`
`
`
`T. KEVIN ROOSEVELT, Cal. Bar No. 205485
`kroosevelt@ftrlfirm.com
`FINLAYSON TOFFER
`ROOSEVELT & LILLY LLP
`15615 Alton Parkway, Suite 270
`Irvine, California 92618
`Telephone: 949-759-3810
`Facsimile: 949-759-3812
`
`Attorneys for Plaintiff
`ZO SKIN HEALTH, INC.
`
`
`
`UNITED STATES DISTRICT COURT
`
`CENTRAL DISTRICT OF CALIFORNIA, SOUTHERN DIVISION
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`ZO SKIN HEALTH, INC. a California
`Corporation,
`
`
`Plaintiff,
`
`
`FOREVERYOUNG – LASER
`CENTER, WEIGHT MANAGEMENT
`& MEDICAL SPA, LLC d/b/a
`FOREVERYOUNG MEDSPA
`HEALTH & WELLNESS d/b/a DERM
`CLINICAL, an Illinois limited liability
`company; and DOES 1-10, inclusive,
`
`
`Defendants.
`
`v.
`
`
`
`
`
`
` Case No. 8:22-cv-1141
`
`
`COMPLAINT FOR:
`
`1. TRADEMARK INFRINGEMENT
`IN VIOLATION OF 15 U.S.C §§
`1114, 1125(a)(1)(A);
`
`2. FALSE ADVERTISING IN
`VIOLATION OF 15 U.S.C §
`1125(a)(1)(B);
`
`3. UNFAIR COMPETITION IN
`VIOLATION OF 15 U.S.C §
`1125(a);
`
`4. TRADEMARK DILUTION IN
`VIOLATION OF 15 U.S.C §
`1125(c);
`
`5. BREACH OF CONTRACT;
`
`6. INTENTIONAL
`INTERFERENCE WITH
`CONTRACTUAL RELATIONS;
`
`7. UNFAIR COMPETITION IN
`(CAL. BUS. & PROF. CODE §
`17200, et seq.);
`
`8. COMMON LAW TRADEMARK
`INFRINGEMENT
`
`DEMAND FOR JURY TRIAL
`
`
`
`
`
`
`COMPLAINT
`
`
`
`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 2 of 24 Page ID #:2
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`1
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`Plaintiff, ZO Skin Health, Inc. ("ZOSH"), by and through its counsel of
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`2
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`record, for its Complaint against ForeverYoung – Laser Center, Weight
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`3
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`Management & Medical Spa, LLC d/b/a ForeverYoung MedSpa Health & Wellness
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`4
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`d/b/a Derm Clinical ("ForeverYoung") and Does 1 through 10, inclusive, upon
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`5
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`knowledge as to itself, and upon information and belief as to all other matters,
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`6
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`alleges as follows:
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`JURISDICTION AND VENUE
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`1.
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`This Court has subject matter jurisdiction over this matter pursuant to
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`28 U.S.C. §§ 1331 and 1338, 28 U.S.C. § 1367. ZOSH's federal claims are
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`predicated on 15 U.S.C. § 1114 and 15 U.S.C. § 1125(a) and (c), and its claims
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`arising under California state law are substantially related such that they form part
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`of the same case or controversy under Article III of the United States Constitution.
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`2.
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`Venue is proper in this judicial district pursuant to 28 U.S.C. §
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`1391(b)(2)-(3) as ForeverYoung is subject to personal jurisdiction in this Judicial
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`District and a substantial part of the events or omissions giving rise to the claims
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`occurred in this District.
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`3.
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`This Court has specific personal jurisdiction over ForeverYoung
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`because ForeverYoung has expressly aimed its tortious activities towards the State
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`of California, purposefully availed themselves to the privilege of doing business in
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`California, and engaged in significant contacts with California, including significant
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`and regular sales, shipments, and distribution of products bearing ZOSH's
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`trademarks in California and to California residents.
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`4.
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`This Court additionally has specific personal jurisdiction over
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`ForeverYoung because the contract on which this action is founded includes a forum
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`selection clause, whereby ForeverYoung agreed to be sued in this jurisdiction.
