Thursday, December 23, 2010

False Marking Fine for Christmas Tree Stands Exceeds Selling Price for Certain Units

In calculating a false marking fine upon plaintiffs' motion for default judgment, the court applied a fine that was greater than the selling price of some falsely marked products (Christmas tree stands). "Defendant falsely marked 24,000 articles. The Court notes that the items manufactured vary materially in price from $30.27 per unit to $169.70. Because of this price variation, the Court determines that the $169.70 per unit price should be reduced by fifty percent (50%) and this price ($84.75) will be applied to the 20,400 units sold at prices of $30.27 or $67.70. The Court determines that applying the highest unit price of $84.75 for these substantially lower price units achieves the deterrent goal of § 292’s fine provisions. Using the 'highest point of the price range,' $169.50, for the 3,600 articles amounts to a total fine for these units of $610,200. Applying an $84.75 highest point of the price range to the remaining 20,400 articles amounts to a total fine for them of $1,728,900, for an aggregate fine of $2,339,100."

Polytree (Hong Kong) Co., Ltd., et. al. v. Forests Manufacturing, Ltd., 1-09-cv-03377 (GAND December 20, 2010, Order) (Duffey, J.)

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