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Case 2:12-cv-08932-DDP-MAN Document 31 Filed 11/16/12 Page 1 of 12 Page ID #:1460

ANDREA E. BATES, ESQ. SBN 192491


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Abates@Bates-bates.com
BATES & BATES, LLC
3 964 DeKalb Avenue, Suite 101
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Atlanta, Georgia 30307
Phone ( 404) 228-7439
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JO
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Attorneys for Plaintiff
Jumbo Bright Trading Limited and Charles Anthony Philip Pozzi
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
JUMBO BRIGHT TRADING LIMITED, )
A Hong Kong Corporation, and CHARLES )
Case No. CV12-8932-DDP (MANx)
12 ANTHONY PHILIP POZZI, an Individual, ) PLAINTIFFS' REPLY BRIEF
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Plaintiffs,
IN SUPPORT OF IT'S MOTION
FOR PRELIMINARY INUNCTION
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THE GAP, INC. and DOES 1-10,
Defendants.
I.
Hon. Dean D. Pregerson
Hearing Date: Dec. 3, 2012
Hearing Time: 10:00 am
Courtroom 3
INTRODUCTION
Plaintiffs Jumbo Bright Trading Limited ("JBTL") and Charles Anthony Philip
Pozzi ("Charles Philip") created a brand of popular loafers with a trademarked striped
insole (comparable to Christian Louboutin's signature red soles) and many celebrities
wear these popular loafers. [See Dec of A. Bates at p. 2, ~ 4.] The Gap Inc. ("Gap")
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25 capitalized on the unique popularity of this exclusive brand, replicating the 2011 line of
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JBTL shoes and even used the name PHILLIP printed inside these shoes, so its customers
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would mistakenly associate them with the CHARLES PHILIP brand of loafers.
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1111
t H \ ~ I I ' \ I 111 1 11'
[See Dec. of A. Bates at Exhibit "B."] Gap argues the use of the common name PHILLIP
on nearly identical shoes is just a coincidence; this assertion defies common sense.
As the facts previously presented this Court have not changed, this memo will
incorporate the unchanged facts by referencing the previous filings. Thus, this reply brief
will focus on clarifying the issues addressed in Gap's Opposition.
II. A PRELIMINARY INJUNCTION IS NECESSARY
Preliminary injunctive relief shall be issued if: (1) there is a likelihood of success on
the merits; (2) there is a likelihood of irreparable harm absent a preliminary injunction; (3)
the balance of equities tips in favor of issuing an injunction; and ( 4) an injunction is in the
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public interest. Network Automation, Inc. v. Advanced Sys. Concepts, Inc., 638 F.3d
27 1137, 1144 (9
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Cir. 2011) (internal citation omitted).
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A. Plaintiffs Demonstrated An Indisputable Likelihood of Success On the
Merits.
1. GAP Committed Trademarl{ Infringement
To prove trademark infringement, Plaintiffs must satisfy two basic elements: ( 1) a
valid protectable mark; and (2) a likelihood of confusion, mistake, or deception in
Defendant's use of the trademark (15 U.S.C. 1114). In its opposition to the Motion for
Preliminary Injunction, Gap claims the striped design on the inside of a shoe is generic.
To support its generic shoe argument, Gap provided 88 pages of blue and white striped
shirts. [Doc. 30 at Ex. 1 0.] Pictures of striped shirts are not probative to the genericness
of the JBTL trademarks because Plaintiffs are not claiming intellectual property rights in
blue and white stripes on shirts, rather, the unique placement of the blue and white stripes
on the inside of its loafers.
Of the hundreds of examples of shoes Gap provides to support its generic claim,
Plaintiffs only located two shoes that are English style loafers with somewhat comparable
blue and white vertical stripes (discounting the Gap Phillip loafers and CHARLES PHILIP
loafers). [See Doc. 30, Ex. 6, pp. 82-85, 131-34.] Out of these two, Plaintiff JBTL sent
Steve Madden a cease and desist letter on September 17, 2012, and the matter is being
addressed. [See Second Bates Dec. at Doc. 24]. JBTL's IP counsel is preparing a cease and
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desist letter for the shoe containing the Diva Lounge brand sold by Urbanog.com. Two
shoes are hardly enough to claim a trademark is generic.
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Second, in opposition to the Motion for Preliminary Injunction, Gap claims this
Court should not consider the evidence submitted in the Pozzi Dec. [Doc. 10 Ex. 2 ~ 4-8.]
because it is inadmissible hearsay under Fed. R. Evid. 802. Admissibility of hearsay under
802 is not the standard for admissibility on a preliminary injunction motion, as the Court
may consider inadmissible evidence even hearsay in deciding the present motion.
