Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 1 of 39

Transcription

1 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 1 of 39 John P. Margiotta Gmargiotta@fzlz.com) Jennifer Insley-Pruitt Ginsley-pruitt@fzlz.com) FROSS ZELNICK LEHRMAN & ZISSU, P.C. 866 United Nations Plaza New York, NY (212) Attorneys for Plaintiffs UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK CARTIER INTERNATIONAL AG and CARTIER, a division ofrichemont NORTH AMERICA, INC., v. JEWELRY UNLIMITED, INC., Plaintiffs, Civil Action No COMPLAINT JURY TRIAL DEMANDED Defendant. Plaintiffs Cartier International AG and Cartier, a division ofrichemont North America, Inc. (collectively, "Cartier"), for their Complaint against Defendant Jewelry Unlimited, Inc. ("Jewelry Unlimited" or "Defendant"), allege as follows: NATURE OF THE ACTION 1. Cartier is one of the world's most renowned jewelers and luxury watch manufacturers. For decades, Cartier jewelry and watches have been highly regarded throughout the world as finely crafted works of art. Today, the Cartier name represents one of the world's most prestigious and sought-after brands. 2. Defendant operates a brick-and-mortar store in Atlanta, Georgia, the online retail site wwwjewelryunlimited.com, and online storefronts run through third-party marketplace websites, including both Walmart.com and ebay. Through its retail outlets, Defendant engages in unfair and deceptive business practices, including the promotion, distribution, and sale of {F }

2 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 2 of 39 altered and counterfeit watches under the CARTIER mark and of jewelry products that are imitations of Cartier's jewelry designs (designs that are protected under U.S. law), as well as making false statements as to Cartier's pricing. 3. An example of one of Defendant's listings for the sale of a counterfeit watch on Walmart.com is shown below: Walmart :::~... l't: loa'...,n., ltt ~ Myi\Houm All Departments CyberWeekOeals My Local Store PickltUpTODAY Christmas Decor Rx refills for adults, kids & pets Leammore Jewelry ' l'le t ~:hes Men's\"l!!tr::h es Cutler <Artier Roildster XL Chrono Diamond Watch (24ct) Write 11 re\fiew Q&A 8y. U rtiu 11 S1], FREE shipping onl)'lsdu Sold & Shipped by Jewelry U n\imk ~ Inc 1119 Wo~~nt it ~ Thurs"-ay, Dec I? D1oose b:pecfltt!d etcheckout Shipping options ~Pickup r.ot 1!.\ tlil.!!ble from this seller Qty: 1 t'~add to Regi~try GR GIFTS About this item ~!'I.~; Cwtom ~ rt it!r R.o!Kl'ser W620 19X6 XL Olorogreph Wetch with 24 Ct Oiemond GREAJ GIFTS Prices so low, you'll FREAK OUT! About this item lm~nt Made in USA Origin OiJcbftler: For urtain item~ sokf by Walmen on \Velmert.com. tn dilp.l.!r)ocdcol.tfttr.)'of «i!;in i Morm~ion mey not be. occurate Of cor~sis tcnt with manufactuu:r infontit:tion For updatcd. eccur11tt: country of origirl ~it ill rccommc~ d t~~oc,u: rc ~ on product pkt~ i ng or manufoa:urer information. Mens Custom Cartier Roadser W620 19X6 XL Chorograph Watch with 24 Ct Diamond A Pre-Owned M~ru Cartier Roadster Chronograph watch with 24 Ct Diamonds. The watch consists of a total of24.0 ct of al l Clear diamonds set on ttle bezel. case and lugs. This genuine cartier watch isfullyaooded in diamonds.. The entire case and ban-d is set with5parkli n.gvs2 511 Clarity diamonds in an staggered pave setting. Th i s~tting hasabsolutelyno roorn between diamond.swhicllallowstlle watch to have an unbeatable shine. All diamonds lire matching in clarity and color_ Case is42j3mmx47.6mm indimell.5ions Original cartier Stainless Steel band, case and movement The watch has been service d ark! buffed out by a profe~ i ollilll watch maker. All diamonds are set aftermarket Explore Related Products Wat ch Case Material: Stainless Steel Watch Condition: Brand New Product Dimensions: MSRP:46SOO.OOOO Other Detail s Comes\'lith Original Cartier Box and appraisal cert {F } 2

3 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 3 of Defendant's actions, as noted above and as further described herein, are causing immediate and irreparable harm to Cartier and its brand, and are also harming consumers. To redress the harm being done to Cartier and to the public, Cartier brings claims for trademark infringement and trademark counterfeiting under Section 32(1) of the United States Trademark Act of 1946, as amended (the "Lanham Act"), 15 U.S.C. 1114(1); false advertising and unfair competition under Section 43(a)(l)(A) and (B) of the Lanham Act, 15 U.S.C. 1125(a)(1)(A) & (B); trademark dilution under Section 43(c) of the Lanham Act, 15 U.S.C. 1125(c); and related claims under state and common law. Cartier seeks injunctive and monetary relief. THE PARTIES 5. Plaintiff Cartier International AG is a public limited company organized and existing under the laws of Switzerland, having its principal place of business at Hinterbergstrasse 22, 6330 Cham, Switzerland. 6. Plaintiff Cartier, a division of Richemont North America, Inc., is a corporation organized and existing under the laws of the State of Delaware, having its executive offices and principal place ofbusiness at 645 Fifth Avenue, New York, New York Cartier, a division of Richemont North America, Inc., is the exclusive distributor of CARTIER brand products in the United States. 7. For the purposes ofthis Complaint, except where specified, the interests of Plaintiffs Cartier International AG and Cartier, a division ofrichemont North America, Inc. are, as a practical matter, identical, and they are herein referred to individually and together as "Plaintiffs" or "Cartier." {F ,2 } 3