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`/ / /
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`/ / /
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`/ / /
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`1
`COMPLAINT
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`
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 3 of 24 Page ID #:3
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`5.
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`ZOSH is a corporation organized and existing under the laws of
`
`THE PARTIES
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`3
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`California, with its principal place of business located in Irvine, California.
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`4
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`6.
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`On information and belief, ForeverYoung is a limited liability company
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`5
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`existing under the laws of Illinois of which Irfan Ali is a member, an individual and
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`citizen of the State of Illinois.
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`7.
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`The true names and capacities, whether individual, corporate, associate,
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`or otherwise, of the remaining defendants, sued as Does 1 through 10, inclusive, are
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`unknown to ZOSH, which therefore sues said defendants by such fictitious names.
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`ZOSH alleges that each of the defendants designated herein as a fictitiously named
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`defendant is, in some manner, means, and/or degree responsible for the events and
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`transaction at issue herein, and that ZOSH's injuries were proximately caused
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`thereby. ZOSH will amend this Complaint to allege the true names and capacities
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`of those defendants when ascertained.
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`FACTUAL BACKGROUND
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`ZO Skin Health, Inc. Products, Policies, and Trademarks
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`8.
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`ZOSH is a California corporation that researches, develops, designs,
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`manufactures, markets and sells scientifically formulated cosmeceutical products
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`("ZO Products"). Various ZO Products are medical grade cosmetics and skin care
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`products.
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`9.
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`Some of the ZO Products are regulated by the U.S. Food and Drug
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`Administration ("FDA"). Pursuant to FDA regulations, only licensed physicians are
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`allowed to prescribe, recommend and sell these prescription grade ZO Products.
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`10. All ZO Products are exclusively sold through a network of licensed
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`physicians that operate throughout the United States and are qualified Authorized
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`Account Customers. These Authorized Account Customers have generated
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`considerable sales of ZO Products from 2011 to present, totaling more than two
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`hundred million sales by said Authorized Account Customers.
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`2
`COMPLAINT
`
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`
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 4 of 24 Page ID #:4
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`11. Licensed physicians can apply to open an Authorized Account with
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`ZOSH, and thereby obtain Authorized Account Customer status, by submitting a
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`New Account Application to ZOSH.
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`12. Qualified Authorized Account Customers may dispense and maintain
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`certain ZO Products in their business practices, subject to ZO’s Sales Terms and
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`Policies.
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`13. As part of the ZO Sales Terms and Policies, ZOSH has implemented
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`and maintains an Anti-Diversion Program that aggressively pursues those who sell
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`or attempt to sell ZO Products on the Internet or any other methods of distance
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`selling, whether through their own website or any other third-party seller website
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`(i.e., Amazon, eBay, Marketplace) ("ZO Anti-Diversion Policy").
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`14. ZOSH only adds licensed physicians to its network of Authorized
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`Account Customers once the licensed physician consents to the ZO Anti-Diversion
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`Policy.
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`15. The ZO Anti-Diversion Policy prohibits any licensed physician, or
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`anyone associated with the licensed physician, from selling ZO Products online.
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`16. This is because ZOSH maintains the exclusive right to sell ZO Products
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`online.
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`17. By distributing ZO Products exclusively through these licensed
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`physicians and ZOSH's exclusive authorized online marketplace, ZOSH is able to
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`ensure the safety and satisfaction of consumers and safeguard the reputation and
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`integrity of ZO Products and the ZO Skin Health, Inc. brand.
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`18. Further, to promote and protect the ZO Skin Health, Inc. brand, ZOSH
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`has registered numerous trademarks with the United States Patent and Trademark
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`Office, including but not limited to ZO and the ZO design logo (collectively, the
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`"ZO Trademarks").
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`19. The registration for the ZO Trademarks are valid, subsisting and in full
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`force and effect, and constitute prima facie evidence of the validity of the ZO
`
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`3
`COMPLAINT
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`
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 5 of 24 Page ID #:5
`
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`Trademarks and of the registration of the ZO Trademarks, of ZOSH's ownership of
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`the ZO Trademarks, and ZOSH's exclusive right to use the ZO Trademarks in
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`commerce in connection with the goods specified in the registrations.
