HealthSmart Foods Complaint
HealthSmart Foods Complaint
HealthSmart Foods Complaint
Plaintiff HealthSmart Foods, Inc. (“HealthSmart”), by counsel, states the following for its
Complaint against Beth Porter (“Porter”) and Sweet Nothings, Inc. (“Company”) (Porter and
INTRODUCTION
1. For six (6) years, HealthSmart has advertised, marketed, promoted, formulated,
manufactured, distributed, and sold health food snacks, including but not limited to snack bars,
snack bites, shakes, and candies. HealthSmart’s products include its wide selection of health
snack clusters, crisps, and patties that are sold under the distinctive trademark of the SWEET
NOTHINGS ® brand, registered with the U.S. Patent and Trademark Office (registration no.
5,306,700) (the “Mark”), and related copyrights and trademarks to its advertising material
2. In promoting and branding its products, HealthSmart has continually used the
Mark and HealthSmart IP in advertising campaigns throughout the country, including through
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and in-store displays where it has been actively involved in its efforts to further promote its
brand. As a result of these efforts and others, HealthSmart’s customers and the public have
come to recognize HealthSmart as an established and successful brand for certain food
products.
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competing chocolate confections and candies, including nut butter food snacks with chocolate
and peanut butter flavors and chocolate banana peanut butter flavors (the “Infringing Goods”),
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mark identical in appearance, sound, and meaning for substantially similar products.
Defendant’s Infringing Goods create the same connotation and overall commercial impression
as HealthSmart’s goods.
6. Well over a year after HealthSmart obtained registration of its Mark from the
U.S. Patent and Trademark Office (“PTO”), Porter sought to obtain federal registration of the
of confusion with HealthSmart’s existing Mark. In two separate office actions, the PTO
rejected Porter’s application after analyzing the similarity of the marks, similarity and nature of
8. To overcome the PTO’s rejections, Porter carved out any professed use similar to
HealthSmart’s products and submitted verified statements before the PTO stating her goods
would be exclusively frozen, contain fruit as a primary ingredient, and be filled with superfood
9. In fact, however, Defendant’s actual use was very different. One of Defendant’s
most prominent products bearing the Mark—a confection or candy called “Nut Butter Bites”—
is neither frozen, nor contains fruit as a primary ingredient, nor is filled with superfood items.
used HealthSmart’s Mark in association with confections and candy substantially similar to
HealthSmart’s, creating confusion in the marketplace and deceiving the PTO about Porter’s true
intentions.
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activities, Defendants traded its Infringing Goods under HealthSmart’s Mark in the same trade
channels as HealthSmart, despite clear and explicit verified statements to the PTO that Porter
12. Porter deceptively told the PTO that her products would be sold in the frozen
food or health food sections of grocery stores, and then falsely told the PTO that HealthSmart’s
goods would only be sold in either the grocery store bakery department or candy aisle. These
13. Defendants are in competition with HealthSmart and now utilize blatant tactics
to trade on the goodwill and commercial magnetism of HealthSmart’s Mark and to free ride on
14. The Infringing Goods imitate HealthSmart’s brand in a manner that is likely to
cause consumer confusion and deceive the public regarding the source, sponsorship, and/or
affiliation of those goods. Defendants’ Infringing Goods are therefore unlawful and are causing
15. HealthSmart brings this action at law and in equity for trademark infringement
and dilution, unfair competition, and unfair business practices arising under the Trademark Act
of 1946, 15 U.S.C. §§ 1051 et seq. (2009) (“Lanham Act”); the anti-dilution laws of several states;
the fair business practices and unfair and deceptive trade practices acts of several states; and the
common law. Among other relief, HealthSmart asks this Court to: (a) preliminarily enjoin
imitation of the Mark; (b) permanently enjoin Defendants from distributing, marketing, or
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selling goods using or bearing a confusingly similar imitation of the Mark; (c) award
HealthSmart monetary damages and to treble that award; (d) require Defendants to disgorge all
profits from sales of the Infringing Goods; and (e) award HealthSmart punitive damages,
attorneys’ fees, and costs, and all other remedies and relief proper under these premises.
