Magistrate Judge Peck
http://nycourts.law.com/CourtDocumentViewer.asp?view=Document&docID=118602
ON JUNE 10, 2009, a judge granted Burberry Limited judgment on its claims that defendants sold scarves, hats, polo shirts and handbags bearing counterfeit Burberry trademarks in violation of 15 USC §§1114(1)(a) and 1125(c). At an inquest on damages, Burberry sought—absent opposition—maximum statutory damages of $2 million for each of the three counterfeit marks on each of the four types of goods, for a total of $24 million, pursuant to 15 USC §1117(c). The magistrate judge recommended that Burberry be awarded $4 million in damages. By virtue of their default, defendants were deemed willful infringers. Discussing the seven factors set out in Kenneth Jay Lane Inc. v. Heavenly Apparel Inc., the magistrate judge also found a substantial award necessary and justified because of defendants’ wilfulness and continued counterfeiting after a June 30, 2005, settlement. However, informed by Ermenegildo Zenga Corp. v. 56th St. Menswear Inc. and other cases, the magistrate judge determined that due to lack of information about defendants’ profits or Burberry’s lost revenue, an award of $1 million times the four types of goods was appropriate.
