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Case 2:23-cv-01840-WSS Document 74 Filed 12/04/23 Page 1 of 25

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IN THE UNITED STATES DISTRICT COURT


FOR THE WESTERN DISTRICT OF PENNSYLVANIA

AFG MEDIA LTD, Civil Action No. 23-cv-1840

Plaintiff,
(Judge Stickman)
v.
REDACTED BY COURT ORDER
POPTREND-OFFICIAL, et al.,

Defendants.

PLAINTIFF’S REPLY TO OPPOSITION BY TOLOCO DEFENDANTS [ECF No. 58]


AND DEFENDANT CAMLINBO [ECF No. 62] TO MOTION FOR PRELIMINARY
INJUNCTION

Plaintiff, through undersigned counsel, now files its Reply to the Toloco Defendants’

Opposition 1 (ECF No. 58) and the Opposition of Camlinbo (ECF No. 62). Each of the

oppositions includes similar arguments concerning copying of AFG Media Ltd’s (“Plaintiff”)

copyrighted Alien Sculpture, validity of the copyright, and whether the Plaintiff meets the

standard to obtain injunctive relief. Thus, this reply addresses each of these arguments below and

distinguishes the facts that apply to Camlinbo where necessary for clarity.

I. INTRODUCTION

The defendants who have appeared to oppose the entry of a preliminary injunction have

one agenda – obtain control of the funds held by Amazon under the Temporary Restraining

Order so that these funds may be transferred outside the United States and thereby become

judgment proof. Indeed, counsel for the Toloco Defendants has refused engage in any settlement

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The seven replying defendants are: Poptrend-Official (Defendant No. 1 on Schedule A to Complaint (“Schedule
A”)); Decalare (Schedule A, Defendant No. 5); Easy-Fit (Schedule A, Defendant No. 6); Hacosoon Flagship
Store (Schedule A, Defendant No. 8); Hacosoon Shop (Schedule A, Defendant No. 9); Stegosaurus (Schedule
A, Defendant No. 17); and YEAHBEER store (Schedule A, Defendant No. 21)(“the Defendants”).
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discussions until Plaintiff has dismissed this lawsuit against the Toloco Defendants, thereby

lifting the restraint on the funds held by Amazon. In other cases, once the amount of the

restrained funds was lowered, the defense lawyers have been fired, and the defendants have

defaulted, viewing the loss of the funds left with the online marketplace (e.g., Amazon) as a cost

of doing business.2 The defendants then set up new stores on Amazon, having successfully

limited their losses for violating the intellectual property rights of others and depriving the

intellectual property owner of a remedy for the defendants’ infringement.

AFG media brought this case to fight a scourge of online counterfeiting and knock-offs of

its Alien “Pick me up” costume. Defendants are China-based sellers on the Amazon.com

marketplace whom have sold over 165,000 infringing costumes and received almost $8 million

in revenue from these infringing sales. (Malkin Dec., ¶ 3) Seven of the eight appearing

defendants attempt to portray themselves as unrelated sellers on Amazon. Yet, their counsel has

represented that they have one client – Toloco. (Malkin Dec., Ex. 1) One of the defendants

states that “[t]he Company has consistently built its own brand, TOLOCO, through high-quality

products and effective marketing.” (Declaration of Liu Ping, ¶ 16 [ECF No. 58-1]) The

TOLOCO trademark, however, is owned in the United States by Toloco Inc., a California

corporation. (Malkin Dec., ¶ 5, Ex.; 2) In fact, Toloco Inc. is the owner of 6 registered U.S.

trademarks and 2 pending U.S. trademark applications. (Id.) Although the defendants do not

attempt to explain this discrepancy, this group of 7 defendants will hereinafter be referred to as

2
Volkswagen AG v. DXZ Official Store, No. 18-cv-6611 (N.D. Ill). In that online counterfeiting case, there were
198 defendants, counsel appeared for 2 of the defendants (Second Malkin Dec., Ex. 5) and convinced the Court
to lift the restraints on the 2 defendants’ accounts, and severed the action against the two appearing defendants.
[ECF Nos. 56 and 57] The severed case at Volkswagen AG v 18-cv-7621 saw the two defendants, who had
promised the court to keep $26,000 in the accounts, deplete their accounts in 2 days, making themselves
judgment proof. The case concluded with defense counsel withdrawing, the defendants defaulting, and the Court
entering a final judgment in which the Court found “Defendants took deliberate action to avoid the asset restraint
imposed in this case.” Copies of the relevant documents are attached to the Second Malkin Dec., Ex. 6.

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“the Toloco defendants,” using the terminology of their own counsel. Moreover, since this

lawsuit was filed, AFG Media has noticed that the sale of various TOLOCO branded products

has been shifted from the defendants’ stores on Amazon to other stores, including Eaglewood

Trading (displaying the TOLOCO brand on its about page) and Tolocoinc. (Second Smeaton

Dec3, ¶¶ 26 - 27) Eaglewood Trading and Tolocoinc are not currently Defendants in this lawsuit.