4 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 4 of Upon information and belief, Defendant Jewelry Unlimited, Inc. is a Georgia corporation with a principal place ofbusiness at 4800 Briarcliff Road, Suite 1007, Atlanta, Georgia JURISDICTION AND VENUE 9. This Court has jurisdiction under Section 39 of the Lanham Act, 15 U.S.C. 1121, under Sections 1331 and 1338(a) and (b) ofthe Judicial Code, 28 U.S.C. 1331, 1338(a) & (b), and under principles ofpendentjurisdiction. Supplemental jurisdiction exists over Cartier's state law claims pursuant to 28 U.S.C This Court has personal jurisdiction over Defendant under Sections 301 and/or 302 ofthe New York Civil Practice Laws and Rules because Defendant continuously and systematically conducts, transacts, and solicits business in this district, because Defendant operates a fully interactive website that allows consumers from this district to purchase infringing products, because, on information and belief, Defendant ships and sells infringing products in and to this district, because the events giving rise to this Complaint occurred in this state and/or had effects in this state, and because Cartier will be harmed in this district. 11. Venue is proper in this district pursuant to Sections 1391(b) and (c) of the Judicial Code, 28 U.S.C. 1391(b) and (c), because Defendant is subject to personal jurisdiction in this district due to its voluntary transacting of business herein, including offering products to consumers in this district, operating a fully interactive website that allows consumers from this district to purchase infringing products, on information and belief, shipping and selling products, including infringing products, in and to this district, and because a substantial portion of the events at issue have arisen and will arise in this judicial district and Cartier is suffering harm in this judicial district. { F ) 4

5 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 5 of 39 FACTS COMMON TO ALL CLAIMS FOR RELIEF I. CARTIER BUSINESS AND INTELLECTUAL PROPERTY RIGHTS A. The CAR TIER Business 12. Cartier is a world-famous supplier of fine jewelry, luxury watches and accessories, all sold under the CARTIER name and mark. 13. Founded in 1847 by Louis-Fran<;:ois Cartier, Cartier has built a reputation for fine craftsmanship in the watch and jewelry field. Through over 160 years of use, Cartier has established the CARTIER name and mark as synonymous with high-quality, well-crafted and exquisitely designed watches and jewelry. Today, the company offers a wide range of products, including timepieces, fine jewelry and accessories. Cartier's commitment to innovation in design and function, as well as its use of only the finest materials, has solidified its position as a leading maker of luxury goods. 14. Among Cartier's most important assets is the intellectual property associated with the CARTIER brand. Among other protection, Cartier owns U.S. trademark registrations covering many of its world-famous marks. B. The CARTIER Mark 15. Among the trademarks owned and used by Cartier is the world-famous CARTIER trademark (the "CARTIER Mark"), which has been used continuously in the United States in connection with the advertising and sale of fine jewelry and watches since at least as early as Cartier has invested significant time, money and effort to advertise and promote the CARTIER Mark and the products sold thereunder, spending millions of dollars annually on such efforts. {F } 5

6 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 6 of The combination of the highest quality products and extensive promotional efforts has kept the CAR TIER Mark at the apex of the luxury products industry for decades, and has resulted in millions of dollars of sales year after year. 18. As a result, the CARTIER Mark has acquired enormous value and has become extremely well known to the consuming public and trade as identifying and distinguishing the source of Cartier's products exclusively and uniquely. The CARTIER Mark represents enormous goodwill. 19. In addition to common law rights established in the CARTIER Mark through many years of use and promotion, the CARTIER Mark is the subject of, among other registrations, U.S. Trademark Registration No. 759,201, registered on October 29, 1963, and, in stylized form, U.S. Trademark Registration No. 411,975, registered on February 13, Printouts from the online database of the United States Patent and Trademark Office ("USPTO") showing the status of these registrations are attached hereto as Exhibit A. These registrations are valid, subsisting and in full force and effect, and have become incontestable under Section 15 of the Lanham Act, 15 U.S.C. 1065, and therefore serve as conclusive evidence ofthe validity of the CARTIER Mark, of the registration of the mark, and of Cartier's exclusive right to use the mark in commerce on or in connection with the products for which the mark is registered, as provided by Section 33(b) ofthe Lanham Act, 15 U.S.C. 1115(b). C. Cartier's LOVE Collection and Related Intellectual Property Rights 20. One of Cartier's most well-known and sought-after jewelry lines is known as the LOVE collection, which consists of a wide variety of jewelry designs (together, the "LOVE Collection"), each with the distinctive appearance of a flat metal band in white gold, yellow gold, {F } 6

7 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 7 of 39 or pink gold, punctuated by simulated screw head designs and/or diamonds (the "LOVE Trade Dress"), as shown below in yellow gold: 21. Cartier manufactures, promotes and sells a number of jewelry designs within the LOVE Collection and incorporating the LOVE Trade Dress, including, but not limited to, bracelets, earrings, rings and necklaces. 22. The LOVE Trade Dress is the subject of various federal trademark registrations owned by Cartier, including the following: Mark Reg. No. Reg. Date Registered Goods t ~ ~ st.:e 1,372,423* November 26, Bracelets ,162,410* October 24, Jewelry, namely, bracelets, watches, ', 2006 rings,charms,earrings,dogtagtype. pendants; cuff links; belt buckles made I I,, of precious metal... 3,637,776 June 16, 2009 Inter alia, goods of precious metals and Leve coated therewith, namely, cuff-links, rings, bracelets, earrings, necklaces,"'..,,..,... _---=-~~~'":...-:.,."':..~"'... 3,776,794* April20, Jewelry, namely, rings, bracelets,,,' _ '), 2010 charms, earrings, made of precious L \,"' ' ( l'' ''::--,~~~ ~ I metals '~,,~==~r:e_,~' 23. Printouts detailing the registration information for the above marks are attached hereto as Exhibit B. These registrations are all valid, subsisting, and in full force and effect. Moreover, the registrations identified above with an asterisk have become incontestable under {F } 7

