2022-cv-00938

COMPLAINT filed by Khara Inc., Ground Works Co., Ltd.; Filing fee $ 402, receipt number 0752-19178078.

Exhibit 1

Exhibit 2

Exhibit 3

Exhibit 4

SEALED DOCUMENT by Plaintiffs Ground Works Co., Ltd., Khara Inc. Schedule A to Complaint [1]

CIVIL Cover Sheet

ATTORNEY Appearance for Plaintiffs Ground Works Co., Ltd., Khara Inc. by Keith A. Vogt

ATTORNEY Appearance for Plaintiffs Ground Works Co., Ltd., Khara Inc. by Yanling Jiang

ATTORNEY Appearance for Plaintiffs Ground Works Co., Ltd., Khara Inc. by Yi Bu

ATTORNEY Appearance for Plaintiffs Ground Works Co., Ltd., Khara Inc. by Adam Grodman

CLERK'S NOTICE: Pursuant to Local Rule 73.1(b), a United States Magistrate Judge of this court is available to conduct all proceedings in this civil action. If all parties consent to have the currently assigned United States Magistrate Judge conduct all proceedings in this case, including trial, the entry of final judgment, and all post-trial proceedings, all parties must sign their names on the attached Consent To form. This consent form is eligible for filing only if executed by all parties. The parties can also express their consent to jurisdiction by a magistrate judge in any joint filing, including the Joint Initial Status Report or proposed Case Management Order.

MOTION by Plaintiffs Ground Works Co., Ltd., Khara Inc. for leave to file under seal

MOTION by Plaintiffs Ground Works Co., Ltd., Khara Inc. for leave to file excess pages

MEMORANDUM by Ground Works Co., Ltd., Khara Inc. in support of motion for leave to file excess pages 9, motion for leave to file 8 in Support of 10 Exparte Motion

Declaration of Keith A. Vogt

Exhibit 1-4, of Keith A. Vogt's declaration

Declaration of Yasuhiro Kamimura

(Exhibit 1, of Yasuhiro Kamimura's declaration)

SEALED EXHIBIT by Plaintiffs Ground Works Co., Ltd., Khara Inc. Sealed Exhibit 2, Declaration of Yasuhiro Kamimura regarding memorandum in support of motion, 11

Exhibit 2-1

Exhibit 2-2

Exhibit 2-3

Exhibit 2-4

Exhibit 2-5

Exhibit 2-6

Exhibit 2-7

Exhibit 2-8

Exhibit 2-9

Exhibit 2-10

(Exhibit 2-11)

MINUTE entry before the Honorable Steven C. Seeger: An initial status report is due by May 16, 2022. Counsel must read the Standing Order entitled "Initial Status Conferences and Joint Initial Status Reports" on the Court's website. The parties must confer as required by Rule 26(f) about the nature, scope, and duration of discovery. The parties must submit two documents to the Court. First, the parties must file the Joint Initial Status Report under Rule 26(f) on the docket. A Word version of the Joint Initial Status Report is available on the Court's website. All parties must participate in the preparation and filing of the Joint Initial Status Report. The Court requires a joint report, so a filing by one side or the other is not sufficient. Second, the parties must email a Word version of a proposed Scheduling Order under Rule 16(b) to the Court's proposed order inbox. Lead counsel for the parties must participate in filing the initial status report. Plaintiff must serve this Order on all other parties. If the defendant has not been served with process, plaintiff's counsel must contact the Courtroom Deputy at jessica_j_ramos@ilnd.uscourts.gov to reschedule the initial status report deadline. Plaintiff should not file the Joint Initial Status Report before the defendant(s) has been served with process. The parties must discuss settlement in good faith and make a serious attempt to resolve this case amicably. All counsel of record must read and comply with this Court's Standing Orders on its webpage. Please pay special attention to the Standing Orders about Depositions and Discovery. Mailed notice.

MAILED trademark report to Patent Trademark Office, Alexandria VA

MAILED to plaintiff(s) counsel Lanham Mediation Program materials

MINUTE entry before the Honorable Steven C. Seeger: Plaintiff's motion to seal (Dckt. No. 8) is hereby granted. Plaintiff's motion for excess pages (Dckt. No. 9) is hereby granted. Plaintiff's ex parte motion for a temporary restraining order (Dckt. No. 10) is hereby granted in part. Temporary Restraining Order to follow. Mailed notice.

SEALED TEMPORARY Restraining Order Signed by the Honorable Steven C. Seeger on 4/8/2022. Mailed notice.

SUMMONS Issued as to Defendant The Partnerships and Unincorporated Associations Identified on Schedule "A" (jk2,)

SURETY BOND in the amount of $ 246,000.00 posted by Ground Works Co., Ltd., Khara Inc. (Document not scanned).

