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Perfect FIT LLC v. Inmate Legal Form Service, Inc.

United States District Court, D. Maine

March 19, 2019

PERFECT FIT LLC, Plaintiff
v.
INMATE LEGAL FORM SERVICE, INC., Defendant

          ORDER ON PLAINTIFF'S MOTION FOR DEFAULT JUDGMENT

          Lance E. Walker United States District Judge.

         Plaintiff, Perfect Fit, LLC requests the entry of default judgment against Defendant, Inmate Legal Forms Service, Inc. In addition to reimbursement for Plaintiff's attorney's fees and costs, Plaintiff seeks an award of “treble actual damages” based on a calculation of Plaintiff's lost profits.

         For the reasons discussed both below and in prior orders on the pending motion, Plaintiff's Motion for Default Judgment (ECF No. 12) is GRANTED.

         PROCEDURAL HISTORY

         In an order issued on March 4, 2019, I considered Plaintiff's Motion for Reconsideration and Motion for Default Judgment and ultimately granted Plaintiff's Motion for Reconsideration, but kept Plaintiff's Motion for Default Judgment under advisement pending receipt of supplemental information related to the costs associated with Plaintiff's sales revenue. Order on Pl.'s Mot. for Reconsideration (“Order”) (ECF No. 21).

         In the order, I concluded that “[b]ased on the facts alleged by Plaintiff, there is a factual basis for finding Defendant liable for trademark infringement and trademark dilution under Maine and federal law” and furthermore that it was appropriate to “accept[] as established that Defendant's violations of federal and state law were willful and intentional.” Id. at 5. On the issue of damages, I determined that Plaintiff demonstrated lost sale revenue in the amount of $27, 586.40, but noted that an award based on lost sales revenue was “not necessarily the same thing as the ‘actual damages' sought in the complaint.” Id. at 8. Because Plaintiff had not provided argument as to why its lost sales revenue was the proper measure of damages in a trademark action, or why it would be appropriate “to treble the gross sales revenue figure rather than a net profit figure, ” I requested that the Plaintiff account for the costs associated with its sales. Id. at 8. I further directed Plaintiff to provide documentation to allow me to perform a proper lodestar analysis regarding attorney fees, and a supplemental memorandum addressing its requests for relief. Id. at 8-9.

         In response to my order, Plaintiff requests actual damages in the amount of $14, 896.66, which figure takes into account Plaintiff's costs. Pl.'s Supp. Mem., 2 (ECF No. 24). Furthermore, Plaintiff requests the Court award treble damages under the Lanham Act. Id. Finally, Plaintiff requests the court award attorney's fees, arguing that this case qualifies as “exceptional” under the Lanham Act. Id. at 3; see also 15 U.S.C. § 1117(a).

         DISCUSSION

         The Lanham Act provides that a trademark owner may “recover (1) defendant's profits, (2) any damages sustained by the plaintiff, and (3) the costs of the action.” 15 U.S.C. § 1117(a). Additionally, “[i]n assessing damages the court may enter judgment, according to the circumstances of the case, for any sum above the amount found as actual damages, not exceeding three times such amount.” Id. Finally, “[t]he court in exceptional cases may award reasonable attorney fees to the prevailing party.” Id.

         As discussed below, Plaintiff, Perfect Fit, LLC seeks and has proven its entitlement to the following damages:

A. The sum of $ 14, 896.66 for actual damages in the form of lost profits flowing from Defendant's violations of the Lanham Act;
B. The sum of $ 15, 174.50 for reasonable attorney fees incurred in connection with this action;
C. The sum of $ 600.74 in costs; and
D. Treble damages with respect to the sum awarded in (A), above, as further compensatory damages for Defendant's ...

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