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`20. ZOSH actively uses, advertises, and markets all of the ZO Trademarks
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`in commerce throughout the United States.
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`21. Consumers and licensed physicians recognize the ZO Trademarks as
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`being associated with cutting edge, medically advanced cosmeceutical products with
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`unparalleled results.
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`22. Further, consumers trust the ZO Skin Health, Inc. brand and associate
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`the ZO Skin Health, Inc. name with high quality, scientifically formulated and
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`advanced products because of the cutting edge, medically advanced technologies
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`and results of ZO Products.
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`23. As a result, the ZO Trademarks are widely recognized by the general
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`consumer of the United States, and ZOSH is recognized as the source of products
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`bearing the ZO Trademarks.
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`24. Due to the superior quality and exclusive distribution of ZO Products,
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`and because ZOSH is recognized as the source of these high-quality products, the
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`ZO Trademarks have considerable value.
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`25. ZOSH implements strict quality controls over its ZO Products to
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`maintain its distinct recognition as high quality products. ZOSH's ability to exercise
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`these quality controls is essential to the quality, safety and integrity of the ZO
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`Products, as well as the value of the ZO Trademarks and related intellectual
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`property. The ZO Anti-Diversion Program is intended to achieve these results.
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`26. As part of the ZO Anti-Diversion Program, ZOSH requires the licensed
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`physicians to adhere to ZOSH's policies, procedures and agreements ("ZO Sales
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`Terms and Policies").
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`27. The ZO Sales Terms and Policies govern the manner in which licensed
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`physicians sell ZO Products.
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`4
`COMPLAINT
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`
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 6 of 24 Page ID #:6
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`28. As part of the ZO Sales Terms and Policies, ZOSH prohibits
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`distributors and/or licensed physicians from relabeling, repackaging, modifying
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`and/or tampering with ZO Products, and provides distributors and/or licensed
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`physicians with accompanying written information regarding the usage protocols of
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`each ZO Product and/or administering instructions for medical grade ZO Products.
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`29. The ZO Sales Terms and Policies also set forth requirements relating to
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`storage, handling, inspection, usage and prescription of the ZO Products, and
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`provide for inspection of ZO Products by distributors and licensed physicians for
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`defects in packaging and product, which serves to ensure that end-user consumers
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`receive genuine ZO Products in conformity with ZOSH's quality control standards.
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`30. To prevent unauthorized third-parties from acquiring and reselling ZO
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`Products, the ZO Sales Terms and Policies achieve objectives of setting
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`recommended prices, prohibiting discounted prices, issuing product protocols,
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`define the guidelines for use of ZO Trademarks and copyrighted materials, and
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`ensure that the seller relationships are consistent and value-based across the supply
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`chain.
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`31. Unauthorized resellers pose a significant risk to ZOSH's quality
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`controls, since ZO Products sold by unauthorized resellers are outside of ZOSH's
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`quality controls, ZOSH cannot trace the ZO Product back to the chemical supplier,
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`facility and/or distributor, or determine if the item unauthorized resellers are selling
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`are genuine ZO Product, preventing ZOSH from issuing a necessary product recall.
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`32. ZOSH's quality control measures, including but not limited to, ZO
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`Sales Terms and Policies, are substantial and have been implemented to control the
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`quality of products sold and manufactured using the ZO Trademarks, which protects
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`licensed physicians, consumers, and the value and good will associated with ZO
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`Trademarks.
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`5
`COMPLAINT
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 7 of 24 Page ID #:7
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`33. As part of the ZO Sales Terms and Policies, Authorized Account
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`Customers must also adhere to data security, accessibility, and privacy
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`requirements.
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`34. Further, Authorized Account Customers must also use a tracking
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`mechanism relating to their sale of ZO Products and also have a means to obtain
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`consumer feedback/reviews. Authorized Account Customers must inform ZOSH of
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`any negative product reviews or client experiences. This is a key part of the ZO
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`Sales Terms and Policies and ZOSH's quality-control efforts, as it gives ZOSH a
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`method to address quality issues immediately, which is not possible with
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`unauthorized resellers.