PARTIES
16. Plaintiff HealthSmart is an Indiana corporation existing under the laws of the
State of Indiana, having its office and principal place of business at 1325 Newton Avenue,
Evansville, Indiana 47715. Plaintiff’s headquarters and operations are based in Evansville,
17. On information and belief, Defendant Porter is an individual with a business and
mailing address of 715 College Avenue, Menlo Park, California 94025. Both individually and
with the Company she created, Porter sells various snacks and other food products, including
organized and existing under the laws of the State of Delaware and having a place of business
at 715 College Avenue, Menlo Park, California 94025. Company, together with Porter, markets
and sells the Infringing Goods, which includes nut butter health food snacks with chocolate and
19. This Court has subject matter jurisdiction under section 39 of the Lanham Act, 15
U.S.C. § 1121, and under 28 U.S.C. §§ 1331 and 1338. Subject matter jurisdiction over
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HealthSmart’s related state and common law claims is proper pursuant to 28 U.S.C. §§ 1338 and
1367.
20. This Court has personal jurisdiction over Defendants because, on information
and belief, (a) Defendants have marketed, distributed, offered for sale, and/or sold the
Infringing Goods to persons within the State of Indiana; (b) Defendants regularly transact and
conduct business within the State of Indiana; and/or (c) Defendants have otherwise made or
established contacts within the State of Indiana sufficient to permit the exercise of personal
jurisdiction.
1391(b)(2) because a substantial part of the acts or omissions giving rise to HealthSmart’s claims
A. HealthSmart’s Mark
22. HealthSmart is currently, and for years has been, one of the country’s leading
manufacturers of delicious, healthy snack foods that cater to restricted diets and lifestyles.
HealthSmart’s products work with diets such as low fat, low calorie, low carb, low glycemic,
Weight Watchers, Calorie Counting, Atkins, South Beach, Zone, Sugar Busters, 40/30/30,
23. At least as early as March 7, 2017, HealthSmart began using the SWEET
NOTHINGS ® mark and obtained a federal trademark registration, Reg. No. 5,306,700, issued
by the United States Patent and Trademark Office (“PTO”) on October 10, 2017, for the Mark in
international class 030 for “Candy; chocolate confections; baked goods, namely, bakery squares,
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cupcakes, and cakes.” A copy of the PTO Certificate of Registration for the Mark is attached as
Exhibit 2.
24. In examining the scope of a mark’s identified goods, the PTO states one should
determines the scope and nature of the goods or services. In re Fiat Grp. Mktg. & Corporate
Commc'ns S.p.A., 109 USPQ2d 1593 (TTAB 2014); TMEP §1402.07(a). A basic and widely
“something confected” and confected means to put together from varied material.1 The Oxford
Companion to Food notes that confectionery is a term “generally indicating a delicacy which is
sweet, is usually eaten with the fingers, and keeps for some time.”2 Thus, for purposes of
HealthSmart’s registered Mark, “chocolate confections” means food put together from varied
material, including chocolate, which is sweet, usually eaten with the fingers, and keeps for some
time.
26. The term candy refers to a particular type of confection which includes sugar or
other sweet ingredients. According to Merriam-Webster.com Dictionary, the term candy means
“crystallized sugar formed by boiling down sugar syrup,” “a confection made with sugar and
2 Alan Davidson, The Oxford Companion to Food (Oxford University Press, 2014), p. 213.
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often flavoring and filling; a piece of such confection,” and “something that is pleasant or
27. HealthSmart’s Sweet Nothings ® brand is a new line of products for candy and
chocolate confections, including white almond clusters, white caramel crisps, caramel crisps,
caramel pecan clusters, peanut butter patties, cookies n’ cream, chocolate covered caramels, and
fat, saturated fat, sugar, and calories. HealthSmart made this possible through an innovation
that allows previous chocolate fats to be replaced with a new fat source called Epogee, which
reduces fat and saturated fat by roughly sixty-seven percent (67%). With less fat, HealthSmart’s
products contain fewer calories and calorie carbohydrates—often reduced by half the calorie
29. HealthSmart’s Mark is well-known within the industry and HealthSmart has
invested over $150,000.00 in marketing and promoting its Sweet Nothins ® trademark in
HealthSmart Mark is prominently displayed, further cementing HealthSmart’s Mark and brand
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to food and snack products, the public and the food industry associate the Mark with candy,
32. In 2022, annual sales and revenue from the Mark totaled more than One
Hundred and Sixty-Nine Thousand Dollars ($169,000.00) dollars. HealthSmart has plans to
significantly grow its market share and expand using the Mark with other confections and
candies.