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Plaintiffs would not fabricate false letters as that would be petjury, and Gap and this Court
can rest assured these emails and letters will be in the declaration form and admissible for
trial.
Also, Gap alleges the JBTL trademarks are invalid because they have not achieved
secondary meaning. Gap's reliance on the USPTO NON-FINAL Office Action to support
this proposition is meritless. The NON-FINAL Office Action simply requests more
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The Lanham Act only requires "substantially exclusive and continuous use" in the prima
facie evidence of secondary meaning section. 15 U.S.C. 1 052(f). The Trademark Trial
and Appeal Board stated, "[ w ]e acknowledge that acquired distinctiveness allows for use
by others, but such use is permitted only so long as it does not rise to a level that
invalidates the applicant's claim of 'substantially' exclusive use." Nextel Comms., Inc. v.
Motorola, Inc., 91 USPQ 2d 1393 (IT AB 2009).
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At the preliminary injunction stage, "[t]he trial court may give even inadmissible
evidence some weight, when to do so serves the purpose of preventing irreparable harm
before trial." _Flynt Distrib. Co. v. Harvey, 734 F.2d 1389, 1394 (9th Cir. 1984). This
includes considering hearsay. Republic of the Philippines v. Marcos, 862 F.2d 1355, 1363
(9th Cir. 1988) (en bane).
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information regarding the distinctiveness of the JBTL trademark, of which it has six (6)
months to respond. [See Dec of A. Bates at Exhibit "C."]
Gap claims the JBTL marks have not achieved secondary meaning because they
have not received market penetration. Market penetration is impossible to measure without
the definition of a market. Gap incorrectly defines the market as the broad $66.1 billion in
total U.S. shoe sales, rather than the relevant market of high end U.S. shoe sales. [See
Doc. 28, pp. 9-10.] Christian Louboutin, arguably the world's most famous shoe designer,
reported revenue of $250 million in 2010.
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Assuming that half of this revenue, $125
million, was generated in the U.S., Louboutin would control less than .02% of the overall
U.S. shoe market, according to Gap's definition of relevant market. Thus, just as
Louboutin's trademark has achieved secondary meaning in the high-end market, so has
Plaintiffs.
To demonstrate market penetration, Plaintiffs provided examples of media coverage
in fashion magazines, fashion blogs and advertisements on distributor websites. [See Supp.
Dec of A Bates Doc 24] While specific numbers of market penetration are not available at
this point, the evidence shows consumers of high end designer shoes have been exposed to
the distinctive striped design on the inside of the CHARLES PHILIP loafers and recognize
them as such.
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Elle Magazine, Sole Provider, available at
http: //www.elle.com/fashion/spotlight/christian-louboutin (last visited Nov. 15, 20 12).
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Gap argues the reputation and notoriety of the CHARLES PHILIP loafers
abroad is irrelevant. [See Doc. 28, fn. 2.] In support of this argument, Gap quotes a case
describing the territoriality principle, ruling that a foreign user could not claim priority
based on foreign use over a senior user in the U.S.
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Gap, however, is not claiming priority
of use of the JBTL trademarks. Thus, the foreign reputation and notoriety of the JBTL is
very relevant in creating a secondary meaning in the minds of the U.S. consumer.
In this regard, the fashion industry and fashion trends are international. Many of the
major fashion magazines such as Harper's Bazaar, Vogue, and Elle have separate foreign
editions covering the same global fashion trends. Consumers and distributors of high end
fashion goods in the U.S. look to foreign fashion hot spots such as Milan, Paris, and
London to stay up to date on the newest fashion trends. Many of the most well-known
designers in the U.S. originated from other countries such as Christian Louboutin (France),
Gianni Versace (Italy), and Christian Dior (France). Many of the covers of the foreign
fashion magazines featuring the CHARLES PHILIP loafers are adorned with celebrities
that are famous in the U.S. for their fashion sense such as Sarah Jessica Parker, Charlize
Theron, Alyssa Miller, Mila Kunis, and Milia Jovovich. U.S. distributors look to French
and Italian fashion trends for "inspiration."
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The average consumer of CHARLES PHILIP
loafers will be aware of and follow these foreign publications.
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Person's Co. v. Christman, 900 F.2d 1565 (Fed. Cir. 1990).
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"The United States has been known for producing imitations and knock-offs from
Parisian couture." Shirwaikar, Pranjal, "Fashion Copying and Design of the Law," J of Int.
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In addition, Gap's argument that consumers will not likely be confused is
unpersuasive. As shown, the shoes are nearly identical, and Gap has a history of working
with well-known designers. [See Doc. 19 at Exhibit "C."] The inclusion of the Gap word
mark does not diffuse the likelihood a consumer will be confused into believing that
CHARLES PHILIP has licensed his designs to Gap.
