Sega Corporation, et al. v. The Partnerships, and Unincorporated Associations...

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 1:25-cv-24817- DPG SEGA CORPORATION, et al., Plaintiffs, v. THE PARTNERSHIPS, AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE A, Defendants. ______________________________/ PRELIMINARY INJUNCTION THIS CAUSE is before the Court upon Plaintiffs Sega Corporation and Sega of America, Inc.’s (“Plaintiffs” or “Sega”) Motion for Entry of a Preliminary Injunction (the “Motion”). [ECF No. 24]. On March 30, 2026, the Court entered the Temporary Restraining Order, [ECF No. 16], and set a hearing to determine whether a preliminary injunction should be issued, [ECF No. 20].

The Court conducted a duly noticed preliminary injunction hearing on April 14, 2026. The Court has carefully considered the record, including Plaintiffs’ evidence in support of a preliminary injunction and the argument of counsel. For the reasons stated on the record and set forth below, Plaintiffs’ Motion is GRANTED.

I. FACTUAL BACKGROUND The following factual background is taken from Sega’s Complaint [ECF No. 1], the Motion, supporting evidentiary submissions, and exhibits. Sega is the owner of various copyright registrations related to its Sonic the Hedgehog franchise (the “Sega Copyrighted Works”). See [ECF No. 10–2, Masterson Decl.]. Sega also owns federally registered trademarks, which are valid and registered on the Principal Register of the United States Patent and Trademark Office (the “Sega Trademarks”). Id. Defendants, through internet-based e-commerce stores operating under their seller aliases identified on Schedule A attached herewith (the “Seller Aliases”), have advertised, promoted, offered for sale, sold, or imported goods bearing and/or embodying what Sega has determined to be counterfeits, infringements, reproductions, or colorable imitations of the Sega Trademarks and/or unauthorized copies of the Sega Copyrighted Works. [ECF No. 1]. Sega alleges that it has not licensed or authorized Defendants to use any of the Sega Trademarks or Sega Copyrighted Works, and none of the Defendants are authorized retailers of genuine Sega Products. See [ECF No. 10-2, Masterson Decl.¶ 23].

Sega attests that it investigated the promotion and sale of infringing and counterfeit versions of its branded products by Defendants (the “Unauthorized Products”). See id. at ¶ 21.

Sega alleges that it analyzed each of the e-commerce stores operating under the Seller Aliases and determined that Unauthorized Products were being offered for sale to residents of the United States, including Florida. Id. In addition, each e-commerce store offered shipping to Florida. Id. Sega attests that it conducted a review and visually inspected the Unauthorized Products listed for sale on each Defendants’ e-commerce store and determined said products were non-genuine and unauthorized by Sega. Id. II. LEGAL STANDARD To obtain a preliminary injunction, a party must demonstrate “(1) [there is] a substantial likelihood of success on the merits; (2) that irreparable injury will be suffered if the relief is not granted; (3) that the threatened injury outweighs the harm the relief would inflict on the non-movant; and (4) that the entry of the relief would serve the public interest.” Schiavo ex. rel Schindler v. Schiavo, 403 F.3d 1223, 1225-26 (11th Cir. 2005).

III. DISCUSSION The declarations, Motion, and evidence Plaintiffs submitted, and the representations made during the Preliminary Injunction hearing support the following conclusions of law: 1. Sega has a strong probability of proving at trial that consumers are likely to be confused by Defendants’ advertisement, promotion, sale, offer for sale, and/or distribution of Unauthorized Products, and that Defendants’ Unauthorized Products use infringing and counterfeit versions of the Sega Trademarks and/or unauthorized copies of the Sega Copyrighted Works.

2. This Court has personal jurisdiction over Defendants because Defendants directly target their business activities toward consumers in the United States, including Florida. Specifically, Defendants have targeted sales to Florida residents by setting up and operating e-commerce stores that target United States consumers using the Seller Aliases, offer shipping to Florida, and/or have sold Unauthorized Products to residents of Florida.