The Court previously entered a Temporary Restraining Order [ECF No. 20] against

defendants. The Court also granted AFG media’s Motion for Alternative Service permitting

electronic service of process under Fed. R. Civ. Pro. 4(f)(3) (hereinafter the “Alternative Service

Order”). [ECF No. 21] On October 31, 2023, AFG Media electronically served all of the

defendants listed on Schedule A with the Summons, Complaint, Requests for Admission, and the

Temporary Restraining Order, including the Toloco Defendants. [ECF No. 34] On October 30,

2023, counsel for AFG Media was contacted by Mainleaf Law and informed Mainleaf Law was

representing the Toloco Defendants. (Malkin Dec., ¶ 6) Subsequently, Mainleaf Law advised

they were no longer representing the Toloco Defendants. (Id.)

On November 2, 2023, counsel for AFG Media was advised by Dentons Cohen & Grisby

that they were representing the Toloco Defendants. (Id. at ¶ 8) At Denton’s request, the Show

Cause Hearing schedule for November 6, 2023, was moved to December 7, 2023, and counsel

for the Toloco Defendants consented to the Temporary Restraining Order remaining in effect

until the new hearing date. (Id. at ¶ 9)

The appearing defendants now advance several arguments why a preliminary injunction

should not be entered. First, defendants argue this Court may not enter a preliminary injunction

without service of process having been completed. This argument is incorrect, and ignores the

3
Refers to the Second Declaration of Fraser Smeaton filed herewith.

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plain language of Rule 65(a)(1) – ‘[t]he court may issue a preliminary injunction only on notice

to the adverse party.” Second, defendants argue Plaintiff’s registered copyright is invalid and is

not infringed. Again, this argument is incorrect. The invalidity argument ignores the

presumption of validity (17 U.S.C. § 410(c)), ignores the Third Circuit decision affirming the

issuance of a preliminary injunction in a costume infringement case (Silvertop Assocs. Inc. v.

Kangaroo Mfg. Inc., 931 F.3d 215 (3d Cir. 2019) (Hardiman, J.), and improperly attempts to

import the patent novelty requirement to copyright law. The non-infringement argument is based

upon the incredulous coincidence that each defendant independently created the exact same

costume as Plaintiffs’ costume. Finally, defendants argue Plaintiff has not met the standards for

a preliminary injunction. Yet again, this argument is incorrect as explained in detail in the

Plaintiff’s opening brief. Furthermore, in making this argument, defendants have failed to

disclosure relevant information, thereby supporting the issuance of a preliminary injunction as

proposed by Plaintiff.

The Court should reject all of the defendants’ arguments as not persuasive and grant the

Plaintiff the preliminary injunction it seeks to protect its business from any further irreparable

harm the Defendants’ continuing conduct will cause. Chinese manufacturers like Defendants are

well-known to conduct their online businesses to the detriment of legitimate rights holders like

Plaintiff. Further, Judges in the Western District presented with inconstancies have denied

defendants motions. See, e.g., Aquapaw Brands LLC v. Yan-Peng, No. 21-1784 (W.D. Pa. May

18, 2023)(Wiegand, J) [ECF No. 88] (denying motion to set aside default after finding Defendant

made misrepresentations to the Court) and Pawesome Pet Products LLC v. COLORFLOWERS,

No. 22-629 (W.D. Pa. June 22, 2023) (Hornak, CJ) [ECF No. 153] (same). Similarly, this Court

should grant the Preliminary Injunction and deny the Defendants the relief they are seeking.

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II. BACKGROUND

1. AFG Media’s Carried by Alien “Pick Me Up” Inflatable Costume

AFG Media is the owner of US Copyright Registration No. VA 2-261-150 entitled

“Carried by Alien ‘Pick me Up’ Inflatable Costume.” (Complaint, Ex. 3B) Per the Copyright

Registration, the costume was completed in 2016 and first published in August 2017.

Each of the Defendants claim that they did not copy Plaintiff’s copyrighted Alien

Costume, but the evidence shows otherwise when viewing the point of sale products. It is

undisputed that each defendant had access to AFG Media’s copyrighted costume and the

costumes are substantially similar. The copying is demonstrative of their access to the Plaintiff’s

product prior to creating the copies they made. They deliberately used the same configurations,

same coloring for the pants and shirt of the human being hugged the alien, and, same distinct

white shoes with black laces:

Plaintiff’s Point of Sale Alien Costume


Defendant Easy Fit Infringing Product
Complaint, Exhibit 1
Second Odell Dec.4 ¶
First published August 2, 2017
First Available October 12, 2023

4
Refers to the Declaration of Dee Odell, ¶¶ 1 – 4 and Exhibit 1 filed therewith.

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Plaintiff’s Point of Sale Alien Costume Defendant YEAHBEER Infringing Product


Complaint, Exhibit 1 Second Odell Dec. ¶
First published August 2, 2017 First Available October 7, 2023

