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BLACK LINEAGE, INC., a California corporation, :
and VAHE ESTEPANIAN a/k/a FLETCH
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ESTEPANIAN,
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Defendants.
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14-CV-5511 (AT)(JF)
SECOND AMENDED
COMPLAINT FOR DAMAGES
AND INJUNCTIVE RELIEF
JURY TRIAL DEMANDED
Plaintiffs Cat3, LLC (Cat3), SXH, LLC (SXH), and Suchman, LLC
(Suchman) (collectively Plaintiffs), by and through their undersigned attorneys, for
their Complaint against Defendants Black Lineage, Inc. (Black Lineage) and Vahe
Estepanian (Estepanian) (collectively Defendants), allege as follows:
NATURE OF THE ACTION
1.
unfair competition, under the federal Lanham Act and New York state common law, as well
as for cybersquatting under the Lanham Act and dilution under New York General Business
Law 360-l.
2.
Plaintiffs are the owners and exclusive licensees of all trademark and related
3.
This action stems from the fact that Defendants, with full knowledge of
Plaintiffs rights in and to the trademarks XHYPE, SLAMXHYPE, and the domain name
www.SLAMXHYPE.com, have adopted and are using the trademark FLASHXHYPE and
the domain name www.FLASHXHYPE.com in association with the sale of identical,
substantially similar and/or directly related goods and/or services.
4.
Plaintiffs seek injunctive relief, monetary damages, including but not limited
under the laws of the State of New Jersey, with a principal place of business at 501 Tenth
Avenue, Floor 7, New York, New York 10018.
6.
under the laws of the State of New Jersey, with a principal place of business at 501 Tenth
Avenue, Floor 7, New York, New York 10018.
7.
under the laws of the State of New Jersey, with a principal place of business at 501 Tenth
Avenue, Floor 7, New York, New York 10018.
8.
organized and existing under the laws of the State of California, with a principal place of
business at 370 Myrtle Street, #308, Glendale, California 91203.
9.
Estepanian is a citizen of California, the owner of Black Lineage, Inc., and maintains a place
of business at 370 Myrtle Street, #308, Glendale, California 91203.
JURISDICTION AND VENUE
10.
This Court has subject matter jurisdiction over the claims in this action
pursuant to 15 U.S.C. 1121 of the Lanham Act and 28 U.S.C. 1331, 1338(a) and
1338(b). The Court has supplemental subject matter jurisdiction over the New York state
law claims in this action pursuant to 28 U.S.C. 1367(a).
11.
This Court has personal jurisdiction over Defendants pursuant to New York
Civil Practice Law and Rules, 301 and 302(a), because, upon information and belief:
(i) Defendants transact business in New York and contract to supply goods or services in
New York; (ii) Defendants have committed acts outside of New York which have caused
injury to Plaintiffs in New York; and/or (iii) Defendants regularly conduct or solicit
business in New York and/or derive substantial revenue from the sale of goods or services
in New York.
12.
information and belief, Defendants are subject to personal jurisdiction in this district, a
substantial part of the events which give rise to this action have occurred in this district, and
Plaintiffs have suffered harm from Defendants conduct in this district.
In the years following 2005, as street culture blended with fashion and design
and became more commercial, Noise Media began to sell merchandise on the
SLAMXHYPE Website, including but not limited to clothing, such as t-shirts and baseball
caps, toys and headphones.
15.
SLAMXHYPE Website, consumers began to associate the term SLAMXHYPE with street
culture news and clothing, thereby firmly establishing SLAMXHYPE as a strong trademark
identifying the goods and services of Noise Media.
Plaintiffs Rights in the SLAMXHYPE Trademark
17.
The terms Marc Ecko Enterprises and/or The Collective refer to one or
more groups of affiliated companies. These companies include, without limitation, Plaintiff
Cat3, LLC, Plaintiff SXH, LLC, Plaintiff Suchman, LLC and non-party MEE Direct, LLC
(MEE Direct).
18.
