kaloud v. global hookah trademark complaint

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  • 7/23/2019 Kaloud v. Global Hookah Trademark Complaint

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    COMPLAINT

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    UNITED STATES DISTRICT COURT

    CENTRAL DISTRICT OF CALIFORNIA

    KALOUD, INC., a California corporation,

    Plaintiff,

    v.

    GLOBAL HOOKAH DISTRIBUTORS,INC., a North Carolina corporation, d/b/aSOUTH SMOKE; SHISHAWHOLESALERS, INC., an Illinoiscorporation; and DOES 1-10, inclusive,

    Defendants.

    Case No.

    COMPLAINT FOR:

    (1) TRADEMARK INFRINGEMENT(2) TRADEMARK COUNTERFEITING

    (3) FALSE DESIGNATION OF ORIGIN

    (4) UNFAIR COMPETITION (CAL.

    BUS. & PROF. CODE 17200ET

    SEQ.)

    (5) COMMON LAW UNFAIR

    COMPETITION

    (6) STATE COUNTERFEITING

    (7) COPYRIGHT INFRINGEMENT

    DEMAND FOR JURY TRIAL

    Peter A ras a Bar No. 193336)[email protected] LLP4000 MacArthur BlvdEast Tower, Suite 500

    Newport Beach, CA 92660Telephone: (949) 502-2870Facsimile: (949) 258-5081

    Joanna Ardalan (Bar No. 285384)[email protected] LLP9301 Wilshire BlvdPenthouse SuiteBeverly Hills, CA 90210Telephone: (310) 437-8665Facsimile: (310) 943-2085

    Attorneys for Plaintiff,

    KALOUD, INC.

    Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 1 of 19 Page ID #:1

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    COMPLAINT

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    Plaintiff Kaloud, Inc., by and through its attorneys of record, complains against

    Defendants Global Hookah Distributor, Inc., d/b/a South Smoke (hereinafter referred to a

    Global), Shisha Wholesalers, Inc. (hereinafter referred to as SW) and DOES 1 throug

    10 (Does), alleging as follows:

    JURISDICTION AND VENUE

    1. This is a civil action against Defendants for trademark infringement,

    trademark counterfeiting, false designation of origin and unfair competition under the

    Lanham Act, 15 U.S.C. 1051 et seq.,unfair competition under California law, Cal. Bus

    & Prof. 17200 et seq.,unfair competition under common law, state counterfeiting and

    copyright infringement, 17 U.S.C. 101 et seq.

    2.

    This court has subject matter jurisdiction under the Lanham Act, 15 U.S.C.

    1051 et seq., the Copyright act, 17 U.S.C. 101 et seq., 28 U.S.C. 1331, 28 U.S.C.

    1338(a)-(b), and supplemental jurisdiction over the remaining claims pursuant to 28 U.S.C

    1367.

    3. Venue is proper in this district under 28 U.S.C. 1391(b)-(c) and 28 U.S.C.

    1400(a), in that the claims arise in this Judicial District and the injury suffered by Plaintiff

    took place in this Judicial District. Defendants are subject to the general and specificpersonal jurisdiction of this Court because of its contacts with the State of California.

    4. This Court has personal jurisdiction over Defendants. Among other things,

    Defendants have engaged in direct, contributory, or vicarious trademark and copyright

    infringement, or have otherwise induced trademark and copyright infringement in this

    judicial district. Further, Defendants have engaged in continuous and systematic business

    California, and upon information and belief, derive substantial revenues from commercial

    activities in California. Specifically, Defendants, have (1) on information and belief,

    designed, manufactured, sourced, imported, offered for sale, sold, distributed, or shipped

    infringing and counterfeit merchandise to persons within this State in the ordinary course

    trade; (2) engaged in acts or omissions outside of this State causing injury within the State

    and (3) otherwise made or established contacts with this State sufficient to permit exercise

    Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 2 of 19 Page ID #:2

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    COMPLAINT

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    of personal jurisdiction. For example, on information and belief, Defendants purposely

    availed themselves to California when they purchased authentic Kaloud Lotuses from

    Kaloud in the past to re-sell to customers. Further, they sold shoddy counterfeit Kaloud

    Lotuses that were purportedly sold under Kalouds warranty. Moreover, on information an

    belief, Defendants attract customer interest from all over the world, including California,

    by their social media accounts and websites that advertise their goods for sale.

