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Luxottica Group, S.p.A. v. Greenbriar Marketplace II, LLC

Citations: 212 F. Supp. 3d 1375; 2016 U.S. Dist. LEXIS 142929; 2016 WL 5859023Docket: CIVIL ACTION NO. 1:15-cv-01382-AT

Court: District Court, N.D. Georgia; September 30, 2016; Federal District Court

Narrative Opinion Summary

This case addresses trademark infringement claims under the Lanham Act, brought by Luxottica Group, S.p.A. against Greenbriar Marketplace II, LLC, and Albert Ashkouti, alleging contributory infringement due to the sale of counterfeit eyewear by vendors at the Greenbriar Discount Mall. Law enforcement raided the mall in December 2013, seizing counterfeit goods, and Luxottica's investigations confirmed ongoing sales of counterfeit products. The legal issue centers on whether the defendants can be held liable for contributory trademark infringement based on their knowledge and control over the infringing activities. Greenbriar Marketplace argues its lack of operational control nullifies liability, while Ashkouti claims limited involvement. The court evaluates the landlord's responsibility, drawing parallels with cases like Hard Rock Cafe and Fonovisa, which establish liability based on 'willful blindness.' The court ultimately denies Greenbriar's motion for summary judgment, indicating potential liability due to Swindall's dual ownership roles and involvement, but grants Ashkouti's motion due to insufficient evidence of his control or direct involvement. The case highlights the nuanced assessment of contributory liability, emphasizing the defendants' knowledge and operational control over the infringing vendors. The court sets deadlines for a Consolidated Pretrial Order and outlines trial scheduling, while noting inaccuracies in referencing prior cases.

Legal Issues Addressed

Contributory Trademark Infringement under the Lanham Act

Application: The court discusses the extension of liability for trademark infringement beyond direct infringers to those who induce or have knowledge of infringing activities.

Reasoning: To prove contributory infringement in the Eleventh Circuit, a plaintiff must show that a third party engaged in infringement and that the defendant contributed to this conduct through knowledge or material participation.

Individual Liability for Trademark Infringement

Application: The standard for individual liability focuses on whether the individual was a key decision-maker in the infringement, regardless of their formal corporate role.

Reasoning: Liability for trademark infringement under the Lanham Act can extend to individuals as well as corporations, as corporations act through individuals, making someone responsible for the infringement.

Landlord Liability for Trademark Infringement

Application: The court examines the liability of landlords for contributory infringement when they lease premises to vendors selling counterfeit goods, focusing on the landlord's knowledge and control.

Reasoning: Liability can extend to landlords and operators of markets where counterfeit goods are sold, as demonstrated in cases where owners had reason to know of trademark violations and failed to investigate vendor activities due to 'willful blindness.'

Summary Judgment in Trademark Infringement Cases

Application: The court's decision to deny or grant summary judgment hinges on evidence of control and involvement in infringing activities, particularly concerning the defendants' roles and actions.

Reasoning: Consequently, the court denies Greenbriar's motion for summary judgment but grants Ashkouti's, stating that the evidence does not establish the necessary level of control for contributory liability.