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`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`TRADEMARK:
`APPLICANT:
`
`X ECSTASY (And Design)
`Patrick Aroff
`
`Daucourt Martin Imports, LLC
`OPPOSER:
`91174469
`OPPOSITION NO.:
`
`
` FILED: December 11, 2006
`
`Commissioner for Trademarks
`P.O. Box 1451
`
`Alexandria, VA 22313-1451
`
`Sir:
`
`Certificate of Mailing Under 37 CFR 1.8
`
`For
`
`Postcard
`
`Response to Office Notification
`
`I hereby certify that this correspondence is being deposited with the United States Postal
`Service as First Class Mail in an envelope addressed to Commissioner for Trademarks, P.O. Box
`1451, Alexandria, VA 22313-1451, on the date appearing below.
`
`Name of Applicant, Assignee, Applicant's Attorney
`or Registered Representative:
`
`By:
`
`Date:
`
`DLA Piper US LLP
`Cu omer
`. 3581
`
`UOYKL
`
`) 200
`
`PHIL1\38lO4l6.l
`
`'
`
`o2—12—éoo7
`U.S. Patent & TMOfc/TM Mail Rcpt D1. #222
`
`

`
`«in
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`TRADEMARK:
`APPLICANT:
`
`X ECSTASY (And Design)
`Patrick Aroff
`
`OPPOSER:
`OPPOSITION NO.:
`
`Daucourt Martin Imports, LLC
`91 174469
`
`FILED:
`
`December 11, 2006
`
`RESPONSE TO OFFICE NOTIFICATION
`
`In Response to the Office Notification dated January 26, 2007, Applicant Patrick Aroff
`
`submits herewith a copy of the pleadings in the civil action, pursuant to TBMP §510.02(a).
`
`WHEREFORE, Applicant respectfully requests that its Consented Motion of Suspension
`
`Respectfully submitted,
`
`Darius C. Gambino
`
`Reg. No. 41,472
`Attorney for Applicant
`DLA PIPER U.S. LLP
`
`1650 Market Street
`
`Suite 4900
`
`Philadelphia, PA 19103
`(215) 656-3300
`
`be granted.
`
`Date: February 8, 2007
`
`DCG
`
`PHILl\38l04l4.l 2/6/07
`306916-6
`
`

`
`4)
`
`I Opposition No. 91 174469
`
`Attorney Docket No.: File 799
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that the foregoing RESPONSE TO OFFICE NOTIFICATION was
`transmitted via first class mail and e-mail on the date below to:
`
`David A. Bell
`
`Haynes and Boone, LLP
`901 Main Street
`
`Suite 3100
`
`Dallas, TX 75202-3789
`
`igdocketing@haynesboone.c0m
`
`Date: February 8, 2007
`
`0/M‘/J
`
`ra
`
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`
`1
`
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`1121 - served
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`2220 - Not Served
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`2320 - Served By Mail
`’
`2421 - Served By Publictitiou
`2420 - Served By Publlcdlion
`
`
`ALIAS - SUMMONS CCG N001-10M-1-07-05 (SUMMONS )
`
`
`
`IN THE CIRCUIT COURT or COOK COUNTY, ILLINOIS
`COUNTY DliPARTMI5N‘I‘,
`CHANCERY
`DIVISION
`
`(Name!!! parties)
`
` Dafmzourt Martin Imports‘. LLC
`
`v;
`
`....—.«~-.
`
`b‘_n_c9rc Brgngs, LLC and Patrick Aroff
`
`0
`
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`No.
`
`Pleasc Serve:
`
`SEE ATIWCHEID.
`
`To each Defendant:
`
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`
`‘*2
`
` ._‘
`
`Case 1:06—cv-04889 Document 1‘
`
`Filed 09/08/2006 4- Page 11 of 24
`
`IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS
`COUNTY DEPARTMENT, CHANCERY DIVISION
`
`DAUCOUR‘-T MARTIN IMPORTS, LLC,
`
`Plaintzfl
`
`V.
`
`ENCORE BRANDS, LLC and
`PATRICK AROFF,
`
`Defendants.
`
`Case No.
`
`conaoacmcoazaoacaacozcancovion
`
`._..
`
`.SERVICE“.Ll§T
`
`Encére‘ Brands, LLC
`c_/o Gerhargl Renae;-, Rggistcged Aggdi
`23:1; wflshirgglilonlevaxd
`A
`_,Si1iio_:4Q0
`Santalb/Iénica; Cfilffdrhia 90401”
`
`A Patrick Aarofi"
`-at Ehé6teiBra'hd$;"I£L€
`~23-3 'VV-ilSHiYb,‘Bb‘uléV£iffl
`A
`SW? 409
`‘Santa Monica; California 5104051.
`
`

`
`Case 1:06-cv-04889 - Document .1.
`
`Filed 09/08/2006
`
`Page«12 of 24,
`
`.
`
`.
`
`..
`
`.
`
`..
`
`..
`
`i910 — No Fee Paid
`191‘) - Fée Paid
`
`Jury Demand
`CCG N067-10M~6/09__/04 (
`)
`
`
`[NTHECIRCUITCOURTOFCOOKCOUNTY,ILLINYISU
`
`‘nail
`
`(
`
`
`Dnucoun Martin Imports, LLC,
`
`V.
`
`
`
`Encore?.Brand_s§ Pgtfick
`
`
`
`3;.
`
`O
`
`;
`
`JURY DEMAND
`
`The undersigned demands srjury trial;
`
`
`
`D_é‘ted:~ 4.‘-..ugu‘st25“
`
`.
`
`,
`
`,
`
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`Atty. tor: Dalicoufi M.i«riih1lmports. LL-iC.
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`
`nonomy nnpwm, c1;ERK 0.F-THE c:__'mc'urr COURT oircoox .c0UNTY, 1L'LlN0]’S'
`
`
`
`