Plaintiff’s Point of Sale Alien Costume


Complaint, Exhibit 1 Defendant Decalare Infringing Product
First published August 2, 2017 Second Odell Dec. ¶
First Available October 2, 2023

Defendant Hacosson Shop Infringing Product


Plaintiff’s Point of Sale Alien Costume Second Odell Dec. ¶
Complaint, Exhibit 1 First Available September 21, 2023
First published August 2, 2017

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Plaintiff’s Point of Sale Alien Costume


Complaint, Exhibit 1 Defendant Hacosson Flagship Store
First published August 2, 2017 Infringing Product
Second Odell Dec. ¶
First Available September 21, 2023

Plaintiff’s Point of Sale Alien Costume Defendant Camlinbo Infringing Product


Complaint, Exhibit 1 Second Odell Dec. ¶
First published August 2, 2017 First Available June 8, 2022

Defendant Poptrend-Official Infringing


Plaintiff’s Point of Sale Alien Costume Product
Complaint, Exhibit 1 Second Odell Dec. ¶
First published August 2, 2017 First Available April 28, 2021

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Plaintiff’s Point of Sale Alien Costume Defendant Stegosauras Infringing Product


Complaint, Exhibit 1 ¶
First published August 2, 2017 First Available (Not Declared)

The evidence demonstrates that all the Defendants copied the Plaintiff’s Point of Sale

Alien Costume after they saw it. Further, there is no way that the TOLOCO Defendants all

independently created the identical costumes. All claim that they designed the product in 2018,

making the alien head more rounded than triangular, after reviewing the identical Youtube

videos (ECF No. 58-1, ¶¶ 10, 26 ECF No. 58-2, ¶¶ 24, 26 ECF No. 58-3, ¶¶ 22, 26, ECF No. 58-

4, ¶¶23, 24, ECF No. 58-5, ¶¶ 31, 32, ECF No. 58-6, ¶¶ 28, 29 (incorrectly numbered as 26),

ECF No. 58-7, ¶¶ 21, 22). The only logical explanation for all of these coincidences is that the

Declarants were related and working together when they designed their product in 2018 and were

well aware of the Plaintiff’s product when they did. This is consistent with their Counsel’s

affirmation that they are related and why Counsel referred to them TOLOCO despite Lu Ping

claiming it as Easy Fit’s brand for massage apparatus and inflatable costumes, but this is yet

another inconsistency.

2. Other Alien Costumes Being Sold on Amazon

The copying of AFG Media’s copyrighted costume by defendants becomes even more

apparent when examples of other alien costumes being sold on Amazon are viewed. Examples

of some such costumes appear below (See Malkin Dec., ¶ 9).

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https://www.amazon.com/dp/B0CCJ9DCRL/

https://www.amazon.com/dp/B0CFXLL333/

https://www.amazon.com/dp/B07TFTG735/

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https://www.amazon.com/dp/B0CG4GVN7K/

https://www.amazon.com/dp/B0CC2DWCT7/

https://www.amazon.com/dp/B0CC2C1SDW/

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These example costumes highlight the Third Circuit’s comments in affirming the

issuance of a preliminary injunction for infringement of a copyright in a banana costume.

“Although a banana costume is likely to be yellow, it could be any shade of yellow – or green or

brown for that matter. Although a banana costume is likely to be curved, it need not be – let

alone in any particular manner. And although a banana costume is likely to have ends that

resemble a natural banana’s, those tips need not look like [Plaintiff’s] black tips (in color, shape,

or size).” Silvertop Assocs. Inc. v. Kangaroo Mfg. Inc., 931 F.3d 215, 223 (3d Cir. 2019).

3. The Defendants Did Not Independently Create The Infringing Costumes

The defendants assert by way of declarations that in 2018 they each independently

created the identical costumes now accused of infringement. One of the declarations submitted

is the Declaration of Weiwei Wang [ECF No. 58-2] on behalf of defendant Poptrend-Official. It

turns out that Weiwei Wang is also the applicant for European Design No. 007076039-0001 for

INFLATABLE TOYS. In 2022, this Design Registration was declared invalid by the European

Intellectual Property Office. (Malkin Dec., Ex. 3) The EUIPO found that Weiwei Wang’s

design copied Plaintiff’s costume – the same copyrighted costume at issue in this litigation. The

EUIPO noted the following common features:

• the overall shape of the ‘alien’ part of the design is identical;


• the overall shape of the ‘human’ part of the design is identical;
• the proportions of the designs are identical;
• the positioning of the inflation fan is identical or at least close to identical;
• the shape and positioning of the mouth and nose on the ‘alien’ part of the designs are
identical;
• the shape and positioning of the eyes on the ‘alien’ part of the designs are near identical,
with the only minor difference being in the direction of the slant of the eyes;
• the number and shape of the fingers on the ‘alien’ part of the designs are identical;
• the shape of the shoes on the ‘human’ part of the design are identical; and
• the lines on the shoes of the ‘human’ part of the design are identical.