8 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 8 of 39 Section 15 ofthe Lanham Act, 15 U.S.C. 1065, and serve as conclusive evidence ofthe validity of the registered marks, of the registration of the marks, and of Cartier's exclusive right to use the marks in commerce on or in connection with the products for which the marks are registered, as provided by Section 33(b) ofthe Lanham Act, 15 U.S.C. 1115(b). Collectively, the marks shown in Exhibit Bare referred to herein as the "LOVE Marks." 24. Cartier h~s extensively advertised and promoted the products manufactured, sold, and offered for sale under the LOVE Marks. 25. Cartier's products sold under the LOVE Marks are available throughout the United States, both through Cartier's own boutiques and in additional authorized retail stores. Cartier sells millions of dollars of products under the LOVE Marks each year. 26. Cartier also has expended large sums of money in advertising and promoting to the trade and to the public the LOVE Marks and the products sold under those marks. 27. Through Cartier's significant investment oftime, money and effort, and widespread sales, the LOVE Marks have acquired enormous value and have become extremely well-known to the consuming public and trade as identifying and distinguishing Cartier as the exclusive source of the products to which they are affixed. As a result of the great public acceptance of Cartier's products, the LOVE Marks have come to represent enormous goodwill throughout the United States. D. Cartier's Juste un Clou Collection and Related Intellectual Property Rights 28. Another of Cartier's most critically acclaimed lines is its Juste un Clou collection, which today comprises bracelets, rings, necklaces, and earrings featuring a circular design in the shape of a nail (collectively, the "Juste un Clou Works"). {F } 8

9 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 9 of The first item in the Juste un Clou collection was a bracelet designed by Aldo Cipullo, which was introduced in 1971 and offered for sale for a short period of time thereafter. In the spring of2012, the Juste un Clou collection was re-launched, this time comprising both bracelets and other jewelry. Examples of the Juste un Clou Works are shown below. 30. The bracelets in Cartier's Juste un Clou collection incorporate a distinctive design composed of a unique combination of elements that collectively create a particular trade dress that is characteristic of Cartier's Juste un Clou collection (the "Juste un Clou Trade Dress"). 31. The Juste un Clou Trade Dress consists of a nail design that: 1. has a perfectly round head; 2. has a tubular body; 3. has grooves underneath the head; 4. ends in a point that is preceded by four flat surfaces; and 5. curves in a circular formation with a slight overlap of the nail's head and point. 32. Cartier has made widespread and exclusive use of the iconic Juste un Clou Trade Dress. Cartier has invested a considerable amount of time, effort, and money advertising and promoting its jewelry products bearing the Juste un Clou Trade Dress and has enjoyed enormous {F ) 9

10 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 10 of 39 success selling such products in the United States and around the world. Products bearing the Juste un Clou Trade Dress have received extensive unsolicited media coverage due to their innovative and distinctive design. 33. By virtue of extensive sales, advertising, and promotion, the Juste un Clou Trade Dress has become instantly recognizable to the public as exclusively denoting Cartier and signaling the high quality of its products. As such, the Juste un Clou Trade Dress has obtained secondary meaning and is an enormously valuable asset of Cartier. 34. The Juste un Clou Trade Dress is inherently distinctive and is in no way functional. E. Cartier's Quality Control 35. The products distributed by Cartier under its marks are of the highest quality and are subject to exacting quality control standards. To ensure product quality, Cartier must necessarily exercise quality control over the entire process, from manufacturing to packaging, from distribution through sale and even through repair, when necessary. 36. Cartier takes steps to ensure that the manufacturing process behind its products produces pieces of only the highest quality, befitting the company's luxury image. Cartier maintains the strictest quality control over the manufacturing of its products. Before a workshop is permitted to craft products for Cartier, it must pass through a rigorous vetting process, and every single piece produced by a workshop is sent to a central control unit to ensure the piece's conformity to Cartier's exacting standards. 37. Having expended so much time and expense perfecting the products and quality control, Cartier closely oversees the sales process to ensure that customers shopping for CAR TIER products experience those products the way they are meant to be experienced. {F } 10

11 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 11 of 39 Toward that end, Cartier authorizes CARTIER products to be sold only through its own boutiques and authorized retail stores. Before a third-party retailer is permitted to sell such products, Cartier carefully reviews the retailer to ensure that it is capable of delivering a purchasing experience that matches the luxury image of the brand. 38. Finally, to ensure that consumers remain satisfied with their purchases of CAR TIER products long after the initial sale is made, each product comes with an exclusive manufacturer's warranty from Cartier. Because Cartier cannot guarantee either the authenticity or handling of products that have been distributed or sold outside of their authorized sales channels, Cartier only provides warranty service for products sold through its own boutiques or authorized dealers. Thus, each piece is accompanied with a warranty booklet or card that reference Cartier's warranty terms. 39. As is demonstrated by the above description, Cartier undertakes considerable efforts to build a superior image for its brands. 40. As a result of these efforts, Cartier has developed a reputation for providing the highest-quality products under its marks and consumers have come to expect that products bearing all of Cartier's marks are ofthe highest quality and workmanship. II. DEFENDANT AND ITS BUSINESS 41. Upon information and belief, Defendant owns and operates two brick-and-mortar stores in Atlanta, Georgia, Jewelry Unlimited and Diamond Bazaar (collectively, the "Store"), the online retail sitejewelryunlimited.com (the "Website"), and a number ofthird-party storefronts operated through online marketplaces, including Walmart.com. 42. Upon information and belief, the Website is accessible throughout the United States, including throughout the State ofnew York. {F } 11

