Canada Goose Trademark Lawsuit

E-commerce sellers on multiple platforms have been named in a “Schedule A” federal trademark lawsuit filed by Canada Goose. This has affected sellers of Canada Goose products on Etsy, Temu, eBay, Amazon, Wish.com, DHgate, Walmart, and AliExpress. The suit describes several alleged actions taken by sellers to avoid responsibility. If you are one of the Defendants, your account has most likely been impacted by a Temporary Restraining Order (TRO). The TRO puts a freeze on your funds, which can be a very serious disruption for any online seller. 

Let’s review some of the claims included in the notice. 

• Sellers use aliases or fake names to run more than one online store that offers counterfeit goods to consumers. 
• Defendants have sold unauthorized, trademark infringing goods by deceiving consumers. 
• Sellers rely on off-shore bank accounts to secure their funds so they can engage in counterfeiting. 
• Defendants provide false information to e-commerce platforms. 
• Sellers offer counterfeit products in connection with a network of other counterfeiters. 
• Defendants have damaged the reputation of Canada Goose as a result of their infringement and counterfeiting. 

Sellers Hit With Temporary Restraining Order

The sellers who are dealing with a Temporary Restraining Order (TRO) because of this trademark lawsuit have options. If you are a Defendant, the TRO could hurt your business. Submit a response to the court. If you fail to provide a response to the lawsuit, you may end up facing a Default Judgment. Some sellers give up, do not respond to the court, and leave the funds in their account frozen. In that case, you will be accepting a potentially large loss. 

This is a particular type of trademark lawsuit, known as a Schedule A lawsuit. In the majority of these suits, the Plaintiff – typically a major brand or company – claims a large quantity of online sellers engaged in infringement. By naming a large quantity, the Plaintiff is anticipating that many of the accused will simply walk away. When a Defendant walks away from this kind of lawsuit, all of the money in the account is abandoned. It is also considered somewhat of an intimidation tactic, in that many of the sellers in these lawsuits are based on China. If a seller is based in China, they may not have a deep understanding of the United States legal system or a solid command of English. Not to mention legal fees. 

E-Commerce Sellers in China | Schedule A Federal Lawsuit

Are you a seller operating out of China and facing these allegations? Brands like Canada Goose frequently attempt to negotiate settlement deals with sellers. If you are considering taking a settlement, just know that those settlements are typically 60% of the total amount in your account. This could alleviate the restraining order, but you will only have less than half of what you earned. 

You should also know that the allegations and claims put forward in the trademark lawsuit are not a judgment. Each individual Defendant’s e-commerce activity will vary and until a judge reaches a decision, the sellers have options. Retaining legal counsel may provide you with the necessary guidance to move forward with the least amount of loss. If the case is open, you have a chance to resolve the situation and carry on with an amount that is more than just 60%. 

As a recipient of the legal complaint, it is in your best interest to take the matter seriously. A response to an infringement lawsuit is essential. If a seller accused of offering unauthorized Canada Goose products does not submit a response, the total amount of the money in their frozen account goes to the Plaintiff. Utilizing an effective legal strategy developed by an intellectual property attorney could greatly improve your chances at keeping as much of your money as possible. 

Stockman & Poropat, PLLC Can Protect Your Business

The team at Stockman & Poropat, PLLC is passionate about finding resolutions for online sellers just like you. We offer a free consultation! Our intellectual property firm has developed much-needed solutions for a wide range of e-commerce legal issues. We have helped a robust list of clients around the world maintain power over their business and save money. Our team understands that an infringement lawsuit can make your business vulnerable, and we want to protect your interests. Contact us today!  

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Up next we will be discussing Kendra Scott | Schedule A Infringement Lawsuit.