`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
`
`
`PEANUTS WORLDWIDE LLC,
`
`Plaintiff,
`
`v.
`
`
`Case No. 21-cv-01451
`
`
`
`THE PARTNERSHIPS and
`UNINCORPORATED ASSOCIATIONS
`IDENTIFIED ON SCHEDULE “A”,
`
`Defendants.
`
`
`
`
`COMPLAINT
`
`Plaintiff Peanuts Worldwide LLC (“Plaintiff”) hereby brings the present action against the
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`Partnerships and Unincorporated Associations identified on Schedule A attached hereto
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`(collectively, “Defendants”) and alleges as follows:
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`I. JURISDICTION AND VENUE
`
`1.
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`This Court has original subject matter jurisdiction over the claims in this action
`
`pursuant to the provisions of the Lanham Act, 15 U.S.C. § 1051, et seq., the Copyright Act 17
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`U.S.C. § 501, et seq., 28 U.S.C. § 1338(a)-(b) and 28 U.S.C. § 1331.
`
`2.
`
`Venue is proper in this Court pursuant to 28 U.S.C. § 1391, and this Court may
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`properly exercise personal jurisdiction over Defendants since each of the Defendants directly
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`targets business activities toward consumers in the United States, including Illinois, through at
`
`least the fully interactive e-commerce stores1 operating under the seller aliases identified in
`
`Schedule A attached hereto (the “Seller Aliases”). Specifically, Defendants have targeted sales to
`
`
`1 The e-commerce store urls are listed on Schedule A hereto under the Online Marketplaces.
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`
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 2 of 21 PageID #:2
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`Illinois residents by setting up and operating e-commerce stores that target United States
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`consumers using one or more Seller Aliases, offer shipping to the United States, including Illinois,
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`accept payment in U.S. dollars and, on information and belief, have sold products using infringing
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`and counterfeit versions of Plaintiff’s federally registered trademarks and/or unauthorized copies
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`of Plaintiff’s federally registered copyrighted designs (collectively, the “Unauthorized Peanuts
`
`Products”) to residents of Illinois. Each of the Defendants is committing tortious acts in Illinois,
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`is engaging in interstate commerce, and has wrongfully caused Plaintiff substantial injury in the
`
`State of Illinois.
`
`II. INTRODUCTION
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`3.
`
`This action has been filed by Plaintiff to combat e-commerce store operators who
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`trade upon Plaintiff’s reputation and goodwill by selling and/or offering for sale Unauthorized
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`Peanuts Products. Defendants create e-commerce stores operating under one or more Seller
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`Aliases that are advertising, offering for sale, and selling Unauthorized Peanuts Products to
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`unknowing consumers. E-commerce stores operating under the Seller Aliases share unique
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`identifiers, establishing a logical relationship between them and that Defendants’ counterfeiting
`
`operation arises out of the same transaction, occurrence, or series of transactions or occurrences.
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`Defendants attempt to avoid and mitigate liability by operating under one or more Seller Aliases
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`to conceal both their identities and the full scope and interworking of their counterfeiting operation.
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`Plaintiff is forced to file this action to combat Defendants’ counterfeiting of its registered
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`trademarks and infringement of its registered copyrighted designs, as well as to protect unknowing
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`consumers from purchasing Unauthorized Peanuts Products over the Internet. Plaintiff has been
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`and continues to be irreparably damaged through consumer confusion, dilution, and tarnishment
`
`
`
`2
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`
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 3 of 21 PageID #:3
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`of its valuable trademarks and infringement of its copyrighted designs as a result of Defendants’
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`actions and seeks injunctive and monetary relief.
`
`III. THE PARTIES
`
`Plaintiff
`
`4.
`
`Plaintiff Peanuts Worldwide LLC is a Delaware limited liability company having
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`its principal place of business at 352 Park Avenue So. FL 8, New York, NY 10010.
`
`5.