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`35. Unauthorized resellers pose an additional risk to ZOSH's quality
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`control and the ZO Skin Heath, Inc. brand because products sold by unauthorized
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`resellers cannot provide the unique benefits and services to customers concurrently
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`with, and after, their sales. This is because ZOSH offers promotions, discounts, and
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`services exclusively through Authorized Account Customers.
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`36. ZOSH's overall strategy concerning quality control and protecting
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`value and goodwill associated with the ZO Skin Health, Inc. brand are significant
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`and material. These measures ensure that consumers receive genuine, high quality
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`ZO Products from licensed physician sources that adhere to ZO Sales Terms and
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`Policies and related quality-control measures. Consumers purchasing ZO Products
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`find it relevant to purchasing decisions to know that the product being purchased is
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`from an Authorized Account Customer that adheres to ZOSH's quality controls.
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`37. Additionally, ZO Sales Terms and Policies provide that ZO Products
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`purchased from Authorized Account Customers come with a Limited Warranty
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`("ZO Warranty").
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`38. The ZO Warranty warrants ZO Products against defects in
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`manufacturing, workmanship, or materials under normal use and service for the
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`applicable warranty period, subject to conditions contained therein. The warranty
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`6
`COMPLAINT
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 8 of 24 Page ID #:8
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`period ranges from one to ten years from the original date of purchase of a ZO
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`Product by an end-user purchaser from an Authorized Account Customer depending
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`on the product.
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`39. Under the ZO Warranty, a customer can receive a refund or
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`replacement product if a ZO Product has a defect in manufacturing, workmanship,
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`or materials under normal use and service for the applicable warranty period.
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`40. The ZO Warranty is not available for ZO Products sold by
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`unauthorized resellers because ZOSH cannot ensure the quality of products sold by
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`such unauthorized resellers. This ZO Warranty is a key component of genuine ZO
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`Products, as consumers purchasing ZO Products with the ZO Warranty have
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`assurances that they are receiving a high-quality product supported by the ZO
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`Warranty if an issue arises.
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`ForeverYoung's Unlawful Sales of ZOSH Products
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`41. Due to risks to consumers and reputational concerns associated with the
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`illegal sale of products bearing the ZO Trademarks by unauthorized resellers, ZOSH
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`tracks and polices the sale of its products online.
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`42.
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`In the course of monitoring unauthorized online sales of ZO Products,
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`ZOSH has discovered products bearing the ZO Trademarks being illegally sold by
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`ForeverYoung.
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`43. On information and belief, ForeverYoung illegally sells products
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`bearing the ZO Trademarks on Amazon through its online storefront
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`"AllMedicalGrade", formally known as "HealthNBeautyUSA" and
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`"HEALTHNBEAUTYLIFE INC."
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`44. ZOSH has not approved ForeverYoung to sell ZO Products through
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`online marketplaces.
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`45. On or about April 23, 2020, ForeverYoung submitted a New Account
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`Application to ZOSH and agreed to be bound by ZO Sales Terms and Policies.
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`7
`COMPLAINT
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 9 of 24 Page ID #:9
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`46. On or about April 23, 2020, ForeverYoung submitted a ZO Skin
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`2
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`Health, Inc. New Account Application and agreed to ZO’s Sales Terms and Policies,
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`3
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`whereby ForeverYoung opened an Authorized Account with ZO and became an
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`Authorized Account Customer.
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`47. The ZO New Account Application, ZO’s Sales Terms and Policies, ZO
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`Anti-Diversion Policy Acknowledgment and ZO Physician Online Store Agreement
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`(“ZO Policies”), governs the relationship between ZOSH and ForeverYoung.
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`48. Per the terms of the ZO Policies, ForeverYoung agreed to sell products
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`only in certain channels and to not sell the ZO Products on the Internet in any
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`manner.
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`49. The ZO Physician Online Store Agreement provides that "[a]ny breach
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`by [Authorized Account Customer] or [ZOSH] of any of the following … shall also
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`be considered a breach of this Agreement: [ZOSH's] Privacy Policy; agreements
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`between [ZOSH] and [Authorized Account Customer] related to pricing, labeling,
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`promotion, and branding of products; ZO Sales Terms and Policies; and the ZO
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`Anti-Diversion Policy."
