Are You a Defendant in the Rainbow Friends Lawsuit?

Has Rainbow Friends accused you of selling copyright infringing goods on an e-commerce platform? If you have sold the brand’s products on Amazon, Walmart, Etsy, Temu, and other platforms, that could explain why. As a Defendant in the “Schedule A” infringement lawsuit filed in Illinois, your seller account may have been shut down. The Temporary Restraining Order (TRO) is designed freezes your account. It also prompts the sellers named in the suit to negotiate with the copyright holders of Rainbow Friends goods. 

There is hardly ever a practical reason to ignore the complaint that spells out the details of the infringement lawsuit. As an online seller accused of offering unauthorized Rainbow Friends products, you should respond to the complaint. The court must receive a response from a seller listed as a Defendant. If the seller does not respond, the court will issue a Default Judgment. That means that the entirety of the frozen assets in your restrained seller account will be awarded to the Plaintiff. Taking legal action yourself to find a resolution that costs you less money is a preferable strategy. 

Sellers Based in China Are Targeted

Do you “reside and/or operate in the People’s Republic of China”? If so, you may have considered negotiating a settlement with Rainbow Friends. You should be aware that settlements usually land at around 60% of the amount in your frozen account. Indeed, if you accept a settlement your account will be reopened. Although, you will be accessing that much less of the money you earned. Walking away from the infringement claims may not be the best decision. 

We understand that getting a notice of a lawsuit and reading that you have allegedly committed infringement can be concerning. However, what did or did not actually occur with regard to your e-commerce account activity has not been established. While the case remains open, you still have time to retain legal counsel and possibly resolve the issue at a cost that is higher than 60% of the earnings in your frozen seller account. The details described in the complaint are related to claims, which may or may not specifically apply to your business. 

What is a Schedule A Lawsuit?

Why has Rainbow Friends decided to file a Schedule A infringement lawsuit in Illinois? In our previous article, Rainbow Friends E-Commerce Lawsuit, we examined a similar copyright infringement case. In most Schedule A lawsuits, Plaintiffs like Rainbow Friends accuse a large group of sellers of the same unlawful conduct with the intent to persuade many to abandon the case and their money. They may be counting on you not being able to pay for legal fees, navigate the legal system in the United States, or even have a firm enough grasp of the English language to proceed in any meaningful direction. 

Claims of Copyright Infringement

A selection of the claims made against the Schedule A Defendants: 

• Sellers try to fool consumers into believing their online store is authorized to sell Rainbow Friends goods, but it is unauthorized. 
• Sellers hide their true identities by giving false information to online platforms. 
• Sellers use various aliases or false names to avoid accountability. 
• Sellers communicate about the most effective ways to sell unauthorized goods on sites like QQ.com. 
• By using off-shore bank accounts, sellers avoid paying any money to copyright holders they infringed upon. 

As a Defendant, you may not have to absorb the financial blow that comes as a result of the TRO. You have options so long as you take the opportunity to explore them. If you choose to walk away, not respond, or abandon your frozen funds, then you will be at a loss with little or no room to take any further action. We wish to reiterate that you should respond to the court, otherwise you will probably face a Default Judgment. With legal help, you can flesh out the full scope of your options and take action. You will want to determine what, if any, wrongdoing you have engaged in, and from there, what you can do to resolve the matter.

Stockman & Poropat, PLLC Can Help With Resolution

In any event, we want to help you and your online business maintain its operation and incur the least amount of loss. During our free consultation, our team of attorneys who are well-versed in this particular area of intellectual property will evaluate your details. Stockman & Poropat, PLLC has successfully reached favorable resolutions for a long list of international clientele who were forced to contend with similar claims of infringement. Online sellers are placed in vulnerable positions when it comes to copyright lawsuits and often take a major hit. We want to help protect you and your business as much as possible! 

See below for a link to the complaint itself.

Up next we will be discussing Canada Goose Trademark Lawsuit.