Judge Jenkins (who became an NDIL judge in February) sanctions against a #ScheduleA plaintiff and its counsel in a #trademark case: https://storage.courtlistener.com/recap/gov.uscourts.ilnd.409127/gov.uscourts.ilnd.409127.122.0.pdf

"[W]hile some attorneys seem to approach Schedule A cases in a 'cut-and-paste' style, their professional obligations apply with equal force as in any other litigation."

(h/t @chicagolawyer.bsky.social)

#XPed

Memorandum Opinion and Order – #122 in Xped LLC v. The Entities Listed on Exhibit 1 (N.D. Ill., 1:21-cv-06237) – CourtListener.com

MEMORANDUM Opinion and Order written by the Honorable Lindsay C. Jenkins on 9/6/2023. Mailed notice. (jlj, )

CourtListener
I mention Judge Jenkins being new to the bench because the newer judges seem to be looking at #ScheduleA cases with fresh eyes and coming to good results. See, e.g., Judge Daniel's "toddlers" ruling in TOB.

Back to the decision.

This part is....wow.

Judges do not say things like this lightly:

1) Wow.

2) Why are we talking about PPBs with LLCs? (But I digress...)

This just keeps getting worse and worse.

Plaintiff: “If this is not counterfeiting, nothing is.”

Um, no. This is not counterfeiting. At least not as the Lanham Act defines it.

And the judge gets it:
She really gets it:
Let me focus for a second on this point: "Jones then clarified that 'about 50 percent' of the Defendants’ products subject to the TRO [which was based on trademark claims] did not contain the FLAGWIX mark, allegedly because those Defendants removed the logo." I just. Wow.

Okay, so we've seen #ScheduleA plaintiffs argue that a defendant is lying about its own location before. See, e.g., the Austin, Texas arguments in the #BirdRock case.

But wow. This is....a choice:

I won't go into all the details here, but the court's discussion of the Rule 11 safe harbor provision is really interesting.

Tl;dr: It's okay if the defendant didn't technically comply here.

#CivProMatters

Ah, here we go. An answer to my earlier PPB question:
"[I]f Expeditee had told the truth, the Court might have questioned why a Vietnamese company needed an American court to freeze the assets of Vietnamese Defendants." Why, indeed?

I'll note that it's my sense that most #ScheduleA plaintiffs in the NDIL actually aren't from (and don't purport to be) from Chicago.

And putting the technical venue questions aside, I do think it's worth having this conversation:

Why should the federal court in Chicago be the IP arbiter for the world?

The pain continues: "No reasonable pre-suit investigation could have led Jones to believe that Respect the Look was a foreign company"

Yes, yes, yes, yes, yes!!

"If a plaintiff seeks extraordinary relief with respect to many defendants, it should expect to put in a corresponding amount of effort."

To recap, the plaintiff sought a TRO based on claims of trademark infringement. Those claims were (at least against some of the defendants), totally frivolous:

"Jones cannot avoid sanctions through ignorance of this aspect of trademark law; lawyers must research the law before advancing a legal theory in court."

Yes!

Also: This should be a warning to all the lawyers filing design patent cases based on assumptions about what the law is.

Tl;dr: The cost of complying with Rule 11 is not an excuse to fail to comply with Rule 11
Fraud on the court:
This judge gets it:
"The Court will not give it another opportunity to do what it should have done from the outset: bring factually and legally sound claims."

I am delighted to see that this decision ended up on Westlaw, 2023 WL 5748350, and Lexis, 2023 U.S. Dist. LEXIS 157275.

This case needs to be found, read, and cited broadly.

@design_law Beautiful.
The only thing that would have made it better is if the judge ordered the attorneys to attend a CLE on trademark law
@kathleenthelaw @design_law A CLE provided by EFF? By Rebecca Tushet or Christine Farley?
@design_law you are an amazing teacher. thank you for bringing attention to case. ever since Mattel tried to shake down my ex-husband and me for a parody site we created back in the 1990s, i’ve tried to keep up with the shenanigans involving IP laws
@blogdiva Thank you for saying that! And I'd love to hear more about your parody site if you're ever interested in sharing

@design_law /1/ The sanctions decision is good as far as it goes, but have you looked at DN 77?

extended the TRO as to the other Defendants so Expeditee could provide additional evidence about which Defendants used the FLAGWIX mark. [Dkt. 55.] On February 15, 2022, the Court later entered a preliminary injunction as to those Defendants. [Dkt. 77.]

@paulalanlevy No, hadn't seen that. Will check it out.

@design_law /2/

Given the many lies in P's papers, why was the judge confident that assertions as to the other D's were accurate, thus supporting a PI against them?

And given that P is not, in fact,based in Chicago, why did the judge presume that there was personal jurisdiction in Illinois? The fact that the other D's could not afford counsel (or maybe did not really get notice in time to appear) does not lessen the judge's obligation to protect absent parties

@design_law

/3/ The judge had already extended the TRO once. Rule 65(b)(2) allows ONE fourteen-day extension. Why did the judge extend it further?

@design_law Thanks so much for posting all this. I love it when a judge gets into "not fucking around" mode. There's a crispness, a precision to it that's somehow simultaneously invigorating and soothing.
@design_law Hmm. I'm glad the judge is holding them to the actual law, but given the flag in question, is it reasonable to wish a pox on both their houses?
@jqheywood I mean, that's up to you. But copying isn't per se illegal (or even morally wrong, IMO). And who knows what IP rights, if any, the plaintiff might actually have here. The complaint is pretty light on details about the purported "copyright" and, notably, doesn't mention any copyright registration.
@design_law Oh I agree. My snark was directed to the content.

@design_law Lol, reminds me of the time in a patent case that a magistrate told me that my client should have spent a year and $500k to reverse engineer the accused graphics chip, rather than pursue an infringement case based on inferences from our technical expert.

Point is that any competent IP counsel knows about the duty to perform an adequate pre-filing investigation before filing a federal lawsuit.