FI LED Mar. 79, 2008 Michael
Transcription
FI LED Mar. 79, 2008 Michael
Case1:08-cv-01596Document 1 Filed03/1912008 Page1 of 9 IN THE UNITED STATESDISTRICTCOURT FOR THE NORTHERNDISTRICT OF ILLINOIS EASTERNDIVISION ADELROOTSTETN (U.S.A.), rNC., * :1. Plaintifi * t v. {< ,r FOREVER2I,INC., {< * c a s e No . 0 8 c v L 5 9 6 F I LED Mar. 79, 2008 Michael-' W . Dob b i n s Derendant' Got,tschall I ;udqe ***********************!F****:r.************** Maglstrate,Judge MaSon COMPLAINT Plaintiff Adel Rootstein(U.S.A.),Inc. ("Rootstein")seeksinjunctiveand monetary relief from DefendantForever2l,Inc. ("Forever21") for infringementof Rootstein's copyrightedand world-famousmannequindesigns. As allegedmore fully below, Forever2l has violated,and continuesto violate,the copyright Act of 1976as amended,17 u.s.c. $ l0l, et seq. (the "Copyright Act"), and breacheda previous settlementcontract with Rootstein, through its unauthorizedreproductionand displayof copiesof Rootstein'sartisticand exclusive mannequin designsof supermodelsand other figures,in direct competitionwith Rootstein. PARTIES I' Plaintiff Rootsteinis a New York corporationhaving its principal place of businessat205 West lgth Street,New York, New York 10011. Rootsteinis a wholly owned subsidiary of Adel Rootstein (Overseas)Ltd,.,a private limited company organizedunder the laws of the United Kingdom, which is a wholly owned subsidiaryof The RootsteinHopkins Group Ltd., a private limited company organized under the laws of the United Kingdom. Rootstein designs and manufacfurespremium artistic mannequinsof supermodels and other PH Case1:08-cv-01596 Document1 Filed03/1912008 Page2 of g figures,frequentlyin fanciful poses,for saleto premium retailersand to art collectorsin the United Statesand for export and salethroughoutthe world. 2. Upon information and belief, Forever 2l is a California corporationwith its principalplace of businessat 2001 S. AlamedaStreet,Los Angeles,CA 90058. Forever2l is engagedin the retail apparelbusiness,sellingmen's and women's appareland relateditems in retail outletsacrossthe United Statesand throughits website. JURISDICTION AND VENUE 3' This Court haspersonaljurisdictionover Forever2l becauseit conductsbusiness and usesinfringedcopiesof Rootstein'sdesignsin the Stateof Illinois and within this judicial district. Forever2l owns and operatesseveralretail shopsin the Stateof Illinois and in this judicial district. 4' This Court hasjurisdiction over this matterpursuantto 28 U.S.C. $$ 1331 and 1338. Subjectmatterjurisdictionis properunder Section1331and 1338becauseRootstein assertsclaims under the federal Copyright Act. This Court has supplementaljurisdiction under 28 U.S.C.$ 1367over Rootstein'spendentstatelaw claim. 5. Venue is properin this judicial district under28 U.S.C. $ l39l(bx2) and (c), as upon information and belief, a substantialpart of the activities giving rise to the claims asserted occurredandare continuingin thisjudicial dishict. ROOTSTEIN'S FAMOUS MANNEOUIN DESIGNS 6. Rootsteinis in the businessof designing,manufacturing, distributing,and selling high-endspecialtymannequins. Case1:08-cv-01596Document 1 7. Filed03/1912008 Page3 of 9 Rootstein,formed in 1956,createda revolutionaryline of display mannequins with an innovativeoutlook in designand ideaswhich madeits founder,Adel Rootstein,worldfamousin her field. 