12 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 12 of Upon information and belief, Defendant has used the Website, the Store, and its third-party storefronts to sell goods bearing the CARTIER Mark, the LOVE Marks, and the Juste un Clou Trade Dress to consumers located in New York as well as in other states. 44. Defendant is not related to or affiliated with Cartier in any way. Defendant has not sought or received a license or authorization from Cartier for any purpose whatsoever, including for the acts described herein. A. Defendant's Sale of Altered Watches Bearing the CARTIER Mark 45. Upon information and belief, through its various retail outlets, Defendant has sold and sells, among other things, high-end luxury watches bearing the CARTIER Mark. 46. On its Website, Defendant claims that "[a]ll our watches are 100% authentic as made by the manufacturer." 47. Upon information and belief, despite this pledge, Defendant has manufactured, advertised, offered for sale, sold, and distributed altered and counterfeit CAR TIER watches. 48. Upon information and belief, Defendant's actions are being done willfully, with the knowledge that such watches are altered and/or counterfeit. 49. A CARTIER watch consists of the watch movement; the case (which holds the movement) and winding mechanism; the bezel (a ring which is pressure-fitted over the crystal to seal it to the watch case, and which serves a water-proofing function); the dial; and the bracelet (also referred to as the band). 50. CARTIER watches come in a variety of styles and are made of different metals, including stainless steel, gold and platinum. Certain CAR TIER watches are also available with diamond bezels and diamond bracelets. (F } 12

13 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 13 of Upon information and belief, Defendant offered and continues to offer for sale CARTIER watches that have been altered by, for example, the addition of diamonds to the watch's bezel and bracelet. 52. For example, as shown below, Defendant offers for sale on its Website a stainless steel CARTIER BALLON BLEU watch with a diamond bezel and a diamond bracelet: Se;;~rdl: Search entire store h El My Shopping Cart 0 ilh l - Cartier Ballon Bleu W69010Z4 Stainless Steel with 9.5 Ct Diamond 29 MM Rwll l'flro D ~~ r.l. ~e.'! $11, f in;mcing As low as $ /mo Qui<IC CMrJiew A Brand new Cartier Bailon Bteu watch with 9.5 Cl Diamonds. This Is a highly desired Small model which is 29mm in its case size. The watch co nsists of a total of 9.5 ct of all Clear diamonds set on the bezel and band. All the dia monds are set in an amazing hand set pave setting. Only the finest hand selected dia mond with VS1-VS2 Clarity and F-G color on this timepiece. This setting has absolutely no room between diamonds which allows the watch to have an unbeatable shine. Watch model II W69010Z4, features a round stainless steel case fin ished with a domed cr1 stal and a slightly domed solid st ainless steel back. Roman numeral hour markers with Blued hands. Crown set with cabochon. crown protector projecting slightly from the case. All diamonds are matching in clarity and color. Original cartier band, case and movement. Origi nal Ca rtier automatic movement. Co mes with Original Cattier box and papers. iojjd lo \>Jo; lhl <> Er-a lw Fr e11c D D &::I C D o 53. Defendant offers for sale and sells the same item through the Walmart marketplace, as shown below: {F ) 13

14 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 14 of 39 Walmart ~>:!-t. r~.a. ~"t.o ~ l'tyat:~cunt All Def>"rtments cyt... WM Deals M~ L~coiStore Pick n Up TODAY Chrirtmos Decor Rx refills for adults, kids & pets Cartier Cartier Bailon Bleu W69010Z4 Stailless Steel with 9.5 Ct Diamond 29 MM El ~- - ~, uzllwtadt.yf O.CS? C"'.:-:u&p.cljtM.t ~... Oc:iil.,... ;: 1'1 ; ;:-~ t. ;, -~.. '\ GR GIF 5 About th.is item L.:iu:r... n l~ Crt:.. rs.l: :,..., ~ o_.~ ',I.,~QC', C'N Jc.:.-t :-wt ~ D r.-.er- d W.td-o. 05 Ct GREAJ GIFTS Prices so low, you'll FREAK OUl! About th i~ rtem Customer Reviews Item R.ecommendati~ns Pnlicies&: Plans About this item hn'pott11.1'111 ;..uuoroin'o!.edl:m..r.~ ::. 'V " -, c: l d ~rwaltnmte!'l W.l""'wt=m,lt. di.f"iii) d ::~ ~.~~-, c: f eri ; i r~ i i"'j:it"".,.. ~r-..y,..,:t bii = :uroltl. o:1" e:..-&dl :-.1wii-l~:t..re r r~,;.,-. F ~d, ::o~jr.-t. e:ul"'tr)'=fc:riiili r. dd:l, i t i lfllc: c mm,., d =ltf-., ) 'CUof'lll r c n~qt':' ~ ~~ ""';C'f'r-.r;..i..:t..r. r rf,:;t""t,n.;:,.-. Ladie< Smolll 29mm c..rtiier Bolbt 8leu W09010Z4 Autamoti<: lliomord Vlotoh 9 ' Ct A 11xond now Cortier Eolian Eie<J "'otch 'Witt1 9..!i ct Oiamand.L 'ltiu; itlio= ~ deyed Smal model which i ~ 2.9mm in its case size. 't"he wa tch consists of~ total afsi,..!i c.t ahu 0... diamcn:lu t an die!je>ei..oo ban:lai die di.omof"ds ore set in on omo2ing hond set pove setting. c rly the inert hond selected di.oloancl ~ \51-\S.l: Ol1d f-fj o<:jar oo this timepiece Ths setting hos obsolutely no room betweef1 diomcn:ls fl\:tl oii:m~dlo 'O'Ich ta...,"" unbeotoblo st.ine. Wotch model : V/09010Z4, foot.. e.. re<rod rtoioouteel """' inist>ed.. oittl 6 darned O)>toll domed solid rtoinle" steel bock. Rom n ncmeool._ mo rkers with Blued hond<. ~<X to\ a<r \:t.7f..:t<" pro: ~ &an l >: All diomonds m td ir.g inc nty : nd c.ob ~.. ;!:;!.1diT'-OI"eme'"ltC ' f a Litan ~~;tkmuo-em e: tit. C am ~: v. i t ko r i IC"u bcc:.:.rd Wotch CMe Moteri..t ~ Steel Wotch Canditat Sromd!Jo.o. Product!lim~.;:-;.\t\1 MSRP: 3>4.»J.OCOO oth«o!tm C.,_,.,e:I.-.Vtlh a.--9"~ cmier Ef.T.A:' P.x~~s end!ppreisel ce.rt ElCplore Related Products I {F } 14

