Professional Documents
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1
COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
Case 2:17-cv-07151 Document 1 Filed 09/27/17 Page 2 of 12 Page ID #:2
1 matter jurisdiction over the claims alleged in this action pursuant to 28 U.S.C. 1331,
2 1338.
3 2. This Court has personal jurisdiction over Defendants because Defendants
4 regularly conduct business within this judicial district.
5 3. This action arises out of wrongful acts by Defendants within this judicial
6 district and Plaintiff is located and has been injured in this judicial district by
7 Defendantsalleged wrongful acts. Venue is proper in this district pursuant to 28
8 U.S.C. 1391 because the claims asserted arise in this district.
9 THE PARTIES
10 4. Plaintiff Deckers Outdoor Corporation (Deckers) is a corporation
11 organized and existing under the laws of the state of Delaware with an office and
12 principal place of business in Goleta, California. Deckers has been engaged in the
13 design, distribution, marketing, offering for sale, and sale of footwear since 1975.
14 Deckers owns several brands of footwear including UGG, Koolaburra , Teva ,
15 Sanuk and Hoka One One
16 5. Upon information and belief Defendant Sears, Roebuck, and Co.
17 (Sears) is a corporation duly organized and existing under the laws of the state of
18 New York with an office and principal place of business at 3333 Beverly Road,
19 Hoffman Estates, Illinois, 60179.
20 6. Upon information and belief Defendant Kmart Corporation (Kmart) is a
21 corporation duly organized and existing under the laws of the state of Delaware with
22 an office and principal place of business at 3333 Beverly Road, Hoffman Estates,
23 Illinois, 60179.
24 7. Upon information and belief, Defendants Sears and Kmart are wholly-
25 owned subsidiaries of Sears Holdings Corporation.
26 8. Deckers is unaware of the names and true capacities of Defendants,
27 whether individual, corporate and/or partnership entities named herein as DOES 1
28 through 10, inclusive, and therefore sues them by their fictitious names. Deckers will
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COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
Case 2:17-cv-07151 Document 1 Filed 09/27/17 Page 3 of 12 Page ID #:3
1 seek leave to amend this complaint when their true names and capacities are
2 ascertained. Deckers is informed and believes and based thereon alleges that said
3 Defendants and DOES 1 through 10, inclusive, are in some manner responsible for the
4 wrongs alleged herein, and that at all times referenced each was the agent and servant
5 of the other Defendants and was acting within the course and scope of said agency and
6 employment.
7 9. Deckers is informed and believes, and based thereon alleges, that at all
8 relevant times herein, Defendants and DOES 1 through 10, inclusive, knew or
9 reasonably should have known of the acts and behavior alleged herein and the damages
10 caused thereby, and by their inaction ratified and encouraged such acts and behavior.
11 Deckers further alleges that Defendants and DOES 1 through 10, inclusive, have a
12 non-delegable duty to prevent or not further such acts and the behavior described
13 herein, which duty Defendants and DOES 1 though 10, inclusive, failed and/or refused
14 to perform.
15 ALLEGATIONS COMMON TO ALL CAUSES OF ACTION
16 A. DeckersSanuk Brand and YOGA SLING Sandal
17 10. In July 2011, Deckers completed the acquisition of the Sanuk brand, a
18 lifestyle footwear brand rooted in surf culture but embraced by an eclectic mix of
19 style-savvy optimists.
20 11. The Sanuk brand is known for the its YOGA SLING sandal, which
21 combines comfort with a chic, unique style sandal made with soft fabric sling straps.
22 12. The Sanuk YOGA SLING was introduced in 2013 and its appearance is
23 unique and distinctive, consisting of a combination of the following non-functional
24 elements (YOGA SLING Trade Dress):
25 i Thong-type sandal with a generally flat sole;
26 i Foot bed is comprised of soft material;
27 i Sling strap formed by a loop of fabric extending from a toe post around
28 the heel and back to the toe post;
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COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
Case 2:17-cv-07151 Document 1 Filed 09/27/17 Page 4 of 12 Page ID #:4
1 i An instep strap extending from the lateral side of the sole across the instep
2 to the medial side of the sole;
3 i The instep strap and the sling strap appear unconnected and the instep
4 strap overlaps the sling strap;
5 i Both the sling strap and the instep strap are formed of a soft fabric having
6 an exaggerated width; and
7 i Binding at the top of the toe post.