`
` -’)
`
`Case -1¢:O6—cv—04889-
`
`Documeriyt-A«1
`
`Filed 09/08/2006
`
`Page 13 of 24
`
`u....-.__...—_
`ev. 12/4/oo) cccu 0623
`
`COUNTY, OIS
`IN THE CIRCUIT _(.‘OURT OF’
`COUNTY DEPARTMENT ICHANCERY ‘DIVISION
`
`DnucougMartinImgorts,LLC
`
`Engare Brands, LLC and Patrick Aroff
`
`O6CH].7552
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`Defendant CHANCERY DIVISIONCIVIL COVER SHEET
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`DOROTHY BROWN, CLERK OF THE CIRCUITCOUR-T OF COOK COUNTY," ILLINOIS
`
`

`
`F)‘
`
`b Case 1:V06-cv-04889 Document 1
`
`Filed 09/08/2006 ‘ Page 14 of 24 ‘
`
`_--_‘.,._...,.
`..3‘x-._
`
`
`
`§ §
`
`§ §
`
`§
`§
`
`§ §
`
`DAUCOURT MARTIN IMPORTS, .LI.C,
`
`Plflffllifl;
`
`’v.
`
`,
`ENCORE BRANDS. LLC and
`PATRICK AROFF,
`
`Defendants.
`
`bCOM.PLAINT-‘FOR INJUNCTIVEAND TH ER RELIEF
`
`
`
`Plaintifi‘-Dé'uc‘6urtL Martin Imports, :LLC ('*PIaintii‘i"?). byand through its .at_torneys, for its
`
`Qomplhint for Injunctjve:-gand RV‘:-L_lie[!T.L’:_:1’g__.aii1st Dcféndants ‘Eficbre Brands; LLCf and Patrick
`
`Aroff'(colle<2fiVél;(, V“fJeféndg1nt;§?’)V:.=il_l9gcs as fqllcwsz
`
`11113: i'ARTIES
`
`1.
`
`D‘a‘uc'oLn"t Mnir1i.n~ Imp;o,rts;.‘LLC;~is, a iDel’aWare_ limited iiabiliw company -with its
`
`pfinc_ipal.,placc of‘busincs’s=in D§lla'S,A Texas.
`
`’2.
`
`LLC is a Ealiforhia lirjtjited liability coxnpgny with itS"pi'iri¢ipal
`
`place of busineSs"—in Santa Moni'c,aj,- 'CaTi‘t"‘,<>:n1_ia,_
`
`'3.
`
`-Defe'11d2int?"Pntr'ickAfuI’f.is‘an;-individual residing 'i'niSt.1n_t'a :Moni.ca, C§lifbmia,,-and
`
`i3."1he prqsident and chiefexeci1ti"V”e»¢'>ffié6r ofEncore Bihndé.
`
`-:TURT$13 1.CT1QN
`
`4,.
`
`This Conn ._11as_ j;11?jsxji_<itipIi_' ()Vg:r, 111;:-» cause of aétibn ‘allegéii :l_1e1"ein in that the
`
`activities giving .1ise- to=the;.causes» ofaction’ occurr.e.d=i1x ‘Co9l‘c.CIo_unty."‘Il1inoiS.-
`
`'5,
`
`Thié com. ;his' personal
`
`fj_u1‘5‘sdl’cfion over Dafer';éinnts.; pursuant.
`
`to tLC’_'s-.
`
`';§5I)’Z09('a)‘U.) and (2)-as,1hey»l_¢1a've trdnsu_c'fed’b‘u.<§iness withih-‘the State’ of Illinbis an‘<i"c'ommitted a"
`
`to:-tious act in'I1l§no'is.
`
`

`
`
`
`Case 1:O6—cv-04889 Document 1
`
`“Filed 09708/2006 *
`
`-Page 15 of 24
`
`6.
`
`Venue is proper in the Circuit‘ Court of Cook County, Illinois pursuant -to
`
`735 ILCS §5/2-101 as .a substantial-p;1rt‘of the .trtms’actions {giving rise to Plaintiff‘-5 causes of
`
`action occurred in Cook County, Illinois.
`
`FACTUAL BACKGROUND
`
`Plaintiffs Business and Intellectual Propem
`
`7..
`
`Since Scptcmbcr”2004. tDauc‘0uI..t Martin Imports, L-LC (hereinafter; v‘fDM1"-‘) has
`
`been the exclusive marketer and United States~'i'mp'orter at spirits and related. products, such as
`
`cloth_ing,_ sold under its trademarks X, X.-RATED, ‘and ‘X—RA-TED FUSION L-IQUEUR,
`
`including both vodka an(l_;fru'it-flavored" liqueur (the, “'l"mElemarks*‘).
`
`8.
`
`The. pacékaging for DMI’s fiixififlavored. liqueur includes distinct elements that
`
`consist: of:
`
`(1).a.‘stm,igh't,_éylihdribali bottle: shape with-a $quaré shoulder and narrow‘, straight top
`
`the boltle being trm1sl1_n;§n_t "and containing minitngllst l§bclit;g,r<:_sulti,xx_g- it! at dark
`
`hue
`
`from the contained liqueur; (3-)_~a1 darkpink‘ cap;
`
`wliit'e‘,IetIe‘rin‘g;;f'atidi_(_S_)..the;mosl’:ptominentty
`
`featuredrélcxpqht itlargo 'letftt.jn'. on:-the
`
`fdC§,i9fiili¢.'bQt'tlo.
`
`9.
`
`The. pagkaging for Dlvflié‘-v0<3kz!’.':.ii16l.uf3¢S.Cncsarne disiinqfive =ami‘1arg<=.
`
`tenet}! used ,.‘f;:r;DM1"s ‘-fruit’-flav.or*cd ligucxlr, But..due_s-m. _t_he.1 clear na.tu.r:e~o,f it; 1v.odl%n,*the
`
`litttoring is d'arkf13i'r‘tk. DMl«{a‘ls6‘.marketsi itsi'Vo‘dka-‘arid fruit-‘flfivorédlllqufieur by: usinjggdark pink
`
`colors in its ajlvcrfislqg
`
`‘Sudh disftincjtivel ¢l¢;jtpe.tit,9=
`
`fatdyortisigtg n'u§t¢rials;.,ar¢
`
`
`
`1'0,
`
`1Tt_1<:' Trademarks, as well as. the distirictivc; elements and ‘advertising. materials
`
`comprising DMT-.’s vTrade~Drcst.-‘arc:nopftm¢iiona|=and inherently '<1istii,1c_tifv.¢-
`
`.V.-3.r.133.
`
`nr"¢_2‘...3:.-Iv.:'~..‘."..‘
`"*-
`
`

