Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_06-cv-00133/USCOURTS-caed-2_06-cv-00133-21/pdf.json

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

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[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJ. RE DEFS. GUADALUPE GONZALEZ AND

ANTONIO GONZALEZ/GONZALEZ MEAT MARKET (DEFENDANT NO. 6) 

Case No.: 2:06-CV-0133 WBS DAD

IN THE UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

PHILLIP MORRIS USA INC.,

Plaintiff,

v.

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

 Defendants

Case No.: 2:06-CV-0133 WBS DAD

[PROPOSED] CONSENT

JUDGMENT AND PERMANENT

INJUNCTION AS TO DEFENDANTS

GUADALUPE GONZALEZ AND

ANTONIO GONZALEZ, EACH

INDIVIDUALLY AND DOING

BUSINESS AS GONZALEZ MEAT

MARKET

(DEFENDANT NO. 6)

Plaintiff Philip Morris USA Inc. ("Philip Morris USA") and Defendants Guadalupe

Gonzalez and Antonio Gonzalez, each individually and doing business as Guadalupe

Gonzalez and Antonio Gonzalez, each individually and doing business as Gonzalez Meat

Market (incorrectly named as "Guadalupe Gonzalez Salazar and Antonio Gonzalez Salazar,

individually and doing business as Gonzalez Market) ("Defendants"), 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

Case 2:06-cv-00133-WBS -DAD Document 83 Filed 11/15/06 Page 1 of 8
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28 2

[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJ. RE DEFS. GUADALUPE GONZALEZ AND

ANTONIO GONZALEZ/GONZALEZ MEAT MARKET (DEFENDANT NO. 6) 

Case No.: 2:06-CV-0133 WBS DAD

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 Defendants,

and subject matter jurisdiction of the matter in controversy between Philip Morris USA and

Defendants. Venue in this judicial district is proper.

2. Defendants waive any objections they 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 on or about July 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

Case 2:06-cv-00133-WBS -DAD Document 83 Filed 11/15/06 Page 2 of 8
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28 3

[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJ. RE DEFS. GUADALUPE GONZALEZ AND

ANTONIO GONZALEZ/GONZALEZ MEAT MARKET (DEFENDANT NO. 6) 

Case No.: 2:06-CV-0133 WBS DAD

to the general public counterfeit MARLBORO® and/or MARLBORO LIGHTS® brand

cigarettes. 

6. In a Complaint (“Complaint”) filed with this Court on January 19, 2006,

Philip Morris USA alleged that Defendants’ 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 Defendants 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 Defendants, and their 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. Defendants 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 Defendants’

inventory of cigarettes to determine whether any cigarettes bearing the MARLBORO®

and/or MARLBORO LIGHTS® mark are counterfeit (such inspections may proceed at any

Case 2:06-cv-00133-WBS -DAD Document 83 Filed 11/15/06 Page 3 of 8
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28 4

[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJ. RE DEFS. GUADALUPE GONZALEZ AND

ANTONIO GONZALEZ/GONZALEZ MEAT MARKET (DEFENDANT NO. 6) 

Case No.: 2:06-CV-0133 WBS DAD

Defendant retail outlet between the hours of 9:00 a.m. and 5:00 p.m. on any day

Defendants are open for business) and to take 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 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.

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

enforceable against Defendants and any persons working in concert with them and any retail

outlet Defendants and/or such persons may own or operate now or in the future.

10. Defendants agree 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 Defendants are hereby dismissed with prejudice. 

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 Defendants pursuant to Federal Rule of Civil Procedure

54(b). Philip Morris USA and Defendants 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 Defendants 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, Defendants expressly waive 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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28 5

[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJ. RE DEFS. GUADALUPE GONZALEZ AND

ANTONIO GONZALEZ/GONZALEZ MEAT MARKET (DEFENDANT NO. 6) 

Case No.: 2:06-CV-0133 WBS DAD

5

Defendants understand and acknowledges the significance and the consequences of

this waiver of California Civil Code Section 1542 and confirms that they have 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 their choice.

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

Permanent Injunction. If Defendants 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 Defendants in addition to liquidated damages as set forth

below.

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

Defendants’ representations as to the sources from which it has purchased the cigarettes sold

at its retail outlet since February 2005. If Philip Morris USA determines in good faith that

Defendants have materially misrepresented the sources from which it purchased cigarettes

during this time period, or if Defendants have 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 Defendants 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 Defendants, 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 2:06-cv-00133-WBS -DAD Document 83 Filed 11/15/06 Page 5 of 8
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28 6

[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJ. RE DEFS. GUADALUPE GONZALEZ AND

ANTONIO GONZALEZ/GONZALEZ MEAT MARKET (DEFENDANT NO. 6) 

Case No.: 2:06-CV-0133 WBS DAD

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 Defendants. 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 Defendants’ 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 Defendants of the breach; and (ii) $500.00 for the first occasion on which Philip

Morris USA confirms that Defendants have 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 Defendants’ retail outlets in any inspection conducted

within 90 days of the date on which cigarettes purchased at any of Defendants’ 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 Defendants have

materially misrepresented the sources from which it has purchased cigarettes since February

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.

15. Accordingly, in the event that Defendants breach this Consent Judgment and

Permanent Injunction as set forth above, which breach shall be determined on the basis of

Case 2:06-cv-00133-WBS -DAD Document 83 Filed 11/15/06 Page 6 of 8
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[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJ. RE DEFS. GUADALUPE GONZALEZ AND

ANTONIO GONZALEZ/GONZALEZ MEAT MARKET (DEFENDANT NO. 6) 

Case No.: 2:06-CV-0133 WBS DAD

such proof as Philip Morris USA shall present to the Court, then Defendants 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 Defendants have 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: November 13, 2006

Case 2:06-cv-00133-WBS -DAD Document 83 Filed 11/15/06 Page 7 of 8
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28 8

[PROPOSED] CONSENT JUDGMENT AND PERMANENT INJ. RE DEFS. GUADALUPE GONZALEZ AND

ANTONIO GONZALEZ/GONZALEZ MEAT MARKET (DEFENDANT NO. 6) 

Case No.: 2:06-CV-0133 WBS DAD

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: 10/5/06

 /s/ Anna S. McLean 

HELLER EHRMAN LLP

ANNA S. McLEAN

333 Bush Street

San Francisco, CA 94104-2878

(415) 772-6000

(415) 772-6268

DATED: 10/6/06

 /s/ Guadalupe Gonzalez 

GUADALUPE GONZALEZ, 

individually and doing business as

GONZALEZ MEAT MARKET

15907 Avenue 328

Ivanhoe, CA 93235

Counsel for Plaintiff Philip Morris USA

Inc.

DATED: 10/6/06

 /s/ Antonio Gonzalez 

 

ANTONIO GONZALEZ, 

individually and doing business as

GONZALEZ MEAT MARKET

15907 Avenue 328

Ivanhoe, CA 93235

Defendants pro se.

Case 2:06-cv-00133-WBS -DAD Document 83 Filed 11/15/06 Page 8 of 8