8. For the past 50 years,Rootsteinhas beendesigningartisticmannequinsthat are sculpted by artists and inspired by famous models, singers, actors, and other personalities. Rootstein's famous inspirationsinclude supermodelsfrom Twiggy in the 1960s to Erin O'Connor today, as well as actressessuch as Joan Collins. Rootstein'sexclusiveclientele includesOscarde la Renta,Chanel,and Bergdorf Goodman,who seekto display mannequinsas sculptedand exclusiveartwork. 9. Each of its Rootstein'soriginal designsbegins life in the hands of a master sculptorbeforebeing transformedinto a uniquemannequin.Rootsteincreatesnew and fanciful posesfor each of its subjectsthat emphasizeand interpret the individual's natural beauty and form. 10. Rootsteinis the owner of the following U.S. Copyright Registrationsfor its mannequindesigns: Title Res.No. Res.Date Erin (ER2) vA l-381-760 August31,2006 Eva (BN5) vA 1- 381- 7s6 August31,2006 Marianna(G7) vA l- 381- 757 August31,2006 Catherine (G8) v A l- 381- 758 August31,2006 Susie(LIF7) v A l- 381- 759 August31,2006 Helga(RF3) v A l- 381- 761 August31,2006 Copiesof the registrationcertificatesare attachedcollectively as Exhibit A. Case1:08-cv-01596 Document1 I l. Filed03/19/2008 Page4 of 9 Rootsteinis alsothe ownerof the following pendingU.S. CopyrightApplications for its mannequindesigns: Title Ree.No. AnplicationDate Adela(Pl0) N/A November9,2007 Line (NM3) N/A November9.2007 Lidija(AR2) N/A November9,2007 Anne (AN2) N/A November9.2007 Copiesof the applicationsare attachedcollectively as Exhibit B. 12. Rootsteinsellsits mannequinsto numerousclientsin Chicago,Illinois including MarshallFields(now Macy's),NeimanMarcusand SaksFifth Avenue. 13. Rootsteinexpendssubstantialtime, money and creativeeffort in the development and creationof eachof its mannequindesigns. 14. To create and maintain goodwill among its customers,Rootstein has taken substantialstepsto assurethat all of its mannequins areof the highestquality. 15. As a consequence of the extensiveadvertisingandpromotionby Rootstein,and as a result of the substantialsalesthat Rootsteinhas generatedfor its mannequindesigns,Rootstein has developedenormousrecognition for its mannequins,and has acquired and enjoys an immenselyvaluablereputationand tremendousgoodwill associatedwith each of its original designs. 4 Case 1:08-cv-01596 Document1 Filed0311912008Page5 of 9 FOREVER 21'S WRONGFUL ACTIVITIES 16. Rootsteinrecentlydiscoveredthat Forever2l is using and displayingcopiesof Rootstein'sErin (ER2), Adela (P10),Line (NM3), Lidija (AR2), and Anne (AN2) mannequin designsin its massmarketretail stores. 17. More particularly,Forever2l purchasedsome of Rootstein'smannequinsand of Rootstein'sdesigns. thenbeganusingreproductions 18. Forever2l willfully copiedthosedesignswithout authorizationfrom Rootstein. 19. Forever2l's unauthorizedcopiesof Rootstein'smannequinsare manufactured with lower gradematerialsandareof an inferiorqualityto Rootstein'smannequins. 20. Forever21 usesunauthorizedcopiesof Rootstein'smannequindesignsin its retail storesin Illinois and in this iudicialdistrict. 21. Forever21 is not affiliatedwith or sponsoredby Rootstein,and has never been authorized by Rootstein or any of its subsidiaries,affiliates or authorized agents to use Rootstein'smannequindesigns. 22. On April 4,2007, Rootsteinnotified Forever 2l of Rootstein'srights in its mannequindesignsand requestedthat Forever21 ceasepurchasingand using unauthorized copiesof thesecopyrighteddesigns. 