`
`Over seventy years ago, Charles M. Schulz introduced a brand-new comic strip
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`with an unlikely round-headed hero, “Good ol’ Charlie Brown,” and the PEANUTS comic strip
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`was born. From its humble beginnings in just seven U.S. newspapers, the PEANUTS comic strip
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`grew to a syndicated daily and Sunday comic strip that ran from October 2, 1950, to February 13,
`
`2000, and it continues in reruns. The PEANUTS comic strip is not only one of the best-loved
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`comic strips in history, but a true global phenomenon.
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`6.
`
`Some of the characters and character names made famous by the PEANUTS comic
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`strip are:
`
`
`
`3
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`
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`Today, the PEANUTS comic strip is featured in global online syndication and in
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`7.
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`thousands of newspapers worldwide; in classic television specials and in new streaming series;
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`and in mobile apps, stage productions, feature films, and books. PEANUTS has also inspired
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`theme park attractions and public art projects. In 2018, Plaintiff partnered with NASA on a multi-
`
`year Space Act Agreement designed to inspire a passion for space exploration and STEM among
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`the next generation of students with new original streaming series starring Astronaut Snoopy to
`
`
`
`4
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`
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 5 of 21 PageID #:5
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`in-school STEM-based curriculum about America’s latest explorations into deep space. For fans
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`everywhere, happiness is PEANUTS.
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`8.
`
`In addition to episode DVDs of the classic television specials and PEANUTS comic
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`strips, a variety of licensed PEANUTS products are available, including: games and other toys
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`such as playsets, playing cards, and stuffed toys; household items such as holiday ornaments,
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`bathroom products, stationery and bed linens; clothing and jewelry (collectively, the “PEANUTS
`
`Products”).
`
`9.
`
`PEANUTS Products have become enormously popular and even iconic, driven by
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`the brand’s arduous quality standards and innovative design. Among the purchasing public,
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`genuine PEANUTS Products are instantly recognizable as such. The PEANUTS brand has
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`become a global success that resonates with children worldwide, and PEANUTS Products are
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`among the most recognizable in the world. PEANUTS Products are distributed and sold to
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`consumers through retailers throughout the United States, including Illinois.
`
`10.
`
`Long before Defendants’ acts described herein, Plaintiff (through its predecessor-
`
`in-interest United Feature Syndicate Inc. and licensees) launched the PEANUTS comic strip and
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`television show and its related line of PEANUTS Products bearing its famous PEANUTS mark,
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`SNOOPY mark, CHARLIE BROWN mark, and various copyrighted designs (the “Peanuts
`
`Copyrighted Designs”).
`
`11.
`
`Plaintiff (through its predecessor-in-interest United Feature Syndicate Inc. and
`
`licensees) has used the PEANUTS and other trademarks for many years and has continuously sold
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`products under PEANUTS and other trademarks (collectively, the “PEANUTS Trademarks”). As
`
`a result of this long-standing use, strong common law trademark rights have amassed in the
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`PEANUTS Trademarks. Plaintiff’s use of the marks has also built substantial goodwill in and to
`
`
`
`5
`
`
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 6 of 21 PageID #:6
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`the PEANUTS Trademarks. The PEANUTS Trademarks are famous marks and valuable assets
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`of Plaintiff. PEANUTS Products typically include at least one of the registered PEANUTS
`
`Trademarks and/or the Peanuts Copyrighted Designs.
`
`12.
`
`Several of the PEANUTS Trademarks are registered with the United States Patent
`
`and Trademark Office, a non-exclusive list of which is included below.
`
`Registration
`No.
`
`Trademark
`
`1,255,304
`
`PEANUTS
`
`1,265,839
`
`1,301,542
`
`PEANUTS
`
`PEANUTS
`
`1,729,501
`
`PEANUTS
`
`1,970,335
`
`PEANUTS
`
`4,017,645
`
`PEANUTS
`
`Goods and Services
`For: address books; books (including coloring
`books); datebooks; greeting cards; growth charts
`made of paper; invitations; memo pads; nametags
`made of paper; paintbrushes; paper napkins; pencils;
`pencil boxes and cases; place cards made of paper;
`playing cards; telephone list books; wrapping paper
`for gifts; writing paper and envelopes; and writing
`tablets in class 016.