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A copy of the EUIPO invalidity decision, which includes a detailed analysis, is attached to the

Malkin Declaration, submitted herewith.

Given that the EUIPO has already found that Weiwei Wang copied Plaintiff’s

copyrighted costume, and the Toloco Defendants (and other Amazon sellers) are interrelated, res

judicata precludes these defendants from asserting they independently created the costumes

accused of infringing in this lawsuit. At a minimum, the EUIPO decision – which was not

disclosed by either Weiwei Wang in his declaration or any of the Toloco Defendants – is strong

evidence of copying and calls into question the veracity of the statements made in the

declarations submitted by the Toloco Defendants in this litigation.

III. ARGUMENT

A preliminary injunction should be entered in favor of Plaintiff against all Defendants.

Rule 65(a) of the Federal Rules of Civil Procedure authorizes the entry of a preliminary

injunction upon notice, not service of process. The Plaintiff has shown a likelihood of success

on the merits – Plaintiff’s copyright on its costume is both valid and infringed by all defendants.

The evidence shows Plaintiff is being irreparably harmed and the balance of hardships is in

Plaintiff’s favor. The Toloco Defendants’ request to delay the preliminary injunction hearing for

4 weeks cuts against there being irreparable harm to the defendants if a preliminary injunction is

entered.

A. Service of Process is Not Required for the Court to Enter a Preliminary


Injunction.

The Preliminary Injunction sought by Plaintiff would apply to the parties (e.g., the

Defendants) and non-parties that have notice of the injunction. Such a non-party in this case is

Amazon, which controls both the Defendants’ listing for sale of the infringing product and the

Defendants’ funds. Amazon is subject to the jurisdiction of the Court as Amazon is registered to

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do business in Pennsylvania and is a licensed money transmitter in Pennsylvania. ECF No. 10, ¶

10.

Fed. R. Civ. Pro. 65(a) provides that “[t]he court may issue a preliminary injunction only

on notice to the adverse party.” Even the case cited by the Toloco Defendants supports the

issuance of a preliminary injunction. “It is worth noting, however, that the issue of personal

jurisdiction does not need to be fully litigated before a court may issue a preliminary injunction.

Even if there is a dispute about whether the facts provide a basis for the court’s jurisdiction over

the defendant, a court may issue a preliminary injunction binding that defendant as long as there

is ‘a reasonable probability of ultimate success upon the question of jurisdiction when the action

is tried on the merits.’” 2011 WL 3678144 n.8 (E.D. Va. Aug. 19, 2011). The Court, however,

declined to enter a preliminary injunction finding “there is doubt as to whether there is a

‘reasonable probability’ that personal jurisdiction exists over each defendant.” Id. at *5. That is

not the case in the present case – personal jurisdiction does exist. See also H-D Michigan, LLC

v. Hellenic Duty Free Shops S.A., 694 F.3d 827, 842 (7th Cir. 2012) (“DFS’s argument is

preposterous. … [B]ecause formal service of process under the Hague Convention or other

provisions of law can take months, acceptance of DFS’s argument would have the unfortunate

effect of immunizing most foreign defendants from needed emergency injunctive relief. There is

a reason Rule 65 allows emergency injunctive relief before service of process, and this case

provides a good example.”).

Moreover, in the online counterfeiting context, courts routinely enter preliminary

injunctions before service of process. Notice under Rule 65(a), however, is required. Whirlpool

Corp. v. Shenzhen Sanlida Electrical Technology Co., Ltd., 80 F.4th 536, 543 (5th Cir. 2023)

(Although defendant contended that the district court simply had to wait until service of process

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was perfected before ordering any, even emergency relief, “we find that the district court did not

err in concluding that a preliminary injunction requires only notice, not perfected service of

process”). Indeed, in Smart Study Co., Ltd. v. Acuteye-Us, 620 F.Supp.3d 1381 (S.D.N.Y. 2022)

– the case relied upon by the Toloco Defendants – the court entered a preliminary injunction that

has been in place since August 3, 2021 [SDNY 21-cv-5860 EFC No. 16], the court has now

entered a default judgment with a permanent injunction against 49 of the 51 defendants

referenced in the case [SDNY 21-cv-5860 EFC No. 134], and is considering how to proceed

against the two remaining defendants.

The appropriate manner for the Toloco Defendants to contest personal jurisdiction is a

Rule 12 motion to dismiss, not in the context of a preliminary injunction hearing where it is

undisputed that the Toloco Defendants have had the notice required under Rule 65(a).

B. Plaintiff has Shown Likelihood of Success on the Merits.

The Defendants all contend that the Court incorrectly found that the Plaintiff is likely to

succeed on the merits of its claim of copyright infringement. However, all the evidence of record

establishes that the Plaintiff has a valid and enforceable copyright registration and that the

Defendants, having clear access to the published version of Plaintiff’s work, all made

substantially similar copies. Further, Plaintiff through its own evidence and now that of the

Defendants’ declarations handily proves irreparable harm. The Defendants dominated and

controlled the market with copies of the Plaintiff’s copyrighted Alien Costume.