MOTION by Plaintiffs Ground Works Co., Ltd., Khara Inc. for extension of time for Temporary Restraining Order

MINUTE entry before the Honorable Steven C. Seeger: Plaintiffs' motion to extend the TRO (Dckt. No. 19) is hereby granted. The Court extends the TRO through 5:00 p.m. on May 6, 2022. Mailed notice

MOTION by Plaintiffs Ground Works Co., Ltd., Khara Inc. for preliminary injunction

MEMORANDUM by Ground Works Co., Ltd., Khara Inc. in support of motion for preliminary injunction 21

Declaration of Keith A. Vogt

(Exhibit 1, Declaration of Keith Vogt)

SUMMONS Returned Executed by Khara Inc., Ground Works Co., Ltd. as to The Partnerships and Unincorporated Associations Identified on Schedule "A" on 4/26/2022, answer due 5/17/2022.

(Declaration of Service)

MINUTE entry before the Honorable Steven C. Seeger: The deadline to file an initial status report by May 16, 2022 is stricken and reset for August 15, 2022. Mailed notice.

MOTION by Plaintiffs Ground Works Co., Ltd., Khara Inc. for entry of default Against The Defendants Identified In The First Amended Schedule A pursuant to Fed. R. Civ. P. 55(a)

Declaration of Keith A. Vogt

MINUTE entry before the Honorable Steven C. Seeger: Plaintiffs' motion for entry of default (Dckt. No. 25) is hereby granted. The responses to the complaint are late. The Court enters default against the Defendants on First Amended Schedule A under Rule 55(a). Plaintiffs must serve a copy of this Order. Defendants must file a motion if they want a hearing on any forthcoming motion for default judgment. Mailed notice

MOTION by Plaintiffs Ground Works Co., Ltd., Khara Inc. for default judgment as to The Defendants Identified In The First Amended Schedule A pursuant to Fed. R. Civ. P. 55(b)

MEMORANDUM by Ground Works Co., Ltd., Khara Inc. in support of motion for default judgment 27

Exhibit 1

(Exhibit 2)

NOTICE of Voluntary Dismissal by All Plaintiffs

ATTORNEY Appearance for Defendants zhan_5568, alldayforyou by Timothy Tiewei Wang

NOTICE of Voluntary Dismissal by All Plaintiffs

NOTICE of Voluntary Dismissal by All Plaintiffs

MINUTE entry before the Honorable Steven C. Seeger: The deadline to file an initial status report by August 15, 2022 is stricken and reset for October 28, 2022. Mailed notice.

MINUTE entry before the Honorable Steven C. Seeger: The Court reviewed Plaintiff's motion for a preliminary injunction (Dckt. No. 21). The motion includes a request for an asset freeze. By August 19, 2022, Plaintiff must file a statement and point to the statutory provision that gives this Court the power to impose an asset freeze at the outset of the case. If Plaintiff cannot point to a specific statutory provision, then Plaintiff must address how its request for an asset freeze is consistent with Grupo Mexicano de Desarrollo S.A. v. Alliance Bond Fund, Inc., 527 U.S. 308 (1999). In its brief in support of a TRO, Plaintiff argues that "[c]ourts have the inherent authority to issue a prejudgment asset restraint when plaintiff's complaint seeks relief in equity." See Mem., at 23. In Grupo Mexicano, the Supreme Court held that a district court has "no authority to issue a preliminary injunction preventing [a defendant] from disposing of their assets pending adjudication of [plaintiff's] contract claim for money damages." Id. at 333. The Supreme Court adhered to the long-standing rule that "a judgment establishing the debt was necessary before a court of equity would interfere with the debtor's use of his property." Id. at 321. "However, the [Grupo] [C]ourt specifically noted that a restraint on assets was still proper if a suit sought equitable relief." See CSC Holdings, Inc. v. Redisi, 309 F.3d 988, 996 (7th Cir. 2002) (citing Grupo, 527 U.S. at 333; Deckert v. Independence Shares Corp., 311 U.S. 282, 288 (1940)). "[A]s a general matter [] prejudgment asset restraints are not proper simply to establish a fund from which a later award of money damages can be satisfied." See Banister v. Firestone, 2018 WL 4224444, at *9 (N.D. Ill. 2018). An equitable restraint at the outset of the case might be doable if Plaintiff obtained equitable monetary relief at the end of the day, like an accounting of profits. See Deckers Outdoor Corp. v. Unincorporated Associations Identified on Schedule A, 2013 WL 12314399 (N.D. Ill. 2013). But as a practical matter, in Schedule A cases, that recovery almost never happens, if at all. Instead, plaintiffs rush into court, seek and obtain an asset freeze, obtain a default judgment, and then ask district courts to unfreeze the money and award statutory damages, not equitable relief. In that scenario, it is not clear to this Court that it would be appropriate to use any frozen funds for any recovery of statutory damages, because statutory damages are a remedy at law, not a remedy in equity. If Plaintiff believes that it is appropriate for this Court to freeze funds at the outset of the case, and then use those funds to recover statutory damages (not equitable monetary relief) at the end of the case, then Plaintiff must explain why. Mailed notice