2. GAP Committed Patent Infringement
To establish a reasonable likelihood of success on a design patent, "the patentee
seeking a preliminary injunction in a patent infringement suit must show that it will likely
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the patent." Titan Tire Corp. v. Case New Holland, Inc., 566 F.3d 1372, 1376 (Fed. Cir.
2009). Contrary to Gap's position, design patents D668849 and D668850 will likely
withstand challenges to their validity, and the court will presume their validity.
A defendant must prove invalidity by "clear and convincing evidence." Microsoft
Corp. v. i4i Ltd. P'shp, 564 U.S. --, 180 L. Ed. 131, 136 (20 11 ). A "patent enjoys the
same presumption of validity during preliminary injunction proceedings as at other stages
of litigation." Titan Tire Corp., 566 F.3d at I 376. Gap is asking this Court to substitute its
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Prop. Rights, Vol. I 4, March 2009, p. I 15; see also Hemphill, C. Scott & Suk, Jeannie,
"The Law, Culture, and Economics of Fashion", STAN. L. REv., Vol. 61, pp. 1171-72, fn.
83, March 2009 (explaining the rise of the knockoff consultant, someone who poses as an
ordinary shopper while scouting boutiques in London, Paris and Milan and mailing photos
of the hottest designs back to their American clients.)
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the patents-in-suit. The USPTO has already determined the patents at issue are valid, and
there is no need to second guess its expert judgment.
The public's reaction to the distinctive "look" of the Charles Philip Shoes confirms
the novelty and non-obviousness of Charles Philip's patented designs, as does Gap's
copy mg. "Secondary considerations 'can be the most probative evidence of non-
obviousness in the record, and enables the ... court to avert the trap of hindsight."' Crocs,
Inc. v. lTC, 598 F .3d (Fed. Cir. 201 0) (finding a design patent non-obvious partially due to
the commercial success of the product that embodied the design).
Charles Philip is likely to prove at trial Gap's products infringe Charles Philip's
patented designs. Gap acknowledges that, during prosecution, the likely test for
anticipation is the "Ordinary Observer" test set forth by the Federal Circuit in Egyptian
Goddess, Inc. v. Swisa, Inc., 543 F.3d 665 (Fed. Cir. 2008). As stated by the Supreme
Court:
If, in the eye of an ordinary observer, giving such attention as a purchaser
usually gives, two designs are substantially the same, if the resemblance is
such as to deceive such an observer, inducing him to purchase one
supposing it to be the other, the first one patented is infringed by the other.
Gorham Co. v. White, 81 U.S. (14 Wall.) 511,528 (1871).
"[I]t is the appearance of a design as a whole which is controlling m determining
infringement." OddzOn Products, Inc. v. Just Toys, Inc., 122 F.3d 1396, 1405 (Fed. Cir.
1997). If the "patented design as a whole is substantially similar in appearance to the
accused design," there is infringement. Id.
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Differences between the Gap shoes and the patented designs are trivial; thus, Gap
catmot escape infringement by introducing minor variations into otherwise copycat
products. ~ t i a n Goddess, 543 F.3d at 670 ("[T]he [infringing design and patented
design] need not be the same ' to the eye of an expert,' because if that were the test,
'[t]here never could be piracy of a patented design, for human ingenuity has never yet
produced a design, in all its details, exactly like another, so like, that an expert could not
distinguish them"') (quoting Gorham, 81 U.S. at 527).
3. GAP Has Violated Charles Philip's Right of Publicity
Out of the hundreds of thousands of possible first names, it is disingenuous for Gap
to argue that it is a mere coincidence it uses the same name, especially given Gap's use of
the striped design on the inside of Engli sh style loafer in a nearly identical copy of the
CHARLES PHILIP loafer to call its use of "PHILLIP MOCCASIN SLIPPER" and
"PHILLIP SLIPPER." This coincidence becomes even more suspect when it is not just
one loafer that was copied but nearly the whole line of loafers. [See Dec of A. Bates at
Exhibit "B."]
B. Plaintiffs Will Suffer Ineparable Harm In The Absence of Preliminary
Injunctive Relief.
In its Order Denying the TRO, the Court required Plaintiffs to demonstrate an
immediate threatened injury by clear evidence, not speculation. [Doc. 21 at p. 5.] To
address the Court's concern, Plaintiffs provide the declaration of Peter Grueterich attached
hereto. Mr. Grueterich works for Peter Marcus Group, the US distributor for the
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CHARLES PHILIP brand shoes. [Grueterich Dec. at p. 2, ~ 2.] As the US distributor, he
is familiar with the irreparable damages that the GAP PHILLIP line has caused Plaintiffs.
