Milkcrate Athletics v. Adidas 2021
Milkcrate Athletics v. Adidas 2021
Plaintiff, COMPLAINT
-against-
Kevon Glickman Law, LLC complaining of the above named Defendants ADIDAS NORTH
AMERICA, INC. and Victor Pitre (aka “Vic Lloyd”), and Corey Gilke (hereinafter
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Kids” label. So cool that major apparel companies including Vans, New Balance,
and Beats by Dre have corroborated with Milkcrate, while others such as Adidas,
Under Armour, and The Brooklyn Nets have attempted to co-opt Milkcrate’s iconic
name and image to give their goods the “cool kids” sizzle/cache.
2. Adidas clearly values and covets Milkcrate and evidently thinks Milkcrate is so
Milkcrate’s name and logo and treating whatever attendant potential fall-out and/or
3. In 2019, Milkcrate and Adidas reached an amicable settlement in the lawsuit captioned
Milkcrate Athletics Inc. v. Adidas North America Inc., S.D.N.Y., No. 19-7513.
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4. Two years later and it’s Déjà vu. Despite the previous out of court settlement,
Adidas did it again. This time, through the release of not one (1), not two (2), but
Adidas Sales Description: “Basketball and music have a shared origin in the milkcrate.
Designed by Vic Lloyd, these adidas Superstar shoes represent the spirit of the crate diggers
and DJs that call Chicago home.”
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5. This is an action at law and in equity for copyright and trademark infringement and
false designation of origin arising under 17 U.S.C. §§ 501 et seq., the Trademark Act
of 1946, 15 U.S.C. §§ 1051 et seq. (1994) ("Lanham Act") and for the related claims
unfair competition under the statutory and common law of New York. Plaintiff seeks
injunctive relief to prevent Defendants from using Plaintiff’s name and registered
trademarks and copyrights in any way and to prevent Defendants from profiting from
Plaintiff’s goodwill and further seeks compensatory, treble, and punitive damages and
6. Defendants have long been aware of Plaintiff’s rights to the registered trademarks and
literally treading on the goodwill associated with the Plaintiff and its business.
7. Defendants are offering for sale and selling sneakers, which bear and are advertised
and sold using confusingly similar and identical imitations of Plaintiff’s trademarks
and copyrights.
8. Defendants’ sneakers are not manufactured by Plaintiff, nor are Defendants connected
which is causing confusion and deceiving consumers and the public regarding its
9. Adidas is well aware of the Plaintiff, LaCrate, and the Milkcrate brand due to
previous dealings including being sued in federal court in New York City by
Milkcrate over Adidas’ unauthorized use of the Milkcrate name and logo.
10. Furthermore, upon information and belief, co-defendants’ and partners Vic Lloyd
(“Lloyd”) and Corey Gilke (“Gilke) were wholesale buyers of the Milkcrate brand for
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over ten years; purchasing for re-sale Milkcrate’s clothing and accessories for their
11. Both men, Lloyd and Gilke have full knowledge of Milkcrates brand and copyrights
and trademarks.
Milkcrate’s copyright and trademark through the sales of sneakers bearing the
Milkcrate logo even going so far as to threaten LaCrate with violence after LaCrate
13. Defendant Adidas is guiding Lloyd and Gilke and using the size and strength of its
company to financially back and use its market dominance to take advantage of a
14. Adidas desires to control and dominate the youth and streetwear market and is
arrogantly acting as if this blatant infringement is simply a cost of doing business and
is exploiting the Plaintiff’s work without providing proper credit nor compensation
15. This Court has jurisdiction over the subject matter of this action pursuant to 15 U.S.C.
§ 1121 and 28 U.S.C. §§ 1331, 1338(a), 1338(b), and pursuant to the principles of
16. Additionally, pursuant to 28 U.S.C. §1332, this Court has subject-matter jurisdiction
due to the parties being citizens of different states and the amount in controversy
17. Venue is proper in this district pursuant to 28 U.S.C. §§ 1391(b) and (c) in that a
substantial part of the events and damages giving rise to the claim occurred in this
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district and the Defendants contacts are sufficient to be subject to personal jurisdiction
in this district as Defendants regularly transact business within the State, the
State in the ordinary course of trade, and the Defendants are causing substantial
confusion and deception among consumers in New York resulting in irreparable injury
18. For those Defendants primarily based outside of New York, given their willful and
knowing exploitation of the infringing work in New York and their numerous and
continuing business dealings in New York, each could reasonably anticipate being
PARTIES
19. At all relevant times herein, Plaintiff Milkcrate Athletics, Inc. has been and remains a
domestic corporation organized and existing under the laws of the State of New York,
20. Upon information and belief, at all relevant times herein, Defendant Adidas North
America, Inc. has been and remains an Oregon corporation organized and existing
under the laws of the State of Oregon, with a principal place of business at 5055
North Greeley Avenue, Portland, Oregon 97217. Adidas regularly conducts business
21. Upon information and belief, at all relevant times herein, Defendant Vic Lloyd has
been a clothes and accessory buyer in the city of Chicago, first working for the famous
store “Leaders” in Chicago, where Lloyd bought Milkcrate products from LaCrate for
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22. Upon information and belief, Lloyd now owns and operates his own store called “ Fat
Tiger Workshop”. Fat Tiger Workshop is a street-wear retail destination and creative
hub, with a principal place of business at 836 N. Milwaukee Ave, Chicago, Illinois
60642.