connection with its food products, the Mark enjoys public and food/diet industry acceptance
and association with HealthSmart. The Mark has come to be recognized widely and favorably
by the public and others as a product originating from HealthSmart. For example, a collection of
156 reviews on Google Shopping of HealthSmart’s variety pack of Sweet Nothings ® chocolate
4See
https://www.google.com/shopping/product/6154286928577533673?q=%22sweet+nothings%22+h
ealthsmart&biw=1920&bih=961&sxsrf=APwXEdc7EMjom0P6Isu8siy-
m5ZD96JIUQ:1680891909768&prds=eto:14659338571719937284_0,pid:6170746868219694656,rsk:
PC_9725036868134665690&sa=X&ved=0ahUKEwi-mLaDt5j-
AhWsEFkFHWHkAmUQ8wIImgw#reviews (accessed April 7, 2023).
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34. HealthSmart’s extensive use and promotion of the Mark has led to valuable
goodwill that is symbolized by the Mark. The purchasing public and food/diet industry has
B. Defendants’ Mark
35. Porter first applied for the “Sweet Nothings” mark with the PTO in her personal,
individual capacity on November 15, 2018 (serial no. 88,195,615) (“Defendants’ Mark”). Porter’s
verified statement with the PTO asserted that, “[t]o the best of the signatory's knowledge and
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belief, no other persons, except, if applicable, concurrent users, have the right to use the mark in
commerce, either in the identical form or in such near resemblance as to be likely, when used on
or in connection with the goods/services of such other persons, to cause confusion or mistake, or
36. Porter applied under an intent-to-use (section 1(b)) basis for use in international
class 030 for “Whole fruit-based, frozen, non-dairy, no added sugar, superfood-rich breakfast
37. On February 26, 2019, the PTO examining attorney issued an office action
refusing registration of Defendants’ Mark citing concerns over likelihood of confusion with
38. The PTO examining attorney focused on three factors in issuing its refusal:
similarity of the marks, similarity and nature of the goods, and similarity of the trade channels
of the goods. A copy of pertinent portions of this office action is attached as Exhibit 4.
39. In issuing its refusal to register on February 26, 2019, the PTO noted both marks
are identical in appearance, sound, and meaning. And because they are identical, “these marks
are likely to engender the same connotation and overall commercial impression when
considered in connection with applicant’s and registrant’s respective goods and/or services.”
40. While comparing goods of HealthSmart and Porter, the PTO expressed concern
that Porter used broad wording to describe its goods (e.g., “treat”) that also encompass
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41. Regarding the similarity of trade channels, the PTO concluded that Porter’s
goods and HealthSmart’s goods “are of a type that are commercially related, and are found in
similar trade channels and commonly emanate from a single source.” See Exhibit 4.
42. About one month after the PTO issued its office action rejecting her application,
43. The amendment stated that Porter’s goods were not class 30 “sweets” and
goods, namely, bakery squares, cupcakes, and cakes.” A copy of Porter’s amendment is
attached as Exhibit 5.
44. Porter submitted a response to the PTO’s office action refusal on April 26, 2019,
stating that her goods, “being superfood rich food products, will be sold in the ‘frozen food’ or
‘health food’ sections of stores,” whereas HeathSmart’s goods, “being dessert and candy items,
will be sold in the candy/desserts section of stores and/or the bakery department.”
45. Porter also argued that there are a number of highly similar marks registered and
in use for closely related goods, and that no evidence of actual confusion exists. A copy of
46. Unpersuaded by Porter’s arguments, the PTO issued a final office action refusing
the registration on May 18, 2019, which once again focused on three factors in issuing its refusal:
similarity of the marks, similarity and nature of the goods, and similarity of the trade channels
of the goods. A copy of pertinent portions of this final PTO office action is attached as Exhibit 7.
47. The PTO highlighted these issues when deeming Porter’s arguments as
unpersuasive:
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identification, HealthSmart did not narrow its goods “to only include those
identified goods that contain superfoods, whole fruit or to be goods that are
frozen, non-dairy and do not contain any added sugar. Thus, the [HealthSmart’s]
squares, cupcakes, and cakes that can contain superfoods, whole fruit, those that
“Frozen sections of health food stores contain baked goods. For example, Whole
Foods provides Garden Lites muffins containing blueberries and veggies among
other ‘superfood’ ingredients as well as frozen whole fruit that can be eaten as a
snack in the freezer cases. . . Moreover, frozen fruit snacks contain chocolate,
c. “The attached evidence of record demonstrates that the goods are commercially
related, such that they could give rise to the mistaken belief that the goods
d. In response to Porter’s arguments that other registrations exist for similar marks
with similar goods, the PTO responded, “It should be noted initially that these
registrations are for goods that are predominantly different from those identified
in applicant’s application, which emphasizes that the goods are frozen and
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mark.”