1. The Court Concluded that Plaintiff’s Evidence Supports the Finding that
Plaintiff is Likely to Succeed on the Merits

This Court already reviewed all of the evidence of record and concluded that the Plaintiff

established a likelihood of success on the merits and entered the Temporary Restraining Order in

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this case. [ECF No. 20] Defendants now seek a reversal of that finding arguing Plaintiff’s

sculpture is utilitarian and not novel.

2. The Plaintiff’s Copyright Registration is Valid

Since the Plaintiff first published its copyrighted Alien Costume sculpture on August 2,

2017 and registered it September 16, 2020 (Second Fraser Dec., ¶¶ 1 – 6), the Plaintiff is entitled

to a statutory presumption of validity. See 17 U. S. C. § 410 (c)( “In any judicial proceedings the

certificate of a registration made before or within five years after first publication of the work

shall constitute prima facie evidence of the validity of the copyright and of the facts stated in the

certificate.”).

According to the Copyright Compendium 924.2, the design of a useful article may be

considered a pictorial, graphic, or sculptural work only if, and only to the extent that, such design

incorporates pictorial, graphic, or sculptural features that can be identified separately from, and

are capable of existing independently of, the utilitarian aspects of the article.” 17 U.S.C. § 101.

Here, the various sculptural features of the Alien Costume may be viewed separately from the

notion that the item may be worn as a costume. Thus, the Plaintiff’s sculpture is not merely

utilitarian and such an argument should be rejected by the Court.

In addition to the presumption of validity accorded Plaintiff’s copyright registration,

Plaintiff obtained and filed herewith the Expert Declaration of Frederick H. Colen, Esq. (“Colen

Dec.”). Attorney Colen has been a practicing attorney since 1975 and was a partner for more

than 28 years in the Intellectual Property Group at the law firm now known as Reed Smith LLP.

Colen Dec , ¶¶ 1 – 6. He held various positions at Reed Smith, including, Head and Deputy Head

of the Intellectual Property Group. Id. After reviewing the Plaintiffs’ Copyright Registration, the

Correspondence from the Copyright Office, and applying all of his legal expertise and

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knowledge, Attorney Colen concludes that the Plaintiff’s Copyright Registration is valid. See

Colen Dec., generally, including ¶¶ 9 – 16. Colen attests that the usefulness of an item does not

disqualify it from being registered as a copyright. Id., ¶ 11. Colen also attests that novelty is not

a requirement in order to obtain a Copyright Registration. Id., ¶ 12.

Likewise, the Defendants’ argument that the Plaintiff’s copyright is invalid because it is

not novel is not supported by the law and they do not and cannot cite a single case in support of

their novelty argument. As set forth in the Colen Declaration, copyright law merely requires that

the work satisfy the originality requirement. Id. The U.S. Copyright Office will examine each

work in isolation to determine whether it satisfies the originality requirement. Id., citing

Copyright Compendium 310.1. The fact that a work may be novel, distinctive, innovative, or

even unique is irrelevant to this analysis. Id., citing H.R. REP. NO. 94-1476, at 51 (1976),

reprinted in 1976 U.S.C.C.A.N. at 5664 (stating “the standard of originality established by the

courts . . . does not include requirements of novelty [or] ingenuity” and that Congress did not

intend “to enlarge the standard of copyright protection” to impose these requirements). Id.

Defendant Camlimbo incorrectly argues that Plaintiff is not entitled to a copyright

registration on its Alien Costume sculpture. The Toloco Defendants also argue incorrectly that

Plaintiff’s copyright is invalid as being utilitarian and not novel. Since Plaintiff’s copyright

meets the originality requirement of the Copyright Act, the Defendants’ arguments fail.

Camlinbo relies on inapplicable law from the Second Circuit and argues that the Plaintiff

was not entitled to a copyright on its Alien Costume sculpture. The Toloco Defendants cite the

case of Lanard Toys Ltd. v. Dolgencorp LLC, 958 F. 3d 1337, 1345 (Fed. Cir. 2020), in which

the Federal Circuit applies the law of the 11th Circuit (the regional circuit) on the copyright

claim, and to support their argument that Plaintiff’s copyright is invalid. No defendant, however,

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addresses the Third Circuit decision, which is the appropriate precedential decision for this

Court, affirming the district court’s preliminary injunction for copyright infringement of a full-

body banana costume. Silvertop Associates Inc. v. Kangaroo Manufacturing Inc., 931 F. 3d 215

(3d Cir. 2019).