    PARTIES

    5. Plaintiff Kaloud, Inc. (Kaloud) is a corporation incorporated and existing

    under the laws of California, with its principal place of business at 8391 Beverly Blvd.,

    Suite 441, Los Angeles, California 90048.

    6.

    Defendant Global Hookah Distributors, Inc. (Global), is a North Carolina

    corporation doing business as South Smoke and is located at 3035 Horseshoe Lane, Suite

    B, Charlotte, North Carolina. Global is engaged in the unlawful importation, manufacture

    retail and wholesale sales of counterfeit Kaloud products, including at least the Kaloud

    Lotus, through its storefront located at 3035 Horseshoe Lane, Suite B, Charlotte, NC 2820

    and its website www.southsmoke.com.

    7.

    Defendant Shisha Wholesalers, Inc. (SW), is an Illinois corporation doingbusiness as Shisha Distributors and is located at 75 Eisenhower Lane South Lombard,

    Illinois. SW is engaged in the unlawful importation, manufacture, retail and wholesale

    sales of counterfeit Kaloud products, including at least the Kaloud Lotus, through its

    storefront located at 75 Eisenhower Lane, South Lombard, IL 60148 and its website

    www.shishadistributors.com.

    8. DOES 1 through 10, inclusive, are unknown to Plaintiff, who therefore sues

    said Defendants by such fictitious names. Plaintiff will ask leave of Court to amend this

    Complaint and insert the true names and capacities of said Defendants when the same hav

    been ascertained. Plaintiff is informed and believes and, upon such, alleges that each of th

    Defendants designated here as a DOE is legally responsible in some manner for the

    Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 3 of 19 Page ID #:3

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    events and happenings herein alleged and that Plaintiffs damages as alleged herein were

    proximately caused by such Defendants.

    FACTS COMMON TO ALL COUNTS

    9. Kaloud, Inc., designs and develops innovative hookah products that converge

    traditional hookah-quality with contemporary designs and novel technologies that seek to

    significantly reduce the harmful effects of smoking. Kalouds mission is to connect peopl

    through the ritual of sharing hookah, and indeed, Kaloud does just that. Kaloud has sold it

    hookah products, the Kaloud Lotus, Kaloud Samsaris, and Kaloud Kouture to customers

    throughout the world. Kaloud is immediately recognizable for its high quality and sleek

    aesthetics.

    10.

    In particular, the Kaloud Lotus is a hookah with a heat management system

    that was designed and engineered to regulate the transfer of heat from charcoal to the

    tobacco, and which is manufactured in the United States using high-quality non-toxic

    materials. The design reduces ash and ultra-fine particles, which results in a smoother,

    cleaner and more flavorful Hookah session. Aside from function, the Kaloud Lotus

    aesthetics incorporate an abstract lotus-blossom that adds to its intrigue. Photographs of th

    Kaloud Lotus, its packaging, and its marketing insert (Marketing Insert) is attached asExhibit A.

    11. Kaloud filed for copyright registration for the Kaloud Lotus design and owns

    all rights, including the copyright, to the Kaloud Lotus. The application number is 1-

    2071608084. Further, Kaloud filed for copyright registration for the Kaloud Lotus

    Marketing Insert and owns all rights, including the copyright, to the insert. The applicatio

    number is 1-2389831079.

