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United States District Court Southern District of New York Case 1:17-cv-01927-PAE-GWG Document 496 Filed 01/11/21 Page 1 of 20 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK EXPERIENCE HENDRIX, LLC and AUTHENTIC HENDRIX, LLC, Plaintiffs, 17 Civ. 1927 (PAE) (GWG) -v- OPINION & ORDER LEON HENDRIX, et al., Defendants. PAUL A. ENGELMAYER, District Judge: This case was brought in March 2017 by the owners of copyrights and trademarks associated with the late singer and songwriter Jimi Hendrix, claiming acts of infringement by various corporate and individual defendants, including Hendrix’s brother Leon Hendrix. Dkt. 1. Plaintiff Experience Hendrix, LLC owns the musical compositions and sound recordings of Jimi Hendrix, and is the assignee, and exclusive owner, of the copyright and trademark rights previously owned by Jimi Hendrix. See Dkt. 456 at 5. Plaintiff Authentic Hendrix LLC is the licensing arm of Experience. Id. After contentious litigation, the Court issued a series of opinions, orders, and permanent injunctions with respect to plaintiffs’ rights over these trademarks and copyrights, which bound, inter alia, defendants Leon Hendrix, Leon Hendrix’s business partner Andrew Pitsicalis, and related corporate entities, Dkts. 366, 370. On August 6, 2020, the Court closed this case. Dkt. 466. Plaintiffs now move for civil contempt against Leon Hendrix and two non-parties to the original Complaint: Leon Hendrix’s daughter Tina Hendrix and Hendrix Music Academy (“HMA”). Plaintiffs contend that they have violated the Court’s permanent injunctions. Case 1:17-cv-01927-PAE-GWG Document 496 Filed 01/11/21 Page 2 of 20 Dkt. 468 (“Pl. Mot.”). For the following reasons, the Court finds all three in contempt, orders them to comply with the injunctions, and awards plaintiffs monetary relief for the violations the Court has found. I. Background The Court assumes familiarity with the background and procedural history of this case and summarizes here only the information necessary to explain the instant rulings. A. The Underlying Litigation In 2017, plaintiffs sued Leon Hendrix, Andrew Pitsicalis, and related corporate entities for, inter alia, trademark infringement, 15 U.S.C. § 1114; false designation of origin, 15 U.S.C. § 1125(a); trademark dilution, 15 U.S.C. § 1125(c); infringement of common law trademark rights; copyright infringement, 17 U.S.C. § 501; contributory infringement; vicarious infringement; deceptive acts, N.Y. Gen. Bus. Law § 349; false advertising, New York Gen. Bus. Law § 350; and unjust enrichment. Dkt. 115 (Third Amended Complaint, “TAC”) ¶¶ 108–240. On October 25, 2019, the Court entered a permanent injunction for plaintiffs against Pitsicalis’s and Leon Hendrix’s corporate entities. Dkt. 370. On December 9, 2019, the Court issued an order imposing terminating sanctions against Leon Hendrix for serial misconduct, including discovery abuses. Dkt. 398. On December 10, 2019, the Court entered a default judgment as to liability against Leon Hendrix, Dkt. 402, and a week later, against various other defendants. Dkt. 415. The Court referred the case to the Hon. Gabriel W. Gorenstein, United States Magistrate Judge, for a damages inquest. Dkts. 418, 432. On July 1, 2020, Judge Gorenstein found that plaintiffs were entitled to injunctive relief as well as damages from the defaulting defendants, including Leon Hendrix, for their trademark and copyright infringement. See Dkt. 456 (“Report”) at 5, 28. Judge Gorenstein detailed the 2 Case 1:17-cv-01927-PAE-GWG Document 496 Filed 01/11/21 Page 3 of 20 range of violations of the plaintiffs’ intellectual property rights that had been established, and which collectively demonstrated a brazen disregard of those rights. Judge Gorenstein noted that Leon Hendrix and Andrew Pitsicalis had worked together to create “the illusion of an empire of ‘authentic’ Jimi Hendrix goods which include[d] cannabis, edibles, food, wine, alcohol, ‘medicines,’ and electronic products” that infringed on plaintiffs’ trademarks and copyrights. Id. at 13. Among other acts of blatant infringement, Judge Gorenstein noted that the defendants had registered multiple domain names that infringed on plaintiffs’ federally registered and incontestable trademarks; these included “jimifoods.com,” “jimiwines.com,” and “jimiteas.com.” Id. at 9–10. “Pepper Palace,” a licensee of Leon Hendrix, willfully infringed on plaintiffs’ copyrighted “Axis: Bold as Love” album artwork by placing it on boxes for sale of “Jimi Hendrix Hot Sauce Gift Pack.” Id. at 18. Another corporate entity associated with Leon Hendrix “developed, marketed, and sold a line of cannabis-infused skin care products and beverages that infringed upon the Hendrix Marks.” Id. at 10 (quotations omitted). From just one licensing agreement with Tiger Paw Distributers LLC, Leon Hendrix received around $30,000 for infringing Hendrix-branded alcoholic beverages. Id. at 13. On July 24, 2020, this Court adopted Judge Gorenstein’s recommendations in their entirety, including awarding a judgment of $402,018.53 against Leon Hendrix. Dkt. 458. The same day, this Court issued a permanent injunction in favor of Experience Hendrix, LLC and Authentic Hendrix, LLC, and against “Leon Hendrix, his corporate entities, . partners, . affiliates, and those who receive actual notice or knowledge of th[e] injunction,” protecting their copyrights and trademarks against infringement. Dkt. 461 (“Leon Hendrix Permanent Injunction” or “Leon Hendrix Perm. Injun.”) at 2. 