`
`‘casemos-c_v-04889
`
`D'ocL1merit1
`
`"Filed 09/03/2006
`
`Pa'ge'1e<5i'24‘
`
`ll.
`
`Plaintiff extensively promotes its letter X mark by prominently displaying it on
`
`product packaging, in advertising, and another materials; Through such promotion, Plaintiffhas
`
`developed strong and cnforccablctradcmark rights in its X mark.
`
`.12.
`
`DMY owns’ three applications, currently "pending before the United States Patent
`
`and Trademark Office, for trademarks associated with its Trademarks, including the mark X-
`
`RATl.iD in stylized form, the word mark X—RA'l‘ED, ‘and the word mark X-RATED FUSION
`
`LIQUEUR,
`
`13.
`
`DM1 heavily promotes its ‘X-RA-'I'ED Brand through several tnfirketing channels,
`
`including trade jodfnalg, magazines, -ltrade »-shows,
`
`ii’1r310T€
`
`vta.,stinwg»~even,t.-1; club and bar
`
`«promotions, and itiic‘ c.o.mpany’$
`
`Internet‘ websites,
`
`located at.
`
`.1vw”vil.’:?gjea;‘1rr.é:gl‘r&i
`
`find
`
`www.xra’ted'us?o‘hli tueur.‘z:'om_.
`
`
`
`In the_pas_tf’nNo yg.a[S,: I311‘-71"], has sold_mofirjet_l1zin 200;_000 i:"a_§es’of
`
`‘beverages under the X‘-RATED‘ B‘rz1nd"_’thr"o.u_'g‘hou't'vtI1eUnited States.
`
`‘Further illustrating 11.18
`
`tremendous .—pQp11lz_\fiiy of 1116 XL-RATED‘/Bt§n_d,= the brand has been featured in
`
`television
`
`shows and ti1(5vif'efs,~witlio)1_t vre,quest.or_paymen‘t~ by
`
`'14.
`
`Through,
`
`iiuér ailvia, DMI"‘s
`
`suhstmztial
`
`-and effective, promotional’ éffgfis,
`
`si‘gn/ifieaxiit tjxse the national "media; and subsiaxuiai‘ pmeiucz sales‘ in connection ...wjith' the-.X-
`
`Brand," has
`
`disfincfivgngss and developed sigr1'1ficant and enforceable
`
`fights in its‘ X-RATED. Brand. Mor.eov.er,D1vfl’s1X4RATED Brand. has become 'fam_ous.
`
`Qe‘fenda,nts"— 'Un1a1/ful-.A'c”ts_"
`
`‘
`
`15.
`
`Defendants E'ncoreVBrand'S, LLC (hereinafier, .“;Encozte Brands"-).»and. Patrick Aroff
`
`(heminaficr. '“lV1f.- :"t‘.l‘°.ff'.’)t
`
`pfdfilofihg fruit-flaitofed li‘q_ueurs,« which Defendants eret‘e.r"t,n0 in
`
`a&'v.ertising..and. traiimnaifli.-matcfiélé‘-$3
`
`‘ills’: ‘.‘Béstesy Bidnd vLi'g‘i1eiar;” *fx,«"=-or
`
`“Ecstasy” (hexeinnflet, itiii‘:-»:“.f}:(F.t:stt15X:1A3T811¢§l.'-i);
`
`3
`
`
`
`.'".'},C““"‘'"““""“.*'.7.’
`
`
`
`....._'-.‘..,1-
`
`'1..
`
`

