Sold Jaws, Despicable Me, E.T., or The Fast & Furious Branded Goods Online? Universal is Suing Sellers in Latest Infringement Lawsuit

Movies like Despicable Me, Jaws, The Fast & The Furious, and E.T. are all extremely well known film franchises. Arguably, these films are household names and are easily recognizable as productions synonymous with American pop culture. The widespread popularity and cultural ubiquity of these franchises makes associated products highly valuable. Universal Studios owns the intellectual property tied to these films, which means their interest is in protecting various marks and copyrights. And that brings us to today’s article, which covers the latest Universal counterfeit lawsuit! 

Universal claims they’ve identified a list of online sellers who’ve engaged in selling counterfeit products to consumers. These actions have been described by the Plaintiff as unlawful in nature. The alleged infringement occurred across different online marketplace platforms. Overall, Universal alleges that the totality of counterfeiting has harmed their reputation and revenue.

Universal Trademark and Copyright Action Targets E-Commerce Operators

To illuminate the Plaintiff’s claims more clearly, below we’ll include a few selections from the legal complaint itself: 

Defendants facilitate sales by designing the e-commerce stores operating under the Seller Aliases so that they appear to unknowing consumers to be authorized online retailers, outlet stores, or wholesalers. E-commerce stores operating under the Seller Aliases look sophisticated and accept payment in U.S. dollars and/or funds from U.S. bank accounts via credit cards, Amazon Pay, and/or PayPal. 

Defendants are collectively causing harm to Plaintiffs’ goodwill and reputation because the effect of their unlawful actions taken together amplifies each harm and creates a single negative consumer impression. Defendants’ activities, occurring at the same time and in the same retail space and manner as one another, blend together to create a single negative impression on consumers such that they constitute the same occurrence or series of occurrences. 

The combination of all Defendants engaging in the same illegal activity in the same time span causes a collective harm to Plaintiffs in a way that individual actions, occurring alone, might not. 

Universal Alleges Defendants Formed Counterfeit Network

As seen above, Universal alleges that the Defendants have worked explicitly together to more successfully offer counterfeit goods to consumers. The notion of “collectively causing harm” is a key phrase, in terms of the lawsuit and the Plaintiff’s overall intent. Universal wishes to establish that the Defendants are a collective entity. And, that collective has communicated and collaborated to such an extent that their actions as a whole have caused significant damage to the Plaintiff. It’s important to hone in on the aspect of the Plaintiff’s argument that stresses “collective harm.” This allegation is what provides Universal with the opportunity to sue the Defendants as a group, rather than individually. Because, per the Plaintiff, it’s the harm caused by the group that has led directly to this lawsuit. 

Universal intends to put a stop to the alleged ongoing counterfeit efforts of the Defendants. How will the Plaintiff accomplish that goal? By requesting that the court approve of a temporary restraining order. And, the court will approve of that restraining order, if they haven’t already. The main reason why the Plaintiff is seeking an injunction is because they allege a major loss of revenue. Universal doesn’t anticipate that the notice of the lawsuit alone will halt the sellers’ unlawful activity. Thus, they’re going to move forward with a TRO. What will the injunction practically do to the Defendants? Essentially, block them from touching their hard-earned funds! The restraining order will freeze seller accounts. And that’s whether they sold unauthorized Universal branded products on one marketplace or many marketplaces. The restraining order will affect the named sellers’ money and that could seriously disrupt your operation! 

Infringement Lawsuits Can Be Very Disruptive: Stockman & Poropat, PLLC Can Help!

Stockman & Poropat, PLLC knows very well that a trademark infringement action can disturb and frustrate many e-commerce sellers. Our firm also knows that we have the extensive experience in e-commerce to come to the rescue! At Stockman & Poropat, PLLC, our award-winning intellectual property attorneys truly care about helping online sellers regain control of their business. And, our team is superb at maintaining an open and friendly line of communication with our clients. Rather than have the frustration and disturbance take priority, give us a call today! 

Working with our intellectual property law firm will provide you with the most efficient and practical tools when it comes to addressing the Universal lawsuit. Consider that the Plaintiff took legal action against you. So it’s only sensible that you act within a legal framework, as well, in response. And, a response is literally required. Any seller who has been named in the latest Universal infringement action must provide the court with a response! This will prevent sellers from getting further mired down with a Default Judgment. Due to the reality of the Universal trademark lawsuit, the court wants the Defendants to provide a timely response. Not doing so puts your business at risk! Have questions or concerns, Stockman & Poropat, PLLC can help. 

Sellers are entitled to seek alternative routes to resolution, such as direct settlements, but these are known to be generally insufficient. By this we mean that on average direct settlement outcomes result in Defendants maintaining possession of only around 60% of their frozen funds. Stockman & Poropat, PLLC doesn’t care to have any impacted seller settle for less than what they deserve. Which is why our firm places a great deal of importance on developing creative legal strategies for our clients. Once we’ve developed the appropriate strategy, we will take action and implement it, and work toward getting you the greatest available resolution! 

Contact our team at Stockman & Poropat, PLLC today! 

Download the legal complaint below: 

Want to read up on more intellectual property lawsuits? Check out how Mattel Sued a “Collective” of Online Sellers Who Offered Allegedly Counterfeit Versions of Barbie Goods.