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`50. The ZO Anti-Diversion Policy prohibits an Authorized Account
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`Customer from selling ZO Products on any online platform, including third-party
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`marketplaces such as Amazon and eBay.
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`51. ForeverYoung opened an Authorized Account, became an Authorized
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`Account Customer, obtained ZO Products, and sold those ZO Products through
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`third-party retailers in violation of the ZO Anti-Diversion Policy.
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`52. ForeverYoung's sales on Amazon, and possibly other online
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`marketplaces, violates ZO Sale Terms and Policies as well as the quality controls
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`implemented by ZOSH.
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`53. ForeverYoung is infringing the ZO Trademarks by selling products
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`bearing the ZO Trademarks that are not subject to, do not abide by, and interfere
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`with ZOSH's quality controls and customer service requirements.
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`8
`COMPLAINT
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 10 of 24 Page ID #:10
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`54. Further, ForeverYoung's unlawful conduct harms the ZO Skin Health,
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`Inc. brand's goodwill and also circumvents safeguards intended to protect
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`consumers.
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`55. ForeverYoung's products are materially different from genuine ZO
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`Products. As described herein, genuine ZO Products purchased from ZOSH and its
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`Authorized Account Customers that comply with ZOSH's quality controls come
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`with the ZO Warranty.
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`56. ForeverYoung's products do not comply with ZOSH's quality controls
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`and do not come with the ZO Warranty, and therefore, are not genuine ZO Products.
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`57. ForeverYoung's unauthorized sale of products bearing the ZO
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`Trademarks is likely to, and does create customer confusion, because customers
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`who purchase products from ForeverYoung believe they are purchasing genuine ZO
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`Products, when in fact, they are not.
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`58. ForeverYoung's unauthorized sale of products bearing the ZO
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`Trademarks infringes on the ZO Trademarks and diminishes their value.
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`59. On information and belief, ForeverYoung has accepted and fulfilled
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`significant orders of infringing products bearing the ZO Trademarks from
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`consumers in California.
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`60. On information and belief, ForeverYoung shipped significant amounts
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`of infringing products bearing the ZO Trademarks to California.
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`22
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`ZOSH Has Suffered Significant Harm Due to ForeverYoung's Conduct
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`61. ForeverYoung's unauthorized resale of products bearing the ZO
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`23
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`Trademarks through unauthorized online resellers has caused significant harm to the
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`24
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`ZO Skin Health, Inc. brand.
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`25
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`62. When a consumer receives one of ForeverYoung's products from an
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`26
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`unauthorized reseller that lacks the ZO Warranty, the consumer associates that
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`27
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`negative experience with ZOSH and the ZO Skin Health, Inc. brand.
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`9
`COMPLAINT
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 11 of 24 Page ID #:11
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`1
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`63. On information and belief, ForeverYoung continues to sell products
`
`2
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`bearing the ZO Trademarks on Amazon through its online storefront
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`3
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`"AllMedicalGrade", formally known as "HealthNBeautyUSA" and
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`4
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`"HEALTHNBEAUTYLIFE INC."
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`5
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`64. ForeverYoung's ongoing sale of unauthorized products bearing the ZO
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`6
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`Trademarks causes substantial harm to the ZO Skin Health, Inc. brand.
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`7
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`65. ZOSH has suffered and will continue to suffer significant monetary
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`8
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`harm as a direct result of ForeverYoung's misconduct, including but not limited to
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`9
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`loss of sales, damage to reputation, erosion of intellectual property rights, and
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`10
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`damage to existing and prospective business relationships.
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`11
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`66. ZOSH has suffered and will continue to suffer irreparable harm to its
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`12
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`reputation, goodwill, business and customer relationships, intellectual property
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`13
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`rights, and brand integrity.
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`67. ZOSH is entitled to injunctive relief, because ForeverYoung will
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`15
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`continue to unlawfully resell products bearing the ZO Trademarks and infringe on
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`16
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`the ZO Trademarks, causing continued irreparable harm to ZOSH's reputation,
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`17
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`goodwill, relationships, intellectual property, and brand integrity.
