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Keywords

plaintiffdamagesattorneyliabilityinjunctionpleawilltrademark
defendantdamagesliabilityplea

Related Cases

U.S. v. New Star at Niagara Fall, Inc. d/b/a New Star Buffet

Facts

U.S.A. Famous Original Ray's Licensing Corp. owns several registered trademarks related to its Italian-style restaurants, which have been in operation for over 40 years. Famous Ray's Pizza Buffet, located in Manhattan, used the mark 'FAMOUS RAY'S PIZZA' without authorization, leading to Original Ray's complaint for trademark infringement. Despite being served with the complaint, Pizza Buffet failed to respond, resulting in a default judgment against them.

Pizza Buffet is using [these marks] without consent or authorization from Ray's in connection with its own restaurant business and services in New York, New York.

Issue

The main legal issues were whether Pizza Buffet infringed on Original Ray's trademarks and the appropriate amount of damages to be awarded.

The only remaining issue is whether Original Ray has supplied adequate support for the damages and other relief it seeks.

Rule

The court applied the Lanham Act, which allows for recovery of damages when a plaintiff shows a violation of trademark rights, and established that a default judgment admits the well-pleaded allegations in the complaint.

A default judgment that is entered on the well-pleaded allegations in a complaint establishes a defendant's liability.

Analysis

The court determined that Pizza Buffet's default established its liability for trademark infringement. Original Ray provided sufficient evidence to support its claims for damages, including the estimated profits made by Pizza Buffet during the infringement period. The court found that the willful nature of the infringement warranted the awarded damages.

Original Ray has made the threshold showing of entitlement to Pizza Buffet's profits under 15 U.S.C. 1117(a) inasmuch as Pizza Buffet has admitted to the allegation that it violated 15 U.S.C. 1125(a) by virtue of its default.

Conclusion

The court awarded Original Ray $216,000 in damages, $6,091.50 in attorney's fees, and $627.56 in costs, along with an injunction against Pizza Buffet to prevent further trademark infringement.

Accordingly, Original Ray has shown an entitlement to an award of profits under 15 U.S.C. 1117(a).

Who won?

U.S.A. Famous Original Ray's Licensing Corp. prevailed in the case due to Pizza Buffet's default and the evidence provided supporting the claims of trademark infringement.

Original Ray's submissions include two declarations and attached documentary evidence.

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