Coach, Inc v. Pure MLK Last Stop, Inc.

$500,000 and a permanent injunction was found to be an appropriate remedy when counterfeiters did not respond to summons.

Opinion (McCuskey): Coach Inc. ("Coach") filed a trademark infringement suit against Pure MLK Last Stop, Inc. ("Pure"), alleging that Pure had infringed Coach's trademarks by using them to create counterfeit Coach merchandise. Pure did not responded to the summons or complaint, so the court granted Coach's motion for default judgment. Pure did not show how much money they made selling the counterfeit material, but Coach showed that Pure benefited from the development and selling of the counterfeit products. Because there were five of Coach's trademarks found on one of the bags seized in a raid, and because that bag was one of many produced by Pure, Coach requested $500,000 in damages along with an injunction that Pure stop producing and selling counterfeit material. Even though $500,000 was on the higher end of allowable damages, the court allowed it because Pure had wilfully and recklessly infringed Coach's trademark. In addition to the monetary damages, the court ENJOINED Pure from using Coach's trademarks.