23. On August23,2007, Rootsteinand Forever2l signeda SettlementAgreementto resolvethe parties'disputeover Forever21's use of certainDisputedMannequinDesigns. A copy of the SettlementAgreementis attachedas Exhibit C. 24. The SettlementAgreementprovidedthat Forever21 could continueto use the Disputed MannequinDesignsuntil January31, 2008 in exchangefor a paymentof $75,000to Rootstein. (Exhibit C, at $ 2.1.) The SettlementAgreement,however,prohibitedForever2l Case1:08-cv-01596 Document1 Filed03/1912008 Page6 of 9 from orderingany of the DisputedMannequinDesignsor similar copiesof RootsteinDesigns. (Id.) The agreement also provided that Forever 2l would "permanently refrain from reproducing,displaying, importing, advertising,marketing, promoting, licensing or otherwise distributing, either directly or through any third party, all of the Disputed Mannequin Designs and any copies or substantiallysimilar copies of the RootsteinMannequinsafter January31, 2008;' (Id.) 25. The SettlementAgreementalso required Forever 2l to destroy all copies or substantiallysimilar copiesof Rootstein'smannequindesignsafter January31,2008. (Exhibit C, at $ 2.2.) 26. Additionally, the SettlementAgreementstated that a breach of Forever 2l's obligationsunder the SettlementAgreementwould result in irreparableinjury and that it would be difficult or impossibleto establishthe full monetaryvalue of suchdamage. (Exhibit C, at g 3.) As such,any breachby Forever21 of its obligationsunder the SettlementAgreementwould entitle Rootsteinto immediateinjunctive relief. (1d.) 27. Despiteits obligationsunderthe SettlementAgreement,and despiteattemptsby Rootsteinto resolvethis disputeamicably,Forever2l continuesto use unauthorizedcopiesof Rootsteinmannequindesignsin its retail outlets. 28. Forever 2l's unauthorizedreproduction and use of Rootstein's original copyrightedmannequindesignsdeprivesRootsteinof the benefitof its copyrightregistrations. 29. Rootsteinhaslost and will continueto losesubstantialrevenuefrom Forever2l's copyright infringementin the mannerdescribedabove. 30. Unlesstheseacts of Forever2l arerestrainedby this Court, they will continueto causeirreparableinjury to Rootsteinfor which thereis no adequateremedyat law. Case1:08-cv-01596 Document1 Filed03/19/2008 Page7 of 9 COUNT I COPYRIGHT INFRINGEMENT (17 U.S.C.S 501) 31. Rootstein realleges and incorporates herein the allegations in Paragraphs I through30 of this Complaint. 32. Forever 21's unauthorizedreproductionand use of copies of Rootstein's mannequindesignsinfringesRootstein'scopyrightsin thesedesigns. 33. The actsof Forever21 complainedof herein constitutecopyright infringementin violationof Section501of the CopyrightAct,17U.S,C.$ 501. 34. Forever 2l's acts complainedof herein have been deliberate,willful, and intentional, with full knowledge and in consciousdisregardof Rootstein's rights in its mannequindesigns. 35. As a result of the foregoingallegedactionsof Forever21, it has beenunjustly enrichedand Rootsteinhasbeeninjured and damaged. 36. Unlessthe foregoingallegedactionsof Forever2l are enjoined,Rootsteinwill continueto suffer injury and damage. COIINT II BREACH OF CONTRACT 37. Rootstein realleges and incorporates herein the allegations in Paragraphs I through36 of this Complaint. 38. In the SettlementAgreement,Forever2l agreedto ceaseusing or displaying the DisputedMannequinDesignsand any copiesor substantiallysimilar copiesof the Rootstein Mannequindesigns.