Cooley secured another definitive victory for Emerson Radio Corporation, one of the largest-volume consumer electronics distributors, in a trademark litigation appeal by Emerson Quiet Kool and Home Easy. Partners Bobby Ghajar and Michael Tu led the Cooley team advising Emerson Radio, and they were joined by co-counsel Mark Anania, Karl Myers and Stacey Scrivani of Stevens & Lee.
The defendants challenged an April 2022 decision by the US District Court for the District of Delaware, where Judge Leonard Stark (now with the US Court of Appeals for the Federal Circuit) granted an eve-of-trial default judgment in favor of Cooley’s client, Emerson Radio. That order provided Emerson with $6.5 million, a permanent injunction, cancellation of the defendants’ registered trademark and transfer of several domain names to Emerson Radio.
On appeal, the appellants argued that the late-stage default was an unprecedented and extreme remedy, even though they ignored case deadlines and hired and fired counsel whenever something went wrong in the case. Represented by Troutman Pepper’s appellate group, the appellants also shifted blame to their former counsel, essentially arguing that the default was their fault.
The US Court of Appeals for the Third Circuit saw it differently. In the July 11 decision affirming the Delaware district court’s order, Circuit Judge Patty Shwartz concluded that “although defendants have a meritorious defense, the prejudice to Emerson and defendants’ culpable conduct warranted the entry of default judgment.”
The case is Emerson Radio Corporation v. Emerson Quiet Kool Co. Ltd. and Home Easy Ltd. (22-1809) in the US Court of Appeals for the Third Circuit.
The victory also earned the team a Litigator of the Week accolade in The American Lawyer’s Litigation Daily column.