`
`Case1:O6-cv—04889 Document1
`
`Filed 09/08/20‘06""Page17of'?_4
`
`16.
`
`Upon information and belief, Defendants’ product packaging for its beverages
`
`marketed or sold under its X Ecstasy Brand hear at least the following similarities to Plainlil’1"s
`
`products marketed and sold under PlaintiflTs- X~RATED Brand:
`
`(1) a straight, cylindrical bottle
`
`shape with a square, narrow shoulder and narrow, straight top;
`
`(2) the bottle containing
`
`Ir_1in_in1_alist labeling and bcingof-a dark pinkglmuc; (3)3 dark .~pinl_c cap; (4) white lettering;-and, (5)
`
`the most prominently featured element being a large letter ‘X on the from face of the bottle.
`
`I7.
`
`Defendants have been using 'advertisin_g,efTorts for its X Ecstasy .Bmnd.§irn5lar to
`
`those used by DMI for its X-RATED Brand; includirig by4incorpora,ti'ng—_ dark pink hues on
`
`Defendants.’ Ii1lernet‘we.bSile _locat'e_d at mvwsdiihkecstgay,‘‘com and in e—mai,l_s distribute‘d in
`
`connection-with'thepromo!ion.'.0fD6f¢ndants“prddudts.
`
`18.
`
`Upon infonnation and beliefiDefefidonts are using or‘ have plans to use the same
`
`or similar lmarkcling and trade channels !9"nl.T.er competitive products in lhe same geographic
`
`regions in which Plaintiff offers for sale -"and promotes "its products under its—’X-RATED Brand.
`
`Upon infnnnation and belief: _D6fénd_ant$ also‘ am targetingor _p_‘l8n ‘to "térgé't_tl_1e snme.pot_entiaI
`
`consumers for its X.Ecstasy’-Brandprddhnts-as for the EXFRATED Brand products.-
`
`I9.
`
`_Beginnii2g onAugust?4;.i2l0(l5...iP1ainliff:. .thro.u.gh iits-couzzseli-advised Defendants
`
`~2"9.P.*1
`
`of:'Plaifitiff’svrigl1ts'i1nd.demanded. :hat«Defe-n-aant's ‘use:-40f PIairifit‘1‘?.s<3X~RATED‘5Bl‘ra1id
`
`and Trade Dress.
`
`.20.
`
`Upon iriflznnafibn and belief; Defendants‘ '1-'1,'rst.: placed -their; X. llicstuisy. Brand
`
`products in‘ the public eye in Chicag‘o,~:I‘llinolis; ‘on August *-23:, 2006.
`
`21.
`
`llpont inforr_nlatloii."-rind ‘belief, —Défcnda'n"ts"interid.‘ito t;1l&e_steps in fu_fthcr'ancci of
`
`having their'X'Ec-itasy Bmnd 1iqncurs=difstfibutéd anfl..9f.fer.e.Q flit sale not .o.n.|y in Illinois, hut
`
`alsoin other states in the near future.
`
`

`
`Case.1:O6-cv-04889" Document1
`
`Filed‘09/O8/2006 "Pagéf18.6f'24
`
`22.
`
`Plaintifi"s use in commcrcc—of_ its X-RATED Brand predates Dcfetidants’“use of
`
`their X Ecstasy Brand.
`
`23.
`
`Upon infonnation.‘and belief, Defendants have prcviously_ marl,§e'ted—-or'i’ntcnd to
`
`mar1<et—products under various brand names that refer directly to illegal drugs‘. Far i'nstfincc,_
`
`Mr. Aroff
`
`previously applied for trademark registration with the U_nit,ed St_ates_.Patent_and
`
`Trademark office of the marks CRACK, KRACK, CHRONIC, a.nd"KRONIC, all terms that-
`
`bring to mind "the illegal drugs crack cocaine and the. potent strain of marijuana known’ as
`
`chronic.
`
`-Arofl” alsopreviously applied for trademark registration with the 'United_ States’
`
`Patent and Trademark Oflicc for. the mark LIQUID X, a term under which the illicit drug
`
`Hydrdfiuttdte (o"r’ G1-IB)»is known. Upon i'nfor'mation.'and‘ belief,~Defeiidrints have been,
`
`and will cpr_1t_i_i_i_uc to—intentiofiélly nia'1'ket_Lhei_r3sp‘ir_i;s'1hrt_>ugh adx/e_rtisirig_,car1;p’zii:g:_i§ziritI, prtigfiict
`
`pticlcagiste that .:cai1f to. cnilind Iilicgnl. substunc.-t::.s.. in9luding- but. not limited ‘.10; ‘eomhifiing a’
`
`proniinent usc‘:;of- an ‘X-io._g_o or letter X /with"th'e -term "Ecstasy," specificall_y.‘tJri‘iigihg;to mind.‘the.
`
`that the term X, -urmsgg other mcénings; .f1in'c‘tionsfas a slaiigj-wbrd ‘fer the."iIlcgaI drug
`
`methylenedioxymetharnplicjamine, (pr MDNA)‘, more commonly -lmown ~amoi1g.the~pub:lic gs
`
`ecstasy.
`
`24.
`
`~1a:e_m_xaa.::“s' activities are likely to“ ceiuse/c'61'1f\§§itin or
`
`‘or ‘us
`
`deceive-, cumoiners by falsely
`
`that "Defeiidniftc 0'19 their products.
`
`npbrbved,
`
`‘endorsed. ior-1i¢cnsa'd by:‘—qr-‘gfhcmtisg associated with DMI or 13M15’s'ptt>,dr:.c.t"=i-
`
`25.
`
`’Defefidants" efforts to associate their product names with illicit drugs “will dilute
`
`arid tarnish the goodwill and V-Viiltxc of
`
`and causc.i1repamb1e diunage to DMPS
`
`interests and reputation.
`
`"'-'-'1’!-‘.7
`
`24;:‘-._s_..:;g;.
`
`