3. Because of the infringement of the Sega Trademarks and/or Sega Copyrighted Works, Sega is likely to suffer immediate and irreparable injury if a preliminary injunction order is not granted. The following specific facts, as set forth in Sega’s Complaint, Sega’s Motion, and accompanying declarations, demonstrate that immediate and irreparable loss, damage, and injury will result to Sega and to consumers before Defendants can be heard in opposition unless Sega’s request for preliminary relief is granted: a. Defendants own, operate, and/or control fully interactive, e-commerce stores operating under the Seller Aliases which advertise, offer for sale, sell, and ship Unauthorized Products to customers in Florida that bear infringing and/or counterfeit versions of the Sega Trademarks and/or bear unauthorized copies of the Sega Copyrighted Works; and b. There is good cause to believe that more counterfeit and infringing products bearing the Sega Trademarks and/or unauthorized copies of the Sega Copyrighted Works will appear in the marketplace; that consumers are likely to be misled, confused, and disappointed by the quality of the Unauthorized Products; and that Sega may suffer loss of sales for its genuine products and an unnatural erosion of the legitimate marketplace in which it operates.

4. The potential harm to Defendants in restraining their trade in counterfeit and infringing goods through their e-commerce stores and freezing ill-gotten profits if a preliminary injunction order is granted is far outweighed by the irreparable harm Sega, its reputation, and its goodwill has suffered and will continue to suffer if a preliminary injunction order is not issued.

5. The public interest favors issuance of the preliminary injunction order to prevent consumer confusion and dispel the false impression that Defendants are operating their e-commerce stores with Sega’s approval and endorsement, as well as protect Sega’s legitimate intellectual property interests. Further, the public will be protected from being defrauded by the illegal sale of Unauthorized Products.

6. Pursuant to 15 U.S.C. § 1117(a), Plaintiffs may be entitled to recover, as an equitable remedy, the illegal profits gained through Defendants’ distribution and sales of goods bearing infringing and/or counterfeit versions of the Sega Trademarks. See Reebok Int’l, Ltd. v. Marnatech Enters., Inc., 970 F.2d 552, 559 (9th Cir. 1992) (“An accounting of profits under § 1117(a) is not synonymous with an award of monetary damages: ‘[a]n accounting for profits . . . is an equitable remedy subject to the principles of equity.’”) (quoting Fuller Brush Prods. Co. v. Fuller Brush Co., 299 F.2d 772, 777 (7th Cir. 1962)).

7. Pursuant to 17 U.S.C. § 504(b) and 17 U.S.C. § 502(a), Sega may be entitled to recover, as an equitable remedy, the illegal profits gained through Defendants’ distribution and sales of goods bearing unauthorized copies of the Sega Copyrighted Works. See Antsy Labs, LLC v. Individuals, No. 24-cv-61436-WPD, 2024 WL 4472009, at *6 (S.D. Fla. Sept. 16, 2024) (“Under 17 U.S. Code § 504(b) and 17 U.S. Code § 502(a), Plaintiff may be entitled to recover, as an equitable remedy, the illegal profits gained through Defendants’ distribution and sales of goods infringing Plaintiff’s Copyrights.”).

8. Requesting equitable relief “invokes the district court’s inherent equitable powers to order preliminary relief, including an asset freeze, in order to assure the availability of permanent relief.” Levi Strauss & Co. v. Sunrise Int'l Trading Inc., 51 F.3d 982, 987 (11th Cir. 1995).

9. Considering the inherently deceptive nature of the counterfeiting business, and the likelihood that Defendants have violated federal trademark laws, Sega has good reason to believe Defendants will hide or transfer their ill-gotten assets beyond the jurisdiction of this Court unless those assets are restrained.