23. Upon information and belief, at all relevant times herein, Defendant Corey Gilke is the
owner of the Leaders store, stocking men’s streetwear, with a principal place of
24. Plaintiff Milkcrate Athletics, is a long established, trend-setting streetwear and youth
sportswear apparel company that has successfully positioned itself in the market of
25. Since 1996, Plaintiff has designed, manufactured, marketed and sold, its street-wear,
sportswear and other lifestyle apparel (including but not limited to shirts and hats)
26. Since March 2006, Plaintiff has also utilized the trademark MILKCRATE for athletic
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which are incontestable and which Milkcrate uses exclusively and continuously to
a. the federal trademark registration for the word mark MILKCRATE, Reg. No.
4,768,355, issued by the United States Patent and Trademark Office (“PTO”)
shirts,
for "clothing,
Reg. No. 2, 573,353 in class 25 for “clothing, namely t-shirts, sweatshirts, hats,
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Reg. No. 2,717,445, in class 25 for “clothing namely t-shirt, sweatshirts, hats,
e. the federal trademark registration for the mark MILKCRATE Reg. No. 3,608,409,
issued by the PTO on April 21, 2009, for “basketball sneakers”; and
f. the federal registration for the mark and design “Milkcrate Athletics
shirts.” The design part of the mark prominently features the depiction of a
28. Plaintiff has continuously and exclusively used its Milkcrate Trademarks in commerce
in conjunction with the sail of clothing and accessories continually since 1996 (25
basketball community, fashion industry, punditsof hip hop (rap) music, and to mass
consumers in general.
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29. Additionally, since the inception of the Milkcrate brand of products, Plaintiff has
invested substantial time, money, resources and hard work to ensure that Plaintiff
offers high quality goods to customers and as such Milkcrate has established
substantial goodwill in New York, throughout the United States, Europe, Asia and
30. Through hard work and significant investment into the quality of its goods, the
Plaintiff’s Milkcrate products have garnered the attention of media outlets and retail
stores around the world, and its goodwill and reputation have led to branding
partnerships with high end specialty brands such as (see below), Vans sneakers, New
Balance sneakers, Beats by Dre (headphones and audio equipment), and HBO’s “The
Wire” (media).
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31. Through Plaintiff’s continuous and exclusive use of the Milkcrate trademarks and
logo and holds the exclusive right to use the design in interstate commerce in
MILKCRATE’S COPYRIGHTS
32. Plaintiff is the copyright owner of the following Milkcrate Athletics logos:
VAu 406-783
VAu 407-224
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33. These copyright registrations provide Milkcrate with the exclusive rights to print,
display, distribute, and perform the work. Additionally, Plaintiff has the exclusive rights
34. Use of this original work on products in an identical manner that are not associated with
Milkcrate Athletics is a violation of the Plaintiff’s exclusive rights associated with the
copyright and Defendant’s use of this copyright on their own goods (3 types of sneakers
bearing the Milkcrate logo) without the permission of the Plaintiff is copyright
infringement.
MILKCRATE’S HISTORY
35. Aaron LaCanfora (“LaCrate”), owner and creator of Milkcrate Athletics, was born in
Baltimore, MD in 1975.
36. LaCrate, with the help of his father started the first skateboard shop in Baltimore City
in 1985 at the age of ten years old, where he sold skateboards, music mixtapes of his
own creation, and early hand-designed tee shirts which evolved into Milkcrate
Athletics. https://www.youtube.com/watch?v=J9tsYe7UjTo
37. Long before Pharrell Williams became the creative director for Adidas originals and
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Kanye West and Adidas created “Yeezy’s”, LaCrate received his first trademark for
Milkcrate Athletics.
Pharrell with partner from NERD wearing Kanye West and Aaron LaCrate
Milkcrate t-shirt. brainstorming.