[Id. at ~ 3.] Since the release of the Gap PHILLIP shoes, the CHARLES PHILIP sales
have been in a severe decline. [Id. ~ 4.] For example, one of the high-end retailers has
asked to return 800 pairs of shoes, which have not sold and are cancelling another
shipment of 800 pairs for next season. [Id.] This NEVER occurred prior the Gap PHILIP
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release; CHARLES PHILIP shoes were, since their launch, one of the BEST SELLERS
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for Peter Marcus Group's retailers and since the Gap launch the sales have been in severe
decline and there has been an increase in returns. [Id.]
The devastating effects of the Gap PHILLIP shoes have also caused one of Peter
Marcus Group's retailers to state that they only going to carry the CHARLES PHILIP
shoes in 8 stores, whereas prior to the GAP release of the Gap PHILLIP shoes the
CHARLES PHILLIP shoes were available in 22 stores. [lei. ~ 5.] The blatant copies and
sales made by GAP are crippling the CHARLES PHILIP sales. [ l e i . ~ 6.] The reputation of
CHARLES PHILIP shoes with high-end retailers and customers may never be repaired if
the GAP PHILLIP shoes are not immediately pulled from the marketplace. [lei.]
v. CONCLUSION
Accordingly, Plaintiffs respectfully requests this Court grant their Motion for
Preliminary Injunction.
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Respectfully submitted, this 16th day of November 2012.
BATES & BATES, LLC
Attorneys for PLAINTIFFS
JBTL and CHARLES ANTHONY PHILIP POZZI
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CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing was furnished through
the Court's CM/ECF System addressed to all parties:
Michael D. Roth, Esq.
Alison Mackenzie, Esq.
Caldwell, Leslie & Proctor, P.C.
725 South Figueroa Street
31st Floor
Los Angeles, California 90017-5524
James D. Weinberger, Esq.
Giselle C.W. Huron, Esq.
Fross, Zelnick, Lehrman & Zissu, P.C.
866 United Nations Plaza
New York, NY 10017
This 16th day of November 2012.
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PLAINTIFFS' REPLY BRIEF IN SUPPORT OF IT'S MOTION FOR PRELIMINARY INJUNCTION
Case 2:12-cv-08932-DDP-MAN Document 31-1 Filed 11/16/12 Page 1 of 13 Page ID
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1 ANDREA E. BATES, ESQ. SBN 192491
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Abates@Bates-bates.com
BATES & BATES, LLC
3 964 DeKalb Avenue, Suite 101
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Atlanta, Georgia 30307
Phone(404)228-7439
5 Fax ( 404) 963-6231
6
Attorneys for Plaintiff
7 Jumbo Bright Trading Limited and Charles Anthony Philip Pozzi
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
JUMBO BRIGHT TRADING
LIMITED, A Hong Kong Corporation,
and CHARLES ANTHONY PHILIP
POZZI, an Individual,
Plaintiffs,
vs.
THE GAP, INC. and DOES 1- 10,
Defendants.
) Case No. CV12-8932-DDP (MANx)
)
) DECLARATION OF
) ANDREA E. BATES IN SUPPORT
) OF PLAINTIFFS' REPLY BRIEF IN
) SUPPORT OF IT'S MOTION FOR
) PRELIMINARY INJUNCTION
)
)
) Judge: Honorable Dean D. Pregerson
) Date: December 3, 2012
) Time: 10:00 a.m.
) Courtroom: 3
DECLARATION OF ANDREA E. BATES
I, Andrea E. Bates, declare as follows:
1. Unless otherwise stated as based upon information and belief, the facts set
25 forth in this declaration are personally known to me and I have first knowledge of
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- I -
DECLARATION OF ANDREA E. BATES IN SUPPORT OF PLAINTIFFS' REPLY BRIEF IN
SUPPORT OF IT'S MOTION FOR PRELIMINARY INJUNCTION
Case 2:12-cv-08932-DDP-MAN Document 31-1 Filed 11/16/12 Page 2 of 13 Page ID
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these facts. If called upon to testify during court of this action, I could, and I would
competently testify thereto under oath. I am over 18 and a party to this action.
2. I am an attorney licensed to practice law before the courts in the State of
5 California and the federal Central District of California. I am a partner in the law firm
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of Bates & Bates, LLC, which is counsel of record for Plaintiffs JUMBO BRIGHT
TRADING LIMITED, a Hong Kong corporation and CHARLES ANTHONY PHILIP
POZZI, and individual (collectively "Plaintiffs"). As one of the attorneys in this case,
I participate in the filing and retrieval of documents for this case. I also supervise
associate attorneys and staff in those activities.