Accordingly, upon due consideration of Plaintiffs’ Complaint, Motions, and supporting evidentiary submissions, it is ORDERED AND ADJUDGED that, pursuant to 15 U.S.C. § 1116, Federal Rule of Civil Procedure 65, 28 U.S.C. § 1651(a), and the Court’s inherent authority, Sega’s Request for Entry of a Preliminary Injunction is GRANTED according to the terms set forth below: 1. Defendants, their affiliates, officers, agents, servants, employees, attorneys, confederates, and all persons acting for, with, by, through, under, or in active concert with them, are preliminarily enjoined and restrained from: a. using the Sega Trademarks or any reproductions, counterfeit copies, or colorable imitations thereof in any manner in connection with the distribution, marketing, advertising, offering for sale, or sale of any product that is not a genuine Sega product or not authorized by Sega to be sold in connection with the Sega Trademarks; b. reproducing, distributing copies of, making derivative works of, or publicly displaying the Sega Copyrighted Works in any manner without the express authorization of Sega; c. passing off, inducing, or enabling others to sell or pass off any product as a genuine Sega product or any other product produced by Sega, that is not Sega’s or not produced under the authorization, control, or supervision of Sega and approved by Sega for sale under the Sega Trademarks and/or Sega Copyrighted Works; d. committing any acts calculated to cause consumers to believe that Defendants’ products are those sold under the authorization, control, or supervision of Sega, or are sponsored by, approved by, or otherwise connected with Sega; e. further infringing the Sega Trademarks and Sega Copyrighted Works and damaging Sega’s goodwill; and/or f. manufacturing, shipping, delivering, holding for sale, transferring or otherwise moving, storing, distributing, returning, or otherwise disposing of, in any manner, products or inventory not manufactured by or for Sega, nor authorized by Sega to be sold or offered for sale, and which bear any of Sega’s trademarks, including the Sega Trademarks, or any reproductions, counterfeit copies, or colorable imitations and/or which bear the Sega Copyrighted Work.

2. Upon Sega’s request, any third party with actual notice of this Order who is providing services for any of the Defendants, or in connection with any of Defendants’ Seller Aliases, including, without limitation, any online platforms such as Walmart, Inc. (“Walmart”) (collectively, the “Third Party Providers”) shall, within seven (7) calendar days after receipt of such notice, provide to Sega expedited discovery, including copies of all documents and records in such person’s or entity’s possession or control relating to: a. the identities and locations of Defendants, their affiliates, officers, agents, servants, employees, confederates, attorneys, and any persons acting in concert or participation with them, including all known contact information and all associated e-mail addresses; b. the nature of Defendants’ operations and all associated sales, methods of payment for services, and financial information, including, without limitation, identifying information associated with the Seller Aliases and Defendants’ financial accounts, as well as providing a full accounting of Defendants’ sales and listing history related to their respective Seller Aliases; and c. any financial accounts owned or controlled by Defendants, including their agents, servants, employees, confederates, attorneys, and any persons acting in concert or participation with them, including such accounts residing with or under the control of any banks, savings and loan associations, payment processors or other financial institutions, including, without limitation, Payoneer Global, Inc. (“Payoneer”), PayPal, Inc. (“PayPal”), Stripe, Inc. (“Stripe”), and Walmart, or other merchant account providers, payment providers, third party processors, and credit card associations (e.g., MasterCard and VISA).

3. Upon Sega’s request, those with notice of this Order, including the Third Party Providers as defined in Paragraph 2, shall within seven (7) calendar days after receipt of such notice, disable and cease displaying any advertisements used by or associated with Defendants in connection with the sale of counterfeit and infringing goods using the Sega Trademarks and/or which bear the Sega Copyrighted Works.

4. Defendants shall be temporarily and preliminarily restrained and enjoined from transferring or disposing of any money or other of Defendants’ assets until further ordered by this Court.

5. Any Third Party Providers, including Payoneer, PayPal, Stripe, and Walmart, shall, within seven (7) calendar days of receipt of this Order: a. locate all accounts and funds connected to Defendants’ Seller Aliases, including, but not limited to, any financial accounts connected to the information listed in Schedule A hereto, the e-mail addresses identified in Exhibit 3 to the Declaration of Andrew Masterson, and any e-mail addresses provided for Defendants by third parties; and b. restrain and enjoin any such accounts or funds from transferring or disposing of any money or other of Defendants’ assets until further order by this Court.