Aaron LaCrate (wearing Milkcrate t-shirt) DJ’ing for Kanye West. https://vimeo.com/41124360
38. Since its inception and trademark registration, LaCrate and his brand have been sought
after by high profile rappers, musicians, and taste-makers as one of the most
authentic street fashion brands - blending the cultures of music and fashion into a
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https://vimeo.com/240326956
https://www.youtube.com/watch?v=6usWnVUbCXg
https://vimeo.com/88722944
https://www.youtube.com/watch?v=fgKZVTF1NM0
https://baltimore.cbslocal.com/2017/10/11/aaron-lacrate-exhibit/
https://www.vice.com/en/article/nevv5m/aaron-lacrates-lil-crizzle-tape-brings-
baltimore- and-the-dmv-together
https://www.wmar2news.com/news/region/baltimore- city/exhibition-to-explore-
highlandtown-s-history-with-skateboarding-and-graffiti- culture
39. In 1999, Milkcrate Athletics began sponsoring numerous music shows and concerts
for the most popular rap artists in the world, including but not limited to:
Eminem
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Outkast
All of whom have worn and endorsed Milkcrate’s distinct trademarked clothing.
These events and pairings have been covered and featured in the most influential
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40. Milkcrate Athletics has produced, styled, designed, remixed, and collaborated with
such other world-renowned artists and creators, including Jay Z, Blur, Gorillaz,
Madonna, Mark Ronson, Bun B, Mobb Deep, Lily Allen, Lana Del Rey and Kanye
West.
https://www.youtube.com/watch?v=Fl8v0blfI0E
http://www.mtv.com/news/1662714/jim-jones-everybody-jones/
https://www.interscope.com/music/miles-away-remixes/miles-away-aaron-lacrate-
samir-b-more-gutter-remix
https://www.youtube.com/watch?v=S37YR1rpFjM
https://www.thefader.com/2016/03/21/tate-kobang-aaron-lacrate-aint-a-damn-thing-
change
https://www.clashmusic.com/features/clash-dj-mix-aaron-lacrate)
41. These collaborations with some of the most popular names in music and pop-culture
have helped establish LaCrate into a well-known DJ, producer, remixer, promoter,
designer, distinguished owner of the Milkcrate Athletics brand, and most importantly
friend and confidant to music stars and fashion tastemakers. Through these
collaborations, LaCrate has pushed Milkcrate into a respected brand among those
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42. Certain partnerships such as the relationship with the rapper, “Schoolboy Q” has led to
Milkcrate clothing being featured in magazines and music videos that have over 1
billion views of the Milkcrate trademarked logo. The popularity of collaborations such
as this one, lead to the featured products being highly desired by the “Cool Kids.”
https://www.youtube.com/watch?v=_L2vJEb6lVE
https://www.youtube.com/watch?v=rEMsjeq43_U
https://www.youtube.com/watch?v=8zo9VTJUVWc
https://www.youtube.com/watch?v=KnnYiW5dnhQ)
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43. Furthermore, the Milkcrate brand continues to be featured by some of the world’s
biggest stars. Billie Eilish, one of the most popular American singers today, posted a
magazine cover photo to her Instagram sporting the Milkcrate Athletics bucket hat.
The Instagram photo, posted in 2018, generated over 1 million likes. Other superstars
have been pictured wearing and supporting the Milkcrate brand over the years,
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Jay-Z wearing Milkcrate’s King of New York t-shirt in his film “Fade to Black”.
Damon Albarn & Blurr. Paul McCartney & Damon Albarn at British
Awards.
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44. Because Milkcrate Athletics has been and remains the clothing of choice for so many
popular contemporary artists, the trademarked and copyrighted Milkcrate logo and
45. Upon information and belief, LaCrate sold merchandise and apparel to Defendants Vic
Lloyd and Corey Gilke for resale at the Chicago store Leaders. Defendants sold these
clothes in Leaders for a period of over ten years. There is an abundance of email
at LaCrate.
46. After purchasing clothing and apparel from LaCrate for over a period of ten years,
Vic Lloyd now owns and operates his own store “Fat Tigers Workshop” in Chicago,
Illinois and began to use LaCrate’s Milkcrate design on his own t-shirts and sold them
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47. The above design on Lloyd’s shirt is basically a rip off of Milkcrate’s designs that are
copyrighted and trademarked like the Milkcrate logo that is featured on all of
48. Most importantly, Vic Lloyd and Adidas’ most senior management conspired to
create three (3) new sneakers using LaCrate’s identical Milkcrate design on the
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Sneaker #1: Vic Lloyd x adidas Sneaker #2: Vic Lloyd x adidas Sneaker #3: Vic Lloyd x adidas
Superstar Forum Low “Chicago Works Forum Low
Harder”
unique presence in the world of fashion, music, and athletics for over 25 successive
50. This is not the first time this has occurred between Adidas and LaCrate. In fact,
Milkcrate has previously sued Adidas and reached an out of court settlement. A 2019
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lawsuit against Adidas filed by Milkcrate accused the company of infringing upon
LaCrate’s trademark by creating a Brooklyn Nets T-shirt that contained the Milkcrate
logo. This new situation involving the Adidas sneakers is analogous to the actions that
51. In early 2020, (i) Adidas collaborated with Vic Lloyd for the creation of the first
“basketball and music have a shared origin in the milkcrate. Designed by Vic Lloyd,
these adidas Superstar shoes represent the spirit of the crate diggers and DJs that call
Chicago home.”
https://www.adidas.com/us/chicago-plays-harder--chicago-works-harder-
superstar-shoes/FX3464.html
52. On October 24, 2020 (ii) Adidas and Vic Lloyd released a second collaborated
sneaker, the “Chicago Works Harder” Forum Low. This sneaker built upon the
previous release and once again contained the Milkcrate logo on the tongue of the
shoe.