`
`For: Christmas decorations and ornaments; dolls;
`playsets; puzzles in class 028.
`For: music boxes in class 015.
`
`For: clothing; namely, infant boys' and girls' creepers,
`leggings, shorts, jackets, tops, boys' tops, shorts,
`tank tops, fleece tops, pants, pajamas, jackets,
`shorts, and socks; girls' shorts, tops, creepers,
`jumpers, socks and hosiery in class 025.
`
`For: bed linen, namely bedspreads, blankets,
`comforters, pillowcases, pillow shams, and sheets in
`class 024.
`
`For: pre-recorded DVDs featuring animated
`characters; pre-recorded CDs featured animated
`character voices; films featuring animated characters;
`computer game programs, computer game software,
`video games, namely, video game software, video
`game cartridges and video game discs; downloadable
`television shows featuring animated characters in
`class 009.
`
`
`
`
`6
`
`
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 7 of 21 PageID #:7
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`Registration
`No.
`
`Trademark
`
`4,429,043
`
`PEANUTS
`
`5,023,666
`
`PEANUTS
`
`5,392,411
`
`PEANUTS
`
`1,254,632
`
`1,256,819
`
`1,256,900
`
`SNOOPY
`
`SNOOPY
`
`SNOOPY
`
`1,256,970
`
`SNOOPY
`
`1,267,166
`
`1,268,857
`
`SNOOPY
`
`SNOOPY
`
`1,286,055
`
`SNOOPY
`
`1,300,520
`
`SNOOPY
`
`
`
`Goods and Services
`For: continuing animated programs distributed over
`television, satellite, audio, video media, the internet
`and worldwide web in class 041.
`
`For: motion picture films featuring animated
`cartoons; downloadable motion pictures featuring
`animated cartoons; downloadable music in class 009.
`
`For: porcelain commemorative plates in class 021.
`
`For: bags, namely, purses, tote bags, backpacks, book
`bags, school bags, diaper bags, duffel bags,
`messenger bags, overnight bags, sling bags,
`luggage, luggage tags, travels bags and garment
`bags for travel, cosmetic bags sold empty, toiletry
`bags sold empty, cinch sacks in the nature of
`drawstring bags used as backpacks, wristlet bags,
`wallets, change purses, leather and imitation
`leather key chains, umbrellas; pet clothing; pet
`accessories, namely, leashes, collars in class 018.
`
`For: games and toys; ornaments and decorations for
`Christmas trees in class 028.
`For: jewelry, watches, and clocks in class 014.
`
`For: luggage and totebags in class 018.
`
`For: athletic jerseys, aprons, bibs, coats, footwear,
`gloves, hats, jackets, jogging suits, mittens,
`nightgowns, nightshirts, pajamas, t-shirts, tank
`tops, shorts, socks, sweatshirts, and underwear in
`class 025.
`
`For: picture frames in class 020.
`
`For: adhesive bandages in class 005.
`
`For: drinking glasses, glass mugs, ceramic mugs,
`decorative ceramic storage containers for
`miscellaneous items, and toothbrushes in class 021.
`
`For: books, writing paper and envelopes, paint
`brushes, playing cards, printed instructional and
`teaching materials, crayons, felt-tip markers,
`
`7
`
`
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 8 of 21 PageID #:8
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`Registration
`No.
`
`Trademark
`
`2,492,720
`
`SNOOPY
`
`4,145,986
`
`SNOOPY
`
`5,218,767
`
`SNOOPY
`
`5,214,344
`
`CHARLIE BROWN
`
`Goods and Services
`pencils, erasers, paper lunchbags, calendars,
`drawing paper and tablets, and memo pads in class
`016.
`
`For: gummy candies in class 030.
`
`For: pre-recorded DVDs, pre-recorded CDs, motion
`picture films for television featuring animated
`characters; computer game programs; computer
`game software; video game programs; video
`game discs; and video game software in class 009.
