Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_03-cv-00825/USCOURTS-caed-2_03-cv-00825-0/pdf.json

Nature of Suit Code: 840
Nature of Suit: Trademark
Cause of Action: 15:1114 Trademark Infringement

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[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJUNCTION AS TO DEFENDANT DIANA 

NGUYEN, INDIVIDUALLY AND DOING BUSINESS AS 98 MARKET

IN THE UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA – SACRAMENTO DIVISION 

PHILIP MORRIS USA INC., 

Plaintiff, 

 v. 

DUC C. DUONG, et al., 

Defendants. 

Case No.: S-03-0825 (WBS) 

[PROPOSED] CONSENT 

JUDGMENT AND PERMANENT 

INJUNCTION AS TO DEFENDANT 

DIANA NGUYEN, INDIVIDUALLY 

AND DOING BUSINESS AS 98 

MARKET 

Plaintiff Philip Morris USA Inc. (“Philip Morris USA”) and Defendant Diana 

Nguyen, individually and doing business as 98 Market (“Defendant”), having settled 

this action on the terms and conditions stated herein, 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 in violation of the 

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

Philip Morris USA and Defendant, and subject matter jurisdiction of the matter in 

Case 2:03-cv-00825-WBS-DAD Document 92 Filed 10/24/07 Page 1 of 8
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[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJUNCTION AS TO DEFENDANT DIANA 

NGUYEN, INDIVIDUALLY AND DOING BUSINESS AS 98 MARKET 

controversy between Philip Morris USA and Defendant. Venue in this judicial 

district is proper. 

2. Defendant waives any objections she may have regarding sufficiency of 

process or the sufficiency of service of process in this action. 

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, subsisting and incontestable pursuant to 15 U.S.C. 

§ 1065 (collectively “Philip Morris USA Marks”): 

Registration Number Date Registered 

68,502 April 14, 1908 

938,510 July 25, 1972 

1,039,412 May 11, 1976 

1,039,413 May 11, 1976 

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® and/or MARLBORO LIGHTS® 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 in or about January 2003, and subsequent to Philip Morris 

USA’s adoption and first use of the Philip Morris USA Marks, Defendant offered for 

sale and sold to the general public counterfeit MARLBORO® and/or MARLBORO 

LIGHTS® brand cigarettes. 

Case 2:03-cv-00825-WBS-DAD Document 92 Filed 10/24/07 Page 2 of 8
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[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJUNCTION AS TO DEFENDANT DIANA 

NGUYEN, INDIVIDUALLY AND DOING BUSINESS AS 98 MARKET 

6. In the Complaint filed with this Court on April 22, 2003, Philip Morris 

USA alleged that Defendant’s offering for sale and sale of counterfeit 

MARLBORO® and/or MARLBORO LIGHTS® brand cigarettes constitutes 

trademark and trade dress infringement, false designation of origin, unfair 

competition, and related violations of Philip Morris USA’s rights in the Philip Morris 

USA Marks under the Lanham Act and state law. Philip Morris USA sought both 

injunctive relief and monetary damages. 

7. Since the filing of the Complaint, Philip Morris USA and Defendant 

have agreed to a full and final settlement of this action as contained herein and have 

agreed to the entry of this Consent Judgment and Permanent Injunction. 

Accordingly, it is hereby ORDERED that Defendant, and its officers, agents, 

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

with it, 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; 

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

selling, offering for sale, or otherwise using in commerce any counterfeit 

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

(iii) interfering with or impeding the inspections authorized by Paragraph 

8(a) hereof in any way. 