3 Case 1:17-cv-01927-PAE-GWG Document 496 Filed 01/11/21 Page 4 of 20 B. This Motion On October 19, 2020, plaintiffs filed a motion for civil contempt, Pl. Mot., and a memorandum of law in support, Dkt. 469 (“Pl. Mem.”). Plaintiffs there argue that Leon Hendrix, Tina Hendrix, and HMA violated the Court’s permanent injunctions, over which the Court has retained jurisdiction for the purposes of enforcement. See Leon Hendrix Perm. Injun. ¶ 7. On October 20, 2020, the Court ordered plaintiffs to serve Leon Hendrix, Tina Hendrix, and HMA with the contempt motion, and to file proof of such service. Dkt. 471. Plaintiffs filed affidavits of service, see Dkts. 472–79, but, on November 12, 2020, the Court found those affidavits unpersuasive to establish legally effective service. The Court directed plaintiffs either to attempt proper service again or to explain why the service already made was legally effective. Dkt. 480. On November 20, 2020, plaintiffs filed such a letter, which in the alternative sought leave to serve Tina Hendrix and HMA by email. Dkt. 482. On November 23, 2020, the Court found that Leon Hendrix had been properly served with the contempt motion, and authorized plaintiffs to serve Tina Hendrix and HMA by email. Dkt. 483 (“Order of Service”). Plaintiffs then effected service via email on Tina Hendrix and HMA. Dkts. 484–85. On December 7, 2020, Tina Hendrix, on behalf of herself and HMA, filed an answer, pro se, to the motion. Dkt. 490 (“Answer”). Leon Hendrix has not appeared in response to the motion. On December 14, 2020, plaintiffs filed a reply to Tina Hendrix’s answer. Dkt. 491 (“Pl. Reply”). II. Discussion Federal courts have inherent authority to enforce compliance with their orders and to punish for contempt any person who violates its orders. See 18 U.S.C. § 401(3). “Civil contempt sanctions may serve either or both of two purposes: They may be coercive, to secure 4 Case 1:17-cv-01927-PAE-GWG Document 496 Filed 01/11/21 Page 5 of 20 compliance with court orders, or they may be compensatory, to make whole the party who has been wronged.” Al Hirschfeld Found. v. Margo Feiden Galleries Ltd., 438 F. Supp. 3d 203, 207 (S.D.N.Y. 2020); see also EEOC v. Local 638, Local 28 of Sheet Metal Workers’ Int’l Ass’n, 753 F.2d 1172, 1183 (2d Cir. 1985) (contempt sanctions serve “to coerce future compliance and to remedy past noncompliance”). Civil contempt differs from criminal contempt in that criminal sanctions are punitive in nature, while civil sanctions are not. See Paramedics Electromedicina Comercial, Ltda. v. GE Med. Sys. Info. Tech., Inc., 369 F.3d 645, 657 (2d Cir. 2004) (“Criminal contempt is typically imposed to punish the violation and vindicate the court’s authority.” (quotations omitted)). The compensatory goal of civil contempt sanctions is “met by awarding to the plaintiff any proven damages.” Weitzman v. Stein, 98 F.3d 717, 719 (2d Cir. 1996); see also id. at 720 (“It is error to withhold damages that are supported by the record.”). That is because the purpose of compensatory sanctions is “to make reparation to the injured party and restore the parties to the position they would have held had the injunction been obeyed.” Medina v. Buther, No. 15 Civ. 1955 (LAP), 2019 WL 581270, at *26 (S.D.N.Y. Feb. 13, 2019) (quotations omitted). In considering plaintiffs’ claims of contempt-worthy conduct here, the Court has reviewed the entire record of this case, which discloses a regrettable history of Leon Hendrix’s noncompliance with discovery and other orders. In addition, because Leon Hendrix has not filed an opposition or otherwise appeared, he is in default as to the instant motion. HMA is also in default because, although Tina Hendrix, appearing pro se, has filed an answer purportedly on behalf of HMA, Tina Hendrix, as a non-lawyer, cannot represent a corporation, and no counsel has entered a notice of appearance on behalf of HMA. See Lattanzio v. COMTA, 481 F.3d 137, 139 5 Case 1:17-cv-01927-PAE-GWG Document 496 Filed 01/11/21 Page 6 of 20 (2d Cir. 2007) (“[A] layperson may not represent a separate legal entity such as a corporation.”); Waterkeeper All. Inc. v. Spirit of Utah Wilderness, Inc., No. 10 Civ. 1136 (NSR), 2017 WL 4386376, at *2 (S.D.N.Y. Oct. 2, 2017), aff’d sub nom. Waterkeeper All., Inc. v. Salt, 829 F. App’x 541 (2d Cir.
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