`
`For: motion picture films featuring children's
`entertainment; downloadable motion pictures
`featuring children's entertainment in class 009.
`
`For: motion picture films featuring animated
`cartoons; downloadable motion pictures featuring
`animated cartoons; downloadable music, ringtones
`and electronic games via the internet and wireless
`devices in class 009.
`
`
`
`13.
`
`The above U.S. registrations for the PEANUTS Trademarks are valid, subsisting,
`
`and in full force and effect, and many are incontestable pursuant to 15 U.S.C. § 1065. The
`
`registrations for the PEANUTS Trademarks constitute prima facie evidence of their validity and
`
`of Plaintiff’s exclusive right to use the PEANUTS Trademarks pursuant to 15 U.S.C. § 1057 (b).
`
`True and correct copies of the United States Registration Certificates for the above-listed
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`PEANUTS Trademarks are attached hereto as Exhibit 1.
`
`14.
`
`The PEANUTS Trademarks are distinctive when applied to the PEANUTS
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`Products, signifying to the purchaser that the products come from Plaintiff and are manufactured
`
`to Plaintiff’s quality standards. Whether Plaintiff manufactures the products itself or contracts
`
`with others to do so, Plaintiff has ensured that products bearing the PEANUTS Trademarks are
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`manufactured to the highest quality standards.
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`
`
`8
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 9 of 21 PageID #:9
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`15.
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`The PEANUTS Trademarks are famous marks, as that term is used in 15 U.S.C. §
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`1125(c)(1) and have been continuously used and never abandoned. The innovative marketing and
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`product designs of the PEANUTS Products have enabled the PEANUTS brand to achieve
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`widespread recognition and fame and have made the PEANUTS Trademarks some of the most
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`well-known marks in the toy and children’s entertainment industries. The widespread fame,
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`outstanding reputation, and significant goodwill associated with the PEANUTS brand have made
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`the PEANUTS Trademarks valuable assets of Plaintiff.
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`16.
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`Plaintiff has expended substantial time, money, and other resources in advertising
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`and promoting the PEANUTS Trademarks. In fact, Plaintiff has expended millions of dollars in
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`advertising, promoting and marketing featuring the PEANUTS Trademarks. PEANUTS Products
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`have also been the subject of extensive unsolicited publicity resulting from their fame and high-
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`quality, innovative designs. As a result, products bearing the PEANUTS Trademarks are widely
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`recognized and exclusively associated by consumers, the public, and the trade as being high-
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`quality products sourced from Plaintiff. PEANUTS Products have become among the most
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`popular of their kind in the U.S. and the world. The PEANUTS Trademarks have achieved
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`tremendous fame and recognition which has only added to the inherent distinctiveness of the
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`marks. As such, the goodwill associated with the PEANUTS Trademarks is of incalculable and
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`inestimable value to Plaintiff.
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`17.
`
`Genuine PEANUTS Products are sold only through authorized retail channels and
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`are recognized by the public as being exclusively associated with the PEANUTS brand.
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`18.
`
`Plaintiff has registered its Peanuts Copyrighted Designs with the United States
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`Copyright Office. The registrations include, but are not limited to: “Peanuts” (U.S. Copyright
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`Registration No. B 197-759), issued by the Register of Copyrights on February 18, 1977 and
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`
`
`9
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`
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 10 of 21 PageID #:10
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`renewed as RE 723-431 on February 20, 1996; “Peanuts; sculpture. By Determined Productions,
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`Inc.” (U.S. Copyright Registration No. GP 59-162), issued by the Register of Copyrights on
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`January 12, 1968 and renewed as RE 753-956 on April 8, 1997; and “Colorful World of Snoopy,
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`Linus, Schroeder, Lucy and Charlie Brown” (U.S. Copyright Registration No. A 95-985), issued
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`by the Register of Copyrights on October 1, 1968 and renewed as RE 738-848 on November 21,
`
`1996. A true and correct copy of the record from the U.S. Copyright Office website for the above-
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`referenced Peanuts Copyrighted Designs is attached hereto as Exhibit 2.
