and t o ot her wi se pr of i t f r om

unaut hor i zed use of t he COOLMATH Mar k.

( Doc. # 1 at 51) . By f ai l i ng t o r espond t o t he Compl ai nt ,

Def endant s have admi t t ed al l of t he above wel l - pl ead

al l egat i ons. Accor di ngl y, t he Cour t ent er s j udgment on

Pl ai nt i f f s cyber squat t i ng cl ai m agai nst Def endant s.

III. Permanent Injunction

Under t r adi t i onal equi t abl e pr i nci pl es, a pl ai nt i f f

seeki ng a permanent i nj unct i on must demonst r ate ( 1) i t has

suf f er ed an i r r epar abl e i nj ur y; ( 2) r emedi es avai l abl e at

l aw, such as monet ary damages, ar e i nadequat e t o compensat e

f or t hat i nj ur y; ( 3) consi der i ng t he bal ance of har dshi ps

bet ween t he pl ai nt i f f and def endant , a remedy i n equi t y i s

war r ant ed; and ( 4) t he publ i c i nt er est woul d not be di sserved

by a per manent i nj unct i on. Angel Fl i ght of Ga. , I nc. v. Angel

Fl i ght Am. , I nc. , 522 F. 3d 1200, 1208 ( 11t h Ci r . 2008) .

[ I ] n or di nar y t r ademar k i nf r i ngement act i ons[ , ]

compl et e i nj unct i ons agai nst t he i nf r i ngi ng par t y ar e t he


17/25

17

or der of t he day. The r eason i s si mpl e: t he publ i c deserves

not t o be l ed ast r ay by the use of i nevi t abl y conf usi ng mar ks.

. . . I d. at 1209. Fur t her mor e, t he El event h Ci r cui t has

not ed t hat [ i ] t i s gener al l y r ecogni zed i n t r ademar k

i nf r i ngement cases t hat ( 1) t her e i s no[ ] adequat e r emedy at

l aw t o r edr ess i nf r i ngement and ( 2) i nf r i ngement by i t s nat ur e

causes i r r epar abl e har m. Tal l y- Ho, I nc. v. Coast Cmt y. Col l .

Di st . , 889 F. 2d 1018, 1029 ( 11t h Ci r . 1989) ( quot i ng Pr ocessed

Pl ast i c Co. v. Warner Commc ns, 675 F. 2d 852, 858 ( 7t h Ci r .

1982) ) .

Ther ef or e, Def endant s and t hei r of f i cer s, agent s,

di r ector s, shar ehol der s, pr i nci pal s, l i censees,

di st r i but or s, at t or neys, ser vant s, empl oyees, af f i l i at es,

subsi di ar i es and assi gns, and al l t hose per sons or ent i t i es

i n act i ve concer t or par t i ci pat i on wi t h any of t hem, ar e

her eby j oi nt l y and sever al l y per manent l y enj oi ned and f or ever

r est r ai ned f r om:

a) [ U] si ng t he I nf r i ngi ng Mar k on or i n connect i on

wi t h t he adver t i si ng, pr omot i on, di st r i but i on,

di spl ayi ng, sal e or of f er i ng f or sal e of onl i ne

educat i onal math games or i n connect i on wi t h anyr el at ed goods or ser vi ces, i ncl udi ng but not

l i mi t ed t o downl oadabl e games i n t he Appl e i Tunes

or App St or es;


18/25

18

b) [ U] si ng t he COOLMATH Mar k, or any mar k t hat

i ncl udes COOLMATH i n whol e or i n part , or a

phonet i c equi val ent or mi sspel l i ng t her eof , or

any ot her si mul at i on, r epr oduct i on, copy,

col or abl e i mi t at i on or conf usi ngl y si mi l ar

var i at i on of t he mark COOLMATH, i n connect i on

wi t h t he adver t i si ng, pr omot i on, di st r i but i on,

di spl ayi ng, sal e or of f er i ng f or sal e of any

onl i ne math games or i n connect i on wi t h any

r el at ed goods or ser vi ces, i ncl udi ng but not

l i mi t ed t o downl oadabl e games i n t he Appl e i Tunes

or App St or es;

c)