6. Sega is authorized to issue expedited written discovery to Defendants, pursuant to Federal Rules of Civil Procedure 33, 34, and 36, related to: a. the identities and locations of Defendants, their affiliates, officers, agents, servants, employees, confederates, attorneys, and any persons acting in active concert or participation with them, including all known contact information, including any and all associated e-mail addresses; and b. the nature of Defendants’ operations and all associated sales, methods of payment for services, and financial information, including, without limitation, identifying information associated with the Seller Aliases and Defendants’ financial accounts, as well as providing full accounting of Defendants’ sales and listing history related to their respective Seller Aliases.

7. Sega is authorized to issue the expedited discovery requests authorized in Paragraph via e-mail. Defendants shall respond to any such discovery requests within three (3) business days of being served via e-mail.

8. Any Defendants that are subject to this Order may appear and move to dissolve or modify the Order as permitted by and in compliance with the Federal Rules of Civil Procedure and Southern District of Florida Local Rules.

9. The ten-thousand-dollar ($10,000) bond posted by Sega shall remain with the Court until a final disposition of this case or until the Preliminary Injunction is terminated.

DONE AND ORDERED in Chambers at Miami, Florida, this 14th day of April, 2026.

UNITED STATES DISTRI DGE

SCHEDULE A Infringement No Seller Alias URL Type Copyright 1 Be happy every day https://www.walmart.com/global/seller/102822538 only Copyright 2 chunfumaoyigongsi https://www.walmart.com/global/seller/102905833 only Copyright 3 CROCSO https://www.walmart.com/global/seller/102882159 only Copyright 4 de hua https://www.walmart.com/global/seller/102859152 only Copyright 5 DongLao Trading https://www.walmart.com/global/seller/102742213 only Copyright 6 Duo Duo Doll https://www.walmart.com/global/seller/102865756 only Copyright 7 Easolae Parker https://www.walmart.com/global/seller/102850534 only Copyright 8 FerMerCL https://www.walmart.com/global/seller/102655279 only Copyright 9 Friend Shop 996 https://www.walmart.com/global/seller/102769705 only Copyright guangzhoupengshuangfuzhuang https://www.walmart.com/global/seller/102860757 only Copyright 11 guangzhouyuexikeji https://www.walmart.com/global/seller/102854793 only Copyright 12 HaoLong Zhang https://www.walmart.com/global/seller/102814263 only Copyright 13 jiuyi shop https://www.walmart.com/global/seller/101632710 only Copyright 14 Jowpytelovly https://www.walmart.com/global/seller/102524790 only Copyright 15 joyboy https://www.walmart.com/global/seller/102791787 only Copyright 16 Longyanxinluowenyalaiyan https://www.walmart.com/global/seller/102760067 only Copyright 17 Ludong Shop https://www.walmart.com/global/seller/102871630 only Copyright MachineryEquipmentLeasingCoLtd https://www.walmart.com/global/seller/102868409 only Copyright 19 Magical Memento https://www.walmart.com/global/seller/102669860 only Copyright 20 momoer https://www.walmart.com/global/seller/102923267 only Copyright 21 rain rain holiday 2025 https://www.walmart.com/global/seller/102834036 only Copyright 22 shunjiawei https://www.walmart.com/global/seller/102745103 only Copyright 23 WiseFlew https://www.walmart.com/global/seller/102748497 only Copyright 24 xiangD https://www.walmart.com/global/seller/102871240 only Copyright 25 yangfanqihang https://www.walmart.com/global/seller/102743815 only Copyright 26 YinBo Huang https://www.walmart.com/global/seller/102912195 only Copyright 27 Yue Yue Shun Trading https://www.walmart.com/global/seller/102873872 only Copyright 28 ZhangKeKe https://www.walmart.com/global/seller/102854348 only