`
`Cas‘e1:O6—cv-04889 Documentl
`
`Filed 09/08/2006
`
`Page«19of24
`
`26.
`
`Any defects, -inadequacies, or deficiencies found ‘in Defendants’ products X
`
`Ecstasy Brandproducts would reflect negatively upon and gravely ‘injure the reputation and
`
`goodwill associated with P1ai_mitTax:"<l Plaintiffs X—R.Al‘~F.D Biahd.
`
`27.
`
`Defendants intentionally capitalized on the goodwill associated with the Trade
`
`Dress and X-Ratcd,Brand to promote their new products demonstmting cthewillfulness -zmdbad
`
`faith nature of Defendants’ ‘actions.
`
`«28.
`
`Upon infonnmion and belief, Mr. »A_roff' selected «the X Ecstasy Brand, and
`
`personally has uctivelyand kndwinglly»caused._i11l ofthe unlawful ‘acts complained of herein.
`
`
`
`‘C ‘uni '1: Co1'11‘1x'n(i1‘i‘L':’awiUnl'a'i1i‘»:(3'ox:':'t»’ ifioh
`
`CAUSES OFAICTIDVN
`
`29.
`
`DMIfadopts.and incb1'p'0rataS1b_y reference. e’a“ch~‘zInd'~every'él'1eggtibn contained in
`
`Paragraphs '1, -.28.
`
`13.0;
`
`In connection. with>its—sa‘le O:f":5_pif,'it5 and other .-go.o.ds.. Defendants use product
`
`pncll-u'_1ging.arld .ztn—;a1:li/cttislngb“
`
`-that to.chfise C¢n'fu§ion,A
`
`of deception
`
`vconc_er_nin,g_ the ‘affi_li‘aftib“n_; connection, or —association of .Défcr_1'danis with ‘DMI or corifusion
`
`concerning the.;ori_gi‘n, sponsorship; or approval. of Defi{:ndant$?~goot1s by DMI.
`
`31.
`
`Defendants-committed these acts "With the intent" to. appropriate and trade upon
`
`DMI's-_ogoodwill' and-reputation‘
`
`32.
`
`The acts of1)'efendn:13_st.will c;1_use~DMI wbstanjial harm and damage the goodwill,
`
`associated with -DMPVS Trademaflcs ~and.T(adi:_iJ'1fc5s.
`
`33.
`
`Dé’fendéin'té‘5 acts}, "as dcscfifiéd above", -'de'mo‘n’§(rate 'flieir'iI1fei1liéfii1l ‘imitation and
`
`passing off o;f’t'l1eir' ’_fru_i'tsfl:;tvof_'éd; 'llqnei1'r§- 'u§ing"1he:~XjEgs'thsy; Bmra‘n‘d- as l1nii.§ng_,recéived the-
`
`sponsorsbip or apllmval of
`
`and n_1et_‘DM_l?s quality standards, wit,h,outfDMi'-’s authority,
`
`6
`
`Sr.
`
`“_';3‘.v'
`
`

`
`
`
`Case 1:06-cv-04889
`
`Document"1‘
`
`Filed 09/08/2006
`
`Page 20'of 24*"
`
`consent, or privilege, and their dilution of me -value of the X-RATED Bra.nd’built by DIv1I’s
`
`substantial expenditure oftirne, money, and effort. Such conduct constitutes unfair competition
`
`with DMI in violation of Illinois law.
`
`Count II: Common Law Trademark Infringement
`
`34.
`
`DMI adoptsand incorporates by reference each and every aliegatiQn,conta_ined.in
`
`_ Paragraphs 1 — 28..
`
`35..
`
`Defendants‘ (action; .in- pmmotiug, advertising, and éelling piédnéts \_md_er"theiij:X
`
`Ecstasy Bxf-and are likely t'o"c;_1usfe fconfusiqn, mis_ta_ige,_ or deception as ‘to the. aiffilietion of
`
`Defendants. or’
`ificir‘ piudu‘ct3,wit}'1 DM-I‘ or its gpmductsr which consti'tmes infiihgement of
`.I.1cfe.ndants’ eco%nn;onnawatrade:na:k;rigms—
`A
`
`«Co'un_t' _IilinoiS"fInH‘(inm: pace ':t;ive».PfraciicesA'cf
`
`36.
`
`‘DMI adopts and ‘incorporates by »xcferencese_uch,«und eve1y~ali'eg;5tip_,n cgntained'in
`
`Parajgr’é1j5hs'l -28.-
`
`,_37-,
`
`<':4a1*r._«,_i}‘1_tz‘gAo‘i:At‘i1'1‘t;-.éi<i:,:ts; ddséfibéd above, Defendants have, an-1'o'n_g« ibiher thin‘g_§:
`
`(ii) ‘passed off, .._t11eir gqods as these. of DMI.;__ _.(b_)4 caused a like'lihoqd- of configsionv or
`
`:misundersfan'din“g ia‘$~—td"’t.h'e s‘ource,_.'s1§q'nsprshibp,.ior._epproyaii of Defendants? pro§_3\_1_nt'S;_f(q),caus{;d
`
`tflfléelihudd o'f.c'6'nfu§i‘on.Ezfxnisuhdcrslanding as-co. an‘ arfifiafion, ‘connection;»or::dssdciatipn
`
`DM1_;. -and" (d) 'gepic$'t}f1tqd ~_that‘
`
`.t1‘;g1r:
`
`.g,§tsd$ have sjionsoréhip,
`
`‘approval,
`
`:characteris*dcs,
`
`hxgredientsi, uses; ‘or Bens:i*:.'t‘s.»i'1mt.~'th<-ey-:1s=,.not -have or that. Defendants have vsponséféhih;
`
`:'approval,-.:Statu$§_.oi?-I£1ffi1iEl1iion‘1.i1at*they do_,.notihave.
`
`38.
`
`Dc_fé‘:ndaiits."‘ ‘a‘dtion's',
`
`therefore, ‘.vi'o‘la’t'e me «nnimsrs Unifofrm‘ Déd.e§ti;v1e rrraae:
`
`Practices Act,»-815 5_,.]_‘0/I er se.q., ant! cq_nstinife:.wi1iii;l'3/iolaiions Oflhat A¢t2.e
`
`.+I'...<—..-":«.
`
`
`
`
`
`
`__:}'.§.;jj_g.’V.
`
`