53. As recently as July 1, 2021 (iii) Adidas and Vic Lloyd have collaborated for a third
time for another “Chicago Works Harder” sneaker. This sneaker released on July 3 rd
2021, once again contains the Plaintiffs mark on the tongue of the shoe.
The Adidas press release: “Vic Lloyd dedicates his kicks to his first loves, music and
basketball. A close up shot at the tongue tags shows two logos, each featuring a milk
crate…”
https://sneakerbardetroit.com/vic-lloyd-adidas-forum-low-fx3466-release-date/
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Through this statement, Adidas makes it evident that the design included on these
forum-low-fx3466-release-date
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54. This is a clear case of trademark and copyright infringement by the Defendants in this
situation. Both Adidas and Vic Lloyd are well aware of Aaron LaCrate and his
collaborated with each other and willfully ripped off Plaintiff’s design.
ADIDAS MANAGEMENT
55. Adidas Management has actively been involved in attempting to rip-off LaCrate for
the company’s own benefit. Senior Management has overseen the previous blatant
disregard for LaCrate’s trademarks and copyrights through the use of his logo on their
56. This infringement occurred after LaCrate approached Adidas executives about a
potential collaboration. Adidas management took the ideas that LaCrate had discussed
57. Once again, Adidas is disregarding the rights associated to the Plaintiff by using the
Milkcrate logo on sneakers. Prior to the first infringement suit, LaCrate had actively
corresponded with Adidas senior executives Brian Foresta and Jon Wxler.
58. The following Adidas executives are either aware of or have had direct dealings with
the Plaintiff: Marc Dolce, Denis Dekovic, and Marc Miner. These people in charge of
designing at Adidas are familiar with LaCrate because they were the designers at
Adidas in charge during LaCrate’s previous lawsuit. These men are responsible for the
“urban footwear design studio” at Adidas and therefore obviously know about LaCrate
59. Adidas is following in the footsteps of their past and again developing products that
rip-off Plaintiff’s mark. This time, Adidas conspired with Vic Lloyd and Corey Gilke
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60. In order to prevail on a trademark infringement claim under the Lanham Act, a plaintiff
must demonstrate (1) that it has a valid mark entitled to protection and (2) the
defendant’s use of it is likely to cause confusion. Chloe v. Queen Bee of Beverly Hills,
LLC, No. 06-CV-3140 (RJH), 2011 WL 3678802 at 3, (S.D.N.Y. Aug. 19, 2011.)
61. Defendants sneakers are causing confusion with the Milkcrate brand. An eight-factor
test set out in Polaroid Corp v. Polard Elecs. Corp. 287 F.2d 492, 495 (2d Cir. 1961)
is used in order to evaluate the likelihood of consumer confusion. (1) The strength of
the mark; (2) the similarity of the marks; (3) the competitive proximity of the products;
(4) the likelihood that the senior user will “bridge the gap”; (5) evidence of actual
confusion; (6) the junior user’s bad faith in adopting the mark; (7) the respective quality
of the products; and (8) the sophistication of the consumers in the relevant market.
62. The first factor to consider is the strength of the mark. A mark’s “strength” is“crucial
with the claimed mark “makes it much more likely that consumers will assume wrongly
that (the plaintiff) is somehow associated with (the defendant’s product) or has
authorized the use of its mark. Lois Sportswear, U.S.A., Inc. v. Levi Strauss & Co., 799
F.2d 867, 873 (2d Cir. 1986). This strength depends on the mark’s “inherent
distinctiveness” and its “acquired distinctiveness.” Virgin Enters. Ltd. v. Nawab 335
F.3d141, 147 (2n Cir. 2003). There are four categories of marks for purposes of inherent
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Abercrombie & Fitch Co v. Hunting World, Inc. 537 F.2d 4, 9 (2d Cir. 1976). An
Management, Inc. v.Lane Capital Management, Inc. 192 F.2d 337, 344 (2d Cir. 1999).