3. As an attorney for Plaintiffs, I have corresponded with Charles Anthony
Philip Pozzi and personnel of the company as well as reviewing records of the
company in regards to trademark issues and patent issues among others.
4. Attached as Exhibit A is a true and correct copy of an article showing
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Poppy Delevingne, Brad Pitt and Ryan Gosling owning CHARLES PHILIP shoes.
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5. Attached as Exhibit B is a true and correct copy of a side-by-side
comparison of some of the GAP PHILLIP line with the CHARLES PHILIP 2011 line
of shoes.
6. Attached as Exhibit Cis a true and correct copy of the NON-FINAL
office actions for the CHARLES PHILIP insole striped designs.
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DECLARATION OF ANDREA E. BATES IN SUPPORT OF PLAINTIFFS' REPLY BRIEF IN
SUPPORT OF IT'S MOTION FOR PRELIMINARY INJUNCTION
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I declare under penalty of petjury under the laws of the United States of
America, the States of Georgia and California that the foregoing is true and correct.
Executed on November 16th 2012 in Atlanta, Georgia.
~ d e L
Andrea E. Bates, Esq.
Declarant
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DECLARATION OF ANDREA E. BATES IN SUPPORT OF PLAINTIFFS' REPLY BRIEF IN
SUPPORT OF IT'S MOTION FOR PRELIMINARY INJUNCTION
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CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing was furnished
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through the Court's CM/ECF System addressed to all parties:
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Michael D. Roth, Esq.
Alison Mackenzie, Esq.
Caldwell, Leslie & Proctor, P.C.
725 South Figueroa Street
31st Floor
Los Angeles, California 90017-5524
James D. Weinberger, Esq.
Giselle C.W. Huron, Esq.
Fross, Zelnick, Lehrman & Zissu, P.C.
866 United Nations Plaza
New York, NY 10017
This 16th day ofNovember 2012.
- 4 -
DECLARATION OF ANDREA E. BATES IN SUPPORT OF PLAINTIFFS' REPLY BRIEF IN
SUPPORT OF IT'S MOTlON FOR PRELIMINARY INJUNCfiON
Case 2:12-cv-08932-DDP-MAN Document 31-1 Filed 11/16/12 Page 5 of 13 Page ID
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EXHIBIT
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Case 2:12-cv-08932-DDP-MAN Document 31-1 Filed 11/16/12 Page 6 of 13 Page ID
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Case 2:12-cv-08932-DDP-MAN Document 31-1 Filed 11/16/12 Page 8 of 13 Page ID
#:1479
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Jumbo Drii:ht Trading LimitN com)
U.S. TIV\ DE.\ lARK APPLICATION !'10. 85601476 - NIA
R/1312012 11 :40.59
Stnt ,\i: USPTO.GOV
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DATES & ll.\lLS. UC
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CQRHl:Sf'O.SDEST ADDRI:.SS

OFFICE ACTION
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STRICT DEADLINE TO RESPOND TO THIS LETTER
TOA\'OIDAB . .t!\1JO>-'\E:-..TOFAFRJCA .. 'TS TR\r::>Bl\RK \ fl"ST
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EXHIBIT
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Case 2:12-cv-08932-DDP-MAN Document 31-1 Filed 11/16/12 Page 9 of 13 Page ID
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Case 2:12-cv-08932-DDP-MAN Document 31-1 Filed 11/16/12 Page 10 of 13 Page ID
#:1481
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111ppl1uUon r Kord.
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hnr """' \'..n k4' sJ I l:l!!\.
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Case 2:12-cv-08932-DDP-MAN Document 31-1 Filed 11/16/12 Page 11 of 13 Page ID
#:1482
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US. TRADE.\IARK APPLICATION NO 8.5602452 - N/ A
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TO A\ '010 OF 'S 11-l-\ OOL\ RK APf1 n;PJO
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Case 2:12-cv-08932-DDP-MAN Document 31-1 Filed 11/16/12 Page 12 of 13 Page ID
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Cf' the m!llt ..kpict a thw.:-dmxnciQJlll lit\\ c.( tht or
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the mllk
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c;;n Drom ing SJ)(dmtn
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Case 2:12-cv-08932-DDP-MAN Document 31-1 Filed 11/16/12 Page 13 of 13 Page ID
#:1484
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omct :tction by t m.lll
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ill ck.J,D.wulllichJ tt-< Ultuu'l(lb:' a(ftt.:atk."'c\Cl) thnt t.J (our 11)' <:!\h.