8. Defendant further agrees to cooperate in good faith with Philip Morris 

USA in any further investigation of this matter, including but not limited to (a) 

permitting representatives of Philip Morris USA to conduct inspections, without 

notice, of Defendant’s inventory of cigarettes to determine whether any cigarettes 

bearing the MARLBORO® and/or MARLBORO LIGHTS® mark are counterfeit 

(such inspections may proceed at any Defendant retail outlet between the hours of 

9:00 a.m. and 5:00 p.m. on any day Defendant is open for business) and to take 

Case 2:03-cv-00825-WBS-DAD Document 92 Filed 10/24/07 Page 3 of 8
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[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJUNCTION AS TO DEFENDANT DIANA 

NGUYEN, INDIVIDUALLY AND DOING BUSINESS AS 98 MARKET 

possession of any such MARLBORO® and/or MARLBORO LIGHTS® brand 

cigarettes Philip Morris USA or its representatives determine to be counterfeit; (b) 

responding to reasonable requests for information about Defendant’s 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. 

9. The terms of this Consent Judgment and Permanent Injunction shall be 

enforceable against Defendant and any persons working in concert with him or her 

and any retail outlet Defendant and/or such persons may own or operate now or in the 

future. 

10. Defendant agrees to waive all claims in this action against Philip Morris 

USA with prejudice, whether they are asserted or not. All claims asserted in this 

action by Philip Morris USA for monetary recovery from Defendant are resolved by 

Defendant’s payment of $5,000.00. There being no just reason for delay, the entry of 

this consent judgment by the United States District Court constitutes entry of final 

judgment as to all remaining claims asserted in this action by Philip Morris USA 

against Defendant pursuant to Federal Rule of Civil Procedure 54(b). Philip Morris 

USA and Defendant will each bear their own costs and attorneys’ fees. Upon entry 

of this Consent Judgment and Permanent Injunction, any bond or undertaking Philip 

Morris USA has filed in this action as to Defendant shall be deemed exonerated and 

the original of such bond or undertaking shall be returned to Philip Morris USA. 

11. With regard to the release set forth above, Defendant expressly waives 

the provisions of California Civil Code Section 1542, and any similar law, statute or 

policy. California Civil Code Section 1542 states as follows: 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE 

CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR 

AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY 

HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH 

THE DEBTOR. 

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[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJUNCTION AS TO DEFENDANT DIANA 

NGUYEN, INDIVIDUALLY AND DOING BUSINESS AS 98 MARKET 

Defendant understands and acknowledges the significance and the 

consequences of this waiver of California Civil Code Section 1542 and confirms that 

he or she has either discussed or been given an opportunity to discuss such matters 

and all of the provisions of this Consent Judgment and Permanent Injunction with 

counsel of his or her choice. 

12. The Court shall retain jurisdiction to enforce this Consent Judgment and 

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

this Consent 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 Defendant in addition to 

liquidated damages as set forth below. 

13. Philip Morris USA has entered this Consent Judgment in material 

reliance on Defendant’s representations as to the sources from which it has purchased 

the cigarettes sold at its retail outlet since January 2003. If Philip Morris USA 

determines in good faith that Defendant has materially misrepresented the sources 

from which it purchased cigarettes during this time period, or if Defendant has failed 

to identify any of its cigarette suppliers for this time period, such misrepresentation 

and/or omission shall constitute a material breach of this Consent Judgment and 

Permanent Injunction and the terms hereof shall be null and void except that 

Defendant shall remain permanently enjoined by the provisions of Paragraphs 7 and 

8 hereof, and shall be liable for liquidated damages pursuant to the terms of 

Paragraph 14(iii). In that event, 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 

non-monetary remedies it may have against Defendant, in addition to liquidated 

damages as set forth below and shall also be entitled to recover its attorneys’ fees and 

costs for any further prosecution of this action. 

Case 2:03-cv-00825-WBS-DAD Document 92 Filed 10/24/07 Page 5 of 8
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[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJUNCTION AS TO DEFENDANT DIANA 

NGUYEN, INDIVIDUALLY AND DOING BUSINESS AS 98 MARKET 

14. The parties recognize and acknowledge that it would be impractical or 

very difficult to determine or fix the amount of damages that would be sustained as a 

result of a breach of this Consent Judgment and Permanent Injunction by Defendant. 