    12. Kaloud has spent substantial time, money, and effort in developing consumer

    recognition and awareness of its trademarks. Through the extensive use of its marks,

    Kaloud has built and developed significant goodwill in its products. Kalouds marks

    include:

    Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 4 of 19 Page ID #:4

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    a. KALOUD (design mark) for Hookah parts, namely, containers for housing

    charcoal separate from bowls while permitting heat transfer to tobacco place

    in the bowls; hookah tobacco; hookahs; smokers articles, namely, containers

    for housing hookah charcoal separate from hookah bowls while permitting

    heat transfer to tobacco placed in the bowls. Registration number 4762735.

    b. KALOUD (text) for Hookah parts, namely, containers for housing charcoal

    separate from bowls while permitting heat transfer to tobacco placed in the

    bowls; hookah tobacco; hookahs; smokers articles, namely, containers for

    housing hookah charcoal separate from hookah bowls while permitting heat

    transfer to tobacco placed in the bowls. Registration number 4758255.

    c.

    KALOUD (design mark) for flavoring for hookah base water. Registration

    number 4703537.

    d. KALOUD (text mark) for flavoring for hookah base water. Registration

    number 4703536.

    e. KALOUD LOTUS (text) for Hookah parts, namely, containers for housing

    charcoal separate from bowls while permitting heat transfer to tobacco place

    in the bowls; smokers articles, namely, containers for housing hookah charcoseparate from hookah bowls while permitting heat transfer to tobacco placed

    in the bowls.

    f. The Kaloud Lotus Trade Dress for Hookah parts, namely, containers for

    housing charcoal separate from bowls while permitting heat transfer to

    tobacco placed in the bowls; hookah tobacco; hookahs; smokers articles,

    namely, containers for housing hookah charcoal separate from hookah bowls

    while permitting heat transfer to tobacco placed in the bowls.

    g. The mark on the phrase that adorns plaintiffs products packaging-boxes,

    Designed with love (in the heart of a baby unicorn)

    (Collectively Marks.) KALOUD (design mark) for hookah parts (registration number

    4762735) and for flavoring for hookah base water (registration number 4703537), and,

    Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 5 of 19 Page ID #:5

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    KALOUD (text mark) for hookah parts (registration number 4758255) and for flavoring

    for hookah base water (registration number 4703536), are referred to herein as the

    Registered Marks. A true and correct copy of the Marks is attached as Exhibit B.

    13. Kalouds instantly recognizable products and Marks makes Kaloud the targe

    of counterfeiters. These unscrupulous entities tarnish Kalouds brand by unlawfully

    affixing Kalouds marks to unauthentic, and potentially harmful products, leading them to

    illegitimate profits. Consumers are misled when they purchase these inferior products whi

    under the belief the products are authentic Kaloud products. In addition, many of the

    counterfeit products use materials that may be toxic when used to smoke.

    DEFENDANTS UNLAWFUL ACTIVITIES

    14.

    Beginning on a date that is currently unknown to Plaintiff and continuing to

    the present, Defendants have, without the consent of Plaintiff, offered to sell and sold

    within the United States, goods that were neither made by nor authorized by Kaloud using

    reproductions, counterfeits, copies and imitations of the Kaloud Marks and products.

    15. Thus, Kaloud is informed and believes, and upon such, alleges that in order t

    receive higher profit margins, Defendants have held themselves outthrough the

    counterfeit and nearly identical products they carry to be sponsored by, affiliated with,and otherwise connected with Kaloud. Specifically, Defendants have advertised, offered f

    sale, sold, distributed, displayed, and have affixed the Kaloud Lotus Marks to hookah

    products without consent, license, or approval.

    16. On or around June 10, 2015, Kaloud, through a third party, ordered three

    Kaloud Lotuses from Global. Defendant Global sent three counterfeit Lotuses to Kaloud.

    Upon receipt, all three items were inspected and were confirmed as counterfeits.

    17. On or about July 4, 2015, Kaloud, through a third party, ordered ten Kaloud

    Lotuses from Global. As true and correct copy of the email receipt for the July 4, 2015

    order is attached as Exhibit C. Defendant Global sent ten counterfeit Lotuses to Kaloud.

