Online Sellers Sued | Chrome Hearts Claims Intellectual Property Infringement

Chrome Hearts, the American luxury brand, has filed a trademark infringement lawsuit in federal court! This “Schedule A” intellectual property infringement lawsuit will affect online sellers. The Defendants in the case won’t be able to acquire any sort of immunity against the lawsuit. Even if the suit consists of allegations that may or may not be proven true, the result of the suit will still be felt. To what degree? That will vary based on the details of each individual named seller’s e-commerce activity. One seller might’ve generated several thousand dollars worth of sales of Chrome Hearts goods, while another could’ve earned hundreds.

Chrome Hearts Identifies ‘Counterfeit Network’

Regardless of the degree of the impact, all of the Defendants will be subject to the disruption that is the Chrome Hearts trademark lawsuit! In so many words, Chrome Hearts is all upset because based on information they’ve acquired, as well as their belief, online sellers sold counterfeit versions of their products online. What’s more than that, the Plaintiff alleges that the Defendants actually worked together to pull this off! Per Chrome Hearts, the named sellers created a network to ensure their counterfeiting efforts would be successful. Again, this isn’t necessarily true and/or accurate to the actual conduct of the Defendants. But, no matter, the brand filed the infringement lawsuit because they want to stop this perceived unlawful activity. And so we’re here!

Any seller impacted by the Chrome Hearts Schedule A action should very carefully weigh their options. Principally, you’ll probably want to hire an intellectual property attorney! Why is retaining a lawyer a sensible decision when being sued by a brand like Chrome Hearts? Well, your e-commerce business is at stake! You shouldn’t take any needless risks when it comes to addressing and navigating federal lawsuits. At the end of the day, not working with an attorney may also result in your business losing money. We certainly don’t want that to happen and we can safely assume you wouldn’t either. How exactly are the Defendants at risk of losing money if they don’t retain legal counsel? Let’s dive into the details.

Protect Your E-Commerce Business | Chrome Hearts Trademark Infringement Lawsuit

Before anything, really, sellers need to submit a response to the lawsuit. By formally acknowledging the receipt of the legal notice, sellers will not make themselves susceptible to a Default Judgment. Why would sellers want to make sure they’re not in line to get a Default Judgment issued against them? That will likely lead to additional financial penalties and the decision itself is challenging to overturn. So, just by responding, you’re ahead of the game!

Another reason hiring an IP lawyer is beneficial is because of the temporary restraining order. Chrome Hearts will gain approval for a temporary restraining order due to the allegations of trademark infringement. That’s how the majority of Schedule A lawsuits play out. The Plaintiff wants to achieve the injunction so they can stymie the “unlawful” conduct of the Defendants. To elaborate, because Chrome Hearts believes with such fervor that the online sellers engaged in counterfeiting, the Plaintiff claims they’ve suffered losses. And, they don’t want to incur any further loss. In return, Chrome Hearts gets the restraining order and online sellers’ accounts are frozen.

Consider Hiring an Intellectual Property Attorney

Now, are sellers in a position to negotiate with Chrome Hearts without a legal representative? Yes, you may choose this route. It may not prove to be a fruitful one, though, because of the average likely outcome of the resolution you’ll reach. What we mean is, when online sellers being sued for infringement attempt to negotiate settlements themselves, they may end up with just about 60% of the money in the account frozen by the injunction. Whereas, when you work with an attorney at our firm, the chances of getting a financially positive outcome are much improved! And, as we touched on earlier, the differences between each Defendant matter!

The allegations that are applicable to one seller may not ring true for another, and so on. When you have an attorney working with you, they’ll identify every applicable claim and then tailor a legal strategy based on that! It’s much more effective and saves you some of the most valuable things in the universe: time and money.

Stockman & Poropat, PLLC is Prepared to Help You!

Stockman & Poropat, PLLC is spearheaded by an award-winning team who understands our clientele from both the legal and human angle. We want to assist with your legal matters, no doubt, but we also want you to have a positive overall experience. Dealing with trademark infringement lawsuits can be tricky and definitely frustrating. Our team strives to integrate an empathetic client approach into all of our legal work, so that you feel like you and your business are taken care of!

Chrome Hearts Allegations of Trademark Infringement

Let’s review some of the allegations of trademark infringement, as described by Chrome Hearts in the legal complaint (downloadable at the end of this article):

Defendants are working to knowingly and willfully import, distribute, offer for sale, and sell Counterfeit Chrome Hearts Products in the same transaction, occurrence, or series of transactions or occurrences. Defendants, without any authorization or license from Chrome Hearts, have knowingly and willfully used and continue to use the CHROME HEARTS Trademarks in connection with the advertisement, distribution, offering for sale, and sale of Counterfeit Chrome Hearts Products into the United States and Illinois over the Internet. 

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

[Sellers] deceive unknowing consumers by using the CHROME HEARTS 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 Chrome Hearts Products. 

Contact our team at Stockman & Poropat, PLLC today for a free initial consultation! 

Download the legal complaint below:

Up next we will be discussing the newest Ralph Lauren Trademark and Copyright Action.