`
`_
`
`'
`
`Case 1:06—cv-04889 Document 1
`
`Filed 09/08/2006
`
`Page 21 of 24
`
`-
`
`Count IV:« Illinois Cqnsumer Fraiid ‘and Decegitivc Business Practices Act
`
`39.
`
`DMI adopts u'nd'inc.o,1'porates by reference, each andicvety allegation contained -in
`
`Paragraphs 1 —'28.
`
`By their violatidn arms Illinois Uniform Deceptive Trade iPracti'ces- Act, as set
`40.
`forth in Count [[1, each ofthe Defendants has violated thé Illinois Consumer Fraud and Business
`
`l"ract_ices Act, 815 _ILCS-505/1 et seq,
`
`41.
`Pursuant :o‘_815’1Lc_s 505/1oa(d),AP1_gi‘mif'£is mailing -a copy of this Complaint to
`the Attorney,General dflllindis.
`Count V: Illinn'is"Tradem rk Re str’a'fio'i1 and Protection Act‘
`
`
`
`
`
`4'2;
`
`—DMI‘udopls and'ind0rp6fales-by tejfezenbe 2:ach.and every allegation contained in
`
`Paragraphs 1 — 28.
`
`43.
`
`Defendants’ use of7DMI’s’ X-RATED Brand, Trademarks‘, and -Trade Dress, aflcr
`
`they have: bccoinc fgmoils, has fcaused‘ and will cause’. dilution" and disparaggmenz of the
`
`disfincfive-Qualify
`
`‘will-1,¢.==s;=n»‘.anx:I~wii! continue to lessen the
`
`capacity .otiine:DMI"‘s‘XaR:N1?ED:Brand to.-;iden.:ify;a;1di’:3s’%stiz1g_uish ihegoodstifivn“;
`
`-44..
`Defeiidantk-” aétians, .~Ih‘eréf6i‘e.f; viblate thé‘~'IllixioiS‘:‘-Tfadéitniirii ikégisfiéfiou and
`léxocsectionA¢t,.“Z65 '1LCS.'A'1A035I55f:'9?§"5"i9s
`4.5.
`mfendimts-*9‘angbingaaciivifies have’ been sinziertakw .with fan.
`
`int¢n1.= to" trade on
`
`DM1’s-X-’-RIAATBD "Brand anlcduse-dilmion 0f‘bIW’s:’fé1‘fiousiXaRATEDBrnnti. Such acts
`constitiite awillful V'iQlélion.ofthe_ Illinois ‘I‘rademar'k Registration and Proiection Act‘, 765 ILCS
`1036/65, at M,
`
`’3
`
`.
`
`1
`
`E
`
`:1:
`
`4%
`
`T
`
`'-
`
`

`
`Case ‘1:O6—cv'-04889 Documentl
`
`Filed 09/08/2006
`
`’F’"é'g‘e 22“of 24
`
`46.
`
`As a result of Defendants’ ongoing activilibs, DMI faces irreparable injury to its
`
`business and the likelihood that the distinctive and identifying indii‘.‘ia- of'DMI’s business will be
`
`diluted and that its reputation will be diminished.
`
`Count VI: Section 43(a) of the Lanham Act
`
`47.
`
`DMI adopts and incorporates by reference each and every allegation contained in
`
`Paragraphs 1 — 28.
`
`48.
`
`Defendants’ actions in promoting, .advex1isihg, and ‘selling products under its X
`
`Ecstasy Brand coixstitute a false‘designation oforiginfiialsg and.:;nisleag1ig1g.desqription offact, or
`
`fa1_5‘i:=£iI1d niisleaditig.representzition_of'faict_; whichil‘l(Ij)’arc-‘llléély ‘to cause? cotifiision, mistakeior
`
`.;lcc¢ption as »t9 the.:affiliation of D§.:l'é_11dagits’ pmd_1iqls;.with I73‘l\./I_,l.‘ia1;f<_1,.‘t.lV1‘¢i:>,1"l,”giti,-L §pQnSt)is_1iip_-,‘br
`
`agproval of Di:f'c'n‘<la‘n1s‘ ‘products’ by DMI; .tSr“.'(_2) nfisrcprcscn: tl1g:_= fia§ure;.:'cl5~¥1ractgr_istigs, 0;-
`
`qualifies of -Dcifendants‘ pfoducts;
`
`suéli activities infringe 'o"n' DM1's
`
`‘and Tta{le~
`
`'D‘r¢.ss in vi91afion.°t'Scc_iion 43(a).:o.f? @116
`
`Act-
`
`49.
`
`Accordingly.-LDMI seeks.an_iniunction r'equitingi'Dle\£énden1.ts':toimmediatélyneasez
`
`using‘DNfl's Tmflémhrks and Trade Dréss or=a‘ny1
`
`Ur trédcrdress c'0hfi1Sing_ly:similar'to’
`
`thqscs 91' DMI, DMVI, also seeks iccovcry cif itsrdamggcs,;m_<>‘I)pff¢nd;§:1i$' pmfiu:,.ireb1e‘dainages',
`
`and.atto_rncy:%’ fees‘,-
`
`Cdunt Vl_I:3 S’cction.43 c of this; dnham ct
`
`
`
`50.
`
`DMI_.adop1s.nnd 7i‘nc‘orporates;by"reference each and_‘cvc:ry .allcgafion contained‘ in
`
`Paragaphs 1~- 28.
`
`~51.
`
`Defendants’ commétcihl u’se.’of DMI‘s X"-RATED‘ Bra1id_,_;afi't-;r ‘DMI’s
`
`-Brandihas become famous, has caused dilution and dispamgeznent of lb:-‘disfincfivc vqualiiv of
`
`

