Online Sellers Accused of Counterfeiting Bluey Products

BBC Studios Distribution has filed an infringement lawsuit. That company owns the exclusive rights to use and enforce the trademarks and copyrights of Ludo Studio Pty. The case alleges that online sellers have infringed on the trademark and/or copyright of Bluey products. Due to the popularity of the animated series Bluey, many officially licensed Bluey products are available on the marketplace. It’s these products that the Plaintiff claims the Defendants have infringed upon. 

This Schedule A case states that the Defendants are primarily located in China. If you’ve been named as a Defendant, it’s likely because you sold Bluey products online. Either on Amazon, Walmart, Etsy, Temu, eBay, and/or other major platforms. Without question, you should respond to the lawsuit! Even if the allegations of infringement don’t make sense to you, the lawsuit has legitimate implications. Maybe you don’t believe you’ve infringed on the Bluey trademarks and copyrights. Doesn’t matter! Since the case is filed and you’ve been named, that means you’ll need to respond. 

The Defendants’ Alleged Unlawful Conduct | Bluey Counterfeit Lawsuit

The legal complaint details the allegations of infringement under the section “Defendants’ Unlawful Conduct.” Below, you can read a selection of these claims:

Bluey has not licensed or authorized Defendants to use the BLUEY Trademarks or copy or distribute the Bluey Copyrighted Work, and none of the Defendants are authorized retailers of genuine Bluey Products.

Defendants have targeted sales to Illinois residents by setting up and operating e- commerce stores that target United States consumers using one or more Seller Aliases, offer shipping to the United States, including Illinois, accept payment in U.S. dollars and/or funds from U.S. bank accounts, and, on information and belief, have sold Unauthorized Bluey Products to residents of Illinois.

Bluey has not licensed or authorized Defendants to use the BLUEY Trademarks or copy or distribute the Bluey Copyrighted Work, and none of the Defendants are authorized retailers of genuine Bluey Products.

What’s the Reason for the Infringement Lawsuit?

So, why are so many sellers getting sued for infringement at the same time? In Illinois, there has been a rise in the filing of Schedule A counterfeit lawsuits by major corporations. Whenever a brand has a popular product that consumers around the world wish to buy, there will be counterfeiters. Bluey is no different. What happens when bad actors infringe on trademarks and copyrights? They damage the reputation and value of the brand they are ripping off. This can lead to the loss of millions of dollars! By filing a Schedule A lawsuit, Bluey hopes to curb the rampant counterfeiting they have observed. To lessen the amount of damage and financial loss. 

Oftentimes, brands like Bluey file counterfeit lawsuits and then reach settlements with the Defendants. This type of outcome may appeal to sellers accused of infringement because it’s quick and doesn’t involve any further legal action. Settlements can result in online sellers taking a significant loss! Even if a seller isn’t entirely sure why they’ve been accused of infringement, they may settle, take the loss, and move on. The most persuasive reason for taking a settlement is that it ceases the temporary restraining order on the seller’s account. Whenever a Schedule A lawsuit is filed, the Plaintiff typically motions for a restraining order on all of the Defendants’ seller accounts. The money in those accounts is frozen and the sellers can’t access it. This can be extremely harmful to an online business! A restraining order like that could put a seller out of business. 

Intellectual Property Attorneys vs. Settlements With the Plaintiff

A settlement, however, isn’t the only way to move forward. Rather than just hanging onto 60% of your money, which is how settlements usually go, sellers can take legal action with the aid of an intellectual property attorney. Sellers sometimes don’t even know that they have this right. A lawsuit can be scary and overwhelming. If the seller is in fact based in China or outside the US, they may not even know how to navigate the legal system.

Using an attorney can give sellers the power to maintain a larger percentage of their money versus reaching a settlement with the Plaintiff directly. And, the details of every seller’s online operation vary! An attorney can dive into those details and figure out just exactly what you’ve done incorrectly, if anything. At that point, they can work on the seller’s behalf with the Plaintiff and reach the best possible resolution available to the seller. 

Respond to the Lawsuit!

Any seller who believes they can walk away from the lawsuit unscathed is slightly misguided! If a seller doesn’t respond to the lawsuit, they will forfeit whatever amount of money is in their frozen account. In that scenario, Bluey will receive all of the money you earned from selling their products, because of the allegations of infringement and the seller’s failure to respond. Even further, walking away from the case can result in a Default Judgment. Which means, the court may determine that a seller needs to pay Bluey a specific monetary amount for damages. All of that is avoidable! Consider prioritizing the integrity of your business, which you worked hard to build, consulting with an attorney, and pursuing a legal avenue that makes the most sense! 

Our team at Stockman & Poropat, PLLC wants to help you with these infringement claims! If you’ve been struck with a restraining order and don’t know what to do, contact us today. The consultation is completely free!

Download the legal complaint below:

Up next we will be discussing the FCA Infringement Lawsuit.