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Recommend Western District Holds Trademark Infringement Defendant in Contempt (Email)

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My foreign LL.M. students are sometimes skeptical that parties listen to the court when it orders them to do something, or to stop doing something. That’s apparently not always the case around the world. But here, fortunately, parties obey court orders — or suffer the consequences.

The consequences have not yet come to pass in T-Mobile USA, Inc. v. Terry. But they will.

In April 2010, T-Mobile filed suit in the Western District against Sherman Terry, who T-Mobile claimed was selling unauthorized T-Mobile SIM cards and unlocked cell phones.

T-Mobile’s complaint specifically alleges that “Defendants are engaged in, and knowingly facilitate others to engage in, unlawful business practices involving the unauthorized and unlawful purchase and resale of T-Mobile Subscriber Identity Module (‘SIM’) cards and fraudulent activation of those SIM cards for use on T-Mobile’s FlexPay service, as well as the unauthorized and unlawful bulk purchase and resale of T-Mobile prepared wireless telephones, unauthorized and unlawful computer unlocking of T-Mobile Prepaid phones, alteration of proprietary software computer code installed in the Phones for T-Mobile, and trafficking of the Phones and SIM cards for profit.” T-Mobile alleges those acts amount to trademark infringement and false advertising, among other things.


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