STATEMENT by Ground Works Co., Ltd., Khara Inc. Regarding Asset Freeze

Exhibit 1

Exhibit 2

(Exhibit 3)

MINUTE entry before the Honorable Steven C. Seeger: Plaintiffs' motion for preliminary injunction (Dckt. No. 21) is denied as moot in light of the forthcoming permanent injunction. Plaintiffs' motion for default judgment (Dckt. No. 27) is hereby granted in part as stated in the accompanying order. The answers were due on May 17, 2022, but Defendants have not responded. (Dckt. No. 23). Plaintiffs' counsel neglected to give this Court an updated draft of a proposed final judgment with a revised list of the Schedule A defendants. That oversight forced this Court to spend its limited resources to reach out to its staff, and then have its staff reach out to counsel, to get its hands on something that counsel should have submitted in the first place. Going forward, the Court expects Plaintiffs' counsel to submit updated drafts to the Court. Plaintiff requested an order transferring all assets in Defaulting Defendants' financial accounts. The Court declines to award that relief. Plaintiff seeks statutory damages, not monetary equitable relief (like an accounting of profits). The Court will not compel the transfer of funds frozen through this Court's equitable powers given that Plaintiff is not seeking or obtaining monetary equitable relief. Plaintiff shall expressly notify any third party holding frozen funds that this Court has lifted the asset freeze, and shall provide a copy of this Order within one week. Plaintiff can enforce the judgment as provided in the Federal Rules. Final Judgment Order to follow. The case is closed. Civil case terminated. Mailed notice.

FINAL JUDGMENT ORDER Signed by the Honorable Steven C. Seeger on 10/7/2022. Mailed notice.

CITATION to Discover Assets issued as to Alipay, Ebay, and Paypal (Third Parties) (No Notice Filed).

THIRD PARTY ANSWER to Citation Proceedings by eBay Inc. (Attachments)

Motion by Ground Works Co., Ltd., Khara Inc. for Entry of a Turnover Order Directed to Ebay, Inc.

MINUTE entry before the Honorable Steven C. Seeger: Plaintiff's motion for a turnover order (Dckt. No. [40]) is hereby denied. Plaintiff did not submit a Word version of the proposed order to the proposed order inbox. Mailed notice.

Motion For Entry Of A Turnover Order Directed To Ebay, Inc. by Ground Works Co., Ltd., Khara Inc.

MINUTE entry before the Honorable Steven C. Seeger: The motion for a turnover order (Dckt. No. [42]) is hereby denied. The draft order directs Ebay to pay Plaintiffs "the amount held by Ebay, Inc. pursuant to a Citation to Discovery Assets." The order then lists a bunch of accounts. This Court does not know how much is in those accounts. And this Court did not authorize Plaintiffs to seize anything and everything in the accounts. This Court awarded a specific amount, but that's not what the proposed turnover order says. So the motion is denied. Mailed notice.

MOTION by Plaintiff Ground Works Co., Ltd. for turnover order (Omitted Relief from motion [44])

motion by Ground Works Co., Ltd., Khara Inc. for Entry of a Turnover Order Directed to Ebay, Inc.

MOTION by Plaintiff Ground Works Co., Ltd. for turnover order (Omitted Relief from motion [44])

MINUTE entry before the Honorable Steven C. Seeger: Plaintiffs' motion for a turnover order (Dckt. No. [44]) is denied for the reasons stated by the Court in its Order on February 28, 2023. Mailed notice

MOTION by Plaintiffs Ground Works Co., Ltd., Khara Inc. for entry of a turnover order directed to Ebay, Inc. (Omitted relief from [46])

Motion by Ground Works Co., Ltd., Khara Inc. for Entry of a Turnover Order Directed to eBay, Inc.

SATISFACTION of Judgment as to defendant no. 4 alienkingdom

MOTION by Plaintiffs Ground Works Co., Ltd., Khara Inc. for entry of a turnover order directed to Ebay, Inc. (Omitted relief from [46])

MINUTE entry before the Honorable Steven C. Seeger: Plaintiff Khara motion for a turnover order (Dckt. No. [46]) is hereby granted. Turnover Order to follow. Mailed notice.

TURNOVER ORDER Signed by the Honorable Steven C. Seeger on 3/7/2023. Mailed notice.

NOTICE of Voluntary Dismissal by All Plaintiffs as to defendant no. 8 awesome-onlinestores

SATISFACTION of Judgment as to defendant no. 115 venus153224021 and defendant no.53 leisurelife-home