NSI International Trademark Lawsuit

Online sellers who’ve sold NSI International branded products have been recently named in a trademark lawsuit filed in federal court! From the get go, sellers may want to delve into the particular details of the lawsuit. Developing a comprehensive understanding of the counterfeit allegations will benefit any of the given Defendants. How so? In at least two ways, knowing what’s being alleged by NSI International can grant you the power to take appropriate action. Primarily, it’ll provide you with the context of the situation in full. And secondly, it will give you the seller the chance to come up with any questions regarding the lawsuit. And, having questions ready will enhance the initial consultation with your attorney!

Allegations of Infringement | NSI International

NSI International’s claims of infringement are detailed in full in the legal complaint (downloadable at the bottom of this article). What follows is a selection of the intellectual property infringement allegations, lifted straight from the complaint: 

Consumers recognize Plaintiff as a source of toys and consumer products (collectively, the “NSI Products”). Some of the most popular NSI Products include the WUBBLE bubble ball, the LASER X laser tag game, the PROJEX projecting arcade game, SPYBOTS robots, #BONELESS skateboards, and SMITHSONIAN® Science Kits. 

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

Defendants’ unauthorized use of the NSI Trademarks in connection with the advertising, distribution, offering for sale, and sale of Counterfeit Products, including the sale of Counterfeit Products into the United States, including Illinois, is likely to cause and has caused confusion, mistake, and deception by and among consumers and is irreparably harming Plaintiff. 

Stockman & Poropat, PLLC Can Create a Legal Strategy For You!

At Stockman & Poropat, PLLC, our lawyers are dedicated to creating legal strategies and solutions that actually work for e-commerce businesses. Our attorneys have delivered favorable results for an international clientele of sellers across a wide range of industries. In addition to delivering on the utmost level of experience necessary for infringement lawsuits, we also care about our clients on a personal level! A federal counterfeit lawsuit can be incredibly frustrating and has the potential to shake up an entire e-commerce operation.

And, for any seller wondering if they’re actually guilty of what NSI International alleges… Not necessarily! The lawsuit as of now is in the allegation stage – guilt or innocence has yet to be determined by the court. Regardless, we ask that all of the named sellers treat the lawsuit as a serious matter, because it is. If you choose to work with our team, we will work tirelessly to get you the results that you deserve!

What happens after the NSI International suit is filed? The Plaintiff will get the court to issue what’s called a temporary restraining order. This is a common legal tactic taken by big brands that sue sellers for trademark infringement. The motive behind it? To put a stop to what NSI International believes is an overwhelming and damaging amount of sales of counterfeit products. In brief, the Plaintiff alleges that they’ve lost a significant amount of money due to the sellers’ actions. And what does the temporary injunction mean for the Defendants? It means you won’t have access to your seller accounts or the money in them because they’ll be frozen!

How the TRO Can Restrain Sellers

Now, because the TRO can put such a severe restraint on sellers, they may feel pressured to settle and move on as soon as they can. We completely understand this impulse, but we like to educate sellers on the likelihood of the outcome. In the majority of instances where sellers being sued for infringement seek a direct settlement with the Plaintiff, they lose money. See, generally direct settlements in Schedule A infringement cases result in Defendants keeping 60% of their frozen funds. It’s not exactly fair! And that’s just what we want – a fair and equitable resolution for our clients. Having one of our intellectual property attorneys negotiate with NSI International for you will lead to a better, more sensible outcome.

Even though NSI International filed this infringement lawsuit against multiple sellers, the Defendants are entitled to take action of their own. Just like the Plaintiff has the right to file the lawsuit because they believe infringement occurred, the sellers can hire their own counsel to address the lawsuit. In fact, you should do that! Just because NSI International says the Defendants all worked as a network to actively infringe on their intellectual property doesn’t mean it’s true for everyone named. You may have done what the Plaintiff says, you may not have.

Don’t Ignore the Lawsuit, Hire an Attorney!

Your lawyer can illuminate the details of your e-commerce business. From there, they can negotiate on your behalf. And for some, your attorney can clear you of the alleged unlawful conduct. What isn’t really an option is the decision to ignore the lawsuit or not respond to the court. You’ll definitely want to provide a response so that you can avoid a Default Judgment. You most certainly need to respond! And, if you require assistance with doing so, you can also rely on your intellectual property lawyer.

Contact our team at Stockman & Poropat, PLLC today for a free initial consultation! 

Download the legal complaint below:

Up next we will be discussing the Jonas Brothers Trademark Infringement Lawsuit.