At all relevant times through and including April 1, 2014, MEE Direct owned
and operated a nationwide chain of retail clothing stores branded under the trademarks
Ecko Unltd. and Marc Ecko. MEE Direct made use of the Ecko Unltd. and Marc
Ecko marks pursuant to a trademark license set to expire in 2015.
19.
In order to plan for its future, one or more companies forming part of Marc
Ecko Enterprises and/or The Collective made the decision, at least as early as early 2013, to
acquire ownership of Noise Medias SLAMXHYPE business, to continue operation of the
SLAMXHYPE Website, and to change the name of its retail clothing stores from Ecko
Unltd. and/or Marc Ecko to SLAMXHYPE.
20.
The reason that Marc Ecko Enterprises and/or The Collective desired and
Enterprises companies acquired all the intellectual property and other assets of Noise
Media in any way relating to the SLAMXHYPE mark and SLAMXHYPE Website,
including but not limited to the trademark SLAMXHYPE, the domain name
www.SLAMXHYPE.com, and all rights in and to the SLAMXHYPE Website.
5
22.
Following such acquisition, (a) all intellectual property rights in and relating
On June 3, 2013, prior to the date upon which the Defendants made any use
of the FLASHXHYPE trademark, Plaintiff Cat3 filed U.S. Trademark Application Serial
No. 85/949,247, which covers the mark SLAMXHYPE for use on and in connection with
Clothing, namely, shirts, sweatshirts, pants, jeans, shorts, socks, belts, sleepwear,
underwear, swimwear, jackets and coats; footwear; headwear and for Retail store and online store services featuring clothing, footwear and headwear. The USPTO has issued a
Notice of Allowance for this application.
24.
On June 17, 2013, prior to the date upon which the Defendants made any use
of the FLASHXHYPE trademark, Plaintiff Cat3 filed U.S. Trademark Application Serial
No. 85/961,419, which covers the mark SLAMXHYPE for use on and in connection with
Magazines in the fields of culture, art, fashion, lifestyle, sports and/or entertainment
provision of a web site featuring information on pop culture, cultural events, art, sports,
music and/or entertainment and provision of a web site featuring information on fashion
and lifestyles.
25.
registration, Registration No. 4,602,820, for the mark SLAMXHYPE for use in association
with a web site featuring information on fashion and lifestyles, in Class 45, and featuring
6
information on pop culture, cultural events, art, sports, music and/or entertainment, in Class
41, based upon the trademark application Plaintiffs filed on June 17, 2013. Attached as
Exhibit B is a true and correct copy of this trademark registration. The date of first use in
commerce for this trademark was at least as early as July 1, 2003.
26.
registration, Registration No. 4,791,114, for the mark SLAMXHYPE for use in association
with Retail store services featuring clothing, footwear, and headwear, in Class 35, based
upon the trademark application Plaintiffs filed on June 3, 2013. Attached as Exhibit C is a
true and correct copy of this trademark registration. The date of first use in commerce for
this trademark was at least as early as April 10, 2015.
27.
Plaintiff SXH, and/or its affiliates, have continued to operate the SLAMXHYPE Website,
including without limitation, as it relates to clothing and offering content in the fields of
style, fashion, culture, art and entertainment.
28.
that time, MEE Directs primary and most valuable set of assets included its leasehold rights
in approximately one hundred (100) different retail stores across the country (the Retail
Leases). The Retail Leases covered very valuable and premium spaces, including from
well-known landlords operating on a nationwide basis.
29.
On or about June 1, 2014, the U.S. Bankruptcy Court entered a Sale Order
pursuant to which MEE Directs assets, including without limitation twenty-eight (28) of
the Retail Leases, were assumed by and assigned to Plaintiff Suchman. Plaintiff Suchman
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paid more than Twelve Million Dollars ($12,000,000) for those assets, primarily comprising
the Retail Leases.
30.