48. In response to this final office action, Porter amended her application a second
time for the following goods in international class 030: “Whole fruit-based, frozen, non-dairy,
no added sugar, superfood-rich snack foods; whole fruit-based, frozen, non-dairy, no added
sugar, superfood-rich snack foods in the nature of prepared snacks consisting primarily of fruit,
and also containing nuts, seeds or both nuts and seeds; none of the foregoing comprising or
including candy, chocolate confections, bakery squares, cupcakes, or cakes.” A copy of pertinent
49. On July 17, 2019, Porter submitted a Request for Reconsideration following the
PTO’s final action rejecting her application. Porter began by arguing there was wide use of the
mark among third parties so HealthSmart’s mark is entitled to limited scope of protection. She
then (falsely) argued that HealthSmart’s and Porter’s goods are dissimilar in nature and travel
in different channels of trade: “Here, [Porter] provides frozen, fruit-based superfood-rich snack
foods. [HealthSmart] provides candy, chocolate confections, bakery squares, cupcakes, and
cakes.” Porter also relied heavily on her revised description of the goods. A copy of pertinent
50. On July 30, 2019, the PTO relented and published Porter’s mark in the Official
Gazette.
51. The PTO then issued a Notice of Allowance on October 29, 2019, and Porter
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52. Porter’s specimen in her Statement of Use was of frozen fruit snacks, not the nut
butter chocolate confections and candy it subsequently used with the mark.
53. Porter asserted that her first use in commerce occurred in September 2019.
54. Porter’s mark officially registered with the PTO on April 21, 2020.
55. On January 18, 2023 (shortly after HealthSmart raised concerns about the
Infringing Goods), Porter filed an assignment of her mark to the Company via a Confirmatory
56. The Assignment Agreement’s recitals state that Porter intended to assign the
mark and other intellectual property to the Company, but “may not have formally and/or
57. The parties stated the Assignment Agreement reflected their original intent.
58. Porter apparently backdated this Assignment Agreement effective January 18,
59. In blatant disregard of HealthSmart’s senior rights to the Mark, Defendants are
Infringing Goods, which includes chocolate confections, candy, and other food products
bearing the Sweet Nothings ® brand. The Infringing Goods, as depicted on its
SweetNothings.com website, below on Amazon.com, and in the attached Exhibit 1, mirror the
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ingredients. For example, Defendants’ Nut Butter Bites Organic Snack, Chocolate with Peanut
Butter, feature very similar ingredients to HealthSmart’s Peanut Nougat Clusters, including
61. Likewise, the shape and consumer experience of HealthSmart’s products and the
Infringing Goods significantly mirror one another in that both are bite-sized snacks made with
an outer shell and an inner center filled with a softer or creamier ingredient.
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63. The Infringing Goods carry the identical mark in association with substantially
similar chocolate confections and candy products. The Infringing Goods also cater to the same
consumers and travel in the same trade channels as HealthSmart’s products bearing the Mark.
Goods to the same consumers as HealthSmart and Defendants’ Infringing Goods travel on the
information and belief, Defendants sell the Infringing Goods in brick-and-mortar grocery stores
as well as through national retailers Amazon, Thrive Market, and the WW Marketplace.
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66. Defendants’ use of HealthSmart’s Mark has caused actual confusion in the
marketplace. For example, Amazon.com provides a link on HealthSmart’s product pages titled
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“Visit the Sweet Nothings Store,” 5 but due to confusion created by Defendants’ infringement,
that link takes consumers to an Amazon page dedicated to Defendants’ Infringing Products.6
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Defendants’ prior assertions made to the PTO, Defendants expressed plans in press and
publications to use the Mark in Defendants’ products “across aisles” and indeed “across every
7Ryan Daily, “Sweet Nothings expands shelf-stable snack portfolio with help of e-com partner,”
FoodNavigator, 30 March 2023, available at https://www.foodnavigator-
usa.com/Article/2023/03/30/sweet-nothings-expands-shelf-stable-snack-portfolio-with-help-of-e-
com-partners (accessed April 12, 2023).