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TO ADDRf..SS: l 't tl:t TE.-\S rc.mJJI
1.111 "'"' ur .(H'"' \'iNN"I
Case 2:12-cv-08932-DDP-MAN Document 31-2 Filed 11/16/12 Page 1 of 7 Page ID
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1 ANDREA E. BATES, ESQ. SBN 192491
2
Abates@Bates-Bates.com
BATES & BATES, LLC
3 964 DeKalb A venue, Suite 101
4
Atlanta, Georgia 30307
Phone(866) 701-0404
5 Fax (404)963-6231
6
Attorneys for Plaintiff
7 Jumbo Bright Trading Limited
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
JUMBO BRIGHT TRADING
LIMITED, a Hong Kong corporation,
) Case No. CV-12-8932-DDP (MANX)
)
Plaintiff,
vs.
) DECLARATION OF CHARLES
) ANTHONY PHILIP POZZI IN
) SUPPORT OF PLAINTIFFS' REPLY
) BRIEF IN SUPPORT OF IT'S
THE GAP, INC., and DOES 1 through
10,
) MOTION FOR A PRELIMINARY
) INJUNCTION
Hon. Dean D. Pregerson
Hearing Date: Dec. 3, 2012
Hearing Time: 10:00 am
Courtroom 3
Defendants.
DECLARATION OF CHARLES ANTHONY PHILIP POZZI
I, Charles Anthony Philip Pozzi, declare as follows:
1. I, Charles Anthony Philip Pozzi, a United States citizen, make this
24 declaration in suppoti of Plaintiffs' Motion for a Preliminary Injunction. Unless
25
otherwise stated as based upon information and belief, the facts set forth in this
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28 - 1-
DECLARATION OF CHARLES ANTHONY PHILIP POZZI IN SUPPORT OF PLAINTIFFS'
REPLY BRIEF IN SUPPORT OF IT'S MOTION FOR A PRELIMINARY INJUNCTION
Case 2:12-cv-08932-DDP-MAN Document 31-2 Filed 11/16/12 Page 2 of 7 Page ID
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Declaration are personally known to me, and I have firsthand knowledge of
these facts. If called upon to testifY during court in this action, I could, and I
would competently testifY thereto under oath. I am over 18 and a pmiy to this
action.
2. I am a footwear designer and launched the CHARLES PHILIP
brand in Shanghai in 2010. The CHARLES PHILIP brand shoes were
introduced in the United States in August 2010. They have been sold in high-
end department store such as Bloomingdales and Sak's Fifth Avenue. My shoes
are luxury items, retailing for around $130, and were immediately noticed by the
fashion industry and the cognoscenti.
3. Consumers recognize the shoes designed by me through the
16 trademarks present on the shoes. These marks include the CP CHARLES
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PHILIP trademark on the inside sole of the shoe and the distinctive stripe design
on the inside of the shoe. Solely for descriptive purposes, these trademarks are
the subject of the U.S. Trademark Applications: 85/476,692, 85/602,476, and
85/602,452 respectively. I have been verbally complimented numerous times by
fashion industry personnel and fashion celebrities on the distinctiveness of the
striped design. I included a few of these compliments that have been expressed
28 -2-
DECLARATION OF CHARLES ANTHONY PHILIP POZZI IN SUPPORT OF PLAINTIFFS'
REPLY BRIEF IN SUPPORT OF IT'S MOTION FOR A PRELIMINARY INJUNCTION
Case 2:12-cv-08932-DDP-MAN Document 31-2 Filed 11/16/12 Page 3 of 7 Page ID
#:1487
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in writing in Exhibit A to my Declaration in Support of a Temporary Restraining
Order.
4. Designers are able to charge consumers premium prices once they
5 have established themselves. This premium price is based on designer
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reputation and the quality of the goods. To charge these premium prices, the
consumers must be able to identify the designer's goods. To create this
consumer recognition, I have used my nickname "Charles Philip" and the unique
striped design on the inside of an English style loafer.
5. The retail fashion industry can be characterized as a copycat
industry. Many businesses in the fashion indust1y monitor magazines and other
fashion publications to identify fashion trends and create their product based on
these trends.
6. My shoes have been featured in fashion magazines throughout the
world, including the United States. I believe that my shoes are pati of a recent
fashion trend in English style loafers. Since the coverage of my shoes in the
fashion magazines, there have been instances of large retail businesses,
including The GAP, copying my unique stripe design on the inside of English
style loafers. I have instructed my intellectual property counsel to send cease
and desist letters to these businesses. I understand the impmiance of protecting
28 -3-
DECLARATION OF CHARLES ANTHONY PHILIP POZZI IN SUPPORT OF PLAINTIFFS'
REPLY BRIEF IN SUPPORT OF IT'S MOTION FOR A PRELIMINARY INJUNCTION
Case 2:12-cv-08932-DDP-MAN Document 31-2 Filed 11/16/12 Page 4 of 7 Page ID
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the unique striped design so I can identity my loafers to the consumer. Iflarge
retail businesses could use my unique striped design without permission from
me, I could no longer use the striped design to identity my design to the
consumer.