In affirming the district court’s grant of a preliminary injunction based upon the banana

costume, the Third Circuit rejected the defendant’s argument that the plaintiff could not hold a

valid copyright in a costume’s pictorial, graphic, or sculptural features. 931 F. 3d at 218. Judge

Hardiman, writing for the Court, concluded that plaintiff’s costume’s non-utilitarian features are

copyrightable. Id. The Court reasoned that, though the banana costume was a “useful” article, the

artistic features of the costume, in combination, prove separable and capable of independent

existence as a copyrightable sculpture. Id at 221. While the Court noted that certain cutout holes

for the wearers arms, legs, and face are not copyrightable, one could still imagine the banana

apart from the costume and it would not be intrinsically utilitarian. Id. AFG’s inflatable costume

has necessarily even more artistic features than a banana costume. The Court should thus reject

the Defendants’ arguments that are counter to the Third Circuit law on copyrighting the artistic

features of a costume.

3. Defendants’ Self-Serving Declarations Do Not Absolve Them from the


Evidence that Shows They Copied Plaintiff’s Copyrighted Sculpture

As noted above, each of the Toloco Defendants (now selling on 7 separate stores) claim

to have “independently created” their alien costumes. See ECF No. 58, p. 18 -19. Camlinbo

argues that it does not copy Plaintiff’s copyrighted sculpture (but does not produce any evidence

to support its argument). Defendants make such an argument despite the obvious copying of the

artistic elements demonstrated above by all the Defendants found in Plaintiff’s Copyrighted

Sculpture and the blatant copying of the Plaintiff’s chosen color scheme for its point of sale

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product. Despite the blatant illegal copying of Plaintiff’s Copyrighted Sculpture, all the

Defendants now contend that they are the parties being harmed by the properly supported

injunction against further sales of their infringing products.

Although copying is an element of copyright infringement, it is rare that there is direct

evidence of copying. Thus, copying is generally shown through a combination of access to a

Plaintiff’s work and substantial similarity (or probative similarity) between the accused work and

a Plaintiff’s work. As noted above, Plaintiff’s copyrighted costume was publicly available in

2017, prior to each defendant’s alleged independent creation in 2018. Furthermore, a

comparison of Plaintiff’s copyrighted costume with the costumes of each defendant clearly

shows that numerous aspects of Plaintiff’s copyrighted costume are included in each defendant’s

costumes. Additionally, as set forth in the Silvertop Associates Inc. v. Kangaroo Manufacturing

Inc., 931 F. 3d 215 (3d Cir. 2019), case, the protectible elements of Plaintiff’s copyrighted

costume appear in the defendants’ costumes (material appropriation). A bland, self-serving

declaration by a defendant is not enough to overcome Plaintiff’s evidence of copying and

infringement.

C. Plaintiff Has Already Demonstrated Irreparable Harm

The Plaintiff has already demonstrated and the Court has already determined that without

the carefully tailored injunctive relief ordered by the Court, the Plaintiff would suffer irreparable

harm to its business and its intellectual property. (ECF No. 20). Defendants claim that the

Plaintiff delayed asserting its claim, notwithstanding that a number of Amazon Standard

Identification Numbers (“ASINs”) on which Plaintiff acted were first available on Amazon in the

September-October 2023 time frame (as discussed above). The evidence above shows that

Plaintiff acted quite promptly.

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However, the Defendants, who admit they knew of the case as of October 27, 2023, and

knew of the show cause hearing as of November 1, 2023, asked for and received a continuation

from the earlier scheduled show cause hearing, delaying for an additional 4 weeks. ECF Nos. 50,

51 (moving Show Cause Hearing from November 7, 2023 to December 7, 2023).

Moreover, the Defendants have actually offered additional evidence of irreparable harm

to Plaintiff. As discussed above, defendants have dominated the market by offering products that

infringe upon Plaintiff’s copyright registration. In this lawsuit, which includes all the Amazon

sellers during the time of the investigation, information obtained from Amazon establishes that

the Toloco Defendants are China-based sellers on the Amazon.com marketplace whom have sold

over 165,000 infringing costumes and received almost $8 million in revenue from these

infringing sales. Second Malkin Dec., ¶ 3. They have dominated and controlled the market for

the product created by Plaintiff and protected by the copyright. Second Fraser Dec. ¶ 25.

Plaintiff has a large line of costumes and each time one of the Defendants takes a sale away from

Plaintiff, there is little chance that the customer will return to Plaintiff’s shop to buy their next

costume. Id. The repeat business is lost for good. Id.

Further, as already established in the Declaration of Fraser Smeaton, the Plaintiff

attempted to use the online policing provided by Amazon, but to no avail. (“Plaintiff has had

varied success in identifying and requesting takedowns of the various unlawful listings and as

soon as one is taken down another lawful listing replaces it.”)(ECF No. 8, p. 5, ¶ 15). Moreover,

Plaintiff was concerned that enforcement efforts would result in retaliation by sellers whose

infringing listings were removed, as there are multiple attacks against an Amazon seller that can

bring down a legitimate listing and jeopardize the entire Amazon store. Second Declaration of

Fraser Smeaton, ¶¶ 7 -8.

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Mr. Smeaton is aware that Weiwei Wang has filed a declaration in this case. Id., ¶ 9.