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`18
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`68. ForeverYoung's conduct described in detail herein was intentional,
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`19
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`willful, knowing, malicious, wanton, and in violation of applicable laws.
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`21
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`22
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`23
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`24
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`FIRST CLAIM
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`TRADEMARK INFRINGEMENT
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`15 U.S.C. §§ 1114, 1125(a)(1)(A)
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`(Against ForeverYoung and Does 1 – 10)
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`69. ZOSH hereby incorporates by reference the allegations contained in
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`25
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`paragraphs 1 through 68, inclusive, of this Complaint as if set forth in full herein.
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`26
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`27
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`28
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`70. ZOSH is the owner of the ZO Trademarks.
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`10
`COMPLAINT
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 12 of 24 Page ID #:12
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`1
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`71. ZOSH has registered the ZO Trademarks with the United States Patent
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`2
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`and Trademark Office, and such registration is valid and incontestable pursuant to
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`3
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`15 U.S.C. § 1065.
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`4
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`72. The ZO Trademarks are valid and subsisting trademarks in full force
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`5
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`and effect.
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`6
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`73. ForeverYoung unlawfully, willfully, and knowingly used and continues
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`7
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`to use the ZO Trademarks in interstate commerce for purposes of selling products
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`8
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`bearing the ZO Trademarks online without ZOSH's consent.
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`9
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`74. The products sold online by ForeverYoung bearing the ZO Trademarks
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`10
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`are not authorized for sale by ZOSH.
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`11
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`75. The products sold online by ForeverYoung bearing the ZO Trademarks
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`12
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`are not genuine ZO Products.
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`13
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`76. These products do not come with the ZO Warranty, and are not subject
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`14
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`to, do not abide by, and interfere with ZOSH's quality controls and customer service
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`15
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`requirements.
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`77. Further, these products cannot provide the unique benefits and services
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`17
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`to customers concurrently with and after their sales, such as promotions and
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`discounts offered by ZOSH exclusively through its Authorized Account Customers.
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`19
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`78. As a result, ForeverYoung's unauthorized sale of products bearing the
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`20
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`ZO Trademarks is likely to cause confusion, cause mistake, or deceive consumers.
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`21
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`79. As a proximate result of ForeverYoung's misconduct, ZOSH has
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`22
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`suffered and continues to suffer immediate and irreparable harm. ZOSH has also
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`23
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`suffered and continues to suffer damages, including but not limited to loss of
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`24
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`business, goodwill, reputation, and profits in an amount to be proven at trial.
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`25
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`80. ZOSH is entitled to recover its damages caused by ForeverYoung's
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`26
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`infringement of the ZO Trademarks, and disgorge ForeverYoung's profits from their
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`27
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`willfully infringing sales and unjust enrichment.
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`28
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`11
`COMPLAINT
`
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`
`
`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 13 of 24 Page ID #:13
`
`
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`1
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`81. ZOSH is entitled to injunctive relief under 15 U.S.C. § 1116, because it
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`2
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`has no adequate remedy at law for ForeverYoung's infringement, and unless
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`3
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`ForeverYoung is permanently enjoined, ZOSH will suffer irreparable harm.
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`4
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`82. ZOSH is entitled to enhanced damages and attorney fees under 15
`
`5
`
`U.S.C. § 1117(a) as this is an exceptional case, because ForeverYoung willfully,
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`6
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`intentionally, and maliciously infringed on the ZO Trademarks in bad faith.
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`7
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`8
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`9
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`10
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`11
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`SECOND CLAIM
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`FALSE ADVERTISING
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`15 U.S.C. § 1125(a)(1)(b)
`
`(Against ForeverYoung and Does 1 – 10)
`
`83. ZOSH hereby incorporates by reference the allegations contained in
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`12
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`paragraphs 1 through 82, inclusive, of this Complaint as if set forth in full herein.
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`13
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`14
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`84. ZOSH is the owner of the ZO Trademarks.
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`85. ZOSH has registered the ZO Trademarks with the United States Patent
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`15
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`and Trademark Office, and such registration is valid and incontestable pursuant to
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`16
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`15 U.S.C. § 1065.
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`17
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`86. The ZO Trademarks are valid and subsisting trademarks in full force
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`18
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`and effect.
