Opinion ID: 681080
Heading Depth: 4
Heading Rank: 3

Heading: Counterfeiting

Text: 149 In order for Dynascan to prevail on its counterfeiting claim, it must demonstrate that Babbit infringed a registered trademark in violation of 15 U.S.C. Sec. 1114(1)(a), and it must prove that Babbit intentionally used a mark, knowing such mark is a counterfeit mark. 15 U.S.C. Sec. 1117(b). 5 The Court has determined that Babbit infringed registered marks in violation of 15 U.S.C. Sec. 1114(1)(a). The Court has also found that Babbit intentionally used the marks in question. The analysis therefore focuses on whether [Babbit] used the marks knowing that they were counterfeit. 6 150 In the Agreement, Babbit and Dynascan agreed that Babbit could use the Cobra trademark in connection with the distribution and sale of certain models of cordless telephones in South America, as long as Babbit ordered the products through Dynascan. Although the models that were subject to the Agreement changed over a period of years, the ordering procedures did not change. The Agreement clearly contemplated that Babbit's right to use Dynascan's trademarks only extended to products ordered through Dynascan, not to cordless telephones ordered outside the terms of the Agreement. Babbit, however, attached Dynascan's trademarks to other cordless telephones, namely Model SA-660s telephones. Therefore, Babbit had knowledge that the telephones to which they affixed Dynascan's marks were not Dynascan's telephones and that their acts contravened the terms of the Agreement. See Interstate Battery System, 811 F.Supp. at 244 (Court held that licensee that used trademark on batteries bought from a different source than the trademark owner and in violation of a licensing agreement was a counterfeiter.). Consequently, it is clear that Babbit used Dynascan's trademarks knowing that they were counterfeit. Babbit is therefore liable for trademark counterfeiting. 151