`
`Case 1:06-cv-04889 Document 1 ' Filed 09/08/2006
`
`Page ‘.23 of'24
`
`DMl‘s X-RATED Brand, and has decreased the capacity of the DMI’s X-RATED Brand to
`
`identify and distinguish the goods of DMl,,alI in violation of Section 43(c) of the Lanham Act.
`
`52.
`
`Defendants’ ongoing activitieshavebbeén undertaken willfully, with an intent to
`
`trade on DMI_7s X—R.ATED Brand and Chum dilfitionvof DMP3 famous X-RATED Brand. Such
`
`acts constitute a willful violation of Section '43(c) ofth.e.L’anhatn Act.
`
`53.
`As :1 result of Defendants‘ ongoing actiiiities, DMI faces irreparable injury to its
`business and the Iil<eIihood‘tttqt
`tdistinctiyezand identifying indicia of‘DM'I's bu'siness'will be
`
`diluted and that its .rcputatio‘n‘_.will ti~‘iffdiminj;sh,ed_
`
`54..
`
`Accordingty,:.DMI 'seel<é.an injtnicfion reqtjfirsnjg Defi-;ndi1nt§ to im‘mé'di‘éitel”y:cc‘a'sc
`
`using I§Ml‘s Tradcmarks"atid _Tradtj:-
`
`or any xI_turk_~qr trade dress‘ confuéingly .sititilt;tr to
`
`those of DMI; DMI also seeks-recovery of it$.d'arn2‘tge‘s, thc.Defendants’~-profits,- trebleulmnztges,
`
`and attomcys’
`
`WHEREFQRB, Plainfiff DMI seeks jqdgtnént and relief _agaittstDcf¢t1dar1ts; including:
`
`A.
`
`enu-y.‘o'fjudgment af‘or_-dmnaVg_es,.'DMI*s damages, :inc1u_ding,lost p_mjfits,.-and/or the
`
`di'sg9rgerfientlofjpefetidttnté’ .pro'ftts=.frdm:thair sales) of }_irdduct:’t"usin"g_. the X Ecstasy Brand, and
`
`trfible d§1[3_'la_g46S,'ltQgGt}l§l' will-flfirejtidgtnent
`
`t6yé6n1l3€=nsatd‘DMI.for Défciidtttité‘
`
`13-.
`
`:en.t.w'o.fj‘uHgment for costs; ezcps,nses..land. :>:asona121§:atto1:ncyst"'.'fecsAincurrvd tint
`
`C.
`
`fD‘eféI'1da'rlt§
`
`immedidtelyt
`
`cé'"a’sé. using: DMI78
`
`'l’fa.d¢ma..rks and.’fra<3.¢ D".-’-§$‘Q¥ a.n¥-.m.n,rk_. 9.! ltaderdrc;§,s. confusingly similar to '1h0S'¢ df‘DNfli—8dd
`
`D.
`
`an order
`
`J-Dc‘fcnd‘ants
`
`to
`
`over for destruction all,
`
`A products,
`
`advertisements, and other materials bearing 01" wring DMI'5 Tt'adenSl'aIks'-, Ijrade Dress, or any
`
`other mark or tradedress confusingly similar.
`
`

`
`
`Case 1:06—cv—0488_9 Document 1
`Filed 09/08/2006
`Page 24 of 24
`
`E.
`
`entry of judgment for such other and further relief as: the ‘Court may deem
`
`appropriate.
`
`Dated: August 25, 2006
`
`Re;spectfulIy-slibrnifled.
`
`Dwcounr MARTIN Imroms, LLC
`
`
`
`V
`_
`V
`V
`H
`A
`JURY REQUEST. FOR ALL MATTERS
`TRIABLE TO A JURY-
`
`.
`
`Allan" 1". Slagcl
`Hcathcr A. Jackson
`Sgnzvsxv 8; Fnoaucn LTD.
`111 Eastiwacker Drive
`Suite 2800
`.Chicago‘, Illinois 60601_.
`Télephohe}:
`(312)»s2744o.o_0,
`1=acsimi1e:
`(312); 527-4011
`
`3
`
`k_
`
`.¢
`5;’;
`
`Of Counsel:
`pgsvig H, H;arpgrj' (ffgxgns A:t_mmyNo. 09025540)
`_l'_I/1\‘§fN_l3§:AI}lD ’B.oLo'r4x'r:_, 1',I.._P'.'
`'
`V9f01}IvIa;'i;; Sham
`_
`>
`-’Su.i;tc 3’-I00.
`_
`Da!la§,:Texas:75202\-3789
`~'re1ephone:'
`_(1/14~)j6:s1,—5ooo
`'_Faési_r;'1i1e:
`(214): 651-5940
`
`loxsgzy
`
`_
`
`J '1
`
`