15 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 15 of Cartier does not manufacture or offer for sale any CAR TIER BALLON BLEU watches in stainless steel with a diamond bezel or a diamond bracelet. 55. Upon information and belief, the above CARTIER BALLON BLEU watch, advertised for sale and sold by Defendant through both the Website and Walmart.com, was physically altered from its original state by Defendant through the addition of non-genuine parts. Similarly, as shown below, Defendant offers for sale on its Website a CARTIER SANTOS XL 100 with diamonds on the bezel and case: Search: Search entire st1he h El My Shopping Cln C ife "' - - Cartier Santos XL 100 Custom Diamond Watch (12.5 ct) Retail Prlce 0 p_n_ty_3_ ~.!! $11, Financing As Low as $ / mo Quick Ovetview A New Unworn Mens Cartier Santos XL 100 watch with 12.5 Ct Diamonds. Ca rt ie r Santos 100, Reference W20090X8. The watch consists of a total of 12.5 ct of all Clear diamonds set on the bezel, case and lugs ~ Th is genuine cartier watch is fully fiooded in diamonds. The entire case is set with sparkling VS2-SI1 Clarity dia monds in an staggered pave setting. This setting has absolutely no room between diamonds which allows the watch to have an unbeatable shine. All diamonds are matching in clarity and color. Brand new original earlier Alligator band, case and movement. Case diameter 42mm x 42mm and thickness 15 mm. D D I:I IJ D o Comes with Original Cartier box and original papers. Qt\' '< 1, ADDIDCART ~ Ha :e c!ph ~c c.le~t or. abolttj'". s product? 56. Cartier does not manufacture or offer for sale any CARTIER SANTOS 100 watches with diamonds. {F _2 ) 15

16 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 16 of Upon information and belief, the above CARTIER SANTOS 100 watch was physically altered from its original state by Defendant through the addition of non-genuine parts. 58. Upon information and belief, Defendant has marketed, offered for sale, sold, and distributed altered and counterfeit watches bearing the CAR TIER brand and mark to its customers. 59. Upon information and belief, Defendant has sold such altered and counterfeit watches bearing the CARTIER Mark to customers in New York State and this judicial district. B. Defendant's False Advertising of Discounted Prices on CARTIER Watches 60. In promoting CARTIER products on its own Website at wwwjewelryunlimited.com and on the Walmart marketplace, Defendant represents that it sells CARTIER products at considerably less than the retail price, or the manufacturer's suggested retail price ("MSRP"). 61. For example, as shown in the Walmart marketplace listing above, Defendant states that the MSRP for an advertised CARTIER BALLON BLEU watch is $34, and that Defendant sells the product for $11, However, the stated MSRP does not reflect Cartier's actual retail pricing. Because Cartier does not market or sell the altered CARTIER BALLON BLEU watch advertised by Defendant, there is no MSRP for the product in question. 63. Defendant is engaged in false advertising both by inventing prices for the Cartier products that it offers and by misrepresenting its own prices as being discounted. 64. Upon information and belief, Defendant invents a retail price or an MSRP for each of the altered CAR TIER watches that it markets and sells on its Website or the Walmart marketplace. {F } 16

17 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 17 of Upon information and belief, Defendant is misleading and intends to mislead consumers into believing that Defendant's prices are discounted, that Defendant's prices are far below Cartier's, and that by doing business with Defendant, consumers will receive a significant savings on Cartier products as compared to buying directly from Cartier or Cartier's authorized retailers. 66. Upon information and belief, Defendant engages in this improper and unlawful advertising technique in order to induce consumers to buy products from Defendant, a competitor of Cartier's retail business. 67. Upon information and belief, Defendant's price misrepresentations are a deliberately deceptive attempt to misrepresent its own prices in order to unfairly compete with Cartier, and to prey on consumers' desire to acquire luxury Cartier products at lower prices. 68. Upon information and belief, Defendant's conduct is intended to mislead consumers and has been successful in doing so. 69. Cartier has an interest in both making sure that consumers are not deceived as to the prices Cartier charges and in making sure that its retail competitors do not use deceptive claims of discounts to attract consumers. C. Defendant's Sale of Infringing and/or Counterfeit Jewelry Bearing the LOVE Marks and Trade Dress and the Juste un Clou Trade Dress 70. Upon information and belief, Defendant has manufactured, advertised, offered for sale, sold, distributed, imported, and/or exported infringing products bearing the LOVE Marks and the LOVE Trade Dress. (F } 17

18 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 18 of As shown below, Defendant advertises and offers for sale infringing and/or counterfeit jewelry pieces bearing the LOVE Marks and the LOVE Trade Dress through its Website: Search: Search entire store h m... 14K White Gold Real Diamond Love Screw Eternity Band Ring 1.50d ~it Price My Shopping Can 0 ite. m $1, FinilrKing As Low as $138.94/mo Eo: t h~: f f$~ tc revie- w tl'.is p ro d t ~ t Quick Overview This listing is for our ever popu lar wedding band for men crafted in solid 14k White Gold (5.7 grams). Tile band features a 1.50ct rou nd diamond runnin g amass t he Smm band w ith screw motifs set after every short dista nce. These diamonds deal w it h the clarity ofvs2 SI1 and G H color. Wit h a polished ft nish and undeniabl e el egance, t he ring estab lishes itse lf as a timeless tribute to passionate romance sel Til is et ernity band ring weighs approx 5.7 grams It is a size 10. Can be made in alternate sizes w itllin 7-10 business days ALso available in White Gold. D D I::I C D o IJJO TO CART.. {F } 18

