CBS countersuit greenlighted after trademark plaintiff disappeared

With the plaintiff's apparent disappearance after a bid to enforce his "zombie trademark" for the name "Desilu" turned disastrous, a federal judge has granted CBS the means to move forward with a countersuit.

Venture capitalist Charles Hensley's Desilu Studios Inc. shares no heritage with the original Desilu Productions Inc., which was founded in 1965 by acting duo Lucille Ball and Desi Arnaz. But Hensley told potential investors in a statement at the time of the company's 2016 launch he intended to use it to "return to the golden age" of cinema "by reestablishing Hollywood as the epicenter of the motion picture universe."

Hensley sued CBS Studios Inc. for declaratory relief in April, claiming its use of the name Desilu -- through its ownership of the bulk of the rights associated with Ball's and Arnaz's company -- violated his trademark and created consumer confusion.Desilu Studios Inc. v. CBS Studios Inc., 18-cv-02961 (C.D. Cal., filed April 9, 2018).

Hensley's suit quickly deteriorated, however. The attorney he hired to file the suit withdrew from the case in July, claiming the plaintiff hadn't paid him for his services and ceased communications. According to court documents submitted by CBS, a second attorney named Drew Sherman subsequently represented Hensley and claimed he would file an amended complaint.

But Sherman did not appear for the two scheduled court hearings on the case that followed and did not respond to phone calls or e-mails from CBS, the company claims. A day before a third hearing was scheduled, Sherman filed to voluntarily dismiss his client's case.

CBS countersued in October for infringement, claiming evidence indicated Hensley had no association with television or film production and simply used the trademark "to dupe investors into paying him untold amounts of money."

Despite having no employees, no operations, no revenues, and no assets, CBS attorney David Grossman of Loeb & Loeb wrote, Hensley had represented to unwitting investors that his company was worth $11.2 billion. CBS Studios Inc. v. Desilu Studios Inc., 18-cv-09309 (C.D. Cal., filed Oct. 30, 2018).

Grossman claims CBS has worked diligently to give notice of the lawsuit to Hensley since the October filing, including contact through certified mail, email, phone calls, and over a dozen attempts at direct service. The company even hired an experienced investigator to track Hensley down, pulling all available records for Hensley and making numerous visits to all addresses associated with his name, but was ultimately unable to locate him, Grossman said.

In such cases, state law allows potential plaintiffs to give notice of a lawsuit through publication in a newspaper. Grossman said the Los Angeles Daily Journal met those obligations and asked U.S. District Judge Andrew Guilford for approval, which Guilford granted Monday.

"Service by publication is warranted here," Guilford wrote. "It's apparent from reading the complaint that it alleges a valid claim against Hensley, and that Hensley might be avoiding detection based on the nature of the claims asserted against him. This is particularly true here since Hensley repeatedly failed to appear before this court in his own lawsuit against CBS."

Neither Grossman nor Sherman responded to requests for comment. Hensley has no current counsel on the case and could not be reached.