7.
A designer's reputation can be significantly based on the
association of that designer with celebrities and department stores. The
premium price charged to consumers who buy designer goods includes the
consumers association with that designer. If a cetiain designer becomes "hot"
through being featured in fashion magazines and/or fashion blogs, that designer
may be able to charge premium prices based on reputation alone, regardless of
the quality of the goods. It is possible to have a designer gain notoriety by
securing a relationship with the high-end depmiment stores such as
Bloomingdales and Sak's Fifth A venue.
8.
If GAP is allowed to continue selling copies of my shoes
throughout the pendency of this trial, my reputation as a designer will be
irreparably harmed. As a high-end fashion designer, it is important to create an
elitist aura around your designs so consumers feel like they are pati of the "in"
crowd. The GAP markets to a much larger cost conscious crowd. I could no
28 -4-
DECLARATION OF CHARLES ANTHONY PHILIP POZZI IN SUPPORT OF PLAINTIFFS'
REPLY BRIEF IN SUPPORT OF IT'S MOTION FOR A PRELIMINARY INJUNCTION
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longer charge the premium prices for my designs if consumers believed they
could get shoes designed by me at The GAP.
9. It is vety impmiant to me to have control over my designs and
5 trademarks. I do not want my designs and trademarks tarnished by association
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with an entity that I have not approved. From a designer standpoint, association
with a cost conscious company such as GAP could destroy my reputation as a
high-end designer. From a personal standpoint, GAP may use manufacturing
methods that I do not believe in or agree with. An association with GAP will
likely cause irreparable harm to me on both a designer and personal level.
10. I have been approached a few of by my distributors expressing
concerns about licensing my shoe designs to The GAP. Obviously, I have not
licensed the use of my designs to The GAP. I explained this to my distributors.
If GAP is allowed to continue selling it Phillip loafers using confusingly similar
trademarks, my business relationship with my distributors will be irreparably
harmed. Ifi am unable to contract with high-end depatiment stores, this will
hurt my reputation as a designer.
23 11. If GAP is allowed to continue to sell their infringing Phillip loafers
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throughout this trial, I will lose all control over my trademarks. As has been
shown, I have been very diligent in protecting the striped design on the inside of
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DECLARATION OF CHARLES ANTHONY PHILIP POZZI IN SUPPORT OF PLAINTIFFS'
REPLY BRIEF IN SUPPORT OF IT'S MOTION FOR A PRELIMINARY INJUNCTION
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my English loafers through cease and desist letters. If GAP is allowed to
continue selling the infringing Phillip loafers, these cease and desist letters will
have no credibility. If this trial continues for a significant period of time, it is
very possible that I will lose all trademark rights in my distinctive striped design
as other large retail companies will follow GAP's lead. Without the threat of an
injunction, multiple infringers could make my striped design generic in the
consumer's mind.
12. The continued sale of GAP infringing Phillip loafers pose
immediate and irreparable harm to my reputation as a designer and control over
my trademarks.
13. All statements made herein of my knowledge are true and all
statements made on information and belief, are believed to be true.
This \ ~ d a y ofNovember 2012.
Signature:
Date:
Charles A; 10ny Philip Pozzi
-f;1;; I II/?(!/ L
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DECLARATION OF CHARLES ANTHONY PHILIP POZZI IN SUPPORT OF PLAINTIFFS'
REPLY BRIEF IN SUPPORT OF IT'S MOTION FOR A PRELIMINARY INJUNCTION
Case 2:12-cv-08932-DDP-MAN Document 31-2 Filed 11/16/12 Page 7 of 7 Page ID
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CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing was furnishe
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through the Court's CM/ECF System addressed to all parties:
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Michael D. Roth, Esq.
Alison Mackenzie, Esq.
Caldwell, Leslie & Proctor, P.C.
725 South Figueroa Street
31st Floor
Los Angeles, California 90017-5524
James D. Weinberger, Esq.
Giselle C.W. Huron, Esq.
Fross, Zelnick, Lehrman & Zissu, P.C.
866 United Nations Plaza
New York, NY 10017
This 16th day ofNovember 2012.
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DECLARATION OF CHARLES ANTHONY PHILIP POZZI IN SUPPORT OF PLAINTIFFS'
REPLY BRIEF IN SUPPORT OF IT'S MOTION FOR A PRELIMINARY INJUNCTION
Case 2:12-cv-08932-DDP-MAN Document 31-3 Filed 11/16/12 Page 1 of 4 Page ID
#:1492
1 ANDREA E. BATES, ESQ. SBN 192491
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Abates@Bates-bates.com
BATES & BATES, LLC
3 964 DeKalb A venue, Suite 101
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Atlanta, Georgia 30307
Phone (404) 228-7439
5 Fax (404) 963-6231
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Attorneys for Plaintiff
7 Jumbo Bright Trading Limited and Charles Anthony Philip Pozzi
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
JUMBO BRIGHT TRADING
LIMITED, A Hong Kong Corporation,
and CHARLES ANTHONY PHILIP
POZZI, an Individual,
Plaintiffs,
vs.