8Monica Watrous, “Sweet Nothings expands beyond the freezer aisle,” Food Business News, 8
September 2021, available at https://www.foodbusinessnews.net/articles/19543-sweet-nothings-
expands-beyond-the-freezer-aisle (accessed April 12, 2023).
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infringement and ordered Defendants to cease and desist from any further use of the Mark. See
Exhibit 12.
70. Defendants even retaliated against HealthSmart for raising concerns by filing a
71. Without doubt, Defendants possessed knowledge of and were very familiar with
72. Defendants intentionally adopted and used a confusingly similar imitation of the
Mark and sold the Infringing Goods in the same trade channels.
73. The Infringing Goods were designed, marketed, promoted, offered for sale, and
75. HealthSmart used the Mark extensively and continuously before Defendants
began: (i) using the Infringing Goods in candy, chocolate confections, and other food products;
or (ii) designing, distributing, marketing, promoting, offering for sale, and selling the Infringing
Goods.
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77. Defendants’ activities are likely to cause confusion before, during, and after the
time of purchase because consumers, prospective consumers, retailers, wholesalers, and others
considering HealthSmart’s products at the points of sale are likely—due to Defendants’ use of a
inflicting irreparable harm on the goodwill symbolized by HealthSmart’s Mark and the
78. On information and belief, Defendants continue to use the Infringing Goods in
connection with the sale of chocolate confections, candy, and other food products that directly
compete with the products offered by HealthSmart. Defendants began selling the Infringing
Goods well after HealthSmart had established protectable rights in the Mark and well after the
HealthSmart’s Mark.
80. Both individually and with the Company she founded, Porter sells the Infringing
Goods and various other snacks and food products. Online descriptions of the Company
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82. During much of the relevant period of infringement, Defendants’ mark was
83. On information and belief, Porter created or directed the creation of the
Company’s branding, website, and marketing, including Company’s use of the Mark. Porter is
responsible (directly or indirectly) for adding and updating the content found on the
Company’s website. Through Company’s website, consumers may purchase the Infringing
Goods.
84. The United States Court of Appeals for the Seventh Circuit Court has long held
that while corporate officers are not ordinarily liable for the infringement of their corporation,
that only existed “in the absence of some special showing.” Dangler v. Imperial Mach., Co., 11
85. An officer is personally liable for the torts in which she has participated or which
she has authorized or directed. 4SEMO.com Inc. v. S. Illinois Storm Shelters, Inc., 939 F.3d 905, 912
(7th Cir. 2019); Dwyer Instruments, Inc. v. Sensocon, Inc., 873 F. Supp. 2d 1015, 1023 (N.D. Ind.
2012).
instrument to carry out her own willful and deliberate infringements, or knowingly uses an
irresponsible corporation with the purpose of avoiding personal liability. 4SEMO.com Inc., 939
F.3d at 912–13.
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Inc. v. Texas Corral Restaurants, Inc., 2017 WL 1197262, *3 (N.D. Ind. 2017). Among other claims,
plaintiff Texas Roadhouse sued the owner of Texas Corral, Paul Switzer, in his individual
capacity for trademark infringement. Texas Roadhouse, Inc., 2017 WL 1197262, *3. Texas
Roadhouse alleged Switzer was the domain name registrant for the Texas Corral website,
created or directed the creation of that website, was responsible for the content found on the
website that included the accused logos, and was responsible for adding and updating the
website. Thus, the court determined Texas Roadhouse had pleaded the facts necessary to make
a “special showing” in support of the individual liability claim, and the claim survived a
88. A similar result was reached by the court in Dwyer Instruments Inc. v. Sensocon,
Inc., No. 3:09-CV-00010-TLS-CAN, 2012 WL 3207254 (N.D. Ind. Mar. 23, 2012). In that case, the
founder and shareholder of the defendant corporation was found liable in his individual
capacity for infringement of the plaintiff's intellectual property given that he “participated
directly in the activities that the Plaintiff claim[ed] constitute[d] infringement of its intellectual
property rights in the [the protected mark].” Id. at *22. For example, the individual shareholder
and founder contacted the company that ultimately manufactured the infringing product,
approved the product's design, and contacted and/or was contacted by potential customers as a
salesperson. Id. “He thus ‘personally participate[d] in the manufacture [and] sale of the
infringing article,’ Dangler, 11 F.2d at 947, and the special showing for personal liability [was]
established.” Id.