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`19.
`
`Among the exclusive rights granted to Plaintiff under the U.S. Copyright Act are
`
`the exclusive rights to reproduce, prepare derivative works of, distribute copies of, and display the
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`Peanuts Copyrighted Designs to the public.
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`The Defendants
`
`20.
`
`Defendants are individuals and business entities of unknown makeup who own
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`and/or operate one or more of the e-commerce stores under at least the Seller Aliases identified on
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`Schedule A and/or other seller aliases not yet known to Plaintiff. On information and belief,
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`Defendants reside and/or operate in the People’s Republic of China or other foreign jurisdictions
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`with lax trademark enforcement systems or redistribute products from the same or similar sources
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`in those locations. Defendants have the capacity to be sued pursuant to Federal Rule of Civil
`
`Procedure 17(b).
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`21.
`
`On information and belief, Defendants, either individually or jointly, operate one
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`or more e-commerce stores under the Seller Aliases listed in Schedule A attached hereto. Tactics
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`used by Defendants to conceal their identities and the full scope of their operation make it virtually
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`impossible for Plaintiff to learn Defendants’ true identities and the exact interworking of their
`
`
`
`10
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 11 of 21 PageID #:11
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`counterfeit network. If Defendants provide additional credible information regarding their
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`identities, Plaintiff will take appropriate steps to amend the Complaint.
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`IV. DEFENDANTS’ UNLAWFUL CONDUCT
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`22.
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`The success of the PEANUTS brand has resulted in its significant counterfeiting.
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`Consequently, Plaintiff has a worldwide brand protection program and regularly investigates
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`suspicious e-commerce stores identified in proactive Internet sweeps and reported by consumers.
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`In recent years, Plaintiff has identified numerous fully interactive e-commerce stores, including
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`those operating under the Seller Aliases, which were offering for sale and/or selling Unauthorized
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`Peanuts Products to consumers in this Judicial District and throughout the United States. E-
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`commerce sales, including through e-commerce stores like those of Defendants, have resulted in
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`a sharp increase in the shipment of unauthorized products into the United States. Exhibit 3,
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`Excerpts from Fiscal Year 2018 U.S. Customs and Border Protection (“CBP”) Intellectual
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`Property Seizure Statistics Report. Over 90% of all CBP intellectual property seizures were
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`smaller international mail and express shipments (as opposed to large shipping containers). Id.
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`Over 85% of CBP seizures originated from mainland China and Hong Kong. Id. Counterfeit and
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`pirated products account for billions in economic losses, resulting in tens of thousands of lost jobs
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`for legitimate businesses and broader economic losses, including lost tax revenue.
`
`23.
`
`Third party service providers like those used by Defendants do not adequately
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`subject new sellers to verification and confirmation of their identities, allowing counterfeiters to
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`“routinely use false or inaccurate names and addresses when registering with these e-commerce
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`platforms.” Exhibit 4, Daniel C.K. Chow, Alibaba, Amazon, and Counterfeiting in the Age of the
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`Internet, 40 NW. J. INT’L L. & BUS. 157, 186 (2020); see also report on “Combating Trafficking in
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`Counterfeit and Pirated Goods” prepared by the U.S. Department of Homeland Security’s Office
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`
`
`11
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`
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 12 of 21 PageID #:12
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`of Strategy, Policy, and Plans (Jan. 24, 2020), attached as Exhibit 5, and finding that on “at least
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`some e-commerce platforms, little identifying information is necessary for a counterfeiter to begin
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`selling” and recommending that “[s]ignificantly enhanced vetting of third-party sellers” is
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`necessary. Counterfeiters hedge against the risk of being caught and having their websites taken
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`down from an e-commerce platform by preemptively establishing multiple virtual store-fronts.