(Exhibit C, at g 2.1.) 39. Upon informationandbelief,Forever21 continuesto displayseveralcopiesof the RootsteinMannequindesignsin Forever2l retail outlets. Case1:08-cv-01596 Document1 40. Filed03/19/2008 PageI of 9 Forever21's breachesof its obligationsunder the SettlementAgreementhave causedRootsteinto suffer injury and damage. PRAYER FOR RELIEF WHEREFORE, for the foregoing reasons,Rootsteinrespectfullyprays for relief as follows: L Judgmentbe enteredfor Rootstein. 2. Forever21, its agents,servants,employees,attorneys,and all others in active concertor participationwith any of them,be enjoinedandrestrained,duringthe pendencyof this action, and permanently thereafter, from manufacturing,reproducing, distributing, adapting, displaying, advertising,promoting, and offering for sale and/or selling any mannequinsthat are substantiallysimilar to Rootstein'smannequindesigns,and to deliver to the Court for destruction or other reasonabledispositionall suchmaterialsand meansfor producingthe samein Forever 21's possession or control. 3. An accountingbe directedto determineRootstein'sactualdamagesand Forever 2l's profits resultingfrom its activities,and that such actual damagesand profits be paid to Rootsteinandincreasedasthe Courtfinds to bejust underthe circumstances of this case. 4. Forever21 be requiredto pay Rootstein'sattorneys'feesandcostsof this action. 5. Rootsteinrecoversuchotherrelief as the Courtmay deemappropriate. Case1:08-cv-01596 Document1 Dated:March19.2008 Filed03/1912008 Page9 of 9 Respectfu lly submitted, (U.S.A.), AdelRootstein Inc. By: /s/ Matthew M. Neumeier Matthew M. Neumeier HOWREY LLP 321N. Clark St. Suite3400 Chicago,IL60610 Telephone:(312) 595-1239 Fax: (312) 595-2250 Email: neumeierm@howrey. com OF COUNSEL: JohnG. Froemming JessicaD. Bradley HOWREY LLP 1299Pennsylvania Ave., NW Washington,DC 20004 (202)783-0800 Telephone: Fax:(202)383-6610 Attorneysfor Plaintiff Adel Rootstein(U.S.A.),Inc. Case1:08-cv-01596 Document1-4 Filed03/1912008 Page1 of 16 08 c v r _s 96 M A R. 1 9 , 2 0 0 8 .TUDGE GOTTSCHALL MAGISTRATE ,JUDGE MASON ExhibitC 1-4 Case1:08-cv-01596Document Filed03/19/2008 Page2 oI 16 SetilcnrentA greernent 'llris .,\greenrent 200?(the"llffcctive is madeandentercdthis a}. day o1'Augrrst, (USA),lnc.,on bchalfof itself thc Partics,narnelyAdelRoorsteir: Date")by,irnd bet"w'een ancl[''orcver21, ltrc..on bch:rlfof itsclfandits andits affiliatcs(collectively'Rootsteirr"), '.rifihates(collectively"'Fore'r'cr2 l "): clesigns, Whcrqs Rrrowteinhasextsnsivelypromotedand sold its marrnequin includingbut not linritedto themannequirrs depictedin ExhibitA hereto(collectivelythc "Rootsteinlvtanncqtri ns"); WhereiuF{)rever2l hasreproducedanddisplayednrannequitls that Rootstein viervs;lssubstanlially dcsigrs--including but nol limitctltu the simjlarlo its manrrctluin dclictcd in Exhibit B hgreto(the'"Disputr;rlMannequjnDesigns")l nrtrnncquirrs \Vhereas, withoutadmitti:rgany liahiliry,andcxprcssl-v and dcnyirtgtlrc'same, of litigatiorr,Forever2l rvishcsto settlcis solclyto avoidtlreexpense anddistraction tlisputewrlh Rootsteinanricably; Norv,thcreforc,in considcration of themuttralpronrises in tlris andcoverrants andsulficieucyof Agrecnrr'nt the rec.cipt andothergoodandvaluableconsidcralion; which nreac.knorvledgcd, thc Partiesagreeas follorvs: L arldWarrantv, Forcver2l rcpresents Rcpresentation and rvarrantsthat it hasno copiesor suhstantiallysimilarcopiesof the RoolsteinMarnetluin.son order. 