19 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 19 of 39 Se~rch: Search entire store h EJ My Shopping Cart 0 Item m'* - 14K Yellow Gold Real Diamond Love Screw Eternity Band Ring 1.50ct RmilPrire $1, Fio ociog As Low as $138.94/mo Qui<k Ow!rview This Listin g is for our ever popular wedding band for men crafted in so lid 14k Yellow Gold (5.7 grams) Til e band features a 1.50ct rou nd diam ond ru nning amass th e Smm band w ith screw mmifs set after every short distance. Th ese diamonds deal w ith the clarity ofvs2-si1 and G H color. With a polished finish and unden iable elegance, t he rin g estab lishes itself as a timeless t ribute to passionate ro mance set This eternity band rin g weighs approx 5.7 grams It is a size 10. Can be made in alternate sizes within 7-10 busin ess days Also available in White Gold. 'b Aoc to Cor pa re ~ En-. alto a Fri erd DDrl C D o ADD TO CART "' 72. On information and belief, Defendant has also manufactured, advertised, offered for sale, sold, distributed, imported, and/or exported bracelets that bear and/or are confusingly similar to the Juste un Clou Trade Dress. 73. As shown below, Defendant advertises and offers for sale infringing jewelry pieces that bear and/or are confusingly similar to the Juste un Clou Trade Dress through the Website: { F } 19

20 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 20 of 39 Seardl: Search entire store h EJ My Shopping Cart 0 item Pave Diamond Nail Bangle set in 18K Yellow Gold (4.5 ct) Reulil Price D 9..n_ty _2_ ~e_f! $ Finandng As low as $527.96/mo Qulck Overview This Unisex bangle is crafted in solid lbk Ye LLow GoLd.(29 Grams) Fully faceted round brilliant diamonds set in a close proximity, a Labor intensive pave setting to bring forth immense shimmer. One ofthe most desired and popular designs in t he market today. Brace let is 22 em in ci cumfere nce and 12 mm w ide. All t he diamonds are ofvs2-si1 Clarity w ith a F-G Color. A hidden safety clasp and a fully solid back allowing the bangle to be worn comfortably. Will fit an 8 inch w rist and can be custom made in alternate sizes. Ar:.c to Co.rr p<~ re to a Friend D D E::I IJ D o AOOTOCART ""' Have a ;pecinc quest or aboutt~ i s prod uct? {F } 20

21 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 21 of 39 Search: Search entire store h EJ My Shopping Ca rt 0 item ii NEChLACES PENDAIHS ~..., [ I; TC EARR I NG~ ~IE1~5 J>ii~G ~ >li;:)i.iei's J>II,GS Ll'AUPY WATCHES.l.CCESORIES Men's 18K White Gold Nail Bangle Bracelet VS2 Genuine Diamonds 5 Ct llfou il Prire $5, finallcing As low as $546.48/mo t) ln;tock Quick Overview This bangle is crafted in solid 18K White Gold (Weighs approx gms) Fully faceted round brilliant diamonds set in a cl ose proximity, a Labor intensive pave settin g to bring forth im me nse shimmer_ One of the most desired and popular designs in the market today. Brace let is 22 em in cicumference an d 12 mm wide. All t he diamonds are ofvs2 Si1 Clarity with a F G Color. A t1i dden safety clasp an d a f ully solid back allowing t t1 e ban gle to be w orn comfortably Will fit an 8 inch wrist and can be custom made in alternate sizes... All diamonds are 100% natural. Qty:< 1 ) ADDTOGART - lib Aoo to Cor-pa re 1110 Er a l tc a F.- erd DDrlC o 74. Upon information and belief, such activities are being done willfully, with the knowledge that such jewelry is copied from, and/or based upon, Cartier's LOVE Marks, LOVE Trade Dress and the Juste un Clou Trade Dress. 75. Upon information and belief, Defendant has marketed, offered for sale, sold, and distributed such infringing jewelry to its customers. 76. Upon information and belief, Defendant has marketed and sold jewelry copied from and/or based upon Cartier's LOVE Marks, LOVE Trade Dress and the Juste un Clou Trade Dress to customers in New York State and this judicial district. {F } 21

22 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 22 of 39 D. Defendant's Misrepresentations Concerning the Applicability of Cartier's Warranty 77. Defendant has further compromised the Cartier image by falsely informing consumers that Cartier's warranty applies to products sold by Defendant. 78. Upon information and belief, listings for CARTIER watches on the Website and on Defendant's page on the Walmart.com marketplace do not state that Cartier's warranty will not apply. 79. In at least one instance, Defendant's representative affirmatively informed Cartier's agent that Cartier's warranty applied to the CAR TIER watches sold by Defendant. 80. Upon information and belief, Cartier's agent is not the only consumer to whom Defendant has affirmatively misrepresented that Cartier's warranty would apply to the CAR TIER branded products sold by Defendant. III. EFFECT OF DEFENDANT'S UNLAWFUL ACTIVITIES ON CARTIER 81. Upon information and belief, Defendant knows, and at all relevant times knew, that it was offering CAR TIER-branded products that materially differ from authentically distributed products of Cartier, that it was not sourcing its products directly from Cartier and was not selling such products with Cartier's approval or backing, and that it was not authorized to make any alterations to Cartier's products. 82. Upon information and belief, Defendant knows, and at all relevant times has known, that certainjewelryproducts it sells are an unlawful imitation of Cartier's jewelry products. 83. Defendant's altered watches directly compete with Cartier's authentic watches. 84. Defendant's counterfeit and infringing LOVE products and Juste un Clou products also directly compete with Cartier's products. {F } 22