[ C] onduct i ng any act i vi t i es i n t he Uni t ed St at est hat r el at e t o, r ef er t o or concer n t he

adver t i si ng, pr omot i on, di st r i but i on,

di spl ayi ng, sal e or of f er i ng f or sal e of onl i ne

math games, or r el ated goods or ser vi ces, under

t he I nf r i ngi ng Mar k or any mar k or t r ade or

busi ness name t hat i ncl udes COOLAMTH i n whol e or

i n par t , or i s a phonet i c equi val ent or

mi sspel l i ng t her eof , or t hat i s a si mul at i on,

r epr oduct i on, copy, col or abl e i mi t at i on or

conf usi ngl y si mi l ar var i at i on of t he mar kCOOLMATH;

d) [ U] si ng any f al se desi gnat i on of or i gi n or f al se

descr i pt i on or per f or mi ng any act , whi ch can, or

i s l i kel y t o, l ead member s of t he t r ade or publ i c

t o bel i eve t hat any onl i ne math game or r el ated

good or servi ce adver t i sed, pr omot ed,

di st r i but ed, di spl ayed, sol d or of f er ed f or sal e

by Def endant s i s i n any manner associ ated or

connected wi t h Pl ai nt i f f , or i s aut hor i zed,l i censed, sponsored or ot her wi se appr oved by

Pl ai nt i f f ;

e) [ E] ngagi ng i n any ot her act i vi t y const i t ut i ng

unf ai r compet i t i on wi t h Pl ai nt i f f , or


19/25

19

const i t ut i ng an i nf r i ngement of t he COOLMATH

Mark;

f ) [ A] ppl yi ng t o r egi st er or r egi st er i ng i n t he

Uni t ed St at es Pat ent and Tr ademar k Of f i ce or i n

any st at e t r ademar k regi st r y any mar k consi st i ng

i n whol e or i n par t of t he word COOLMATH or

consi st i ng i n whol e or i n par t of any si mul at i on,

r epr oduct i on, copy or col or abl e i mi t at i on of t he

COOLMATH Mark, f or onl i ne games, or any rel at ed

goods or ser vi ces;

g) [ I ] ncor por at i ng under , doi ng busi ness under or

seeki ng t o t r ade under any busi ness name thati ncl udes t he t er m COOLMATH i n t he Uni t ed

St at es;

h) [ U] si ng any domai n name or metatag t hat i ncl udes

i n whol e or i n part t he t erm COOLMATH or any

f or mat i ve t her eof i n connect i on wi t h a web si t e

t hat adver t i ses, pr omot es, mar ket s, di spl ays,

sel l s or of f er s f or sal e or ot her wi se r ef er s t o

onl i ne math games, or any rel ated goods or

ser vi ces;

i ) [ O] wni ng, r ent i ng, pur chasi ng or ot her wi se

obt ai ni ng r i ght s t o any i nt er net sear ch t er mt hat

i ncl udes i n whol e or i n part t he t erm COOLMATH

or any f or mat i ve t her eof f or pur poses of

di r ect i ng i nt er net t r af f i c t o any web si t e t hat

adver t i ses, pr omot es, di spl ays, or ot her wi se

r ef ers t o onl i ne math games, or any rel ated goods

or ser vi ces; and

j ) [ A] ssi st i ng, ai di ng or abet t i ng any ot her per son

or busi ness ent i t y i n engagi ng i n or per f or mi ng

any of t he acti vi t i es r ef er r ed t o i n

subpar agr aphs ( a) t hr ough ( i ) above.


20/25

20

Fur t her mor e, Def endant s ar e her eby or der ed t o del i ver t o

Pl ai nt i f f s at t or ney wi t hi n t hi r t y days of t he i ssuance of

t hi s Or der - f or dest r ucti on, al l goods, l abel s, t ags, si gns,

st at i oner y, pr i nt s, packages, pr omot i onal and mar ket i ng

mat er i al s, adver t i sement s and ot her mat er i al s ( a) cur r ent l y

i n t hei r possessi on or under t hei r cont r ol or ( b) r ecal l ed

by Def endant s pur suant t o any or der of t he Cour t or

ot her wi se, i ncor por at i ng, f eat ur i ng, or bear i ng t he

I nf r i ngi ng Mar k or any ot her si mul at i on, r epr oduct i on, copy

or col orabl e i mi t at i on of t he COOLMATH Mark i n connect i on

wi t h onl i ne mat h games, or r el at ed goods or servi ces, and

al l pl at es, mol ds, mat r i ces and other means of maki ng the

same. Fi nal l y, Def endant shal l t r ansf er or cause t o be

t r ansf er r ed t he cool mat hgamesf or f un. com domai n name t o

Pl ai nt i f f and execut e al l necessar y document s t o ef f ect uat e

such t r ansf er .

