Spin Master Sues Sellers | Rubik Trademark Infringement Action

Spin Master, owner of the Rubik trademark, is suing e-commerce sellers in federal court for selling unauthorized products! That’s correct, Rubik has filed a lawsuit. It names several online sellers, which claims the Defendants infringed on the brand’s intellectual property. We want to strongly convey that this suit should not be neglected! If you’re one of the sellers named in the lawsuit, your e-commerce business may be facing some challenges. Thankfully, our team at Stockman & Poropat, PLLC possesses a rare depth of experience in trademark infringement cases. And, we want to put our skills to work for you!

We mentioned challenges, so what’re we referring to when we say that? A few things, but overwhelmingly the challenge that will test online sellers is the temporary restraining order. As you may have guessed by the name, the TRO means an injunction will be applied. And, that will freeze your online seller accounts. That’s right, Rubik’s belief that trademark infringement has occurred is the reason why they’re going to obtain the restraining order. The TRO will affect your seller accounts. That will include money made through selling Rubik products, as well as money earned from other goods. So how is the injunction going to manifest for the affected online sellers? It really depends on how much money is in your frozen account. Either way, from hundreds to hundreds of thousands, we’re on board to provide you with the legal help you need to unfreeze your money!

The Pressure Applied by the Temporary Restraining Order

We know that temporary restraining orders can sometimes put pressure on sellers to take more aggressive actions. All of the money in your accounts is tied up and you can’t access it, so frustration or panic is not uncommon. However, we want to educate sellers that reaching for a direct settlement with Rubik might not be the most beneficial maneuver. How is that the case? The majority of settlements reached directly between online sellers and Plaintiffs in infringement lawsuits leave Defendants with less than they deserve. When you take this route, it’s likely you’ll walk away with nearly half of your frozen money, while Rubik takes the rest! If you’d like the opportunity to maintain more than 60% of your money, contact an intellectual property attorney!

As we touched on, Rubik is suing online sellers for infringement because that’s what the brand has documented. The alleged activity of the sellers, as described by the Plaintiff, indicates that a network of counterfeiters was formed and cultivated. After that network was established, Spin Master says, the Defendants worked in concert to effectively continue selling unauthorized goods. Because of all of this, the Plaintiff filed the lawsuit to essentially combat the unlawful actions of the sellers. Rubik claims the Defendants’ behavior on various marketplaces resulted in major losses. It’s up to each Defendant, in conjunction with their intellectual property attorney, to reach a resolution or clear their name of wrongdoing.

How to Manage the Rubik Trademark Lawsuit

Here’s what we can reasonably assume… If you’re an e-commerce seller being sued by Rubik, you don’t want to make the situation any more complicated. The easiest way to avoid further complications is to respond to the lawsuit! Why would any online seller who is being sued not want to acknowledge the suit? There may be a variety of reasons for choosing to ignore the lawsuit, but none of them compelling enough to justify doing so. Any seller who doesn’t provide a response to the lawsuit makes themselves vulnerable to a Default Judgment. This is very easy to avoid! By responding, you won’t put your business in line to be hit with a Default Judgment. To clarify, when that’s issued by the court, the total amount of money in your frozen account goes to Rubik. That’s why it’s so definitely important to address the lawsuit with a response.

Rubik has legally waged allegations of trademark infringement in federal court. The online sellers, listed on the lawsuit’s Schedule A, will be struck with a temporary restraining order. The Plaintiff’s allegations are available to read in full in the legal complaint. Herein, we’ll share a selection of those allegations to give you a snippet-view of the situation:

Rubik’s Allegations of Counterfeiting

Counterfeiters such as Defendants typically operate under multiple seller aliases and payment accounts so that they can continue operation in spite of Spin Master’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 Spin Master.

Indeed, analysis of financial account transaction logs from previous similar cases indicates that off-shore counterfeiters regularly move funds from U.S.-based financial accounts to off-shore accounts outside the jurisdiction of this Court.

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. Defendants, without any authorization or license from Spin Master, have knowingly and willfully used and continue to use the RUBIK’S Trademarks in connection with the advertisement, distribution, offering for sale, and sale of Counterfeit Products into the United States and Illinois over the Internet. 

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

Download the legal complaint below:

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