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89. Other federal court decisions also support that HealthSmart need not to pierce
the Company’s corporate veil to hold Porter personally liable for the Lanham Act misconduct.
“While a corporate officer is not necessarily individually liable for torts committed on behalf of
the corporation,” Bambu Sales, Inc. v. Sultana Crackers, Inc., 683 F. Supp. 899, 913-14 (E.D.N.Y.
1988), it is, nonetheless, well-established in federal courts that under the Lanham Act, a
corporate officer may be held personally liable for trademark infringement and unfair
competition “if the officer is a moving, active, conscious force behind the corporation’s
infringement.” FC Online Mktg., Inc. v. Burke’s Martial Arts, LLC, No. 14-cv-3685 (SJF)(SIL), 2015
WL 4162757, at *5 (E.D.N.Y. July 8, 2015) (collecting cases); see also Krevat v. Burgers to Go, Inc.,
No. 13-cv6258 (JS)(AKT), 2015 WL 1412707, at *4 (E.D.N.Y. Mar. 23, 2015); Chloe v. Queen Bee of
Beverly Hills, LLC, No. 06-cv-3140 (RJH), 2011 WL 3678802, at *5 (S.D.N.Y. Aug. 19, 2011) (“The
case law is clear that if a corporate officer was either the sole shareholder and employee, and
therefore must have approved of the infringing act, or a direct participant in the infringing
activity, the officer is a moving, active, conscious[] force behind the corporation’s
90. “Demonstrating that a corporate officer ‘authorized and approved the acts of
unfair competition which are the basis of the corporation’s liability is sufficient to subject the
officer to personal liability.’” Study Logic, LLC v. Clear New Plus, Inc., No. 11-cv-4343, 2012 WL
4329349, at *11 (E.D.N.Y. Sept. 21, 2012) (quoting Bambu Sales, 683 F. Supp. at 913).
91. Moreover, “[i]n determining whether the officer’s acts render him individually
liable, it is immaterial whether he knows that his acts will result in an infringement.” Bambu
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preceding paragraphs.
likely to cause confusion, deception, and mistake by creating the false and misleading
of HealthSmart.
registered mark in violation of 15 U.S.C. § 1114. Defendants’ activities are causing and, unless
enjoined by this Court, will continue to cause a likelihood of confusion and deception of
members of the trade and public, and, additionally, injury to HealthSmart’s goodwill and
remedy at law.
trade on the goodwill associated with HealthSmart’s Mark to HealthSmart’s great and
irreparable harm.
96. Defendants caused and are likely to continue causing substantial injury to the
public and to HealthSmart, and HealthSmart is entitled to injunctive relief and to recover
Defendants’ profits, actual damages, enhanced profits and damages, costs, and reasonable
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preceding paragraphs.
caused and is likely to cause confusion, deception, and mistake by creating the false and
99. Defendants have made false representations, false descriptions, and false
designations of, on, or in connection with its services in violation of 15 U.S.C. § 1125(a).
Defendants activities have caused and, unless enjoined by this Court, will continue to cause a
likelihood of confusion and deception of members of the trade and public, and, additionally,
trade on the goodwill associated with HealthSmart’s Mark to the great and irreparable injury of
HealthSmart.
101. Defendants’ conduct has caused, and is likely to continue causing, substantial
injury to the public and to HealthSmart. HealthSmart is entitled to injunctive relief and to
recover Defendants’ profits, actual damages, enhanced profits and damages, costs, and
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preceding paragraphs.
103. For nearly six years, HealthSmart has exclusively and continuously promoted
and used the Mark throughout the United States. The Mark became a well-known symbol of
HealthSmart and HealthSmart’s products before Defendants began using the Mark or offered
104. Defendants are making use in commerce of the Infringing Goods, which dilutes
and is likely to dilute the distinctiveness of HealthSmart’s Mark by eroding the public’s
exclusive identification of the well-known Mark with HealthSmart, tarnishing and degrading
the positive associations and prestigious connotations of the Mark, and otherwise lessening the
trade on the goodwill associated with HealthSmart’s Mark or to cause dilution of the Mark to
106. Defendants have caused and will continue to cause irreparable injury to
HealthSmart’s goodwill and business reputations, and dilution of the distinctiveness and value
HealthSmart therefore is entitled to injunctive relief and to Defendants’ profits, actual damages,
enhanced profits and damages, and reasonable attorneys’ fees under 15 U.S.C. §§ 1125I, 1116,
and 1117.