IV. Monetary Damages

Al t hough a def aul t ed def endant admi t s wel l - pl eaded

al l egat i ons of l i abi l i t y, al l egat i ons r el at i ng t o t he amount

of damages ar e not admi t t ed by vi r t ue of def aul t . Rat her , t he

Cour t det ermi nes t he amount and charact er of damages t o be

awarded. Aut omobi l Lamborghi ni SpA v. Lamboshop, I nc. , No.

2: 07- cv- 266- J ES- SPC, 2008 WL 2743647, *2 ( M. D. Fl a. J une 5,


21/25

21

2008) ( i nt er nal quot at i on mar ks omi t t ed) . I f a def aul t

j udgment i s war r ant ed, t he cour t may hol d a hear i ng f or t he

pur pose[ ] of assessi ng damages. However , a hear i ng i s not

necessar y i f suf f i ci ent evi dence i s submi t t ed t o suppor t t he

r equest f or damages. I d. ( i nt er nal ci t at i ons omi t t ed) . The

Cour t f i nds a hear i ng unnecessar y t o deter mi ne t he

appr opr i ate amount of damages agai nst Def endant s because ( 1)

t he Cour t has suf f i ci ent r ecor d evi dence t o pr oper l y

det er mi ne damages wi t hout a hear i ng and ( 2) Pl ai nt i f f s

r equest ed damages are st atut ory.

Pl ai nt i f f seeks st at ut or y damages i n l i ght of i t s ACPA

Cyber squat t i ng cl ai m, 15 U. S. C. 1125( d) , agai nst

Def endant s. ( See Doc. # 27 at 23) . I n a case i nvol vi ng a

vi ol at i on of [ 15 U. S. C. 1125( d) ( 1) ] , t he pl ai nt i f f may

el ect , at any t i me bef or e f i nal j udgment i s r ender ed by the

t r i al cour t , t o r ecover , i nst ead of act ual damages and

pr of i t s, an awar d of st at ut or y damages i n t he amount of not

l ess t han $1, 000 and not mor e t han $100, 000 per domai n name,

as t he cour t consi der s j ust . See 15 U. S. C. 1117.


22/25

22

Speci f i cal l y, Pl ai nt i f f seeks an awar d of $15, 000 i n

st atut ory damages, 1 not i ng t hat such an awar d woul d pl ai nl y

serve t he dual pur pose of det er r i ng wr ongf ul conduct and

compensat i ng Pl ai nt i f f . ( Doc. # 27 at 23) ( i nt er nal quot at i on

omi t t ed) . To suppor t t hei r r equest , Pl ai nt i f f pr ovi des t hat :

Def endant s have r egi st er ed and used a domai n name

conf usi ngl y s i mi l ar t o Pl ai nt i f f s regi ster ed

COOLMATH Mark i n connect i on wi t h adver t i si ng and

of f er i ng goods and ser vi ces i dent i cal or

conf usi ngl y si mi l ar t o t hose of f er ed by Pl ai nt i f f .

Li kewi se, t hough Def endant s are usi ng a si ngl e

i nf r i ngi ng domai n name, t hey ar e cont i nui ng t o

per vasi vel y engage i n cyber squat t i ng and ot her act s

of i nf r i ngement , despi t e bei ng awar e of t hi s

l awsui t .

( I d. ) ( ci t i ng DC Comi cs v. G5 Bar ber s, L. L. C. , No. 6: 11- cv-

1600- Or l - 36GJ K, 2012 WL 4328610, *7 ( M. D. Fl a. Aug. 22,

2012) ( awar di ng $25, 000 f or vi ol at i on of t he ACPA) ) .

Di st r i ct cour t s have wi de di scr et i on i n awar di ng

st atut ory damages. Pet Med Expr ess, 336 F. Supp. 2d at 1219.

I n determi ni ng an appr opr i ate award of st atut ory damages, t he

Cour t must st r i ke a bal ance bet ween per mi t t i ng a wi ndf al l f or

t he pl ai nt i f f and emphasi zi ng t o t he def endant t hat t he

1 I n t he pr esent Mot i on, Pl ai nt i f f does not request t heexempl ary and puni t i ve damages or t he at t orneys f ees andcost s demanded i n t he Compl ai nt . ( See Doc. # 27 at 23) .


