Online Sellers Sued by Owner of Atomic Heart Trademark

Have you ever heard of the video game Atomic Heart? This first-person shooter video game, released at the beginning of 2023, has gained popularity around the world. The game’s owner is Slimao Ltd., an entertainment company and video game studio based in Cyprus. The game has seen wild success on PlayStation, Xbox, Twitch, and other consoles. As such, the demand for Atomic Heart branded products has risen. What comes with that popularity is counterfeiting! That’s why Slimao Ltd. has filed a federal lawsuit against online sellers for trademark infringement. 

According to the Plaintiff, they’ve acquired robust common law trademark rights over many years. In addition, Slimao Ltd. also registered a trademark with the United States Patent and Trademark Office (USPTO). The Plaintiff is suing online sellers because they claim the Defendants sold counterfeit Atomic Heart goods in the US. 

Slimao Ltd. Lawsuit Aimed at Counterfeiters

As a Defendant named in the lawsuit, you’ll soon be facing a temporary restraining order (TRO). Slimao Ltd. is going to more than likely request the court approve the TRO . That’s so they can stifle what they believe is rampant trademark infringement. The Plaintiff’s intent is to get back a portion of the money they’ve lost as a result of the counterfeiting.

Now, to the affected online sellers who are wondering “What should I do?” This… Hire an intellectual property attorney! Down the road you may want to reach a settlement or negotiate with Slimao Ltd. Your lawyer will be able to handle negotiations and settlements for you. You won’t have to worry about it. If a seller wishes to address the accuracy of the allegations made against them and their business, an attorney can definitely work with you to accomplish that, too. An intellectual property attorney is essential for online sellers dealing with infringement lawsuits! 

Atomic Heart Trademark Infringement Claims

What are the claims that Slimao Ltd. made regarding the Defendants? Here’s a selection of the counterfeit/infringement allegations:

E-commerce store operators like Defendants commonly engage in fraudulent conduct when registering the Seller Aliases by providing false, misleading, and/or incomplete information to e-commerce platforms to prevent discovery of their true identities and the scope of their e-commerce operation.

E-commerce stores operating under the Seller Aliases include other notable common features, such as use of the same registration patterns, accepted payment methods, check-out methods, keywords, advertising tactics, similarities in price and quantities, the same incorrect grammar and misspellings, and/or the use of the same text and images. Additionally, Counterfeit Products for sale by the Seller Aliases bear similar irregularities and indicia of being counterfeit to one another, suggesting that the Counterfeit Products were manufactured by and come from a common source and that Defendants are interrelated.

Counterfeiters such as Defendants typically operate under multiple seller aliases and payment accounts so that they can continue operation in spite of Plaintiff’s enforcement. E- commerce store operators like Defendants maintain off-shore bank accounts and regularly move funds from their financial accounts to off-shore accounts outside the jurisdiction of this Court to avoid payment of any monetary judgment awarded to Plaintiff.

Defendants are working in active concert to knowingly and willfully manufacture, import, distribute, offer for sale, and sell Counterfeit Products in the same transaction, occurrence, or series of transactions or occurrences. Defendants, without any authorization or license from Plaintiff, have jointly and severally, knowingly and willfully used and continue to use the ATOMIC HEART Trademarks in connection with the advertisement, distribution, offering for sale, and sale of Counterfeit Products into the United States and Illinois over the Internet. 

The Defendants Are Getting Sued as a Group | Schedule A Lawsuit

Essentially, Slimao Ltd. is saying that a group of online sellers, aka the Defendants, are acting as a network to sell fake Atomic Heart products on the marketplace. The Plaintiff is making this claim via a particular type of lawsuit, known as Schedule A. In a Schedule A suit, brands like Slimao Ltd. can file claims of infringement against many sellers, rather than just one at a time. The strategy behind the Plaintiff’s decision is to reap the largest amount by way of settlements. If the Plaintiff can settle directly with the sellers, that’ll increase the amount they get back from what they claim are damages. 

Understandably, sellers may want to settle with Slimao Ltd. and move on with their lives. The likelihood of getting a settlement that’s favorable by this method, without an attorney, is slim. On average, direct settlements in Schedule A infringement cases land at around just 60%. And, if you’re asking “60% of what?” The answer to that is your money. See, when a restraining order is approved by the court in a case like this, the Defendants’ online seller accounts will be frozen. All of the money earned from selling Atomic Hearts products – you won’t be able to touch it. To alleviate the strain of the TRO with the least amount of friction and the most beneficial outcome, rely on your intellectual property attorney! 

Don’t Worry, Hire an Intellectual Property Attorney!

While you may be nervous because Slimao Ltd. is suing you for trademark infringement, you do have the power to address the lawsuit in a productive manner. There’s no need to be scared by the lawsuit! Even if you’re not well-versed in the US legal system, that’s totally ok! Rely on your attorney to guide you through the legal process and reach a resolution that makes sense for your online selling business. 

Contact our team at Stockman & Poropat, PLLC for a free consultation today! The attorneys at our firm have deep experience in developing creative legal solutions for online sellers just like you.  

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Up next we will be discussing the Collegiate Licensing Company Lawsuit.