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preceding paragraphs.
108. Defendants have been and are passing off their goods as those of HealthSmart,
109. Defendants’ conduct constitutes unfair and deceptive acts or practices in the
course of a business, trade, or commerce in violation of the unfair and deceptive trade practices
statutes of several states, including California CAL. BUS. & PROF. CODE § 17200, et seq. (West
2009); Colorado, COLO. REV. STAT. ANN. §§ 6-1-101 to 6-1-115 (West 2009); Delaware, DEL.
CODE ANN. Tit. 6, §§ 2531 to 2536 (2009); Georgia, GA. CODE ANN. §§ 10-1-370 to 10-1-375
(2009); Hawaii, HAW. REV. STAT. §§ 481A-1 to 481A-5 (2009); Illinois, ILL. COMP. STAT.
ANN. Ch. 815, 510/1 to 510/7 (2009); Indiana, IND. CODE § 24-5-0.5-1 et seq.; Maine, ME. REV.
STAT. ANN. Tit. 10, §§ 1211 to 1216 (West 2009); Minnesota, MINN. STAT. ANN. § 325D.43 to
.48 (West 2009); Nebraska, NEB. REV. STAT. §§ 87-301 to 87-306 (2009); New Mexico, N.M.
STAT. ANN. §§ 57-12-1 to 57-12-22 (Michie 2009); New York, N.Y. GEN. BUS. Law § 349
(McKinney 2009); Ohio, OHIO REV. CODE ANN. §§ 4165.01 to 4165.04 (Baldwin 2009); and
HealthSmart’s Mark has caused and is likely to cause substantial injury to the public and to
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HealthSmart. HealthSmart, therefore, is entitled to injunctive relief and to recover damages and,
preceding paragraphs.
112. Defendants’ acts constitute common law trademark infringement and unfair
competition, and have created and will continue to create, unless restrained by this Court, a
HealthSmart’s use of, and statutory and common law rights to, HealthSmart’s Mark and
without regard to the likelihood of confusion of the public created by Defendants’ activities.
trade on the goodwill associated with HealthSmart’s Mark to the great and irreparable injury of
HealthSmart.
115. As a result of Defendants’ acts, HealthSmart has been damaged in an amount not
relief, to an accounting of Defendants’ profits, damages, and costs. Further, in light of the
deliberate and malicious use of a confusingly similar imitation of HealthSmart’s Mark, and the
need to deter Defendants from engaging in similar conduct in the future, HealthSmart
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preceding paragraphs.
117. HealthSmart has extensively and continuously promoted and used the Mark
throughout the United States, and the Mark became a distinctive and well-known symbol of
HealthSmart’s services well before Defendants began using the Infringing Goods or offering the
HealthSmart’s Mark by eroding the public’s exclusive identification of the Mark with
HealthSmart, tarnishing and degrading the positive associations and prestigious connotations
of the Mark, and otherwise lessening the capacity of the Mark to identify and distinguish
HealthSmart’s goods.
119. Defendants are causing and will continue to cause irreparable injury to
HealthSmart’s goodwill and business reputation and dilution of the distinctiveness and value of
HealthSmart’s well-known and distinctive mark in violation of several state anti-dilution laws,
including Alabama, ALA. CODE § 8-12-17 (2009); Alaska, ALASKA STAT. § 45.50.180 (Michie
2009); Arizona, ARIZ. REV. STAT. ANN. § 44-1448.01 (West 2009); Arkansas, ARK. CODE
ANN. § 4-71-213 (2009); California, CAL. BUS. & PROF. CODE § 14247 (West 2009);
Connecticut, CONN. GEN. STAT. ANN § 35-11iI (West 2009); Delaware, DEL. CODE ANN. Tit.
