Online Sellers Accused of Counterfeit | Christian Dior Infringement Lawsuit

Christian Dior has filed a lawsuit due to alleged trademark infringement by online sellers. Any seller who has been named as a Defendant should definitely take this matter seriously! The Christian Dior infringement lawsuit will have real implications on your business. Be sure to read through the counterfeit allegations highlighted in the legal complaint you’ll receive. The claims made by Christian Dior include the following:

Allegations of Trademark Infringement:

This is a trademark infringement action against Defendants based on their unauthorized use in commerce of counterfeit imitations of the federally registered CHRISTIAN DIOR Trademarks in connection with the sale, offering for sale, distribution, and/or advertising of infringing goods. The CHRISTIAN DIOR Trademarks are highly distinctive marks. Consumers have come to expect the highest quality from Dior Products offered, sold or marketed under the CHRISTIAN DIOR Trademarks.

Defendants’ activities constitute willful trademark infringement and counterfeiting under Section 32 of the Lanham Act, 15 U.S.C. § 1114.

Dior has no adequate remedy at law, and if Defendants’ actions are not enjoined, Dior will continue to suffer irreparable harm to its reputation and the goodwill of its well-known CHRISTIAN DIOR Trademarks.

Defendants’ promotion, marketing, offering for sale, and sale of Unauthorized Dior Products has created and is creating a likelihood of confusion, mistake, and deception among the general public as to the affiliation, connection, or association with Dior or the origin, sponsorship, or approval of Defendants’ Unauthorized Dior Products by Dior.

By using the CHRISTIAN DIOR Trademarks on the Unauthorized Dior Products, Defendants create a false designation of origin and a misleading representation of fact as to the origin and sponsorship of the Unauthorized Dior Products.

Defendants’ false designation of origin and misrepresentation of fact as to the origin and/or sponsorship of the Unauthorized Dior Products to the general public involves the use of counterfeit marks and is a willful violation of Section 43 of the Lanham Act, 15 U.S.C. § 1125. 

How Should Online Sellers Navigate Counterfeit Lawsuits?

You may want to precisely grasp the reasons why Christian Dior has sued your business for infringement. In order to do that, you will have to speak with the Plaintiff and evaluate your business practices to see what led to the apparent infringement. The greatest benefit to businesses when navigating counterfeit lawsuits? An intellectual property attorney! The Plaintiff claims that their brand has suffered damage because of the counterfeiting they say the Defendants engaged in. The allegations are not the same as guilt! Again, the exact reasons for why you’re being sued can be determined by your lawyer. An attorney is also especially helpful when it comes to negotiating settlements, too! 

As we’ve noted in past articles, this infringement case is a Schedule A lawsuit. Christian Dior and other big companies that are dealing with counterfeiting file Schedule A suits to more effectively address the infringement. It gives Plaintiffs the ability to sue a whole bunch of online sellers at the same time, instead of individually. That provides Christian Dior the advantage when they move into the settlement stage. As a result of the alleged infringement, the Plaintiff will try to get as much money as they can by way of reaching settlements. 

Turns out, however, Schedule A settlements don’t normally work out in the Defendants’ favor. The amount sellers walk away with when settling directly with brands like Christian Dior is less than what they probably deserve. Unless you’re ready and willing to move forward with around half of the money you generated from your own sales, you should retain an attorney today! They can more likely work out a settlement that is beneficial, rather than damaging, and if possible, a lawyer can clear up any discrepancies with regard to the allegations themselves. 

A Federal Lawsuit is Serious! | Retain an Intellectual Property Attorney

To reiterate, know that this lawsuit is very serious! Many sellers get notice that they’re being sued for trademark infringement and are totally lost as to what they should do. You’ve got to respond to the lawsuit. Of course, you may not know how to do that. Rest assured, your intellectual property attorney does! If a seller chooses not to respond, they could then have to contend with a Default Judgment, costing lots of money and complications.

Per Christian Dior, the infringement occurred via sales on Amazon, eBay, AliExpress, Alibaba, Walmart, Wish.com, DHgate, Temu, and Etsy. The Defendants who are being targeted by the lawsuit will be affected by a temporary restraining order (TRO). The TRO freezes the sellers’ marketplace accounts and blocks access to the money in those accounts. It can be a major blow to a small online business. Online sellers require access to their money so they can continue their operation. Is it fair that the TRO freezes the accounts and prevents sellers from getting their money? It may not be! 

Do you want to successfully navigate the trademark infringement lawsuit impacting your business? Would you like to settle with the Plaintiff or clear yourself of any alleged unlawful conduct? Consider the investment in the cost of an attorney a worthwhile investment in the future of your business. We can 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 latest Bluey Trademark and Copyright Infringement Lawsuit Filed by the BBC.