2. t.jndertakingsb.vForever2l Rootstein. in consideration 2.1 of Forever2l payinga flal fce of S 7.5,0fi).00. rvill allorvf'orcvct'2l to continueto displaythc DisputedManuetluinDcsigrsuntil Janttary i l. 2()08:providcd,howevcr,thal Forever2l shallnororderury of tbc Diqrutcd lvlannequin Dcsignsot anycopiesor rubsmutially sinrilarcopiesof thc Rootstein lvfannequitts aftcr the Effectivel)ate. Fotevcr21 shall ceaseandpernranentlyrefrain fiom rcproducing,displaying,itnporting,advertisiug,markcti:rg,prt>nroting, licensingor othenvisedistributing,eitlrerdirectlyor tlu'oughany lhird party,all of rhc Disputed N4anrrecluin Desigusandanycopiesor substantialty sinrilarcopicsof the Roolsrein lVlarrnequins nffcrJanuary31, 2008. 2.2 All of tlrc DisputedMaunequinDesignsarrdany copiesor substzurrially similarcopies(rf the RootsteinMannequiusshalibe destroyedaftcr January3i,2008. atttjsuchdestrttctionshall be cerlifiedin writing by an independenl conrpanyas soonas but irrauy cvclrtno laterthonlvlayl, 2008, Forever2! wilt notiLyRootslejn Practicablc. of attydcstructionthattvill takeplacein theStats'ol'Ncrv York anda reT)reseltatjvs of t)rtl t;s.;ltHiJ?5;| Case1:08-cv-01596Document1-4 Filed03/19/2008 Page3 of 16 in the Statcof Ncrv rvill havctJreoptionof altcndinganysuchdestnrction Rootstein York. 2.1, Forever2l pronrisesandagrees,on its own 2.3 Sub.iectto Paragraph subsidiarics, affiliatesor associated on hehnll'ofanymd all ol its parertts, hefia|l,ancJ entities,and eachof thcir owners!oflrcers,directors,parlners,cmployccs.agents, predecessors. suucossors, heirs,andassignsthatjt shallceaser rct)rescnlativr's. attonreys, rcfrainlronr reproducing.displaying.irnportittg,itdvcrtising,ntarketing, arrdpcmranerrtl,v anycopiesor subslanlially sirrrilarcopies pronroting,liccnsingor othcnviscclistributrng, ol llrc RootstcinManncclui.ns. Wirhinlwo n]onthsof rheEffectivcDate,Forever2l wilt providea ful) 2.1 accounting copiesol substantially similarcopicsof the r:l'tlrcnuurborof unauthorizcd ss well asiclentifythe asdcpictedin ExhibitA, in its posscssion Rootstein Manneqrrins, copiesof the RootsleiniVlannequins arc storelocationsal rvlrichihe unauthorized will be csrtificdin writingby Forever2l , drsplayed.Suchaccounting Within rlvorlonthsof the Efl'ective Date,Forcvsr2l rvill providcthe 2.5 that produccdthe DispuledMarnequinDcsigns,the location nameol'the nrauufacturer(s) wlrcrcthc DisputcdMarurequin andthe Designsrveremanufactrrred. of thc l':rctory pon of entry for lhe DisputedMannequinDcsigns. I jrritedSl.ares 3. Reljg!: Tlrc Partiesacknowleilge thata breachof Section2 of lhis Agleenrentrvoulclrcsultirt irreparablcinjury. andthat it rvouldbe diffrcult or inrpossible the furllnrr"rnetary valueol'suchdamage.An.ybreaclrof rhis Agrecmentby to establish wrll entiltePlaintiffto immcdiateinjunctiverelief,includingseizurcand Dcfendarrt rlesrruction sinrilarcopiesof theRootstein of arrysubstantially \{anrrequins, 4. Sub.,1cct lo perforrnunce ol'this.Agroen:cnl, MutrrulSpecif$:Releflses. caclro[ thc Particsfor tlremselves, l.heiremployees, officers,directors,z]ltorngys. rcpresentatives, agcnts,servants,successors andassigus,herebyuncrrndiiionallyrelease, ucquitand foreverdischargccachotl'rcr,their ernployccs, ol1iceru,directors,attorneys, rcpl'esentatives. agclrls,servalrts, succe$sors andassigns.frum iury andall astions,causes of