Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_06-cv-00133/USCOURTS-caed-2_06-cv-00133-23/pdf.json

Nature of Suit Code: 840
Nature of Suit: Trademark
Cause of Action: 15:44 Trademark Infringement

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[PROPOSED] ORDER FOR DEFAULT JUDGMENTS 

CASE NO. 06-cv-0133 WBS DAD

Anna S. McLean (Bar No. 142233) 

Nathaniel R. Spencer-Mork (Bar No. 226886) 

HELLER EHRMAN LLP

333 Bush Street 

San Francisco, CA 94104-2878 

Telephone: +1.415.772.6000 

Facsimile: +1.415.772.6268 

Anna.McLean@hellerehrman.com

Nate.Spencermork@hellerehrman.com

John C. Ulin (Bar No. 165524) 

HELLER EHRMAN LLP

333 South Hope Street, 39th Floor 

Los Angeles, CA 90071 

Telephone: (213) 689-0200 

Facsimile: (213) 614-1868 

John.Ulin@hellerehrman.com

Attorneys for Plaintiff 

PHILIP MORRIS USA INC. 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

SACRAMENTO DIVISION 

PHILIP MORRIS USA INC., 

Plaintiff, 

v. 

M&S MARKET, INC., et al., 

Defendants. 

Case No.: 06-cv-0133 WBS DAD 

[PROPOSED] ORDER FOR 

DEFAULT JUDGMENTS 

[F.R.C.P. 55(b)] 

[Filed Concurrently With Application 

for Default Judgment; Memorandum of 

Points and Authorities; and Declaration 

of Counsel of Philip Morris USA Inc.] 

Hearing Date: October 20, 2006 

Time: 10:00 a.m. 

Courtroom: 27 

The Honorable William B. Shubb 

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Case 2:06-cv-00133-WBS -DAD Document 88 Filed 12/13/06 Page 1 of 5
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[PROPOSED] ORDER FOR DEFAULT JUDGMENTS 

CASE NO. 06-cv-0133 WBS DAD

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Plaintiff Philip Morris USA, Inc. (“Philip Morris USA”) has filed an Application for 

Default Judgment against the following Defendants in this action (hereinafter, collectively 

“Defendants”): 

1. ROY F. KELTNER, individually and doing business as LONDON GENERAL 

STORE-DINUBA (served January 25, 2006; clerk’s default entered June 6, 

2006); 

2. M&S MARKET, INC., a California Corporation (served January 25, 2006; 

clerk’s default entered May 22, 2006); 

3. BENGALS, INC., a California Corporation doing business as OLD TOWNE 

FOOD MARKET (4) (served March 9, 2006; clerk’s default entered June 6, 

2006). 

Philip Morris USA, having properly served a Summons and Complaint 

(“Complaint”) upon each of the Defendants, and Defendants having failed to timely respond 

to Complaint, it is hereby ORDERED, ADJUDGED and DECREED as follows: 

1. This is an action for: (i) infringement of registered trademarks in violation of 

Section 32 of the Lanham Act, 15 U.S.C. § 1114; (ii) false designation of origin and 

trademark and trade dress infringement in violation of Section 43(a) of the Lanham Act, 15 

U.S.C. § 1125(a); and (iii) unfair competition and trademark infringement in violation of the 

common law of the State of California. This Court has personal jurisdiction over Philip 

Morris USA and Defendants, and subject matter jurisdiction of the matters in controversy 

between Philip Morris USA and Defendants. Venue in this judicial district is proper. 

2. Defendants have not made any objections regarding the sufficiency of process 

or the sufficiency of service of process in this section. Any objections Defendants may 

have regarding the sufficiency of process or the sufficiency of service of process in these 

actions are hereby deemed waived. 

3. Philip Morris USA manufactures cigarettes, including the famous 

MARLBORO® brand, for sale in the United States. Philip Morris USA is the registered 

owner of the following MARLBORO® and MARLBORO®-related trademarks on the 

Principal Register of the United States Patent and Trademark Office, all of which are valid, 

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Case 2:06-cv-00133-WBS -DAD Document 88 Filed 12/13/06 Page 2 of 5
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[PROPOSED] ORDER FOR DEFAULT JUDGMENTS 

CASE NO. 06-cv-0133 WBS DAD

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subsisting and incontestable pursuant to 15 U.S.C. § 1065 (collectively “Philip Morris USA 

Marks”): 

Registration 

Number 

Registration 

Date 

Trademark 

68,502 April 14, 1908 MARLBORO 

938,510 July 25, 1972 MARLBORO Red Label 

1,039,412 May 11, 1976 MARLBORO LIGHTS 

1,039,413 May 11, 1976 MARLBORO LIGHTS Label 

4. Philip Morris USA has spent substantial time, effort, and money advertising 

and promoting the Philip Morris USA Marks throughout the United States, and these marks 

have consequently developed significant goodwill, have become distinctive, and have 

acquired secondary meaning. As a result of the sale of counterfeit MARLBORO® 

cigarettes, Philip Morris USA is suffering a loss of the enormous goodwill associated with 

the Philip Morris USA Marks, and is losing profits from lost sales of genuine products. 