Plaintiff Suchman purchased the Retail Leases for the sole purpose of using
them for operation of retail clothing stores branded under the trademark SLAMXHYPE,
and would not have acquired these assets were it not for its ability to use the Retail Leases
for operation of clothing stores branded under the trademark SLAMXHYPE.
31.
Indeed, the U.S. Bankruptcy Court and each of the landlords which were
parties to the Retail Leases were well aware of Plaintiff Suchmans interest in acquiring
these assets only for the purpose of operating stores under the trademark SLAMXHYPE,
and the bankruptcy court as well as each of those landlords expressly consented and agreed
to such in the course of the bankruptcy proceeding.
Plaintiffs Rights in the XHYPE Trademark
32.
On July 21, 2015, the USPTO issued Plaintiff Cat3, LLC a federal trademark
registration, Registration No. 4,778,763, for the mark XHYPE for use in association with
retail store service featuring clothing, footwear, headwear, fragrances, watches, eyewear
and accessories, in Class 35, a web site featuring information on fashion styles and
lifestyles, in Class 45, and featuring information on pop culture, cultural events, art,
sports, music and/or entertainment, in Class 41. Attached as Exhibit D is a true and correct
copy of this trademark registration. The date of first use in commerce for this trademark was
at least as early as July 1, 2003.
company owned and operated by Defendant Vahe Estepanian (a/k/a Fletch Estepanian),
began to manufacture clothing and sell it wholesale and retail, under the trademark ARSNL,
through a website with the domain name www.ARSNLClothing.com.
34.
Enterprises and/or The Collective repeatedly had business dealings with Defendant
Estepanian. By way of example, during that time period, one or more entities forming part
of Marc Ecko Enterprises and/or The Collective purchased products from Defendant
Estepanian and/or his ARSNL business.
35.
Ecko Enterprises and/or The Collective specifically made Defendant Estepanian aware that
Plaintiffs had acquired the rights in and to the trademarks XHYPE, SLAMXHYPE, and the
SLAMXHYPE Website, and of Plaintiffs plans to expand the SLAMXHYPE business into
a chain of retail clothing stores. All of this occurred prior to the date that Defendants
acquired the www.FLASHXHYPE domain name and/or otherwise adopted the trademark
FLASHXHYPE.
36.
upon the information provided by Plaintiffs and/or their affiliates forming part of Marc
Ecko Enterprises and/or The Collective. Defendants used such information for purposes of
developing a trademark, FLASHXHYPE, that would confuse consumers and falsely convey
an association with Plaintiffs and their trademarks XHYPE and SLAMXHYPE.
9
37.
Upon information and belief, on August 23, 2013, after one or more
employees of Plaintiffs and/or their affiliates forming part of Marc Ecko Enterprises and/or
The Collective had disclosed to Defendant Estepanian Plaintiffs plans to rebrand their
business as SLAMXHYPE, Defendant Black Lineage registered the domain name
www.FLASHXHYPE.com. Attached as Exhibit E is a true and correct copy of the
information, displayed upon conducting a WHOIS seach, reflecting registration of the
domain name www.FLASHXHYPE.com.
38.
website (the FLASHXHYPE Website) with content identical, substantially similar and/or
directly related to that offered by Plaintiffs at www.SLAMXHYPE.com. Attached as
Exhibit F is a true and correct copy of the homepage of the FLASHXHYPE Website.
39.
Like Plaintiffs, which operate under the name The Collective, the
www.ARSNLClothing.com, did not contain any articles on street culture and did not
describe itself as a collective.
43.
Upon information and belief, since Black Lineage transferred its business
Upon information and belief, Black Lineages dramatic increase in traffic and
sales is attributable in whole or part to the reputation and good will of Plaintiffs trademarks
XHYPE and SLAMXHYPE, and occurred because consumers are confused into believing
that the FLASHXHYPE Website is associated, affiliated or connected with Plaintiffs and
the SLAMXHYPE Website, which has developed a substantial presence in the street culture
marketplace over a period of almost nine (9) years.