Wang is known to Mr. Smeaton because he was listed as the owner of design registrations that

purported to claim invention of the Alien Costume that is the subject of AFG’s copyright

registration for the Alien Costume at issue in this case. Id. Plaintiff first became aware of

Weiwei Wang’s EU design registration in late 2020 when somebody claiming they owned the

patent used it to attempt to get our Chinese factory to stop manufacturing our Alien Costume

product. Id., ¶ 10. The EU design registration was invalidated because Plaintiff’s publication of

its Alien Costume predated the filing of the design patents. Id., ¶¶ 12 – 15. Even after Mr. Wang

received the European invalidation decision, somebody attempted to use the design on August

25, 2023, to deactivate Plaintiff’s Amazon listing for its Alien Costume. Id., ¶ 17.

Finally, the Defendants tout their “high” Amazon ratings and higher price points, but

both of these, placed in context do not hold up. In his declaration, Smeaton attests that during his

experience working for AFG, he has become aware that Amazon product reviews and product

rankings for stores and products are notoriously inaccurate. Id. ¶ 18. Such rankings are subject to

multiple methods of manipulation. Id. ¶ 19 and Exhibit 5 (discussing brokers who sell fake

reviews). Additionally, the lower a product is priced on Amazon the easier it will be to get better

reviews because customers have lower expectations at lower prices and it will be easier for the

product to rank more highly for a given search term. For a very similar product, the lower the

price the more it will sell and the higher it will rank. Id. ¶ 20. Because the Defendants have sold

their Infringing Copies at a lower price than AFG, they have obtained higher ratings, further

damaging AFG’s position in the market. Id. ¶ 21. A review of keepa printouts (the same source

used by the Defendants in their declarations) shows that outside of the month of October each of

the Defendants generally price their Infringing Alien Costumes at around $29.99 (and sometimes

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lower) before stepping up the price through October ahead of the peak selling days. Id. ¶¶ 22 –

23 and Exhibit 5. This allows the Defendants to gain a high rank at a low price and then hold it

for the peak selling days at a high price as the Amazon Algorithm does not have time to react. Id.

If the Defendants were not able to unfairly compete by selling their Infringing Products of the

Alien Costume, AFG would have sold more and its ranking would have been higher. Id. ¶ 24. In

this way, the Defendants have dominated and controlled the market for the product created by

AFG and protected by the copyright. Id. at ¶ 25. AFG has a large line of costumes and each time

the defendants take a sale away from us this is one less customer who is aware of our brand and

one less customer who could become a repeat customer. Id.

After the Court entered its restraining order, AFG observed that an infringing Alien

Costume originally sold under the Toloco brand by Easy-fit [currently retrained], was shifted and

began selling on the same Toloco brand listing on a Toloco Costume storefront, not currently a

Defendant. That product was purchased on November 1, 2023, and examined. It was determined

that it was infringing like the rest of the Defendants’ products. Id., ¶ 26. AFG has observed that

Eaglewood Trading (displaying the TOLOCO brand on its about page) and Tolocoinc, not

currently Defendants, were selling Toloco items that were previously sold by Easy -Fit almost

immediately after the Easy Fit store front was restrained. Id., ¶ 27. Smeaton attests that for

another example, seller account Hacosoon Shop who is currently a defendant is currently (3rd

December 2023) selling another infringing product:

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Id., ¶ 28.

In sum, the Defendants’ arguments and evidence merely demonstrate the irreparable

harm they have caused to Plaintiff and reveal the mechanisms they used to cause that damage.

C. The Balance of Harm Tilts in Plaintiff’s Favor and Against the Defendants

The Defendants also complain here that the injunctive relief is “overly broad” despite the

fact that this is the identical relief granted by our Courts in the Western District of Pennsylvania.

See Request for Judicial Notice (ECF No. 7) and Plaintiff’s Memorandum (ECF No. 6, p.

47)(collecting cases where identical relief was granted). Defendant’s also complain that the

amount restrained is too great compared to the harm that they have caused. However, our Courts

in the Western District have consistently awarded damages of at least $2,000,000.00 as final

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judgments based upon the type of evidence that the Defendants have produced. See, e.g., Doggie

Dental, Inc. v AVANTDIGITAL, No. 21-cv-271 (W.D. Pa., February 23, 2022) (Hornak, CJ);

Doggie Dental, Inc. v CDOFFICE, No. 21-cv-565 (W.D. Pa., February 23, 2022) (Hornak, CJ);

Doggie Dental, Inc. v Ahui, et al., No. 19-cv-1627 (W.D. Pa., Sept. 27, 2021 (Hornak, CJ);

Doggie Dental v. Anywill, No. 19-cv-682 (W.D. Pa., August 14, 2020) (Hornak, CJ); Doggie

Dental v. Max_Buy, 19-746 (W.D. Pa., August 14, 2020) (Hornak, CJ); Doggie Dental v. Go

Well, 19-1282 (W.D. Pa., August 14, 2020) (Hornak, CJ); and Doggie Dental v. Worthbuyer, 19-

