Store Owner Slapped with Contempt
A NY store owner who delegated the day-to-day operation of his store to an independent contractor has been held in contempt and ordered to pay $330,000 in statutory damages plus attorney's fees after the plaintiff discovered that the store was selling counterfeits in violation of a preliminary injunction. The court had little difficulty holding the owner responsible for the counterfeiting activity of the store operator based on the fact he was the sole owner of the store and, therefore, had both a direct financial interest in the infringing activities and the authority to supervise the independent contractor--"he had the authority to fire or replace her, or even shut down the store, at least temporarily until compliance with the Court's prelimi nary injunction could be ensured." The September 27, 2006 decision in Yash Raj Films (USA) v. Bobby Music Co. is reported at 2006 U.S. Dist. LEXIS 69582.