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Rovio Entertainment, Ltd. v. Allstar Vending, Inc.

Citations: 97 F. Supp. 3d 536; 114 U.S.P.Q. 2d (BNA) 1820; 2015 U.S. Dist. LEXIS 43781; 2015 WL 1508497Docket: No. 14-cv-7346 (KBF)

Court: District Court, S.D. New York; April 1, 2015; Federal District Court

Narrative Opinion Summary

In a case concerning intellectual property rights, Rovio Entertainment, Ltd. pursued legal action against several defendants, including Toy Amazon Corporation, for counterfeiting and trademark infringement related to Rovio's Angry Birds franchise. After settling with some defendants, Rovio obtained a default judgment against Toy Amazon and Yun Long Kuo, who failed to respond to the complaint and did not appear at the court hearing. The court confirmed federal subject matter jurisdiction and personal jurisdiction under New York's long-arm statute, based on Toy Amazon's business activities in New York. Rovio's claims were upheld for both copyright and trademark infringement, and the court awarded statutory damages of $4,200,000 in total. Furthermore, a permanent injunction was issued against Toy Amazon and Yun Long Kuo to halt further infringements. The decision excluded Han When Kuo due to insufficient evidence of his involvement in New York transactions. The case primarily relied on federal claims, focusing on infringement and counterfeiting under the Lanham Act and Copyright Act, with the court ensuring compliance with due process in its jurisdictional analysis and damage assessments.

Legal Issues Addressed

Copyright Infringement Standards

Application: Rovio established a valid claim for copyright infringement through evidence of unauthorized sales of products featuring Rovio's copyrighted works.

Reasoning: Rovio has sufficiently alleged ownership of copyrights for various Angry Birds characters and products and claims that the Toy Amazon defendants intentionally sold infringing products featuring images similar to at least 12 of Rovio's copyrighted works.

Damages in Copyright and Trademark Infringement

Application: The court awarded statutory damages totaling $2,700,000 under the Copyright Act and $1,500,000 under the Lanham Act based on the defaulting defendants’ willful infringement.

Reasoning: The Court grants Rovio’s request for these statutory damages in full.

Default Judgment Standards

Application: The court entered default judgment against Toy Amazon and Yun Long Kuo after they failed to respond to the complaint and appear at the hearing.

Reasoning: The Toy Amazon defendants did not appear at the hearing and have not responded to the complaint. Consequently, the Court entered a default judgment and issued a permanent injunction against them.

Federal Subject Matter Jurisdiction Under 28 U.S.C. §§ 1331 and 1338

Application: The court confirmed its jurisdiction over the copyright and trademark claims brought by Rovio.

Reasoning: The Court confirmed its jurisdiction, noting federal subject matter jurisdiction based on copyright and trademark claims under 28 U.S.C. §§ 1331 and 1338.

Permanent Injunction Standards

Application: The court granted a permanent injunction to prevent future infringements by Toy Amazon and Yun Long Kuo, finding monetary damages inadequate and ongoing infringement likely.

Reasoning: Rovio has demonstrated that the Toy Amazon defendants infringed on its trademarks and copyrights, leading to irreparable harm.

Personal Jurisdiction Under New York Long-Arm Statute

Application: Jurisdiction was established over Toy Amazon and Yun Long Kuo due to their business activities and transactions in New York, but not over Han When Kuo due to insufficient evidence of his involvement.

Reasoning: The Court must also ensure that exercising this jurisdiction aligns with due process. This requires assessing whether Kuo and Toy Amazon have established minimum contacts with New York and whether asserting jurisdiction is reasonable.

Trademark Infringement Under the Lanham Act

Application: Rovio successfully claimed trademark infringement against Toy Amazon for unauthorized sale of goods featuring Rovio's trademarked images.

Reasoning: Rovio asserts ownership of federally registered trademarks related to Angry Birds and alleges that the Toy Amazon defendants sold infringing goods featuring 15 trademarked images without consent.