Birkenstock Trademark Infringement Lawsuit
Birkenstock, the massively popular billion-dollar shoe manufacturer best known for their sandals, is suing online sellers for trademark infringement. As you may have guessed, this is yet another Schedule A counterfeit lawsuit. And yes, it was filed in the United States District Court for the Northern District of Illinois. What does that mean exactly? Mainly, the federal lawsuit targets e-commerce sellers based in China. But, it also includes sellers in the US and other jurisdictions.
Primarily, this Birkenstock lawsuit affects online sellers by way of a Temporary Restraining Order (TRO). The TRO was just recently approved by the court. The claims of trademark infringement and counterfeiting have resulted in this restraining order. And, that means, it freezes the money in sellers’ online accounts. So, if you’ve sold Birkenstock products online, you may be feeling the brunt of the lawsuit. This applies to those who sold these goods on Amazon, eBay, AliExpress, Alibaba, Wish.com, Walmart, Etsy, DHgate, and/or Temu.
What is a Schedule A Lawsuit?
Now, what in the absolute wild west of online selling is a Schedule A lawsuit? To make it brief, gigantic brands like Birkenstock file these kinds of infringement lawsuits when they believe an orchestrated counterfeit effort has been made by sellers around the world. Of course, anyone can understand that if a lot of fake goods are being sold, the trademark holder will be upset. They will be absorbing a ton of financial loss. However, rather than signing up for more loss by suing each individual alleged counterfeiter, brands basically sue a pool of sellers to save money.
Birkenstock Trademark Infringement Lawsuit
You should know that Birkenstock intends to, in a way, scare off a bunch of the e-commerce operators named in the lawsuit. Why would they do that? Simple. When sellers walk away from the lawsuit, whatever money left in their seller account is given right over to the Plaintiff. If a hefty amount of sellers abandon the suit and their money, Birkenstock gets compensated with very little effort. Which is to say, Schedule A lawsuit filing is advantageous for major brands, in more ways than one. You should also know that just because a seller walks away, that doesn’t actually mean they committed any infringement. The determination of guilt is not inherent in the lawsuit itself. If you are an affected seller, you may not have necessarily done anything wrong. That remains to be seen.
Take Legal Action Rather Than Walking Away
If your business has been struck with a restraining order, you should consider taking legal action of your own. If possible, you can proceed with a legal strategy that will allow you to either settle with Birkenstock or try to prove that you didn’t do what they claim you did. Those Defendants who are based in China may feel intimidated by the lawsuit. That intimidation may come in several forms. To find success in taking legal action, you will need an understanding of the US legal system, the English language, what a response to the court looks like, and the money to afford a lawyer. These factors are often seen as too large to overcome or even insurmountable.
Here’s what you need to know. Not only does Birkenstock wish to drive many of the Defendants away, they may also attempt to reach settlements directly with the alleged infringers. On average, sellers settle for about 60% of the frozen funds in their account(s). The rest of it will go straight to Birkenstock. This can possibly also negatively impact a business’ reputation, which is a long-term issue, rather than a short-term solution.
Respond to the Court!
Overwhelmingly, providing a response to the court will benefit sellers, even though they are accused of trademark infringement. If you do not respond, the amount of loss you will be taking will be likely much more damaging for your business overall. One of the most undesirable outcomes is known as a Default Judgment. In that case, the court decides a seller must pay a certain amount to Birkenstock for their illegal actions. It is entirely plausible that the amount you would need to pay due to a Default Judgment exceeds the amount of money in your frozen account.
In terms of the content of the lawsuit, this trademark infringement suit does not differ too much from many of the other similar lawsuits we have covered before. The statements made in the complaint are nearly identical to every other Schedule A suit filed in the same court. The difference being the name of the brand who filed the lawsuit. Even if you haven’t used a fake identity, sold counterfeit goods, or otherwise made a conscious effort to fool consumers into buying unauthorized Birkenstocks – these allegations should be taken seriously.
Stockman & Poropat, PLLC Wants to Save You Time and Money
Our team at Stockman & Poropat, PLLC can help you navigate this unique online seller situation. Contact us today for a free consultation before you decide to abandon the issue or accept a settlement. We want to save you time and money – the most valuable resources for a successful online business!
Download the legal complaint below:
Up next we will be discussing the Dyson Patent Infringement Lawsuit.