Accordingly, after making a reasonable endeavor to arrive at the amount that would 

be an approximation of the damages that would or might be sustained in the event of 

a breach, the parties hereto agree to fix said amount of liquidated damages in the sum 

of (i) $500.00 per day for breach of Defendant’s obligation to cooperate in good faith 

with Philip Morris USA’s investigative efforts, as set forth in Paragraph 8, and 

accruing after Philip Morris provides reasonable notice to Defendant of the breach; 

and (ii) $500.00 for the first occasion on which Philip Morris USA confirms that 

Defendant has sold counterfeit MARLBORO® or MARLBORO LIGHTS® brand 

cigarettes after this Consent Judgment and Permanent Injunction is entered, with the 

monetary damages to double for each subsequent occasion on which a sale of 

counterfeit product is confirmed (e.g., $1,000.00 for the second occasion, $2,000.00 

for the third occasion, etc.), except that if Philip Morris USA discovers 10 cartons or 

more of counterfeit MARLBORO® or MARLBORO LIGHTS® cigarettes in the 

combined inventory of one or more of Defendant’s retail outlets in any inspection 

conducted within 90 days of the date on which cigarettes purchased at any of 

Defendant’s retail outlets are confirmed as counterfeit, the amount of liquidated 

damages shall be multiplied by 10 (e.g., on the first such occasion, $5,000; on the 

second such occasion, $10,000, etc.) with any liquidated damages recovery capped at 

$100,000; and (iii) in the event Defendant has materially misrepresented the sources 

from which it has purchased cigarettes since July 2005, and/or failed to identify any 

of its cigarette suppliers during this time period in violation of Paragraph 13 hereof, 

$500.00 per day from the date this Consent Judgment and Permanent Injunction is 

entered, to the date Philip Morris USA learns of the misrepresentation and/or 

omission. 

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[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJUNCTION AS TO DEFENDANT DIANA 

NGUYEN, INDIVIDUALLY AND DOING BUSINESS AS 98 MARKET 

15. Accordingly, in the event that Defendant breaches this Consent 

Judgment and Permanent Injunction as set forth above, which breach shall be 

determined on the basis of such proof as Philip Morris USA shall present to the 

Court, then Defendant shall be obligated to pay to Philip Morris USA liquidated 

damages in the amounts set forth above. Upon the entry of an Order of this Court 

that Defendant has committed such a breach, Philip Morris USA shall be entitled to 

enforce the Court’s Order, including by Writ of Execution. 

16. Each of the parties acknowledges and represents that it has fully 

considered the effect of this provision for liquidated damages. 

DATED: October 23, 2007 

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[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJUNCTION AS TO DEFENDANT DIANA 

NGUYEN, INDIVIDUALLY AND DOING BUSINESS AS 98 MARKET 

The individuals executing this Judgment represent or confirm that they are 

duly authorized to do so, and are similarly authorized to bind each of the signatories 

to this Judgment. 

CONSENTED TO: 

DATED: 10/17/2007 

/s/ Anna S. McLean

___________________________ 

Anna S. McLean 

HELLER EHRMAN LLP 

333 Bush Street 

San Francisco, CA 94101 

Telephone: (415) 772-6000 

Facsimile: (415) 772-6268 

Counsel for Plaintiff Philip Morris USA 

Inc. 

DATED: 10/16/2007 

/s/ Diana Nguyen

___ 

Diana Nguyen, individually and 

doing business as 98 Market 

201 H Street 

Modesto, CA 95351 

APPROVED AS TO FORM, 

DATED: 10/16/2007 

/s/ Donald L. Vance

Donald L. Vance 

Law Offices of Donald L. Vance 

821 Thirteenth Street 

Suite G 

Modesto, CA 95353 

(915) 680-9388 

Counsel for Defendant Diana Nguyen, 

individually and doing business as 98 Market 

 

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