6, § 3313 (2009); Florida, FLA. STAT. ANN. § 495.151 (West 2007); Georgia, GA. CODE ANN. §
10-1-451 (2009); Hawaii, HAW. REV. STAT. ANN. § 482-32 (Michie 2009); Idaho, IDAHO CODE
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§ 48-513 (Michie 2009); Illinois, 765 ILL. COMP. STAT. ANN. 1036/65 (2009); Iowa, IOWA
CODE ANN. § 548.113 (West 2009); Indiana, IN. CODE 24-2-13.5 (West 2009); Kansas, KAN.
STAT. ANN. § 81-214 (2009); Louisiana, LA. REV. STAT. ANN. § 51:223.1 (West 2009); Maine,
ME. REV. STAT. ANN. Tit. 10, § 1530 (West 2000); Massachusetts, MASS. GEN. LAWS. ANN.
Ch. 110H, § 13 (West 2009); Minnesota, MINN. STAT. ANN. § 333.285 (West 2009); Mississippi,
MISS. CODE. ANN. § 75-25-25 (2009); Missouri, MO. ANN. STAT. § 417.061(1) (West 2009);
Montana, MONT. CODE ANN. § 30-13-334 (2009); Nebraska, NEB. REV. STAT. ANN. § 87-140
(Michie 2009); Nevada, NEV. REV. STAT. 600.435 (2007); New Hampshire, N.H. REV. STAT.
ANN. § 350-A:12 (2009); New Jersey, N.J. STAT. ANN. 56:3-13.20 (West 2009); New Mexico,
N.M. STAT. ANN. § 57-3B-15 (Michie 2009); New York, N.Y. GEN. BUS. Law § 360-l (2009);
Oregon anti-dilution statute, O.R.S. § 647.107 (2009); Pennsylvania, 54 PA. CONS. STAT. ANN.
§ 1124 (West 2009); Rhode Island, R.I. GEN. LAWS § 6-2-12 (2009); South Carolina, S. C. CODE
ANN. § 39-15-1165 (2009); Tennessee, TENN. CODE ANN. § 47-25-513 (2009); Texas, TEX. BUS.
& COM. CODE ANN. § 16.29 (Vernon 2009); Utah, UT. CODE ANN. § 70-3a-403 (2009);
Washington, WASH. REV. CODE ANN. § 19.77.160 (West 2009); West Virginia, W.V. STAT.
ANN. 47-2-13 (Michie 2009); and Wyoming, WYO. STAT. ANN. § 40-1-115 (Michie 2009).
120. HealthSmart, therefore, is entitled to injunctive relief, damages, and costs, as well
as, if appropriate, enhanced damages, punitive damages, and reasonable attorneys’ fees.
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assigns, attorneys, and all other persons acting for, with, by, through or under authority from
Defendants, or in concert or participation with Defendants, and each of them, be enjoined from:
Goods;
(c) using the Mark or any other copy, reproduction, colorable imitation, or
Goods;
(d) using any trademark, name, logo, design, or source designation of any kind
(e) using any trademark, name, logo, design, or source designation of any kind
(f) using any trademark, name, logo, design, or source designation of any kind
logos;
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(g) passing off, palming off, or assisting in passing off or palming off
(h) advertising, promoting, offering for sale, or selling the Infringing Goods or
selling and to recall all Infringing Goods, or any other goods bearing the Mark or any other a
been organized or promoted by Defendants or under its authority, to any customer, including,
but not limited to, any wholesaler, distributor, retailer, consignor, or marketer, and also to
deliver to each such store or customer a copy of this Court’s order as it relates to said injunctive
materials in the possession, custody, or under the control of Defendants that are found to adopt,
infringe, or dilute any of HealthSmart’s trademarks or that otherwise unfairly compete with
5. HealthSmart be awarded all damages caused by the acts forming the basis of this
Complaint;
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imitation of HealthSmart’s Mark, the damages awarded be trebled and the award of
attorneys’ fees incurred by HealthSmart in this action pursuant to 15 U.S.C. § 1117(a) and the
HealthSmart’s Mark, and to deter such conduct in the future, HealthSmart be awarded punitive
damages;
10. HealthSmart be granted such other and further relief as the Court may deem just.
JURY DEMAND
HealthSmart respectfully demands a trial by jury on all claims and issues so triable.
Respectfully submitted,
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CERTIFICATE OF SERVICE
I hereby certify that on April 13, 2023, the foregoing document was filed electronically using
the Court’s electronic filing system (EFS). Notice of this filing will be sent to all parties by operation
of the Court’s EFS. Parties may access this filing through the Court’s system.
37