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`Exhibit 5 at p. 22. Since platforms generally do not require a seller on a third-party marketplace
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`to identify the underlying business entity, counterfeiters can have many different profiles that can
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`appear unrelated even though they are commonly owned and operated. Exhibit 5 at p. 39. Further,
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`“E-commerce platforms create bureaucratic or technical hurdles in helping brand owners to locate
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`or identify sources of counterfeits and counterfeiters.” Exhibit 4 at 186–187.
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`24.
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`Defendants have targeted sales to Illinois residents by setting up and operating e-
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`commerce stores that target United States consumers using one or more Seller Aliases, offer
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`shipping to the United States, including Illinois, accept payment in U.S. dollars and, on information
`
`and belief, have sold Unauthorized Peanuts Products to residents of Illinois.
`
`25.
`
`Defendants concurrently employ and benefit from substantially similar advertising
`
`and marketing strategies. For example, Defendants facilitate sales by designing the e-commerce
`
`stores operating under the Seller Aliases so that they appear to unknowing consumers to be
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`authorized online retailers, outlet stores, or wholesalers. E-commerce stores operating under the
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`Seller Aliases appear sophisticated and accept payment in U.S. dollars via credit cards, Alipay,
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`Amazon Pay, Western Union, and/or PayPal. E-commerce stores operating under the Seller
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`Aliases often include content and images that make it very difficult for consumers to distinguish
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`such stores from an authorized retailer. Plaintiff has not licensed or authorized Defendants to use
`
`
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`12
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 13 of 21 PageID #:13
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`any of the PEANUTS Trademarks or copy or distribute the Peanuts Copyrighted Designs, and
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`none of the Defendants are authorized retailers of genuine PEANUTS Products.
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`26. Many Defendants also deceive unknowing consumers by using the PEANUTS
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`Trademarks without authorization within the content, text, and/or meta tags of their e-commerce
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`stores in order to attract various search engines crawling the Internet looking for websites relevant
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`to consumer searches for PEANUTS Products. Other e-commerce stores operating under Seller
`
`Aliases omit using the PEANUTS Trademarks in the item title to evade enforcement efforts while
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`using strategic item titles and descriptions that will trigger their listings when consumers are
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`searching for PEANUTS Products.
`
`27.
`
`On information and belief, Defendants have engaged in fraudulent conduct when
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`registering the Seller Aliases by providing false, misleading and/or incomplete information to
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`Internet based e-commerce platforms. On information and belief, certain Defendants have
`
`anonymously registered and maintained Seller Aliases to prevent discovery of their true identities
`
`and the scope of their e-commerce operation.
`
`28.
`
`On information and belief, Defendants regularly register or acquire new seller
`
`aliases for the purpose of offering for sale and selling Unauthorized Peanuts Products. Such seller
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`alias registration patterns are one of many common tactics used by the Defendants to conceal their
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`identities and the full scope and interworking of their counterfeiting operation, and to avoid being
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`shut down.
`
`29.
`
`Even though Defendants operate under multiple fictitious aliases, the e-commerce
`
`stores operating under the Seller Aliases often share unique identifiers, such as templates with
`
`common design elements that intentionally omit any contact information or other information for
`
`identifying Defendants or other Seller Aliases they operate or use. E-commerce stores operating
`
`
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`13
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`
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`Case: 1:21-cv-01451 Document #: 1 Filed: 03/16/21 Page 14 of 21 PageID #:14
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`under the Seller Aliases include other notable common features such as use of the same registration
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`patterns, accepted payment methods, check-out methods, keywords, illegitimate search engine
`
`optimization (SEO), advertising tactics, similarities in price and quantities, the same incorrect
`
`grammar and misspellings, and/or the use of the same text and images. Additionally, Unauthorized
`
`Peanuts Products for sale by the Seller Aliases bear similar irregularities and indicia of being
`
`counterfeit to one another, suggesting that the Unauthorized Peanuts Products were manufactured
`
`by and come from a common source and that Defendants are interrelated.
`
`30.
