Chrome Hearts LLC v. Partnerships & Unincorporated Assocs. Identified on Schedule A, No. 15 C 3491, Slip Op. (N.D. Ill. Sep. 10, 2015) (Kendall, J.).
Judge Kendall granted plaintiff Chrome Hearts’ default judgment against various defendants (the “Defaulting Defendants”) holding that each defendant was infringing the CHROME HEARTS trademarks. The Court previously entered a temporary restraining order (“TRO”) and then a preliminary injunction (“PI”) freezing certain PayPal accounts that were allegedly being used to sell products that infringed the CHROME HEARTS marks and ordering transfer of certain infringing domain names.
Chrome Hearts’ service by electronic publication and email, as well as notice that the Defaulting Defendants received from their domain name registrars and payment processors were sufficient service and notice of the suit, yet the Defaulting Defendants failed to respond to the amended complaint or even appear in the action.
The Defaulting Defendants were each liable for Lanham Act violations – willful trademark infringement and counterfeiting, false designation of origin and cybersquatting – and violation of the Illinois Uniform Deceptive Trade Practices Act. The Court further held as follows:
- The Defaulting Defendants were permanently enjoined from using the CHROME HEARTS marks or otherwise unfairly competing with Chrome Hearts.
- The Defaulting Defendants were to, at Chrome Hearts’ discretion, transfer the Defaulting Defendants domain names or cancel the registrations within three business days of receiving the order.
- Those in privity with Defaulting Defendants were to stop assisting their infringing actions within three business days of receipt of the order.
- Chrome Hearts was awarded statutory damages of $150,000 from each Defaulting Defendant.
- ny monies in the Defaulting Defendants’ frozen accounts were to be transferred to Chrome Hearts as partial payment of the statutory damages.