Trademark 29 muzhidianzi https://www.walmart.com/global/seller/102905069 only Trademark 30 ShanYun Hua https://www.walmart.com/global/seller/102862692 only Trademark 31 songfei https://www.walmart.com/global/seller/102866394 only Trademark 32 ZIVEN SHOP and https://www.walmart.com/global/seller/102889377 Copyright Trademark 33 ADYTKART and https://www.walmart.com/global/seller/102790966 Copyright Trademark 34 caipan and https://www.walmart.com/global/seller/102912406 Copyright Trademark 35 ChuanChuan Peng and https://www.walmart.com/global/seller/102860628 Copyright Trademark 36 CrossBloom Wonders and https://www.walmart.com/global/seller/102909841 Copyright Trademark 37 dongguanshijizhangfang and https://www.walmart.com/global/seller/102819379 Copyright Trademark 38 funny-shop and https://www.walmart.com/global/seller/102898732 Copyright Trademark 39 guangzhouyilongshangmao and https://www.walmart.com/global/seller/102923007 Copyright Trademark 40 guanxiancongdishangmao and https://www.walmart.com/global/seller/102767061 Copyright Trademark 41 Gwen Apparel Co., Ltd. and https://www.walmart.com/global/seller/102748567 Copyright Trademark hangzhouxishungongyinglian and https://www.walmart.com/global/seller/102765988 Copyright Trademark 43 hefeishimeihuoduo and https://www.walmart.com/global/seller/102823515 Copyright Trademark 44 JAAEHOME and https://www.walmart.com/global/seller/101501882 Copyright Trademark 45 Jiangdong Jierui and https://www.walmart.com/global/seller/102841113 Copyright Trademark 46 jiefu and https://www.walmart.com/global/seller/102827780 Copyright Trademark 47 JING HANG and https://www.walmart.com/global/seller/102720718 Copyright Trademark 48 Jing Zhao and https://www.walmart.com/global/seller/102858960 Copyright Trademark 49 jinhanbo and https://www.walmart.com/global/seller/102905591 Copyright Trademark 50 Life-Essentials and https://www.walmart.com/global/seller/101630035 Copyright Trademark 51 Safan Ecommerce LLC and https://www.walmart.com/global/seller/102712359 Copyright Trademark 52 sangyuxiang and https://www.walmart.com/global/seller/102844566 Copyright Trademark 53 Shop-Kamani and https://www.walmart.com/global/seller/102770829 Copyright Trademark 54 Teesweet STORE and https://www.walmart.com/global/seller/102717086 Copyright Trademark 55 Tianxinyu and https://www.walmart.com/global/seller/102901892 Copyright Trademark 56 Tina P and https://www.walmart.com/global/seller/102904149 Copyright Trademark 57 ValuePlus and https://www.walmart.com/global/seller/102772215 Copyright Trademark 58 WangCongJun and https://www.walmart.com/global/seller/102848986 Copyright Trademark 59 Wei Xie and https://www.walmart.com/global/seller/102845291 Copyright Trademark 60 Xia men shi yi and https://www.walmart.com/global/seller/102781642 Copyright Trademark 61 Xia Yanqi and https://www.walmart.com/global/seller/102826665 Copyright Trademark 62 xiaoli01 and https://www.walmart.com/global/seller/102786271 Copyright Trademark 63 xiaoyidianshang and https://www.walmart.com/global/seller/102890766 Copyright Trademark 64 Xiu Jinwei and https://www.walmart.com/global/seller/102827733 Copyright Trademark 65 XNB Bag Store and https://www.walmart.com/global/seller/102838682 Copyright Trademark 66 XUXU.LTD and https://www.walmart.com/global/seller/102833500 Copyright Trademark 67 Yajing Tech and https://www.walmart.com/global/seller/102576178 Copyright Trademark 68 yanpeng and https://www.walmart.com/global/seller/102922884 Copyright Trademark 69 yuxiakeji and https://www.walmart.com/global/seller/102912696 Copyright Trademark 70 zeshow and https://www.walmart.com/global/seller/102798432 Copyright Trademark 71 zhangxinwan and https://www.walmart.com/global/seller/102884524 Copyright Trademark 72 Zoe Wu and https://www.walmart.com/global/seller/102866400 Copyright