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13 13. The YOGA SLING Trade Dress, which is a composite of the above-
14 referenced features, is non-functional in its entirety, visually distinctive, and is unique
15 in the footwear industry.
16 14. The design of the YOGA SLING Trade Dress is neither essential to its
17 use or purpose nor does it affect the cost or quality of the sandal. There are numerous
18 other designs available that are equally feasible and efficient, none of which
19 necessitate copying or imitating the YOGA SLING Trade Dress. The aforesaid
20 combination of features provides no cost advantages to the manufacturer or utilitarian
21 advantages to the consumer. These features, in combination, serve only to render
22 DeckersYOGA SLING sandal distinct and recognizable as goods originating from
23 DeckersSanuk brand.
24 15. The YOGA SLING Trade Dress has achieved a high degree of consumer
25 recognition and secondary meaning, which serves to identify Deckers as the source of
26 footwear featuring said trade dress.
27 16. The YOGA SLING Trade Dress is one of the most well recognized and
28 commercially successful styles of DeckersSanuk brand of footwear. Additionally,
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COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
Case 2:17-cv-07151 Document 1 Filed 09/27/17 Page 5 of 12 Page ID #:5
1 it has been nominated for the past five years as a SIMA (Surf Industry Manufactures
2 Association) Footwear Product of the Year.
3 17. Deckers has spent substantial time, effort, and money in designing,
4 developing, advertising, promoting, and marketing the Sanuk YOGA SLING sandal
5 and has sold millions of dollars worth of said style of sandals.
6 18. Due to its long use, extensive sales, and significant advertising and
7 promotional activities, DeckersYOGA SLING trade dress has achieved widespread
8 acceptance and recognition among the consuming public and trade throughout the
9 United States.
10 B. DefendantsInfringement of DeckersYOGA SLING Trade Dress
11 19. Upon information and belief, Defendants are engaged in the retail sale of
12 a wide range of home merchandise, apparel and automotive products and services.
13 Defendantsretail stores are located nationwide, including within this judicial district.
14 Defendantsproducts can also be purchased online at www.sears.com and/or
15 www.kmart.com (DefendantsWebsites)
16 20. The present lawsuit arises from Defendantswillful infringement of
17 DeckersSanuk YOGA SLING Trade Dressby their BONGO and
18 ATHLETECH brand fabric thong sandals that bear a nearly identical design
19 (Accused Products). Accused Products were discovered and/or purchased from
20 DefendantsWebsites and were shipped to a location in this judicial district.
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25 DeckersSanuk Yoga Bongo Athletech
SlingSandal WomensPapaya 2 Yoga Womens Camile Sling
26 MatSandal Sandal
27 21. Deckers has not granted a license or any other form of permission to
28 Defendants with respect to any of its trademarks, design patents, trade dress, or other
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COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
Case 2:17-cv-07151 Document 1 Filed 09/27/17 Page 6 of 12 Page ID #:6
1 intellectual property.
2 22. Deckers is informed and believes and herein alleges that Defendants are
3 competitors and have copied DeckersYOGA SLING Trade Dress in an effort to
4 exploit Deckersreputation in the market.
5 23. Deckers is informed and believes and herein alleges that Defendants have
6 acted in bad faith and that their infringing acts have misled and confused and were
7 intended to cause confusion, or to cause mistake, or to deceive as to the affiliation,
8 connection, or association of Defendantsproducts with Deckers, or as to the origin,
9 sponsorship, or approval of the Accused Products by Deckers.
10 FIRST CLAIM FOR RELIEF
11 (Trade Dress Infringement - 15 U.S.C. 1125)
12 24. Deckers incorporates herein by reference the averments of the preceding
13 paragraphs as though fully set forth herein.
14 25. The YOGA SLING Trade Dress is non-functional in its entirety, visually
15 distinctive, and is unique in the footwear industry.
16 26. The design of the YOGA SLING Trade Dress is neither essential to its
17 use or purpose nor does it affect the cost or quality of the sandal. There are numerous
18 other designs available that are equally feasible and efficient, none of which
19 necessitate copying or imitating the YOGA SLING Trade Dress. The aforesaid
20 combination of features provides no cost advantages to the manufacturer or utilitarian
21 advantages to the consumer. These features, in combination, serve only to render
22 DeckersSanuk YOGA SLING sandal distinct and recognizable as goods originating
23 from DeckersSanuk brand.