Arbitrary and fanciful marks are considered inherently distinctive and are
streetwear, pop-culture, and basketball. Its name has led to a common meaning for the
“cool kids” and thus, the term Milkcrate is inherently distinctive. Both Adidas and
63. The second factor to analyze is the similarity of the marks. “In determining the
appearanceof each mark in the context of its use.” Jim Bean Brands Co v. Beamish &
Crawford Ltd., 937 F.2d 729, 735 (2d Cir. 1991). The court does not consider the marks
considering the context in which the marks are displayed and the totality of factors that
Factory Wearhouse Corp., 426 F.3d 532, 537 (2d Cir. 2005). As detailed above, the
Milkcrate design that Defendant uses on its apparel are identical to the Plaintiff’s mark.
The use of the Milkcrate design on the tongue of the shoe is indistinguishable to
Plaintiff’s design on the tags of Milkcrate sneakers. Taken the use of the mark into
context, it is clear that there is an identical mark that causes a likelihood of confusion
among consumers.
64. The third factor is the competitive proximity of the two products. The competitive
proximity factor “concerns whether and to what extent two products compete with
each other.” Cadbury Beverages, Inc. v. Cott Corp., 73 F.3d 474, 480 (2d Cir. 1996).
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In order to assess such competition, courts evaluate “the nature of the products
themselves and the structure of the relevant market,” by considering the channels
through which goods are sold. Id. Both Plaintiff and Defendant sell clothing, apparel,
and footwear, which weighs in favor of market proximity. Both the Plaintiff and
Defendant sell apparel online and in retail stores and collaborate with other
companies. These identical channels of trade make it impossible for a consumer who
65. The fourth factor to analyze is the likelihood that the senior user will “bridge the gap.”
This term is used to describe the senior user’s interest in preserving avenues of
expansion and entering into related fields.” C.L.A.S.S. Promotions, Inc v. D.S.
Magazines,Inc. 753 F.2d 14, 18 (2d Cir. 1985). This requires evaluating the
“likelihood that the prior owner will bridge the gap.” Guthrie Healthcare Sys. V.
ContextMedia, Inc., 826 F.3d 27, 45 (2d Cir. 2016). Plaintiff’s products have gained
popularity among the “Cool Kids” for a period of over two decades. Previous
collaborations with national brands such as New Balance, Beats by Dre, and Vans
indicate that the Milkcrate design is sold on a national platform competing with
products associated with Adidas. Plaintiff’s use of the mark in commerce first
indicates they are the senior user in this situation. Plaintiff therefore has the right to
66. A fifth factor to consider is actual confusion. Plaintiff has received multiple inquiries
67. The sixth factor is the junior user’s bad faith in adopting the mark. The “bad faith”
inquiry looks to whether the defendant adopted its mark with the intention of
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capitalizing on plaintiff’s reputation and goodwill and any confusion between his and
the senior user’s product.” Lang v. Retirement Living Pub. Co., Inc., 949 F.2d 576,
583 (2d Cir. 1981). There is obvious evidence of bad faith by the Defendants in this
situation. Both Lloyd and Gilke were long-term wholesale buyers of Milkcrate
accessories and now Adidas and Lloyd/Gilke are willfully using the Milkcrate mark
on their sneakers, despite full knowledge that Plaintiff owned registered trademarks
68. The seventh factor to consider is the quality of the products. The quality of an
allegedly infringing product is relevant in two ways. If the junior user’s product is of a
equal quality, this factor will go more to the likelihood of confusion. Savin Corp v.
Savin Grp., 391 F.3d 439, 461 (2d Cir. 2004). Plaintiff has produced high-quality
products that have gained the attention of national brands. These national brands have
developed collaborations with the Plaintiff in order to use the Milkcrate logo on their
products. As such, products that feature the Milkcrate logo, whether produced by
Plaintiff himself or through these collaborations with national brands, are considered
to be high value products to the consumers. Adidas is also known for making high-
quality apparel such as clothing and sneakers. A sneaker that bears the Milkcrate logo
on an Adidas product will most definitely lead consumers to believe that Milkcrate
69. Finally, the eighth factor considers the sophistication of the relevant consumers. This
factor looks to the “general impression of the ordinary purchaser, buying under the
normally prevalent conditions of the market and giving the attention such purchasers
usually give in buying that class of goods. Star Industries, Inc. v. Bacardi & Co Ltd.,
412F.3d 373, 412 (2d Cir. 2005). As a general rule, “the more sophisticated the
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purchaser, the less likely he or she will be confused by the presence of similar marks
in the marketplace. Savin, 391 F.3d at 461. Sneakers and other apparel on the Adidas
website are very similar in price to products sold on the Milkcrate Athletics webpage.
They address certain consumers with identical preferences and interest. It would
therefore be difficult for a customer not to be confused when they see the copyrighted
70. Having considered the eight Polaroid factors, it is clear that Plaintiff has demonstrated
a high likelihood of confusion. The Defendants’ actions have been, and unless
enjoined will continue to be, in violation of federal and state law governing trademark
infringement and unfair competition and are causing irreparable harm to Plaintiff,
including blurring and tarnishing of its trademarks, loss of control over its reputation
COUNT I
TRADEMARK INFRINGEMENT IN VIOLATION OF 15 U.S.C. §1114
71. Plaintiff repeats and incorporates by reference the allegations in paragraphs 1 through
72. Plaintiff has continuously used its registered Milkcrate Trademarks in connection with
and to identify its apparel and to distinguish said products from similar products
offered by other companies, by prominently displaying said marks on its goods since
1996.