45.
several attendees expressed actual confusion between Plaintiffs website and Defendants
website, falsely believing that the FLASHXHYPE Website is associated, affiliated or
connected with Plaintiffs SLAMXHYPE Website.
46.
iPhone app which enables iPhone users to access its FLASHXHYPE Website and purchase
clothing from it using their cell phones.
47.
Upon information and belief, Black Lineage intends to sell clothing and/or
Upon information and belief, Defendant Estepanian has directed, and is the
motivating force behind, all of Black Lineages actions related to its use of the term
FLASHXHYPE in its business.
49.
Upon information and belief, through its ever more expansive efforts to
to trade upon the substantial reputation and goodwill of the trademarks XHYPE and
SLAMXHYPE, which Plaintiffs and this trademarks previous owner, Noise Media, have
developed over the previous nine (9) years.
50.
Defendants actions have caused, and unless enjoined will continue to cause,
significant irreparable harm to the substantial value of Plaintiffs trademarks XHYPE and
SLAMXHYPE.
COUNT I
TRADEMARK INFRINGEMENT OF SLAMXHYPE REG. NO. 4,602,820
UNDER 15 U.S.C. 1114(1)
51.
purchasing public into falsely believing that Plaintiffs, who, themselves and through their
predecessor-in-interest Noise Media, have employed the trademark SLAMXHYPE since at
least as early as 2005, are the origin, sponsor and source of the FLASHXHYPE Website
and the products sold thereon.
53.
The FLASHXHYPE Website offers goods and services, clothing items and
articles on street culture and fashion, which are identical or substantially similar to or
directly related to the goods and services offered by Plaintiffs on the SLAMXHYPE
Website.
54.
authorization and with the intent to willfully, deliberately and in bad faith deceive
consumers as to the source, sponsorship or origin of Defendants goods and specifically to
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cause consumers to believe that Defendants goods are sponsored by, affiliated with,
approved by or otherwise connected with Plaintiffs.
55.
Defendants conduct has caused, and if not enjoined will continue to cause,
irreparable injury to the goodwill and reputation established by Plaintiffs in their trademark
SLAMXHYPE.
57.
COUNT II
TRADEMARK INFRINGEMENT OF SLAMXHYPE REG. NO. 4,791,114
UNDER 15 U.S.C. 1114(1)
58.
purchasing public into falsely believing that Plaintiffs, who, themselves and through their
predecessor-in-interest Noise Media, have employed the trademark SLAMXHYPE since at
least as early as 2005, are the origin, sponsor and source of the FLASHXHYPE Website
and the products sold thereon.
60.
The FLASHXHYPE Website offers goods and services, clothing items and
articles on street culture and fashion, which are identical or substantially similar to or
13
directly related to the goods and services offered by Plaintiffs on the SLAMXHYPE
Website and through its retail stores.
61.
authorization and with the intent to willfully, deliberately and in bad faith deceive
consumers as to the source, sponsorship or origin of Defendants goods and specifically to
cause consumers to believe that Defendants goods are sponsored by, affiliated with,
approved by or otherwise connected with Plaintiffs.
62.
Defendants conduct has caused, and if not enjoined will continue to cause,
irreparable injury to the goodwill and reputation established by Plaintiffs in their trademark
SLAMXHYPE.
64.
65.
purchasing public into falsely believing that Plaintiffs, who, themselves and through their
predecessor-in-interest Noise Media, have employed the trademark SLAMXHYPE since at
14
least as early as 2005, are the origin, sponsor and source of the FLASHXHYPE Website
and the products sold thereon.
67.
The FLASHXHYPE Website offers goods and services, clothing items and
articles on street culture and fashion, which are identical or substantially similar to or
directly related to the goods and services offered by Plaintiffs on the SLAMXHYPE
Website.
68.
authorization and with the intent to willfully, deliberately and in bad faith deceive
consumers as to the source, sponsorship or origin of Defendants goods and specifically to
cause consumers to believe that Defendants goods are sponsored by, affiliated with,
approved by or otherwise connected with Plaintiffs.