23 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 23 of Defendant's sale of altered CARTIER watches and infringingjewelryproducts unlawfully wrests control from Cartier over its reputation and, upon information and belief, is unjustly enriching Defendant. 86. Upon information and belief, the effects of Defendant's actions have been to damage the prestige of Cartier's brand in the minds of consumers, to lure customers to their stores with false representations, to deceive consumers into believing that there is no material difference between CAR TIER-branded products purchased from Cartier and its authorized dealers, and those sold by Defendant, and to confuse purchasers post-sale by creating imitations of CAR TIER products that the public cannot identify as non-genuine - all to the detriment of consumers and Cartier. 87. Defendant's sale of CARTIER watches that have been altered without Cartier's authorization is likely to deceive, confuse, and mislead prospective purchasers into thinking that Defendant's watches bearing the CARTIER mark are identical to their authentically distributed counterparts, when in fact, this is not the case. The likelihood of confusion, mistake, and deception engendered by Defendant's sale of materially different CARTIER products is causing irreparable harm to Cartier and the goodwill associated with the CARTIER mark. 88. As a result of Defendant's misrepresentation that it offers Cartier products at a significant discount, consumers will be more likely to purchase Cartier products from Defendant, a competitor of Cartier, instead of purchasing directly from Cartier or its authorized retailers, causing injury to Cartier. 89. Purchasers perceiving a defect, lack of quality or any impropriety associated with the products bearing the CARTIER mark sold by Defendant are likely to mistakenly attribute such defects to Cartier. {F ) 23

24 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 24 of Upon information and belief, the purpose of Defendant's deceptive practices is to heighten the appeal of its services and the products that it offers for sale in the eyes of consumers. 91. Upon information and belief, Defendant undertook the actions described herein with the deliberate intent to create a false impression as to the quality of Cartier's products sold under the CARTIER Mark and to dilute the distinctiveness of the CARTIER Mark. 92. Defendant's unlawful actions described above commenced many years after Cartier began using the CARTIER Mark, the LOVE Marks, the Juste un Clou Trade Dress, many years after the aforementioned marks had achieved worldwide fame, and many years after the CARTIER Mark and the LOVE Marks were registered in the United States Patent and Trademark Office and the Juste Un Clou design had acquired secondary meaning. 93. Upon information and belief, Defendant's activity described herein is intentionally fraudulent, malicious, willful, and wanton. 94. Defendant's unauthorized acts as described herein have caused, and will continue to cause, irreparable damage to Cartier and its business, and the goodwill Cartier has come to engender with the consuming public, unless restrained by this Court. FIRST CLAIM FOR RELIEF BY ALL PLAINTIFFS: FEDERAL TRADEMARK INFRINGEMENT AND TRADEMARK COUNTERFEITING THROUGH SALE OF MATERIALLY DIFFERENT CARTIER WATCHES IN VIOLATION OF 15 U.S.C. 1114(1) allegations. 95. Cartier repeats and incorporates herein by reference each of the foregoing 96. By selling and distributing watches bearing the CARTIER Mark that have been physically altered from their original state by the addition of non-genuine parts, Defendant has {F ) 24

25 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 25 of 39 sold and distributed watches under the CARTIER brand that materially differ from Cartier's products authorized for sale by Cartier. 97. Such altered watches displaying the CAR TIER Mark do not constitute Cartier product and are, therefore, counterfeit within the meaning of 15 U.S.C. 1116(d) and The sale of materially different and counterfeit products under the CARTIER Mark by Defendant deprives Cartier of the ability to ensure the luxury quality of products bearing Cartier's marks and to maintain the prestige associated with the CARTIER brand. 99. Defendant's unauthorized sale of materially different and counterfeit products bearing the CARTIER Mark is likely to cause confusion, mistake or deception as to the source or sponsorship of such products, as the public is likely to believe that the sale of such products has been approved by Cartier when such sales have not been so approved Defendant's sale of materially different and counterfeit products under the CAR TIER Mark constitutes a false designation of origin and false description or representation that Defendant's sale of such products is authorized by Cartier, and therefore constitutes an infringement of the CAR TIER Mark Upon information and belief, Defendant's infringement of the CAR TIER Mark and sale of materially different and counterfeit products bearing the CARTIER Mark is willful and deliberate and undertaken with the intent to reap the benefit of the goodwill of Cartier and of its federally registered mark, and the goodwill and reputation associated with this mark. Defendant's actions described herein violate Section 32(1) of the Lanham Act, 15 U.S.C. 1114(1). {F } 25

26 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 26 of The aforesaid conduct of Defendant is causing immediate and irreparable injury to Cartier and to its goodwill and reputation, and will continue to damage Cartier and deceive the public unless enjoined by this Court Defendant's conduct as described herein is also harming the public Cartier has no adequate remedy at law. SECOND CLAIM FOR RELIEF BY ALL PLAINTIFFS: FEDERAL TRADEMARK INFRINGEMENT AND TRADEMARK COUNTERFEITING THROUGH SALE OF INFRINGING JEWELRY IN VIOLATION OF 15 U.S.C. 1114(1) allegations Cartier repeats and incorporates herein by reference each of the foregoing 106. The LOVE Marks are distinctive and of incalculable value, and are associated in the public mind with Cartier's goods and services of the highest quality Without Cartier's authorization or license, and, upon information and belief, with knowledge of Cartier's prior rights in the LOVE Marks, Defendant has manufactured, advertised, offered for sale, sold, distributed, imported, and/or exported counterfeit LOVE jewelry under and/or bearing the following LOVE Marks, or marks highly similar thereto: the stylized LOVE word mark, U.S. Registration No. 3,637,776; the trade dress in the screw head design, U.S. Registration No. 3,162,410; the trade dress in the LOVE bracelet, U.S. Registration No. 1,372,423; and the trade dress in the LOVE Collection of jewelry, U.S. Registration No. 3,776, Upon information and belief, by virtue of Cartier's extensive and ongoing use and advertising ofthe LOVE Marks, Defendant was on actual notice of Cartier's exclusive rights in the LOVE Marks. In addition, Cartier's federal registrations put Defendant on constructive notice of Cartier's exclusive rights in the LOVE Marks. {F } 26

