Online Sellers Sued by Birkenstock For Infringement

Birkenstock claims their company has been damaged by trademark infringement! The allegations of counterfeit are detailed in the latest Birkenstock infringement lawsuit, filed in Illinois. Several online sellers will be affected by the suit and may be facing financial difficulty as a result. 

Before we get into the specifics of the case, let’s read through some of the infringement claims: 

This action has been filed by Birkenstock to combat e-commerce store operators who trade upon Birkenstock’s reputation and goodwill by offering for sale and/or selling unauthorized and unlicensed products, including footwear, clothing, skin care products, and other lifestyle accessories, using infringing and counterfeit versions of Birkenstock’s federally registered trademarks.

Defendants also deceive unknowing consumers by using the BIRKENSTOCK Trademarks without authorization within the content, text, and/or meta tags of their e-commerce stores to attract various search engines crawling the Internet looking for websites relevant to consumer searches for Birkenstock Products.

E-commerce store operators like Defendants are in constant communication with each other and regularly participate in QQ.com chat rooms and through websites such as sellerdefense.cn and kuajingvs.com regarding tactics for operating multiple accounts and evading detection, pending litigation, and potential new lawsuits. 

This is a trademark infringement action against Defendants based on their unauthorized use in commerce of counterfeit imitations of the federally registered BIRKENSTOCK Trademarks in connection with the sale, offering for sale, distribution, and/or advertising of infringing goods. 

Settle Directly or Hire an Attorney?

Online sellers who’ve been named as Defendants in this case may want to just settle with Birkenstock. Is that a consideration? If so, you may not want to assume that a settlement is the most sensible way to handle the lawsuit. In fact, it’s been reported that direct settlements in cases such as this one provide affected sellers with unfavorable outcomes. Which is to say, the average settlement amount for sellers in trademark infringement cases is around 60%. You’ll only be able to maintain control of just over half of the money you’ve earned from selling online. 

Why would a seller choose to accept a settlement that isn’t ultimately in their favor? Because the lawsuit puts a strain on their online business. The Birkenstock trademark infringement lawsuit is a Schedule A case. The Plaintiff is suing many so-called counterfeiters at one time. Once they file the lawsuit, the Defendants will be notified. Then Birkenstock will seek to get a restraining order against the named sellers. That temporary restraining order (TRO) will impact the sellers’ financials by freezing their online selling accounts. The Defendants won’t have access to their money. So, when they hear about the possibility of settling and getting something, rather than nothing, what do they do? Sometimes sellers believe that’s a decision they ought to make. But we’re here to let you know that you should instead hire an intellectual property attorney! 

Intellectual Property Attorneys Can Save You Money

In terms of settlements, a lawyer can negotiate with Birkenstock for you. They can use their experience to ensure you and your business aren’t getting shortchanged. Even before that step, an attorney can take care of providing the necessary response to the court. The sellers named in this lawsuit can’t ignore the case and move on! A response is definitely needed in order to address the lawsuit properly and avoid a Default Judgment. Not every seller knows how to compose the response. That’s a major reason why retaining legal counsel is the way to go! 

With the activation of the restraining order, some sellers could be placed into a troublesome financial position. You’ll want to respond to Birkenstock and resolve the matter as quickly as you can. Having an attorney on your side will permit you to successfully submit the appropriate response, negotiate with the Plaintiff, and resolve your issues in a timely fashion. If you want to clarify that you didn’t engage in the counterfeit practices described by Birkenstock, your lawyer can help you with that, too. 

Invest in an Attorney, Preserve Your Business

Along with feeling frustrated, sellers who get sued for trademark infringement are sometimes intimidated. That fear can come from a few sources, be it ignorance of the legal system, a mistaken understanding that the allegations are equivalent to guilt, and more. It’s really simple – invest in hiring an attorney now and you’ll be able to preserve your business’ integrity and finances and save yourself from having to spend more money in the future. 

Birkenstock’s products are popular with consumers all around the world. Their global reputation and brand recognition means that there are some folks who do actually sell counterfeit versions of their goods. Sadly, the larger and more valuable the brand, the more that brand will suffer from infringement. The Plaintiff, based on the facts that they’ve gathered, believe that the online sellers affected by this infringement lawsuit are part of a counterfeiting network. Is that really true? That’s something that has to either be proven or addressed by way of a settlement. 

As a Schedule A lawsuit, the allegations are in part used to bolster the Plaintiff’s strategy of regaining some of the loss they’ve sustained. By suing many sellers as a group, Birkenstock can more effectively reach settlements that benefit them. Although, as we’ve stated above, the online sellers named herein aren’t incapable of taking their own action. The most powerful action is hiring an intellectual property attorney! Having a lawyer as a resource will allow online sellers to respond to the accusations of counterfeit and get back to selling with the least amount of loss. 

If you’re being sued in the Birkenstock trademark lawsuit, we’re here to help! Contact our team at Stockman & Poropat, PLLC today for a free consultation.

Download the legal complaint below:

Up next we will be discussing the Manchester United Trademark Infringement Lawsuit.