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`19
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`87. ForeverYoung unlawfully, willfully, and knowingly used and continues
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`20
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`to use the ZO Trademarks in interstate commerce for purposes of selling products
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`21
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`bearing the ZO Trademarks online without ZOSH's consent.
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`22
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`88. The products sold online by ForeverYoung bearing the ZO Trademarks
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`23
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`are not authorized for sale by ZOSH.
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`24
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`89. The products sold online by ForeverYoung bearing the ZO Trademarks
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`25
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`are not genuine ZO Products.
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`26
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`90. The products ForeverYoung advertises and sells online bearing the ZO
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`27
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`Trademarks are not authorized for sale by ZOSH.
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`28
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`
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`
`
`12
`COMPLAINT
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`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 14 of 24 Page ID #:14
`
`
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`1
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`91. ForeverYoung's advertising, marketing, and promotional efforts
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`2
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`regarding their products unlawfully use the ZO Trademarks, and has been
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`3
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`disseminated to the relevant purchasing public, including California consumers.
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`4
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`92. ForeverYoung has used and continue to use the ZO Trademarks to
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`5
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`falsely advertise by implication that the products they sell come with the ZO
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`6
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`Warranty when, in fact, they do not.
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`7
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`93. ForeverYoung's unauthorized and deceptive use of the ZO Trademarks
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`8
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`in the advertisement and sale of products bearing the ZO Trademarks is material and
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`9
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`likely to cause confusion, cause mistake, or deceive consumers, because it suggests
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`10
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`that the products ForeverYoung offers are genuine ZO Products, that are sponsored
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`11
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`by, authorized by, or otherwise connected to ZOSH, and come with the ZO
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`12
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`Warranty and are subject to and abide by ZOSH's quality controls when, in fact,
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`13
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`they are not.
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`14
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`94. ForeverYoung's unauthorized use of ZO Trademarks in advertising and
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`15
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`the like infringes on the ZO Trademarks.
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`16
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`95. As a proximate result of ForeverYoung's misconduct, ZOSH has
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`17
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`suffered and will continue to suffer damage to its business, goodwill, reputation, and
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`18
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`profits in an amount to be proven at trial.
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`19
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`96. ZOSH is entitled to recover its damages caused by ForeverYoung's
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`20
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`false advertising and infringement of the ZO Trademarks and disgorge
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`21
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`ForeverYoung's profits from their willfully infringing sales and unjust enrichment.
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`22
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`97. ZOSH is entitled to injunctive relief under 15 U.S.C. § 1116, because it
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`23
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`has no adequate remedy at law for ForeverYoung's false advertising and
`
`24
`
`infringement, and unless ForeverYoung is permanently enjoined, ZOSH will suffer
`
`25
`
`irreparable harm.
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`26
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`98. ZOSH is entitled to enhanced damages and attorney fees under 15
`
`27
`
`U.S.C. § 1117(a) as this is an exceptional case, because ForeverYoung has willfully,
`
`28
`
`intentionally, maliciously, and in bad faith infringed on the ZO Trademarks.
`
`
`
`
`
`13
`COMPLAINT
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`
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`
`
`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 15 of 24 Page ID #:15
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`
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`1
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`2
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`3
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`4
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`5
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`THIRD CLAIM
`
`UNFAIR COMPETITION
`
`15 U.S.C. § 1125(a)
`
`(Against ForeverYoung and Does 1 – 10)
`
`99. ZOSH hereby incorporates by reference the allegations contained in
`
`6
`
`paragraphs 1 through 98, inclusive, of this Complaint as if set forth in full herein.
`
`7
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`8
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`100. ZOSH is the owner of the ZO Trademarks.
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`101. ZOSH has registered the ZO Trademarks with the United States Patent
`
`9
`
`and Trademark Office, and such registration is valid and incontestable pursuant to
`
`10
`
`15 U.S.C. § 1065.
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`11
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`102. The ZO Trademarks are valid and subsisting trademarks in full force
`
`12
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`and effect.
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`13
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`103. ForeverYoung unlawfully, willfully, and knowingly used and continues
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`14
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`to use the ZO Trademarks in interstate commerce for purposes of selling products
`
`15
`
`bearing the ZO Trademarks online without ZOSH's consent.