`
`Case 1105-UV-04689 Document 8
`
`Filed 10/02/4006
`
`Page 1 of 22
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
`
`Case No.: 06-C-4889
`
`TRIAL BY JURY DEMANDED
`
`)
`
`) )
`
`)
`)
`)
`)
`
`) ) ) ) )
`
`DAUCOURT MARTIN IMPORTS, LLC,
`a Delaware Limited Liability Company,
`
`Plaintiff,
`
`v.
`
`ENCORE BRANDS, LLC,
`a California Limited Liability Company
`and, PATRICK AROFF, an Individual,
`
`Defendants.
`
`ANSWER AND COUNTERCLAIM
`
`Defendant Encore Brands, LLC (“Encore”) and Defendant Patrick Aroff (“Aroft”)
`
`(collectively, “Defendants”), by and through their attorneys, answer Plaintiff Daucourt Martin
`
`Imports, LLC (“DMI”)’s Complaint as follows:
`
`THE PARTIES
`
`1.
`
`Daucourt Martin Imports, LLC is a Delaware limited liability company with its
`
`principal place of business in Dallas, Texas.
`
`ANSWER: Defendants do not have sufficient knowledge or information to admit or
`
`deny the averments of Paragraph 1 of the Complaint, and therefore deny the same.
`
`2.
`
`Encore Brands, LLC is a California limited liability company with its principal
`
`place of business in Santa Monica, California.
`
`ANSWER: Admitted.
`
`PHIL 1\3786462.4
`306916-S
`
`

`
`Case 1:06—cv-04689 Document 8
`
`Filed 10/O2/.4006
`
`Page 2 of 22
`
`3.
`
`Defendant Patrick Aroff is an individual residing in Santa Monica, California, and
`
`is the president and chief executive officer of Encore Brands.
`
`ANSWER:
`
`Admitted.
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`JURISDICTION AND VENUE
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`4.
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`This Court has jurisdiction over the cause of action alleged herein in that the
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`activities giving rise to the causes of action occurred in Cook County, Illinois.
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`ANSWER: Defendants admit that there is concurrent state and federal jurisdiction for
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`one or more of Plaintiffs claims. To the extent Paragraph 4 states any other factual or legal
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`averments, such averments are denied.
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`5.
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`This Court has personal
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`jurisdiction over Defendants pursuant
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`to ILCS
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`§5/209(a)(1) and (2) as they have transacted business within the State of Illinois and committed a
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`tortious act in Illinois.
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`ANSWER:
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`Denied.
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`6.
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`Venue is proper in the Circuit Court of Cook County, Illinois pursuant to 735
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`ILCS §5/2-101 as a substantial part of the transactions giving rise to Plaintiffs causes of action
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`occurred in Cook County, Illinois.
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`ANSWER:
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`Denied.
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`PHIL1\3786462.4 9/29/06
`3069 1 6-5
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`

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`Case 1:06-cv-04689 Document 8
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`Filed 10/02/4006
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`Page 3 of 22
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`FACTUAL BACKGROUND
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`7.
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`Since September 2004, Daucourt Martin Imports, LLC (hereinafier, “DMI) has
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`been the exclusive marketer and United States importer of spirits and related products, such as
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`clothing, sold under
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`its trademarks X, X-RATED, and X-RATED FUSION LIQUEUR,
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`including both vodka and fruit—flavored liqueur (the “Trademarks”).
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`ANSWER: Defendants do not have sufficient knowledge or information to admit or
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`deny the averments of Paragraph 7 of the Complaint, and therefore deny the same.
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`8.
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`The packaging for DMI’s fruit-flavored liqueur includes distinct elements that
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`consist of: (1) a straight, cylindrical bottle shape with a square shoulder and narrow, straight top
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`(2) the bottle being translucent and containing minimalist labeling resulting in a dark pink hue
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`from the contained liqueur; (3) a dark pink cap; (4) white lettering; and (5) the most prominently
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`featured element being a large letter X on the front face of the bottle.
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`ANSWER:
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`Defendants do not have sufficient knowledge or information to admit or
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`deny the averments of Paragraph 8 of the Complaint, and therefore deny the same.
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`9.
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`The packaging for DMI’s vodka includes the same distinctive bottle and large
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`letter X used for DMI’s fruit-flavored liqueur, but due to the clear nature of its vodka, the
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`lettering is dark pink. DMI also markets its vodka and fruit-flavored liqueur by using dark pink
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`colors in its advertising materials.
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`Such distinctive elements and advertising materials are
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`collectively referred to herein as DMI’s “Trade Dress.” The combination of the Trademarks and
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`’
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`the Trade Dress are referred to as the “X-RATED Brand.”
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`ANSWER:
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`Defendants do not have sufficient knowledge or information to admit or
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`deny the averments of Paragraph 9 of the Complaint, and therefore deny the same.
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`PHILl\3786462.4 9/29/06
`306916-5
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`

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`Case 1:06-cv-04689 Document 8
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`Filed 10/02/4006
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`Page 4 of 22
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`10.
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`The Trademarks, as well as the distinctive elements and advertising materials
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`comprising DMI’s Trade Dress, are nonfunctional and inherently distinctive.
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`ANSWER:
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`Denied.
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`11.
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`Plaintiff extensively promotes its letter X mark by prominently displaying it on
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`product packaging, in advertising, and on other materials. Through such promotion, Plaintiff has
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`developed strong and enforceable trademark rights in its X mark.
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`ANSWER:
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`Defendants do not have sufficient knowledge or information to admit or
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`deny the averments of Paragraph 11 of the Complaint, and therefore deny the same.
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`12.
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`DMI owns three applications, currently pending before the United States Patent
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`and Trademark Office, for trademarks associated with its Trademarks, including the mark X-
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`RATED in stylized form, the word mark X-RATED, and the word mark X-RATED FUSION
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`LIQUEUR.
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`ANSWER: Defendants admit
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`that DMI
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`is the listed owner of U.S. Trademark
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`Application and Registration Nos. 3,149,625, 78/439,451 and 78/687,922 for the marks X-
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`RATED (And Design), X-RATED and X-RATED FUSION LIQUEUR, respectively. To the
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`extent Para