5. Beginning on or about April 1, 2005, and subsequent to Philip Morris USA’s 

adoption and first use of the Philip Morris USA Marks, Defendants offered for sale and sold 

to the general public counterfeit MARLBORO® brand cigarettes. 

6. Philip Morris USA filed the Complaint in this matter on January 20, 2006. 

7. Defendants were served with Summons and Complaint on the dates set forth 

above. Entry of Default was recorded against Defendants due to their failure to answer or 

otherwise respond to the Complaint. On September 19, 2006 Plaintiff presented this Court 

with its Application for Default Judgment against Defendants. 

9. Accordingly, it is hereby ORDERED that Defendants, and their officers, 

agents, servants, employees, and attorneys, and all persons in active concert or participation 

with them, are hereby PERMANENTLY ENJOINED from: 

(i) purchasing, selling, offering for sale, or otherwise using in commerce any 

counterfeit MARLBORO® and/or MARLBORO LIGHTS® brand cigarettes; and 

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[PROPOSED] ORDER FOR DEFAULT JUDGMENTS 

CASE NO. 06-cv-0133 WBS DAD

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(ii) assisting, aiding or abetting any other person on entity in purchasing, selling, 

offering for sale, or otherwise using in commerce any counterfeit MARLBORO® 

and/or MARLBORO LIGHTS® brand cigarettes. 

(iii) interfering with or impeding in any way the inspections authorized by 

paragraph 11 of this Order. 

10. IT IS FURTHER ORDERED THAT the Defendants cooperate in good 

faith with Philip Morris USA in future investigations of counterfeit cigarette sales at their 

retail establishments, including but not limited to (a) permitting representatives of an 

investigative firm under contract with Philip Morris USA to conduct inspections, without 

notice, of Defendants’ inventories to determine whether any cigarettes bearing the 

MARLBORO® and/or MARLBORO LIGHTS® trademarks and counterfeit (such 

inspections may proceed at any Defendants’ retail outlet between the hours of 9:00 a.m. and 

5:00 p.m. on any day such retail outlet is open for business) and to retain possession of any 

such MARLBORO® and/or MARLBORO LIGHTS® brand cigarettes determined to be 

counterfeit; (b) responding to reasonable requests for information about Defendants’ 

suppliers of MARLBORO® and/or MARLBORO LIGHTS® cigarettes; and (c) 

cooperating with Philip Morris USA’s representatives in their investigations of any 

suppliers of MARLBORO® and/or MARLBORO LIGHTS® cigarettes. 

11. IT IS FURTHER ORDERED THAT, pursuant to 15 U.S.C. § 1117(c), 

Defendants are liable to Plaintiff in the amount not less than $10,000 for violations of 

Sections 32 and 43(a) of the Lanham Act. 

12. IT IS FURTHER ORDERED THAT, pursuant to 15 U.S.C. § 1117(a)(3), 

Defendants are liable to Plaintiff in the amount of $150 each for M&S Market and Roy F. 

Keltner, and $310 for Bengals, Inc. for costs incurred in bringing this action against 

Defendants. 

13. IT IS FURTHER ORDERED THAT each Defendant is liable to Plaintiff 

for attorney fees in the amount of $3,191.25. 

14. The terms of this Judgment and Permanent Injunction shall be enforceable 

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[PROPOSED] ORDER FOR DEFAULT JUDGMENTS 

CASE NO. 06-cv-0133 WBS DAD

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against Defendants, their successors in interest and assigns, and any persons or business 

entities working in concert with Defendants. 

15. There being no just reason for delay, the entry of this Default Judgment by the 

United States District Court constitutes entry of final judgment as to all claims asserted in 

this action by Philip Morris USA against Defendants pursuant to Federal Rule of Civil 

Procedure 54(b). 

15. The court shall retain jurisdiction to enforce this Default Judgment and 

Permanent Injunction. If Defendants shall be alleged to have breached the terms of this 

Judgment and Permanent Injunction, Philip Morris USA shall have the right to reopen this 

matter upon motion filed and heard on an expedited basis, including by ex parte application. 

If this matter is so reopened, Philip Morris USA may pursue any and all remedies it may 

have against Defendants and shall also be entitled to recover its attorneys’ fees for any 

further prosecution of this action. 

IT IS SO ORDERED. 

DATED: December 12, 2006 

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