73. Defendant has infringed Plaintiff’s mark in interstate commerce by various acts,such
as the selling, offering for sale, promoting and advertising of products, namely the
Infringing Apparel using the terms “Milkcrate” and milkcrate designs. The
aforementioned names and designs as used by Defendants are extremely similar, if not
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74. Additionally Defendants were selling the same goods offered for sale and sold by
Plaintiff.
75. Defendant’s use of “Milkcrate” and the milkcrate designs in connection with apparel
and clothing is without permission or authority of the Plaintiff and said use is likely to
76. Upon information and belief, Defendants’ use of “Milkcrate” and the milkcrate design
in connection with apparel has been made notwithstanding Plaintiff’s well-known and
prior established rights in the registered Milkcrate Trademarks and with both actual
1072.
77. Upon information and belief, the aforesaid use constitutes willful and unlawful
78. Upon information and belief, Defendants’ infringing activities have caused and, unless
enjoined by this Court, will continue to cause, irreparable injury and other damage to
Plaintiff’s business, reputation and good will in its federally registered Milkcrate
79. Defendants have caused and is likely to continue causing substantial injury to the
public and to Plaintiff, and Plaintiff is entitled to injunctive relief and to recover
Defendants’ profits, actual damages, enhanced profits and damages, costs, and
COUNT II
FALSE DESIGNATION OF ORIGIN IN VIOLATION OF 15 U.S.C. §1125(a)
80. Plaintiff repeats and incorporates by reference the allegations in paragraphs 1 through
79.
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81. Plaintiff has exclusively used the Milkcrate Trademarks for over twenty-five (25)
years and has established ownership in the Milkcrate Trademarks and the exclusive
82. Defendants’ use of the name “Milkcrate” and milkcrate designs in connection with
clothing and apparel constitutes a false designation of origin and a false or misleading
confusion and mistake, and is likely to deceive as to the affiliation, connection and/or
that the Defendants’ products, specifically the Infringing Apparel, are sponsored,
83. By reason of the foregoing, the trade and public are likely to be and will continueto be
confused, misled, or deceived, and Plaintiff has, is now, and will continue to suffer
irreparable injury to its goodwill and reputation for which it has no adequate remedy at
law.
84. Upon information and belief, Defendants have intentionally and knowingly adopted
and used a name, mark, or false designation of origin likely to cause confusion in the
marketplace as to the source, origin, or sponsorship of the goods offered for sale and
85. By virtue of the foregoing, Defendants’ acts are in violation of Section 43(a) of the
86. Defendants’ acts are causing and continue to cause Plaintiff irreparable harm in the
nature of loss of control over its reputation and loss of substantial consumer goodwill.
The irreparable harm to the Plaintiff will continue, without any adequate remedy at
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law, unless and until Defendants’ unlawful conduct is enjoined by this Court.
87. Upon information and belief, Defendants are using the marks “Milkcrate” and the
milkcrate design in connection with the sale and advertising of the Infringing Apparel
willfully and with knowledge that said names, and symbols are false, misleading, and
88. Defendants’ conduct has caused, and is likely to continue causing, substantial injury to
the public and to Plaintiff, and Plaintiff is entitled to injunctive relief and to recover
Defendant's profits, actual damages, enhanced profits and damages, costs, and
COUNT III
NEW YORK COMMON LAW TRADEMARK INFRINGEMENT
89. Plaintiff repeats and re-alleges each of the allegations set forth in paragraphs 1 through
90. Plaintiff has been using the Milkcrate Trademarks since 1996, and some since 2006,
both in New York State and internationally to identify and signify it as the source of
91. Through Plaintiff’s extensive and continuous use and publicity the Milkcrate
Trademarks have become well-known in New York state and beyond and have earned
tremendous goodwill among New Yorkers and among individuals located around the
world.
92. Defendants’ use of the Milkcrate Trademarks, without the authorization or consent of
Plaintiff, in connection with its Infringing Apparel, constitutes a use in commerce that
is likely to cause confusion and mistake and to deceive consumers as to the source or
origin of the Plaintiff’s goods such that consumers may believe that Defendants’
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goods are sponsored by, endorsed by, approved by, licensed by, authorized by, or
93. By virtue of the foregoing, Defendants have infringed and continue to infringe upon
94. Upon information and belief, Defendants have intentionally and knowingly adopted
and used a name, mark, or false designation of origin likely to cause confusion in the
Defendants.