1283 (W.D. Pa., August 14, 2020) (Hornak, CJ). See Airigan Solutions, LLC v. Belvia, No. 20-

cv-284 (W.D. Pa., April 21, 2020) (Schwab, J.) ($2 million in damages against each defendant)

[DE 34]; Airigan Solutions, LLC v. Abagail, No. 19-cv-503 (W.D. Pa., Aug 13, 2019) (Fischer,

J.) (same) [DE 52], Rapid Slicer LLC v. Art-House, No. 19-411 (W.D. Pa., Jan. 9, 2020) (Horan,

J.) (same) [DE 44].5

Further, it is too early to tell if the restrained funds are sufficient to pay for the damages

that Plaintiff may ultimately prove. Indeed, the Toloco Defendants have refused to provide any

sales or revenue information to Plaintiff’s counsel.6 Because these are China-based defendants,

the U.S.-based Amazon accounts are the only means of satisfying any eventual damage award

from this Court. As Plaintiff has already demonstrated, there is good cause for keeping the

accounts restrained throughout the litigation.

5
Courts in other districts have likewise made similar awards of statutory damages in cases involving sellers on
online marketplaces. See Juul Labs, Inc. v. The Unincorporated Associations Identified in Schedule A, No. 18-
cv-1287 (E.D. Va., April 5, 2019) ($2,000,000.00 in damages against each defendant per mark) [DE 64]; and
Michael Kors, L.L.C. v. The Partnerships and Unincorporated Associations Identified on Schedule “A”, Case
No. 15-cv-00124 (N.D. Ill. Mar. 25, 2015 and May 12, 2015) (same) [DE 44 and 61.]
6
Although Defendant Camlinbo has provided sales and revenue figures, Plaintiff has reason to believe such
numbers are not accurate.

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As the Court may imagine, it is not unusual for defendants in cases like the present one to

disagree over the asset restraint. In Gianni Versace, S.p.A. v. Zuo Youlan, et al., No. 17-cv-7869

(N.D. Ill.), the plaintiff sued over one thousand (1,000) online counterfeiters and obtained a

Temporary Restraining Order with a restraint on defendants’ assets. The bond amount was

$10,000. Seven (7) of the defendants appeared at the Preliminary Injunction hearing and

contested the asset restraint. The appearing defendants argued the restrained assets were not

limited to the profits derived from their counterfeiting as they had only made nominal sales of

counterfeit products. The amounts of the appearing defendants’ restrained assets ranged from

$9-82,000. The Court rejected the appearing defendants’ position and entered a Preliminary

Injunction continuing the asset restraint. The case concluded with the Court entering Default

Judgment against hundreds of defendants, awarding in excess of $600M in statutory damages,

and transferring the restrained assets to plaintiff is partial satisfaction of the damage award. For

the Court’s convenience, a copy of the transcript from the Preliminary Injunction hearing in the

Gianni Versace case along with a copy of the Order granting the Preliminary Injunction is

attached as Exhibit 4 to the Second Malkin Dec. submitted herewith.

Nonetheless, Plaintiff would be open to discussing alternatives to ensure there is a corpus

of funds in the United States to satisfy an ultimate judgment. Such alternatives include: 1)

Defendants posting a bond to ensure suitable funds remain in the United States subject to this

Court’s jurisdiction and 2) Defendants depositing suitable funds with either the Clerk of Court or

into their counsel’s IOLTA trust account.

IV. CONCLUSION

These Defendants like so many before are asking the Court to give them a free pass for

the damages they cause in the US Marketplace by infringing on US intellectual property. These

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behaviors are well documented and even the U.S. Government has studies and has warned about

the effects on the U.S. Market. Though these defendants choose to sell into the United States and

this district, they are now attempting to escape the Court’s jurisdiction based on almost

universally rejected legal arguments. The Court need not decide on personal jurisdiction in order

to issue a preliminary injunction. The Court should not allow the Defendants to use the Great

Wall of China as a means of avoiding the Plaintiff’s request for relief for the Defendants’

infringement of Plaintiff’s Sculpture. Moreover, the notion that the Defendants together

“independently” created an identical product to Plaintiff’ copyrighted work is a non-sequitur and

is counter to the evidence of record. Likewise, the Defendants’ argument that the Plaintiffs’

copyright is invalid should be rejected based upon the facts and law before the Court. The

Plaintiff continues to meet the elements necessary to grant a Preliminary Injunction to continue

the relief currently in place through the Court’s Temporary Restraining Order and the Court

should so order.

Respectfully submitted,

Dated: December 4, 2023 /s/ Stanley D. Ference III


Stanley D. Ference III
Pa. ID No. 59899
courts@ferencelaw.com

Brian Samuel Malkin


Pa. ID No. 70448
bmalkin@ferencelaw.com

FERENCE & ASSOCIATES LLC


409 Broad Street
Pittsburgh, Pennsylvania 15143
(412) 741-8400 – Telephone
(412) 741-9292 – Facsimile

Attorneys for Plaintiff

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