E-Commerce Sellers Allegedly Offered Unauthorized Goods, Causing Damage to Vogue Due to Counterfeiting
Vogue is moving forward with a trademark infringement lawsuit in federal court. The brand is targeting e-commerce operators who offer Vogue-branded products to consumers on various online marketplaces.
Why is Vogue suing the named sellers for trademark infringement? The Plaintiff claims that counterfeit versions of their branded goods were procured and then sold by the Defendants. At least, that’s the core aspect of the Vogue lawsuit. The lawsuit is focused on a range of allegations, though, and the Plaintiff aims to show that the actions of the Defendants caused serious damage, in terms of reputation and revenue.
How did the Defendants supposedly sell counterfeit Vogue products with such success that it resulted in harm to the brand itself? According to the Plaintiff, the Defendants actively engaged in unlawful activity and ensured successful sales by explicitly working together. Vogue alleges that the Defendants are known to one another. Furthermore, the named sellers have communicated on a regular basis to share ‘best practices’ for selling counterfeit goods online, says the Plaintiff. By communicating in such a way and developing a working relationship, the sellers can be viewed as a “counterfeit network.” That’s what Vogue wants to prove, anyway. This particular allegation is what permits Vogue to file the lawsuit against multiple sellers at the same time.
Vogue Suing Online Sellers as Collective Group of Counterfeiters
Vogue wants to sue the Defendants collectively because they view the group as a unit. The Plaintiff may be taking this approach to increase their chances of recouping actual revenue loss. It also frames the Defendants as a “network” in the legal context. So, if you’re not sure why you’re being sued along with a group of other e-commerce sellers, this could very well explain why. Perhaps you’ve sold a large amount of Vogue branded products. Maybe you’ve only sold a few items with the Vogue branding. Whatever the case, since your business has been named in this Vogue infringement action, you’ll need to take action! Stockman & Poropat, PLLC can provide you with the legal help you need.
Stockman & Poropat, PLLC Wants Defendants to be Informed, Take Action
Let’s dive into the particulars of the lawsuit as detailed in the legal complaint itself. By taking a look at the below excerpts, you may gain insight into what the Plaintiff is actually alleging:
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. E-commerce stores operating under the Seller Aliases often include content and images that make it very difficult for consumers to distinguish such stores from an authorized retailer. Plaintiff has not licensed or authorized Defendants to use any of the VOGUE Trademarks, and none of the Defendants are authorized retailers of genuine Vogue Products.
Other e-commerce stores operating under the Seller Aliases omit using the VOGUE Trademarks in the item title to evade enforcement efforts while using strategic item titles and descriptions that will trigger their listings when consumers are searching for Vogue Products.
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 Plaintiff in a way that individual actions, occurring alone, might not.
How the Temporary Restraining Order Will Affect You Once Implemented
Ok, so now you likely have a better grasp at what this Vogue trademark infringement lawsuit is all about. However, you may be curious about how the lawsuit will practically impact the Defendants. Let’s get into it.
To address what Vogue considers rampant counterfeiting, the Plaintiff will appeal to the court and have them approve of a temporary restraining order. This injunction will serve a specific purpose, which is that it will freeze all affected seller accounts. By freezing the accounts, the Plaintiff will impede the Defendants’ ability to continue their operations, thus reducing the negative impact of counterfeit sales. For any of the named sellers, this could cause a significant disruption to the flow of business. It goes without saying, e-commerce businesses rely on their access to capital to both function and grow. Getting blocked from accessing your money is no small thing! Stockman & Poropat, PLLC will do all we can to ensure you don’t take a major loss.
A Creative Legal Strategy Developed by Stockman & Poropat, PLLC Will Save Time & Money
Pursuing a resolution without the help of a legal team is an option, as well. But sellers who take this approach are risking the financial health of their e-commerce operation. Let’s say you have $150,000 in frozen funds in your marketplace account. Then, with the implementation of the restraining order, that entire amount will be rendered inaccessible. And, perhaps you attempt to directly negotiate with the Plaintiff’s legal team for a settlement. We assume you’d attempt to keep as much of your money as possible. But, on average, direct settlements in these cases result in sellers keeping just 60% of their money. So, in this theoretical example you’d potentially lose tens of thousands of dollars, because the remainder would be awarded to the Plaintiff. That’s why you should consider working with our team at Stockman & Poropat, PLLC!
The attorneys and team at Stockman & Poropat, PLLC have a great deal of experience in the area of e-commerce. We’ve worked with clients based all around the world and delivered effective, creative legal solutions that have saved sellers highly valuable time and money. If you’re a Defendant in this Vogue infringement case, don’t hesitate, reach out to us for a consultation!
Contact our team at Stockman & Poropat, PLLC today!
Download the legal complaint below:
Want to read up on more intellectual property infringement lawsuits? Check out how Hallmark Alleged Counterfeit Sales Resulted in Loss of Revenue, Leading to a Trademark Infringement Action.