    Upon receipt, all ten (10) items were inspected and were confirmed as counterfeits.

    Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 6 of 19 Page ID #:6

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    18. On or about July 17, 2015, Kaloud, through a third party, ordered 80 Kaloud

    Lotuses from Global. As true and correct copy of the email receipt for the July 17, 2015

    order is attached as Exhibit D. Unlike the other orders, this order was not fulfilled by

    Global. SW fulfilled the order on Globals behalf by sending 80 counterfeit Lotuses to on

    of Kalouds agents. A true and correct copy of the shipping label is attached as Exhibit E.

    19. The counterfeit Lotuses appear identical to the Kaloud Lotus in all material

    respects. The products, including the Marks are identical, as well as the packaging, which

    even used the identification of TM next to the Kaloud Marks. Moreover, the counterfei

    Lotus even included the Marketing Insert that has been registered with the Copyright

    Office. True and correct copies of photographs of the counterfeits are attached as Exhibit

    20.

    Defendants have intentionally and knowingly received payments for

    unauthorized and counterfeit products.

    21. Defendants actions have already confused and deceived, and threaten to

    further confuse and deceive, the consuming public concerning the source and sponsorship

    of the unauthorized and counterfeit Kaloud-branded products sold and distributed by

    Defendant. By its wrongful conduct, Defendants have traded upon and diminished the

    goodwill of the Kaloud Marks. Further, the sale and distribution of counterfeit goods byDefendants have infringed upon the above-identified Marks.

    22. Defendants, by offering to sell, selling, importing, and encouraging others to

    import counterfeit goods in this manner, are causing and are likely to cause further

    confusion or mistake or deceive consumers who purchase the unauthorized and counterfe

    goods.

    23. Defendants also offered to sell, sold, import, and/or encouraged others to

    import for purpose of resale within the United States counterfeit goods consisting of

    reproductions and/or copies of the products baring the Kaloud Marks. Defendants use of

    the Kaloud Marks was done without Kalouds authorization.

    Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 7 of 19 Page ID #:7

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    FIRST CAUSE OF ACTION

    (Trademark Infringement, 15 U.S.C. 1114)

    24. Plaintiff incorporates here by reference the allegations set forth in paragraphs

    1 through 23 above.

    25. Kaloud is the legal owner of the federally registered Kaloud marks as set fort

    in detail in the foregoing paragraphs.

    26. The Registered Marks are valid, protectable and distinctive trademarks that

    Kaloud continuously used to promote its goods since the date of first use as designated in

    the USPTO records.

    27. Defendants have used marks confusingly similar to the Registered Marks in

    violation of 15 U.S.C. 1114. Indeed, Defendants use of confusingly similar imitations

    the Registered Marks is likely to cause confusion, deception, and mistake by creating the

    false and misleading impression that Defendants products are manufactured, produced,

    distributed, endorsed, sponsored, approved, or connected with Kaloud. Plaintiff is

    informed and believes and thereon alleges that Defendants utilized the Registered Marks i

    order to create consumer confusion and has in fact created consumer confusion including

    but not limited to initial interest confusion and confusion as to affiliation or associationbetween Kaloud on one hand and Defendants on another.

    28. At no time did Defendants have the authorization, legal right, or consent to

    engage in such activities in disregard of Kalouds rights in the Registered Marks.

    29. Defendants actions complained of herein were intentional, willful, and

    malicious with a deliberate intent to trade on the goodwill associated with the Registered

    Marks.

    30. Plaintiff is informed and believes and thereon alleges that as a proximate resu

    of the unfair advantage accruing to Defendants business from deceptively trading on

    Kalouds advertising, sales, and consumer recognition, Defendants have made substantial

    sales and profits in amounts to be established according to proof.

    Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 8 of 19 Page ID #:8

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    COMPLAINT

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    31. As a proximate result of the unfair advantage accruing to Defendants

    businesses from deceptively trading on Kalouds advertising, sales, and consumer

    recognition, Kaloud has been damaged and deprived of substantial sales and has been

    deprived of the value of its trademark as a commercial asset, in amounts to be established

    according to proof.

    32. Plaintiff is informed and believes, and thereon alleges that, unless restrained

    by the Court, Defendants will continue to infringe Kalouds Registered Marks, thus

    engendering a multiplicity of judicial proceedings, and that pecuniary compensation will

    not afford Plaintiff adequate relief for the damage to its trademark in the public perception

    Further, Plaintiff is informed and believes and thereon alleges that in the absence of

    injunctive relief, customers are likely to continue to be mistaken or deceived as to the true

    source, origin sponsorship, and affiliation of Defendants and their goods.

    33. Plaintiff is informed and believes and thereon alleges that Defendants acts

    were committed, and continue to be committed, with actual notice of Kalouds exclusive

    rights and with an intent to cause confusion, to cause mistake, and/or to deceive, and caus

    injury to the reputation and goodwill associated with Kaloud and Kalouds products. At a

    minimum, Plaintiff is entitled to injunctive relief and to recover Defendants profits,whichever is greater, together with Plaintiffs attorneys fees pursuant to 15 U.S.C. 1117

    In addition, pursuant to 15 U.S.C. 1118, Plaintiff is entitled to an order requiring

    destruction of all infringing materials in Defendants possession.

    SECOND CAUSE OF ACTION

    (Trademark Counterfeiting, 15 U.S.C. 1116)

    34. Plaintiff incorporates here by reference the allegations in paragraphs 1

    through 33 above.

    35. Counterfeiting has been recognized as a serious issue resulting in tremendou

    losses to American businesses. To combat counterfeits, Congressed pass the Anti-

    counterfeiting Consumer Protection Act of 1966 (ACPA).

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    36. California has a similar statute in Business and Profession Code 14250.

    37. Defendants actions also constitute use of one or more counterfeit marks as

    defined in 15 U.S.C. 1116(d)(1)(B).

    38. Defendants unauthorized use of the Kaloud Marks on counterfeit products

    that they have distributed has caused and is causing consumer confusion about the source

    and sponsorship of these counterfeit goods.

    39. Defendants sale of these counterfeit products has caused considerable dama

    to the goodwill of Kaloud and diminished the brand recognition of the Registered Marks.

    40. The sales of these counterfeit products by Defendants have further resulted in

    lost profits to Kaloud and have resulted in a windfall for Defendants.

    41.

    Plaintiff reserves the right to elect, at any time before final judgment is enter

    in this case, an award of statutory damages pursuant to 15 U.S.C. 1117(c)(1) and/or (2).

    42. Because of the willful nature of the counterfeiting, Plaintiff is entitled to an

    award of statutory damages of up to $2,000,000 per mark infringed under 15 U.S.C.

    1117(c)(2).

    43. In the alternative, and at a minimum, Plaintiff is entitled to injunctive relief

    and to recover Defendants profits, actual damages, enhanced profits, and treble damages,cost, and reasonable attorneys fees under 15 U.S.C. 1117(b).

    44. On information and belief, the Defendants corporate officers and directors,

    had actual knowledge of the business activities of the respective defendant, such as the

    importation of counterfeit goods, or were willfully blind to the same. The Defendants

    corporate officers and directors directed and materially profited from the activities of their

    companies counterfeiting, in the form of increased salaries, benefits, and share price. As

    such, the corporate officers and directors are further jointly and severally liable for the

    counterfeiting.

    45. The acts of direct and/or contributory counterfeiting committed by the

    Defendants have caused and will continue to cause, Plaintiff irreparable harm unless

    enjoined by this Court.

    Case 2:15-cv-07646 Document 1 Filed 09/29/15 Page 10 of 19 Page ID #:10

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    THIRD CAUSE OF ACTION

    (False Designation of Origin/Unfair Competition, 15 U.S.C. 1125(a))

    46. Plaintiff incorporates here by reference the allegations set forth in paragraphs

    1 through 45 above.

