Intellectual Property Law

Ninth Circuit Affirms Fees Award in Counterfeit Jeans Case

By Michael Atkins

In 2005, D.A.D.S. Denim, Inc., filed suit in the Central District of California against Lillian Ramirez on the ground that she had sold and offered for sale hundreds of counterfeit jeans bearing its trademark.

In 2006, D.A.D.S. presented evidence at trial that Ms. Ramirez conducted at least three such clothing sales. Ms. Ramirez argued that she did not know the jeans were counterfeit because she had purchased them for personal use from an outlet store. She produced one receipt documenting her purchase of four pairs of jeans but did not produce any others.

The jury found for D.A.D.S., concluding that Ms. Ramirez had willfully infringed on D.A.D.S.’ CITIZENS OF HUMANITY trademark. The jury awarded D.A.D.S. $30,000 in statutory damages, which presumably also included compensation for Ms. Ramirez’s willful infringement of D.A.D.S.’ copyright.

After trial, the court found the case was “exceptional” for Lanham Act purposes and awarded D.A.D.S. $87,177 in attorney’s fees under both the Lanham Act and the Copyright Act. It concluded: “[T]he jury found that Ramirez intentionally and willfully infringed on DADS’ trademark. Accordingly, DADS is entitled to attorneys’ fees on its trademark claim.”

On Sept. 29, the Ninth Circuit affirmed the decision in a de novo review, agreeing that the circumstances were indeed “exceptional.”

Neither court seemed particularly enthused with this case. Both opinions are devoid of further analysis.

The case cite is D.A.D.S. Denim, Inc. v. Ramirez, 2008 WL 4442612, No. 06-56844 (C.D. Calif. Sept. 8, 2008).

Full post as published by Seattle Trademark Lawyer on October 07, 2008 (boomark / email).