24 27. The YOGA SLING Trade Dress has achieved a high degree of consumer
25 recognition and secondary meaning, which serves to identify Deckers as the source of
26 footwear featuring said trade dress.
27 28. Deckers has spent substantial time, effort, and money in designing,
28 developing, advertising, promoting, and marketing the Sanuk YOGA SLING sandal
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COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
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COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
Case 2:17-cv-07151 Document 1 Filed 09/27/17 Page 8 of 12 Page ID #:8
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COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
Case 2:17-cv-07151 Document 1 Filed 09/27/17 Page 9 of 12 Page ID #:9
1 45. The conduct herein complained of was extreme, outrageous, and was
2 inflicted on Deckers in reckless disregard of Deckersrights. Said conduct was
3 despicable and harmful to Deckers and as such supports an award of exemplary and
4 punitive damages in an amount sufficient to punish and make an example of
5 Defendants, and to deter them from similar conduct in the future.
6 46. In light of the foregoing, Deckers is entitled to injunctive relief
7 prohibiting Defendants from infringing the YOGA SLING Trade Dress, and to recover
8 all damages, including attorneysfees, that Deckers has sustained and will sustain, and
9 all gains, profits and advantages obtained by Defendants as a result of their infringing
10 acts alleged above in an amount not yet known, and the costs of this action.
11 THIRD CLAIM FOR RELIEF
12 (Unfair Competition Under California Common Law)
13 47. Deckers incorporates herein by reference the averments of the preceding
14 paragraphs as though fully set forth herein.
15 48. Defendantsinfringement of the YOGA SLING Trade Dress constitutes
16 unfair competition in violation of the common law of the State of California.
17 49. Deckers has invested a substantial amount of time, skill and money in
18 developing its footwear styles.
19 50. Upon information and belief, Defendants are competitors of Deckers and
20 have copied Deckersfootwear styles in an effort to exploit Deckersreputation in the
21 market. Defendants misappropriated and used Deckersfootwear styles at little or no
22 cost to Defendants.
23 51. Defendantsmisappropriation and use of Deckersfootwear style was
24 without the authorization or consent of Deckers; and Deckers has been injured by the
25 Defendantsconduct.
26 52. Defendantsinfringing acts were intended to capitalize on Deckers
27 goodwill associated therewith for Defendantsown pecuniary gain. Deckers has
28 expended substantial time, resources and effort to obtain an excellent reputation for its
9
COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
Case 2:17-cv-07151 Document 1 Filed 09/27/17 Page 10 of 12 Page ID #:10
10
COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
Case 2:17-cv-07151 Document 1 Filed 09/27/17 Page 11 of 12 Page ID #:11
1 from using infringing DeckersYOGA SLING Trade Dress, including, but not limited
2 to:
3 a. manufacturing, importing, advertising, marketing, promoting,
4 supplying, distributing, offering for sale, or selling the Accused Products or any other
5 products which bear DeckersYOGA SLING Trade Dress, or designs confusingly
6 similar thereto;
7 b. engaging in any other activity constituting unfair competition with
8 Deckers, or acts and practices that deceive consumers, the public, and/or trade,
9 including without limitation, the use of designations and design elements used or
10 owned by or associated with Deckers; and
11 c. committing any other act which falsely represents or which has the
12 effect of falsely representing that the goods and services of Defendants are licensed by,
13 authorized by, offered by, produced by, sponsored by, or in any other way associated
14 with Deckers;
15 3. Ordering Defendants to recall from any distributors and retailers and to
16 deliver to Deckers for destruction or other disposition all remaining inventory of all
17 Accused Products and related items, including all advertisements, promotional and
18 marketing materials therefore, as well as means of making same;
19 4. Ordering Defendants to file with this Court and serve on Deckers within
20 thirty (30) days after entry of the injunction a report in writing, under oath setting forth
21 in detail the manner and form in which Defendants have complied with the injunction;
22 5. Ordering an accounting by Defendants of all gains, profits and advantages
23 derived from their wrongful acts pursuant to 15 U.S.C. 1117(a);
24 6. Awarding Deckers all of Defendantsprofits and all damages sustained by
25 Deckers as a result of Defendantswrongful acts, and such other compensatory
26 damages as the Court determines to be fair and appropriate;
27 7. Awarding enhanced damages;
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COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF
Case 2:17-cv-07151 Document 1 Filed 09/27/17 Page 12 of 12 Page ID #:12
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COMPLAINT FOR DAMAGES AND EQUITABLE RELIEF