    47. Kaloud is informed and believes and thereon alleges that unregistered Kalou

    Marks have become associated in the minds of consumers with Kaloud and its respective

    goods.

    48. Defendants have caused to enter into interstate commerce hookahs that

    Defendants marketed through use of marks that are likely to cause confusion to the Marks

    49.

    The marketing and sale of Defendants; hookahs constitutes false designation

    of origin, which is likely to cause confusion and mistake and to deceive consumers as to th

    source or origin of such goods or sponsorship or approval of such goods by Kaloud.

    50. Kaloud is informed and believes and thereon alleges that as a proximate resu

    of Defendants false designation of origin, Defendants stand to make substantial sales and

    profits in amounts to be established according to proof.

    51.

    Kaloud is informed and believes and thereon alleges that unless restrained bythis Court, Defendants will continue to designate falsely the origin of their goods, causing

    irreparable damage to Plaintiff and engendering a multiplicity of lawsuits. Pecuniary

    compensation will not afford Kaloud adequate relief for its resulting damages. Further,

    Plaintiff is informed and believes and thereon alleges that in the absence of injunctive

    relief, customers are likely to continue being mistaken or deceived as to the true source,

    origin, sponsorship, and affiliation of Defendants goods and services.

    52. Kaloud is informed and believes and thereon alleges that Defendants acts

    were committed, and continue to be committed, with actual notice of Kalouds Marks and

    with an intent to cause confusion, to cause mistake, and to deceive, and to cause injury to

    the reputation and goodwill associated with Kaloud and Kalouds genuine products.

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    COMPLAINT

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    FOURTH CAUSE OF ACTION

    (Unfair Competition California Business & Professions Code 17200 et seq.)

    53. Plaintiff incorporates here by reference to the allegations as set forth in

    paragraphs 1 through 52 above.

    54. Defendants conduct as alleged herein constitutes unfair and deceptive acts o

    practices in the course of a business, trade, or in commerce, in violation of Cal. Bus. &

    Prof. Code 17200 and 17500, et seq.

    55. Plaintiff is informed and believes and thereon alleges that as a direct and

    proximate result of Defendants wrongful conduct as described above, Defendants have

    gained property and revenues properly belonging to Kaloud. Kaloud therefore seeks

    restitution of these amounts. Kaloud also seeks injunctive relief restraining Defendants,

    their officers, agents, and employees, and all persons acting in concert with them, from

    further engaging in acts of unfair competition and/or fraudulent business acts against

    Kaloud and its intellectual property.

    FIFTH CAUSE OF ACTION

    (Common Law Unfair Competition)

    56. Plaintiff incorporates here by reference the allegations as set forth in

    paragraphs 1 through 55 above.

    57. Upon information and belief, Defendants will continue to infringe the Kaloud

    Marks.

    58. By the acts and activities of Defendants complained of herein, Defendants

    have been unjustly enriched.

    59. As a direct and proximate result of the acts and activities of Defendants

    complained of herein, Kaloud has been damaged in an amount not yet ascertainable. Whe

    Kaloud has ascertained the full amount of damages, it will seek leave of court to amend th

    Complaint accordingly.

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    60. Plaintiff in informed and believes, and based thereon alleges, that Defendant

    in doing the things herein alleged, acted willfully, maliciously, and oppressively, with full

    knowledge of the adverse effect of their actions on Kaloud, and with willful and deliberat

    disregard for the consequences to Kaloud.

    SIXTH CAUSE OF ACTION

    (State Statutory Counterfeiting, Cal. Bus. & Prof. Code 14250)

    61. Plaintiff incorporates here by reference to the allegations as set forth in

    paragraphs 1 through 60 above.

    62. Defendants products identified above are counterfeits utilizing Plaintiffs

    Marks.