27 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 27 of Defendant's manufacturing, advertisement, offering for sale, sale, distribution, import, and/or export of counterfeit LOVE products under and/or bearing trademarks and trade dress that are identical or highly similar to the LOVE Marks is likely to cause confusion, mistake, or deception as to the source or sponsorship of Defendant's goods. As a result of Defendant's unauthorized use of Cartier's federally registered trademarks, and/or trademarks and trade dress that are identical or highly similar to Cartier's federally registered trademarks, the public is likely to believe that Defendant's goods have been manufactured and/or approved by Cartier. Such use falsely represents Defendant as being legitimately connected with and/or authorized by Cartier, and places beyond Cartier's control its own reputation and ability to control the use of the LOVE Marks and the quality of the products bearing those marks Defendant's infringement ofthe LOVE Marks is willful, intended to reap the benefit ofthe goodwill of Cartier, and violates Section 32(1) ofthe Lanham Act, 15 U.S.C. 1114(1) The aforesaid conduct of Defendant is causing immediate and irreparable injury to Cartier and to its goodwill and reputation, and will continue to damage Cartier and deceive the public unless enjoined by this Court Defendant's conduct as described herein is also harming the public Cartier has no adequate remedy at law. THIRD CLAIM FOR RELIEF BY ALL PLAINTIFFS: UNFAIR COMPETITION THROUGH SALE OF MATERIALLY DIFFERENT PRODUCTS IN VIOLATION OF 15 U.S.C. 1125(a)(l)(A) allegations Cartier repeats and incorporates herein by reference each of the foregoing {F } 27

28 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 28 of By selling and distributing altered watches bearing the CARTIER Mark, Defendant has sold and distributed watches under the CARTIER brand and mark that materially differ from Cartier's products authorized for sale by Cartier Cartier has not authorized Defendant to sell or distribute its products, including, but not limited to, the materially different watches sold and distributed by Defendant The sale of materially different products under the CARTIER brand by Defendant deprives Cartier of the ability to ensure the luxury quality of products bearing the CARTIER Mark and to maintain the prestige associated with the CARTIER brand Defendant's sale of materially different products under the CARTIER brand constitutes a false designation of origin and false description or representation that Defendant's sale of such products is authorized by Cartier, and therefore constitutes unfair competition and infringement of the CAR TIER Mark Upon information and belief, Defendant's acts of unfair competition are willful and deliberate and undertaken with the intent to reap the benefit of the goodwill and reputation associated with the CAR TIER Mark Defendant's actions described herein violate Section 43(a)(l)(A) of the Lanham Act, 15 U.S.C. 1125(a)(1)(A) The aforesaid conduct of Defendant is causing immediate and irreparable injury to Cartier and to its goodwill and reputation, and will continue to damage Cartier and to deceive the public unless enjoined by this Court Defendant's conduct as described herein is also harming the public Cartier has no adequate remedy at law. {F } 28

29 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 29 of 39 allegations. FOURTH CLAIM FOR RELIEF BY ALL PLAINTIFFS: UNFAIR COMPETITION THROUGH SALE OF INFRINGING JEWELRY IN VIOLATION OF 15 U.S.C. 1125(a) 124. Cartier repeats and incorporates herein by reference each of the foregoing 125. The LOVE Marks are distinctive and of incalculable value, and are associated in the public mind with Cartier and goods and services of the highest quality Without Cartier's authorization or license and, upon information and belief, with knowledge of Cartier's prior rights in the LOVE Marks, Defendant manufactured, advertised, offered for sale, sold, distributed, imported, and/or exported products under and/or bearing the LOVE Marks The Juste un Clou Trade Dress is used in commerce, is non-functional, is inherently distinctive, and has acquired secondary meaning as the indicator of Cartier as the exclusive source of products containing or incorporating such design Defendant has adopted the Juste un Clou Trade Dress and has, without Cartier's authorization or consent, manufactured, advertised, offered for sale, sold, distributed, imported, and/or exported jewelry designs that contain or incorporate the Juste un Clou Trade Dress or designs that are confusingly similar thereto Defendant's conduct is likely to cause confusion, cause mistake, and/or deceive as to the affiliation, connection, or association between Defendant and Cartier, and/or as to Cartier's sponsorship or approval of Defendant's goods, services, and/or commercial activities As a result of the foregoing, Defendant has falsely designated the origin of its products, all in violation of Section 43(a) ofthe Lanham Act, 15 U.S.C. 1125(a). {F ) 29

30 Case 1:16-cv PAE Document 1 Filed 12/06/16 Page 30 of Upon information and belief, Defendant's aforesaid conduct has been undertaken knowingly, willfully, and in bad faith Defendant's aforesaid conduct has caused, and unless enjoined by this Court, will continue to cause, Cartier to sustain irreparable damage, loss, and injury. allegations Defendant's conduct as described herein is also harming the public Cartier has no adequate remedy at law. FIFTH CLAIM FOR RELIEF BY ALL PLAINTIFFS: FALSE ADVERTISING AS TO WARRANTIES IN VIOLATION OF 15 U.S.C. 1125(a)(l)(B) Cartier repeats and incorporates herein by reference each of the foregoing 136. Upon information and belief, Defendant has affirmatively and by implication represented to consumers that Cartier's warranties apply to CAR TIER-branded watches sold by Defendant, despite the fact that such warranties do not apply to watches sold by unauthorized retailers such as Defendant Defendant's representations that its CARTIER-branded watches are covered by the CARTIER warranty amounts to false and misleading descriptions of facts and/or false and misleading representations of facts in commercial advertising or promotion that misrepresent the nature, characteristics and/or qualities of Defendant's products, services and commercial activities Defendant's conduct described herein is willful and violates Section 43(a)(l)(B) of the Lanham Act, 15 U.S.C. 1125(a)(l)(B) Upon information and belief, Defendant made these false and misleading representations of fact to induce consumers to purchase products bearing the CAR TIER Mark {F } 30