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`16
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`104. The products sold online by ForeverYoung bearing the ZO Trademarks
`
`17
`
`are not authorized for sale by ZOSH.
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`18
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`105. The products sold online by ForeverYoung bearing the ZO Trademarks
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`19
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`are not genuine ZO Products.
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`20
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`106. The products ForeverYoung advertises and sells online bearing the ZO
`
`21
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`Trademarks are not authorized for sale by ZOSH.
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`22
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`107. ForeverYoung's unauthorized advertisement and sale of products
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`23
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`bearing the ZO Trademarks is likely to cause confusion, cause mistake, or deceive
`
`24
`
`consumers, because it suggests that the products ForeverYoung offers are genuine
`
`25
`
`ZO Products, that are sponsored by, authorized by, or otherwise connected to
`
`26
`
`ZOSH, and come with the ZO Warranty and are subject to and abide by ZOSH's
`
`27
`
`quality controls when, in fact, they are not.
`
`28
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`
`
`
`
`14
`COMPLAINT
`
`
`
`
`
`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 16 of 24 Page ID #:16
`
`
`
`1
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`108. ForeverYoung's unauthorized use of the ZO Trademarks has infringed
`
`2
`
`upon and materially damaged the value of the ZO Trademarks and caused
`
`3
`
`significant damage and harm to ZOSH's business relationships.
`
`4
`
`109. As a proximate result of ForeverYoung's misconduct, ZOSH has
`
`5
`
`suffered and will continue to suffer damage to its business, goodwill, reputation, and
`
`6
`
`profits in an amount to be proven at trial.
`
`7
`
`110. ZOSH is entitled to recover its damages caused by ForeverYoung's
`
`8
`
`unfair competition and infringement of the ZO Trademarks and disgorge
`
`9
`
`ForeverYoung's profits from their willfully infringing sales and unjust enrichment.
`
`10
`
`111. ZOSH is entitled to injunctive relief under 15 U.S.C. § 1116, because it
`
`11
`
`has no adequate remedy at law for ForeverYoung's false advertising and
`
`12
`
`infringement, and unless ForeverYoung is permanently enjoined, ZOSH will suffer
`
`13
`
`irreparable harm.
`
`14
`
`112. ZOSH is entitled to enhanced damages and attorney fees under 15
`
`15
`
`U.S.C. § 1117(a) as this is an exceptional case, because ForeverYoung has willfully,
`
`16
`
`intentionally, maliciously, and in bad faith infringed on the ZO Trademarks.
`
`17
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`18
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`19
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`20
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`21
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`FOURTH CLAIM
`
`TRADEMARK DILUTION
`
`15 U.S.C. § 1125(c)
`
`(Against ForeverYoung and Does 1 – 10)
`
`113. ZOSH hereby incorporates by reference the allegations contained in
`
`22
`
`paragraphs 1 through 112, inclusive, of this Complaint as if set forth in full herein.
`
`23
`
`24
`
`114. ZOSH is the owner of the ZO Trademarks.
`
`115. ZOSH has registered the ZO Trademarks with the United States Patent
`
`25
`
`and Trademark Office, and such registration is valid and incontestable pursuant to
`
`26
`
`15 U.S.C. § 1065.
`
`27
`
`116. The ZO Trademarks are inherently distinctive and are valid and
`
`28
`
`subsisting trademarks in full force and effect.
`
`
`
`
`
`15
`COMPLAINT
`
`
`
`
`
`Case 8:22-cv-01141 Document 1 Filed 06/10/22 Page 17 of 24 Page ID #:17
`
`
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`1
`
`117. ZOSH has actively, continuously, and exclusively used and promoted
`
`2
`
`its ZO Trademarks at all relevant times.
`
`3
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`118. ZOSH has expended substantial time, effort, money, and resources
`
`4
`
`advertising and promoting ZO Products with the ZO Trademarks.
`
`5
`
`119. ZOSH markets, advertises, and sells products using the ZO Trademarks
`
`6
`
`throughout the United States, including in California.
`
`7
`
`120. The ZO Tradem