`
`On information and belief, Defendants are in constant communication with each
`
`other and regularly participate in QQ.com chat rooms and through websites such as
`
`sellerdefense.cn, kaidianyo.com and kuajingvs.com regarding tactics for operating multiple
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`accounts, evading detection, pending litigation, and potential new lawsuits.
`
`31.
`
`Counterfeiters such as Defendants typically operate under multiple seller aliases
`
`and payment accounts so that they can continue operation in spite of Plaintiff’s enforcement
`
`efforts. On information and belief, Defendants maintain off-shore bank accounts and regularly
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`move funds from their financial accounts to off-shore accounts outside the jurisdiction of this
`
`Court to avoid payment of any monetary judgment awarded to Plaintiff. Indeed, analysis of
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`financial transaction logs from previous similar cases indicates that off-shore counterfeiters
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`regularly move funds from U.S.-based financial accounts to off-shore accounts outside the
`
`jurisdiction of this Court.
`
`32.
`
`On information and belief, Defendants are an interrelated group of counterfeiters
`
`working in active concert to knowingly and willfully manufacture, import, distribute, offer for
`
`sale, and sell Unauthorized Peanuts Products in the same transaction, occurrence, or series of
`
`transactions or occurrences. Defendants, without any authorization or license from Plaintiff, have
`
`
`
`14
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`jointly and severally, knowingly and willfully used and continue to use the PEANUTS Trademarks
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`and/or copies of the Peanuts Copyrighted Designs in connection with the advertisement,
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`distribution, offering for sale, and sale of Unauthorized Peanuts Products into the United States
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`and Illinois over the Internet.
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`33.
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`Defendants’ unauthorized use of the PEANUTS Trademarks in connection with the
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`advertising, distribution, offering for sale, and sale of Unauthorized Peanuts Products, including
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`the sale of Unauthorized Peanuts Products into the United States, including Illinois, is likely to
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`cause and has caused confusion, mistake, and deception by and among consumers and is
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`irreparably harming Plaintiff.
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`COUNT I
`TRADEMARK INFRINGEMENT AND COUNTERFEITING (15 U.S.C. § 1114)
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`Plaintiff hereby re-alleges and incorporates by reference the allegations set forth in
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`34.
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`the preceding paragraphs.
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`35.
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`This is a trademark infringement action against Defendants based on their
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`unauthorized use in commerce of counterfeit imitations of the federally registered PEANUTS
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`Trademarks in connection with the sale, offering for sale, distribution, and/or advertising of
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`infringing goods. The PEANUTS Trademarks are highly distinctive marks. Consumers have
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`come to expect the highest quality from PEANUTS Products offered, sold or marketed under the
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`PEANUTS Trademarks.
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`36.
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`Defendants have sold, offered to sell, marketed, distributed, and advertised, and are
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`still selling, offering to sell, marketing, distributing, and advertising products using counterfeit
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`reproductions of the PEANUTS Trademarks without Plaintiff’s permission.
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`37.
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`Plaintiff’s United States Registrations for the PEANUTS Trademarks (Exhibit 1)
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`are in full force and effect. On information and belief, Defendants have knowledge of Plaintiff’s
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`15
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`rights in the PEANUTS Trademarks, and are willfully infringing and intentionally using infringing
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`and counterfeit versions of the PEANUTS Trademarks. Defendants’ willful, intentional and
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`unauthorized use of the PEANUTS Trademarks is likely to cause and is causing confusion,
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`mistake, and deception as to the origin and quality of the Unauthorized Peanuts Products among
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`the general public.
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`38.
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`Defendants’ activities constitute willful trademark infringement and counterfeiting
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`under Section 32 of the Lanham Act, 15 U.S.C. § 1114.
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`39.
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`Plaintiff has no adequate remedy at law, and if Defendants’ actions are not enjoined,
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`Plaintiff will continue to suffer irreparable harm to its reputation and the goodwill of the
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`PEANUTS Trademarks.
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`40.
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`The injuries and damages sustained by Plaintiff have been directly and proximately
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`caused by Defendants’ wrongful reproduction, use, advertisement, promotion, offering to sell, and
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`sale of Unauthorized Peanuts Products.
