STAR MARK MANAGEMENT, INC., A NEW YORK CORPORATION, GREAT MARK CORPORATION, A NEW YORK CORPORATION, JIMMY ZHAN, INDIVIDUALLY AND ON BEHALF OF STAR MARK MANAGEMENT, INC. AND GREAT MARK CORPORATION, AKA YI Q. ZHAN, Plaintiffs, LAW OFFICES OF BING LI, LLC, BING LI, Appellants-Cross-Appellees, —v.— KOON CHUN HING KEE SOY & SAUCE FACTORY, LTD., A COMPANY ORGANIZED UNDER THE LAWS OF HONG KONG, Defendant-Appellee-Cross-Appellant., 682 F.3d 170

Summary

Appellee sued appellant for trademark infringement. A district court granted appellee partial summary judgment for trademark and trade dress infringement; while the parties litigated willfulness and damages, appellant sought leave to amend to add a counterclaim for cancellation of appellee's mark as deceptive. Although a magistrate expressed skepticism about the proposed claims, appellant filed the instant suit. The district court dismissed the complaint and awarded sanctions. On appeal, the court found that the Rule 11(c)(2) safe harbor requirements had been met because appellee sent a letter with a copy of its notice for motion for sanctions attached, and after waiting the requisite 21 days, filed its sanction motion that included several of the grounds listed in the notice. In addition, the court summarily found that for frivolous suit sanctions were properly awarded, particularly as the magistrate had warned that filing such an amendment might lead to sanctions. In addition, the ...