95. Defendants’ acts are causing and continue to cause Plaintiff harm in the nature of lost
sales.
96. Defendants’ acts are causing and continue to cause Plaintiff irreparable harm in the
nature of loss of control over its reputation and loss of substantial consumer goodwill.
The irreparable harm to the Plaintiff will continue, without any adequate remedy at
law, unless and until Defendants’ unlawful conduct is enjoined by this Court.
COUNT IV
VIOLATION OF NEW YORK GENERAL BUSINESS LAW § 360-1
97. Plaintiff repeats and re-alleges each of the allegations set forth in paragraphs 1 through
98. Defendants’ use of “Milkcrate” and milkcrate designs, despite Plaintiff’s exclusive use
and rights in the distinctive Milkcrate Trademarks have injured and will continue to
injure Plaintiff’s business reputation and have diluted and tarnished and will continue
Trademarks and its goods or otherwise lessening the capacity of Plaintiff’s Milkcrate
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Trademarks to exclusively identify Plaintiff and its goods and/or by tarnishing the
99. Defendants’ actions are in violation of New York General Business Law section 360-1
and are causing and continue to cause Plaintiff irreparable harm in the nature of loss of
control over its reputation and loss of substantial consumer goodwill. This irreparable
harm to Plaintiff will continue, without any adequate remedy at law, unless and until
COUNT V
DECEPTIVE ACTS AND PRACTICES UNDER NEW YORK
GENERAL BUSINESS LAW § 349
100. Plaintiff repeats and re-alleges each of the allegations set forth in paragraphs 1 through
101. Defendant’s use of the “Milkcrate” name and milkcrate designs constitutes an
unlawful and deceptive act and practice in connection with advertising, promotion,
102. Defendants’ acts, misbranding its goods and misleading consumers, have resulted in
and will continue to cause confusion and deception of the public in violation of New
103. Defendants’ wrongful conduct has caused and will continue to cause irreparable harm
and injury to Plaintiff. This irreparable harm will continue, without any adequate
remedy at law, unless and until Defendants’ unlawful conduct is enjoined by this
Court.
104. Upon information and belief, Defendants’ deceptive trade practices are willful,
determined at trial, as well as an award of attorneys fees’ under New York General
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COUNT VI
COMMON LAW UNFAIR COMPETITION
105. Plaintiff repeats and re-alleges each of the allegations set forth in paragraphs 1 through
106. Defendants’ use of “Milkcrate” and milkcrate designs as a source identifier and
goods is likely to cause confusion and mistake and to deceive consumers as to the
Plaintiff’s goodwill and reputation in violation of the laws of the State of New York.
107. Upon information and belief, Defendants have adopted and used “Milkcrate” and the
milkcrate designs as a trade name and trademarks in bad faith with the intent to trade
off of Plaintiff’s goodwill. Defendants adopted and continued to use this name with
Despite this knowledge and the fact that Defendants could provide goods and services
under another name, it decided instead to misappropriate Plaintiff’s name and use it as
its own.
108. Defendants’ acts are causing and continue to cause Plaintiff irreparable harm in the
nature of loss of control over its reputation, and loss of substantial consumer goodwill.
This irreparable harm to Plaintiff will continue, without any adequate remedy at law,
COUNT VII
COPYRIGHT INFRINGEMENT – 17 U.S.C. . § 501, et seq.
109. Plaintiff repeats and realleges each and every allegation contained in paragraphs 1
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111. Defendants have neither requested permission nor compensated Plaintiff for the use
of Plaintiff’s copyrighted work, even though Defendants received money and other
112. Defendants’ reproduction, and distribution of the copyrighted Milkcrate logo and
their authorizing others to do the same, infringes Plaintiff’s exclusive rights under
113. Defendant’s conduct in infringing the Milkcrate copyrighted logos and designs is
114. As a direct and/or proximate cause of Defendants’ wrongful conduct, Plaintiffs have
been irreparably harmed, suffered (and continued to suffer) damages, and Defendants
COUNT VIII
INFRINGEMENT OF COPYRIGHT CLAIM FOR STATUTORY DAMAGES
115. Plaintiff repeats and realleges every allegation contained in paragraphs 1 through
logos and designs when they copied the logos and designs on their sneakers. Such
copying was wholly unauthorized. Defendants did not acquire any consent, authority,
approval, or license from Plaintiff as the owner of the copyrighted work. By virtue of
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copyright of the Milkcrate copyrighted logos and designs, Plaintiff has suffered
significant damages, which are continuing in nature and will likely continue in the
future.