23/25

23

t r ademark l aws and cour t pr oceedi ngs ar e not mere i nci dent al

cost s t o doi ng busi ness i n t he pr of i t abl e count er f ei t t r ade.

Gucci Am. , I nc. v. Tyr r el l - Mi l l er , 678 F. Supp. 2d 117, 122-

23 ( S. D. N. Y. 2008) .

The Cour t f i nds t hat Pl ai nt i f f s r equest f or $15, 000 i n

st atut ory damages t o be appr opr i ate under t he ci r cumst ances

surr oundi ng t hi s act i on. Her e, Def endant s have chosen t o

def aul t r at her t han t o cooper at e i n pr ovi di ng par t i cul ar

r ecor ds f r omwhi ch t o assess t he val ue of t he I nf r i ngi ng Mar k.

Addi t i onal l y, as expl ai ned above, t he Cour t concl udes t hat

Def endant s i nf r i ngi ng conduct was i ndeed wi l l f ul . 2

Fur t her more, t he Cour t f i nds t hat such an awar d

accompl i shes t he obj ect i ves under l yi ng t he f ol l owi ng r el evant

f act or s: t he det er r ent ef f ect on ot her s besi des t he

def endant s and t he pot ent i al f or di scour agi ng t he

def endant . Car l o Bay Ent er . , I nc. v. Two Ami go Rest . , I nc. ,

No. 8: 14- cv- 1989- T- 33TGW, 2014 WL 6886053, *8 (M. D. Fl a. Dec.

8, 2014) . The Cour t i s mi ndf ul t hat [ t ] he st at ut or y damages

pr ovi si on serves t o sanct i on or puni sh def endant s i n or der t o

det er f ut ur e wr ongf ul conduct . WFTV, I nc. v. Maver i k Pr od.

Lt d. Li ab. Co. , No. 6: 11- cv- 1923, 2013 WL 3119461, *13 ( M. D.

2 See Pet Med Expr ess, I nc. , 336 F. Supp. 2d at 1220 ( [ T] heCour t may i nf er wi l l f ul ness f r om Def endant s def aul t . ) .


24/25

24

Fl a. J une 18, 2013) ( ci t i ng St . Luke s Cat ar act & Laser I nst . ,

P. A. v. Sander son, 573 F. 3d 1186, 1204- 05 ( 11t h Ci r . 2009) ) .

The Cour t i s sat i sf i ed t hat st at utor y damages i n t he

amount of $15, 000, coupl ed wi t h t he i nj unct i ve rel i ef set

f or t h above, wi l l ser ve as a suf f i ci ent det er r ent agai nst any

f ut ur e wr ongf ul conduct by Def endant s. Thus, based on t he

r el evant f act or s di scussed pr evi ousl y and t he ci r cumst ances

of t hi s case, t he Cour t f i nds t hat st at ut or y damages i n t he

amount of $15, 000 i s an appr opr i at e, j ust , and r easonabl e

awar d.

Accor di ngl y, i t i s

ORDERED, ADJUDGED, and DECREED:

( 1) Pl ai nt i f f Cool mat h. com, LLC s Mot i on f or Def aul t

J udgment ( Doc. # 27) i s GRANTED t o t he ext ent set f or t h

her ei n.

( 2) The Cl er k i s di r ect ed t o ent er J udgment i n f avor of

Pl ai nt i f f Cool mat h. com LLC and agai nst Def endant s

Ever t ap LLC, Cool Mat h Games For Fun, LLC and Ryan Wade

i n t he amount of $15,000. Ther eaf t er , t he Cl er k i s

di r ect ed t o CLOSE THIS CASE.

( 3) The Cour t decl i nes t o r et ai n j ur i sdi ct i on over t hi s

mat t er . I n t he event Def endant s f ai l t o adher e t o t hi s


25/25

25

Cour t s Or der , Pl ai nt i f f may pur sue appr opr i at e r emedi es

at t hat t i me.

DONE and ORDERED i n Chamber s i n Tampa, Fl or i da, t hi s

17t h day of December , 2014.

Copi es: Al l Counsel and Par t i es of Recor d

Coolmath v. Evertap - Coolmath trademark preliminary injunction granted.pdf

Documents