actions,claims,dsbts,disabilities, accounts, demands. damuges, clajnrsIbr indemnificatjorr or conlributions,costs,expenscs or lecswhalvrever,*'helherarisingil the LlnilcdStalcsor elselvhere, whethcrknown or unknown,cgrtainor speculalil'e, a.ssefled or unasserted or)accountof or concemingthe Rootstoi:rMannequins,occurring shallbe 1:riorto theEflbctiveDateof this Agreenreut.Nothingin thisAgr:eerncnt construed as a lintitationon anyParty'srightto bringanycauseof actiotlwhotsoever {trr:cupyrigJrt infrinqernent or unfaircompctition)against lincludir:grvtll:outliuritatjorr thatotl'lerPartyor agoinstany third part,vbasedon evenrsoccurringafter the Eflbctive Drte. 5, EntileAgreenrcnt!. This Agreement contajnstlrecntirerrndcrstanding an<J contplctcalarecnlelll of the Partjeswith respectlrcthc circumsttmcc.s. nlattsrs,evelts a1d lran$aclion.s tfiat arc lhc subjectmaficrol'this Agreentent.andolher undcrstandingls or I ) N 1t....5 ::{ H3 5 ? 5I? _ Case1:08-cv-01596 Document1,4 Filed03/1912008 page 4 of 16 agrcelnents, if'anv,previouslyreacbedbeMcenthc Partiesarentergcdinto this or modificationof this Agreernentshall bc volid or binding Agreemeut.No anrendment hy theParlies. ruponthc Partiesunlessrnadein writingandcxecutccl 6. Oeoera!:hicScapjgjlAgrcement, flrc gcographicscopeof this r\ grcenrcnti s rvorldu,ide. i. .{cr.ecmentBindjn$. This Agreerncntshall bc bindiug uponand inru'eto parenls,subsidiaries, affiliates,and tlrcbcne[ito1'rhePartresandthcirrespcctive entitiesand eachof thcir owners,tlfliccrs,direclors,panners,enrployees. associated hcirs,and assigns Tlre succossors, agents.reprcscntatives. attomeys,predecessors, Agreementis a ful,lyncgotiateddocumentanrJshallbe deentedto havcbcenjointly againstanyp&rty rlraftedby the Parties,andthcreforeshallnot be nrorestrictlyconstrued :rsthc drallspcrsort. 'l-lrevalidity.perfon.rtance, construction,interpretatiort, 8. e,hoL-c-S.g[.!dw, eulbrccrlent, of tlrisAg'eementshall be govenrcdauderrtbrced in accordarce ande['l'ect rvith theisubstantivelaws of thc Stateof Illinois andby {'edsrallarvas intcrpretedby the UnitctlStates[-'ottrtof Appealsfor the SeveuthCircuit. 'l'hepartiesagreethat the l.]nited StatesDistric:tCourt fi:r theNorthernDistrict o[ lllinois shallhavepersonalandsubjectnratterjuri.sdictionover anv copyrightor relatedfecleralclaims,rrisingtionr any breachof lhis Agreemenl.. Non-lVaiver. Rootstcin'sfailurcro insistupoustrictperforrtrancc 9. of any icnl ol'this Agreenrelltor to exerciseany right prtrvitledin this Agreeinenlshallnot bc construedas a rvaiveror relinquishmentlor ths futurcof sucht6rnror righr,which shall continucin full fbrceandeffcct. ll'lrisAgreenrentmay be execuledin sevcralcountcrparts, 10. Clgurrtcryarts, eachol'rvhichshall be decmcdau original,but all toBcthcrshallconsrituleone ilurdthe sanrriirtstrument. ln rvitnssswhereof,thc Partieshavecatrscd tltis r\grcenrent to bc cxccutedbv theirduly authorized reprcsentatives asoJithedatefirstwrinenabovc. ootslein(tJS.{), lnc By: 'f itlc: I)rrte: t):vl uti.i0,l.i5?5:_| Forever2 l. lns. case 1:08-cv-01596Document 1-4 Filed03/1gl2oo} page5 of 16 EXHIBIT A Case1:08-cv-01596 Document1-4 Filed03/19/2008 Page6 of 16 case 1:08-cv-01596 Document1-4 Filed03/19/2008 page7 of 16 AF5 AH4 ilJr r it l {.i i t l I ! i 'r ; '] 1 , ; . ] 'I i . '- . ..ii ) r, Ma rtn ri :c 1 u rn Srz u s i ' ' ..1 .r . l \.i ,,f.:1 j : ,.r .ti r .. 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