COUNT IX
“REVERSE PASSING OFF” UNDER THE LANHAM ACT § 43(a), 15 U.S.C. § 1125(a)
119. Plaintiff repeats and realleges each and every allegation contained in paragraphs 1
120. The Defendants have appropriated and copied the original expression of the
121. As a result, members of the public have been deceived and/or confused into believing
that these sneakers are the independent creation of the Defendants. Plaintiff is
negatively impacts their ability to distribute, market, and otherwise avail themselves
to the Milkcrate copyrighted logos and designs and they are not able to further their
122. By engaging in the wrongful conduct described herein, Defendants have violated
Section 43(a) of the Lanham Act, 15 U.S.C. § 1125 (a) for Reverse Passing Off.
Defendants have engaged in the conduct described herein with fraudulent intent and
with actual knowledge of the harm being caused to Plaintiffs by such wrongful
conducts/acts; as such, this exceptional case merits an ward of treble damages and
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123. Defendants’ aggregate acts and conduct have caused, and will continue to cause, the
measured in damages. Plaintiffs have no adequate remedy at law and will suffer
immediate and irreparable loss, damage, and injury unless the Defendants are
COUNT X
UNJUST ENRICHMENT
124. Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1
125. By reason of the foregoing acts, Defendants have become unjustly enriched at the
expense of Plaintiffs by failing to license the right to use the Milkcrate copyrighted
logos and designs and by realized monetary gain from their unauthorized use of the
126. Defendants have been unjustly enriched in an amount which cannot be precisely
COUNT XI
DEMAND OF ACCOUNTING
127. Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1
128. As demonstrated herein, Plaintiff has an economic interest in all of the money that is
generated from the distribution and any other exploitation of the Milkcrate
copyrighted logos and designs in that they are the copyright owner of the logos and
designs and have never granted Plaintiffs permission to use their copyrighted work.
Milkcrate logos and designs and any royalties which result from any such future
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exploitation.
129. Plaintiff is informed and believes that Defendants have generated an undetermined –
yet substantial – amount of money, due to the commercial success of the infringing
exploitation.
130. The amount of money/proceeds due from Defendants is unknown to Plaintiff and
proven at trial after an accounting has been conducted. Accordingly, Plaintiff hereby
requests that the Court order an accounting of all of the Defendant’s financial records
related to the infringing sneakers in order to determine the sums rightfully due to
COUNT XII
VICARIOUS COPYRIGHT INFRINGEMENT
132. Plaintiff repeats and realleges each and every allegation contained in paragraphs 1
133. The reproduction, distribution, and creation of derivative works from the Milkcrate
copyrighted logos and designs constitutes the direct infringement of the logos and
134. Upon information and belief, the Defendants derive a direct financial benefit from
135. Upon information and belief, Plaintiff has the right and ability to supervise the
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136. Defendants’ acts of infringement were willful, in disregard of, and with indifference
137. As a result of Defendants’ acts or omissions as set forth herein, Plaintiffs have
reputation, and the dilution of the value of their rights, none of which may be fully
ascertained at this time. The Defendants have also unlawfully profited from their
infringement, constituting actual damages not yet fully ascertainable but expected to
successors, assigns, attorneys, and all other persons acting for, with, by, through, or
similar to, or in any way similar to the trademarks, copyrights, service marks, names, or logos
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or source designation of any kind on or in connection with Defendants’ goods or services that is
likely to cause confusion, mistake, deception, or public misunderstanding that such goods or
services are produced or provided by Plaintiff, or are sponsored or authorized by or in any way
Defendants’ goods or services as those of Plaintiff, or otherwise continuing any and all acts of
and
service mark, trade name, internet domain name or any other source identifier or symbol of
origin, that is at all similar to any of the Milkcrate trademarks/copyrights, or any other mark or
bearing, sold or advertised using the name “Milkcrate” or a picture or drawing of a milkcrate
that is similar to the designs that are part of the Milkcrate trademarks/copyrights;
3. Defendants should be ordered to recall all of the Infringing Apparel and any
other products bearing any of the Milkcrate trademarks, copyrights, or any other confusingly
similar markor designation, which have been shipped by Defendants or under its authority, to
any customer including, but not limited to, any wholesaler, distributor, retailer, consignor, or
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marketer and also to deliver to each customer a copy of this Court's order as it relates to said
all goods including but not limited to apparel, bags, boxes, labels, tags, signs, packages,
the possession, custody, or under the control of Defendants that are found to adopt. To
5. That Defendants account to and pay Plaintiff for all of Defendants’ profits, gains
and sums arising from the acts of infringement and unfair competition alleged herein, including
that Plaintiff should be awarded all damages caused by the acts forming the basis of this
Complaint;
imitations of Plaintiff’s Milkcrate trademarks and copyrights, the damages award be trebled
and the award of Defendant's profits be enhanced as provided for by 15 U.S.C. § 1117(a), 17
7. Defendants should be required to pay to Plaintiff, the costs of this action and its
Milkcrate trademarks/copyrights, and to deter such conduct in the future, Plaintiff should be
9. Plaintiff has such other and further relief as this Court may deem just and
proper.
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