    63. Plaintiff is injured and entitled to the statutory remedies of trebled damages

    and trebled profits, destruction of all products bearing counterfeit marks, destruction of al

    equipment used to make counterfeit products, punitive damages, and attorneys fees given

    the bad faith acts described above.

    SEVENTH CAUSE OF ACTION

    (Copyright Infringement 17 U.S.C. 101, et seq.)

    64. Plaintiff incorporates hereby reference the allegations as set forth in

    paragraphs 1 through 63 above.

    65. Kaloud is the rightsholder to the copyrights of a unique, original design

    appended to Kalouds product (Copyright), which substantially consists of wholly

    original material and is copyrightable under the laws of the United States. Kaloud has

    complied in all respects with the Copyright Act and all of the laws of the United States

    governing copyrights.

    66. Defendants have directly, vicariously, and/or contributory infringed, and

    unless enjoyed, will continue to infringe Kalouds copyrights by reproducing, displaying,

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    COMPLAINT

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    distributing, and utilizing the Copyright for purposes of trade in violation of 17 U.S.C.

    501 et seq.

    67. On information and belief, Defendants acts of infringement are willful

    because, inter alia, the Defendants are sophisticated sellers of products and knew that the

    unauthorized and counterfeit products were substantially similar to plaintiffs products.

    Indeed, Defendants knew that the design and marketing insert on the counterfeit products

    were exact replicas of the plaintiffs Copyright. Thus, the copyright infringement was an

    exact replica and other non-copyrightable elements were also copied lock, stock and barre

    further demonstrating substantial similarity and willful intent.

    68. On information and belief, Defendants, despite such knowledge, willfully

    publically distributed and publically displayed the Copyright.

    69. Defendants have received substantial benefits in connection with the

    unauthorized display and distribution of the Copyright in the Kaloud product for purposes

    of trade, including by supplying customers with products that purport to be a sought-after

    brand.

    70. The actions of Defendants were and are continuing to be performed without

    permission, license, or consent of Kaloud.71. The wrongful acts of Defendants has caused, and is causing, great injury to

    Plaintiff, of which damages cannot be accurately computed, and unless this Court restrain

    Defendants from further commission of said acts, Kaloud will suffer irreparable injury, fo

    which it is without an adequate remedy at law. Accordingly, Plaintiff seeks a declaration

    that Defendants are infringing Kalouds copyrights and an order under 17 U.S.C. 502

    enjoining Defendants from any further infringement of Plaintiffs copyrights.

    72. As a result of the acts of Defendants alleged herein, Kaloud has suffered and

    suffering substantial damage to its business in the form of diversion of trade, loss of profit

    injury to goodwill and reputation, and the dilution of the value of its rights, all of which ar

    not yet fully ascertainable.

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    73. Kaloud is entitled to actual damages in an amount to be proven at trial for the

    infringement of all works at issue.

    74. Plaintiff is also entitled to its attorneys fees in prosecuting this action.

    PRAYER FOR RELIEF

    WHEREFORE, Plaintiff Kaloud, Inc., respectfully requests the following relief

    against Defendant as follows:

    1. With regard to Kalouds claim for counterfeiting:

    a. Defendants profits and statutory damages of $2,000,000 per defendan

    under ACPA;

    b.

    Defendants profits, these profits being trebled;

    c. Attorneys fees;

    d. Costs of suit;

    e. Joint and several liability for landlords, officers, and directors for the

    knowing participation in the counterfeiting activities of the respective

    Defendants;

    f.