69.
designated the origin of their goods and have engaged in unfair competition in violation of
Section 43(a) of the Lanham Act, 15 U.S.C. 1125(a).
70.
Defendants conduct has caused, and if not enjoined will continue to cause,
irreparable injury to the goodwill and reputation established by Plaintiffs in their trademark
SLAMXHYPE.
71.
72.
73.
purchasing public into falsely believing that Plaintiffs, who, themselves and through their
predecessor-in-interest Noise Media, have employed the trademark SLAMXHYPE since at
least as early as 2005, are the origin, sponsor and source of the FLASHXHYPE Website
and the products sold thereon.
74.
The FLASHXHYPE Website offers goods and services, clothing items and
articles on street culture and fashion, which are identical or substantially similar to the
goods and services offered by Plaintiffs on the SLAMXHYPE Website.
75.
authorization and with the intent to willfully, deliberately and in bad faith deceive
consumers as to the source, sponsorship or origin of Defendants goods and specifically to
cause consumers to believe that Defendants goods are sponsored by, affiliated with,
approved by or otherwise connected with Plaintiffs.
76.
Defendants conduct has caused, and if not enjoined will continue to cause,
irreparable injury to the goodwill and reputation established by Plaintiffs in their trademark
SLAMXHYPE.
78.
By the aforesaid conduct, Defendants have made and will continue to make
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COUNT V
DILUTION UNDER NEW YORK GENERAL BUSINESS LAW 360-l
80.
82.
trademark SLAMXHYPE.
83.
Defendants conduct has caused, and if not enjoined will continue to cause,
irreparable injury to the goodwill and reputation established by Plaintiffs in their trademark
SLAMXHYPE.
85.
By the aforesaid conduct, Defendants have made and will continue to make
87.
clothing items and articles on street culture and fashion, which are identical or substantially
similar to the goods and services offered by Plaintiffs on their SLAMXHYPE Website.
90.
92.
purchasing public into falsely believing that Plaintiffs, who, themselves and through their
predecessor-in-interest Noise Media, have employed the trademark XHYPE since at least as
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early as 2003, are the origin, sponsor and source of the FLASHXHYPE Website and the
products sold thereon.
94.
The FLASHXHYPE Website offers goods and services, clothing items and
articles on street culture and fashion, which are identical or substantially similar to or
directly related to the goods and services offered by Plaintiffs under the XHYPE mark.
95.
authorization and with the intent to willfully, deliberately and in bad faith deceive
consumers as to the source, sponsorship or origin of Defendants goods and specifically to
cause consumers to believe that Defendants goods are sponsored by, affiliated with,
approved by or otherwise connected with Plaintiffs.
96.
Defendants conduct has caused, and if not enjoined will continue to cause,
irreparable injury to the goodwill and reputation established by Plaintiffs in their trademark
XHYPE.
98.
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b.
2.
3.
4.
5.
6.
An order awarding Plaintiffs all monetary damages which they have sustained
as a consequence of Defendants violation of the New York common law of
unfair competition;
7.
An order awarding Plaintiffs all monetary damages which they have sustained
as a consequence of Defendants violation of New York General Business
Law 360-l prohibiting dilution of a trademark;
8.
An order awarding Plaintiffs all costs which they have incurred to bring this
action, including but not limited to attorneys fees, pursuant to 15 U.S.C.
1117(a) and any applicable New York state law; and
9.
An order awarding Plaintiffs any such other relief as the Court deems just and
proper.
JURY DEMAND
Plaintiffs demand a trial by jury for all issues so triable.
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Respectfully Submitted,
s/ Nicholas R. Lewis
Nicholas R. Lewis
nlewisesq@gmail.com
Florida Bar No. 16146
3873 NE 22nd Way
Lighthouse Point, Florida 33064
(954) 662-8664
Attorney for Plaintiffs Cat3, LLC, SXH, LLC,
and Suchman, LLC
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