THE GAP, INC. and DOES 1-10,
Defendants.
) Case No. CV12-8932-DDP (MANX)
)
) DECLARATION OF
) PETER GRUETERICH IN SUPPORT
) OF PLAINTIFFS' REPLY BRIEF IN
) SUPPORT OF IT'S MOTION FOR
) PRELIMINARY INJUNCTION
)
)
) Judge: Honorable Dean D. Pregerson
) Date: December 3, 2012
) Time: 10:00 a.m.
) Courtroom: 3
DECLARATION OF PETER GRUETERICH
I, Peter Grueterich, declare as follows:
1. Unless otherwise stated as based upon information and belief, the facts set
25 forth in this declaration are personally known to me and I have first knowledge of
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DECLARATION OF PErER GRUErERICH IN SUPPORT OF PLAINTIFFS' REPLY BRIEF IN
SUPPORT OF IT'S MOTION FOR PRELIMINARY INJUNCTION
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#:1493
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these facts. If called upon to testifY during court of this action, I could, and I would
competently testifY thereto under oath. I am over 18 and a pmiy to this action.
2. I work for the Peter Marcus Group, the US distributor for the CHARLES
5 PHILIP brand shoes which are owned by Plaintiffs JUMBO BRIGHT TRADING
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LIMITED, a Hong Kong corporation and CHARLES ANTHONY PHILIP POZZI, and
individual (collectively "Plaintiffs").
3. As the US distributor, I am very familiar with the irreparable damage that
the GAP PHILLIP line has caused to Plaintiffs.
4. Since the release of the Gap PHILLIP shoes, the CHARLES PHILIP sales
have been in a severe decline. By way of example, one of the high-end retailers has
asked to return 800 pairs of shoes, which have not sold and are cancelling another
shipment of 800 pairs for next season. This NEVER occurred prior the Gap PHILIP
release; CHARLES PHILIP shoes were, since their launch, one of the BEST
19 SELLERS for our retailers and since the Gap launch the sales have been in severe
20 decline and there has been an increase in returns.
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5. The devastating effects of the Gap PHILLIP shoes have also caused one
of our retailers to state that they only going to carry the CHARLES PHILIP shoes in
eight (8) stores, whereas prior to the GAP release of the Gap PHILLIP shoes the
CHARLES PHILLIP shoes were available in 22 stores.
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DECLARATION OF PEfER GRUEfERICH IN SUPPORT OF PLAINTIFFS' REPLY BRIEF IN
SUPPORT OF IT'S MOTION FOR PRELIMINARY INJUNCTION
Case 2:12-cv-08932-DDP-MAN Document 31-3 Filed 11/16/12 Page 3 of 4 Page ID
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The blatant copies and sales made by GAP are crippling the CHARLES
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PHILIP sales. The reputation of CHARLES PHILIP shoes with high-end retailers and
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customers may never be repaired if the GAP PHILLIP shoes are not immediately
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I declare under penalty of pe1jury under the laws of the United States of
America and the State of California that the foregoing is true and correct.
Executed on November 16,2012 in Greenwich, Connecticut.
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DECLARATION OF PEI'ER GRUEI'ERICH IN SUPPORT OF PLAINTIFFS' REPLY BRIEF IN
SUPPORT OF IT'S MOTION FOR PRELIMINARY INJUNCTION
Case 2:12-cv-08932-DDP-MAN Document 31-3 Filed 11/16/12 Page 4 of 4 Page ID
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CERTIFICATE OF SERVICE
I hereby certifY that a true and correct copy of the foregoing was furnishe
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through the Comi's CMIECF System addressed to all parties
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Michael D. Roth, Esq.
Alison Mackenzie, Esq.
Caldwell, Leslie & Proctor, P.C.
725 South Figueroa Street
31st Floor
Los Angeles, California 90017-5524
James D. Weinberger, Esq.
Giselle C.W. Huron, Esq.
Fross, Zelnick, Lehrman & Zissu, P.C.
866 United Nations Plaza
New York, NY 10017
This 16th day ofNovember 2012.
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DECLARATION OF PETER GRUETERICH IN SUPPORT OF PLAINTIFFS' REPLY BRIEF IN
SUPPORT OF IT'S MOTION FOR PRELIMINARY INJUNCTION