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`COUNT II
`FALSE DESIGNATION OF ORIGIN (15 U.S.C. § 1125(a))
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`Plaintiff hereby re-alleges and incorporates by reference the allegations set forth in
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`41.
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`the preceding paragraphs.
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`42.
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`Defendants’ promotion, marketing, offering for sale, and sale of Unauthorized
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`Peanuts Products has created and is creating a likelihood of confusion, mistake, and deception
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`among the general public as to the affiliation, connection, or association with Plaintiff or the origin,
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`sponsorship, or approval of Defendants’ Unauthorized Peanuts Products by Plaintiff.
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`43.
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`By using the PEANUTS Trademarks in connection with the sale of Unauthorized
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`Peanuts Products, Defendants create a false designation of origin and a misleading representation
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`of fact as to the origin and sponsorship of the Unauthorized Peanuts Products.
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`16
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`44.
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`Defendants’ false designation of origin and misrepresentation of fact as to the origin
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`and/or sponsorship of the Unauthorized Peanuts Products to the general public involves the use of
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`counterfeit marks and is a willful violation of Section 43 of the Lanham Act, 15 U.S.C. § 1125.
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`45.
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`Plaintiff has no adequate remedy at law and, if Defendants’ actions are not enjoined,
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`Plaintiff will continue to suffer irreparable harm to its reputation and the associated goodwill of
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`the PEANUTS brand.
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`COUNT III
`COPYRIGHT INFRINGEMENT OF UNITED STATES COPYRIGHT
`REGISTRATIONS (17 U.S.C. §§ 106 AND 501)
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`Plaintiff hereby re-alleges and incorporates by reference the allegations set forth in
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`46.
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`the preceding paragraphs.
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`47.
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`Plaintiff is the owner of valid and enforceable Peanuts Copyrighted Designs, which
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`contain certain copyrightable subject matter under 17 U.S.C. §§ 101, et seq.
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`48.
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`Plaintiff has complied with the registration requirements of 17 U.S.C. § 411(a) for
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`the Peanuts Copyrighted Designs.
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`49.
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`Defendants do not have any ownership interest in the Peanuts Copyrighted Designs.
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`Defendants had access to the Peanuts Copyrighted Designs via the internet.
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`50. Without authorization from Plaintiff, or any right under the law, Defendants have
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`deliberately copied, displayed, distributed, reproduced and/or made derivate works incorporating
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`the Peanuts Copyrighted Designs on e-commerce stores operating under the Seller Aliases and the
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`corresponding Unauthorized Peanuts Products. Defendants’ derivative works are virtually
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`identical to and/or are substantially similar to the look and feel of the Peanuts Copyrighted Designs.
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`Such conduct infringes and continues to infringe the Peanuts Copyrighted Designs in violation of
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`17 U.S.C. § 501(a) and 17 U.S.C. §§ 106(1)–(3), (5).
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`17
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`51.
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`Defendants reap the benefits of the unauthorized copying and distribution of the
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`Peanuts Copyrighted Designs in the form of revenue and other profits that are driven by the sale
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`of Unauthorized Peanuts Products.
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`52.
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`Defendants have unlawfully appropriated Plaintiff’s protectable expression by
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`taking material of substance and value and creating Unauthorized Peanuts Products that capture
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`the total concept and feel of the Peanuts Copyrighted Designs.
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`53.
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`On information and belief, Defendants’ infringement has been willful, intentional,
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`and purposeful, and in disregard of and with indifference to Plaintiff’s rights.
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`54.
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`Defendants, by their actions, have damaged Plaintiff in an amount to be determined
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`at trial.
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`55.
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`Defendants’ conduct is causing, and unless enjoined and restrained by this Court
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`will continue to cause, Plaintiff great and irreparable injury that cannot fully be compensated or
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`measured in money. Plaintiff has no adequate remedy at law. Pursuant to 17 U.S.C. § 50