    The impoundment and destruction of all counterfeit products, as well athe destruction of all tools, machines or other instrumentalities that we

    used to manufacture and display the counterfeit products;

    2. With regard to Kalouds claim for state counterfeiting:

    a. Defendants profits, plaintiffs damages, all trebled;

    b. Punitive damages of up to ten times the actual damages or higher as

    permitted by the Constitution;

    c. Attorneys fees;

    d. Costs of suit;

    e. Joint and several liability for landlords, officers, and directors for the

    knowing participation in the counterfeiting activities of the respective

    Defendants

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    f. The impoundment and destruction of all counterfeit products, as well a

    the destruction of all tools, machines or other instrumentalities that we

    used to manufacture and display the counterfeit products;

    3. With regard to Kalouds claim against Defendants for trademark infringemen

    and false designation of origin:

    a. Defendants profits pursuant to the Lanham Act;

    b. Damages sustained by the Plaintiff for trademark infringement;

    c. Trebling for a willful violation;

    d. Attorneys fees;

    e. Costs of suit;

    4.

    For restitution in an amount to be proven at trial for unfair, fraudulent, and

    illegal business practices under California Business & Professions Code 17200;

    5. Preliminarily and permanently enjoining Defendants and their agents,

    employees, officers, directors, owners, representatives, successor companies, related

    companies, and all persons acting in concert or participation with them and each of them

    from:

    The import, export, making, manufacture, reproduction, assembly, use,acquisition, purchase, offer, sale, transfer, brokerage, consignment,

    distribution, storage, shipment, licensing, development, display, delivery,

    marketing, advertising or promotion of the unauthorized and counterfeit

    Kaloud products as identified in the complaint and any other unauthorized

    Kaloud product or colorful imitation thereof;

    6. Pursuant to 15 U.S.C. 1116(a), directing Defendants to file with the court

    and serve on Kaloud within thirty (30) days after issuance of an injunction, a report in

    writing and under oath setting forth in detail the manner and form in which Defendants

    have complied with the injunction;

    7. For an order from the Court requiring that Defendants provide complete

    accountings and for equitable relief including that Defendants disgorge and return or pay

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    their ill-gotten gains obtained from the illegal transactions entered into and pay restitution

    including the amount of monies that should have been paid if Defendants have complied

    with their legal obligations, or as equity requires;

    8. Pursuant to 15 U.S.C. 1118, requiring that Defendants and all others acting

    under Defendants authority, at their cost, be required to deliver to Plaintiff for destruction

    of all products, accessories, labels, signs, prints, packages, wrappers, receptacles,

    advertisements, and other material in their possession, custody or control baring any of th

    Kaloud Marks.

    9. For damages in an amount to be proven at trial for unjust enrichment;

    10. For an award of exemplary and punitive damages in amount to be determined

    by the Court;

    11. With regard to Kalouds claim against Defendants for copyright infringemen

    that:

    a. An accounting be made for all profits, income, receipts or other benefi

    derived by Defendants from the reproduction, copying, display,

    promotion, distribution or sale of products and services, or other media

    either now known or hereafter devised, that improperly or unlawfullyinfringes upon Plaintiffs copyrights pursuant to 17 U.S.C. 504 (a)(

    & (b).

    b. Requiring Defendants to account for and pay over to Plaintiff all profit

    derived by Defendants from its acts of copyright infringement and to

    reimburse Plaintiff for all damages suffered by Plaintiff by reasons of

    Defendants acts, pursuant to 17 U.S.C. 504 (a)(1) & (b).

    c. Actual damages for copyright infringement pursuant to 17 U.S.C.

    504 (a)(1) & (b).

    d. Attorneys fees;

    e. Costs of suit;

    12. For Plaintiffs reasonable attorneys fees;

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    13. For all costs of suit;

    14. For such other and further relief as the Court may deem just and equitable.

    Dated: September 29, 2015 ONE LLP

    By: /s/ Joanna Ardalan

    Joanna ArdalanAttorneys for Plaintiff,KALOUD, INC.

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    DEMAND FOR JURY TRIAL

    Plaintiff Kaloud Inc. hereby demands trial by jury of all issues so triable under the

    law.

    Dated: September 29, 2015 ONE LLP

    By: /s/ Joanna Ardalan

    Joanna ArdalanAttorneys for Plaintiff,KALOUD, INC.

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