E-Commerce Sellers Sued | Daimler Infringement Lawsuit

Daimler is taking action against online sellers to combat what they claim is an abundance of counterfeit sales! We wish to urge all affected sellers to seriously consider working with an intellectual property attorney. When you choose Stockman & Poropat, PLLC, our experienced lawyers will guide you throughout the entire process. Our team aims to get sellers dealing with infringement lawsuits the type of outcome that allows them to continue on the path to e-commerce success!

Are you a seller who is wondering if an attorney is necessary? We can help answer that inquiry for you. Indeed, there are options for sellers to reach a resolution on their own. And, we respect whatever decision any given seller believes is the best for their e-commerce operation. All of that being said… Our team has encountered enough cases to know that going for a direct settlement with the Plaintiff may not benefit the Defendants. Why do we say this? Of course, we’re a law firm! But, it’s more than that, we want sellers to be informed so they can act in the most sensible way. Direct settlements with Plaintiffs in infringement cases often result in sellers getting less-than-desirable deals. We don’t want to see you lose out, so reach out to us sooner rather than later!

Daimler Will Seek a Temporary Restraining Order

It stands to reason, because this is a Schedule A counterfeit lawsuit filed in federal court, the Plaintiff will seek a temporary restraining order. This is a common part of infringement suits. Because brands like Daimler want to cease any further unauthorized sales of their products. The Plaintiff believes that the sale of these alleged fake goods has damaged their brand’s reputation. In addition, the actions of the sellers have cost Daimler money in the form of losses, they say.

When the restraining order is in motion, sellers will be blocked from their online seller accounts. As you may have assumed, the freeze that comes with the injunction prevents sellers from touching the money in those accounts. Obviously, being blocked from accessing funds can put some e-commerce businesses in a heap of trouble. Others may be able to weather the storm that comes with the TRO. Every e-commerce business’ financial well-being is different. Similarly, each Defendants’ involvement in the alleged counterfeit will vary. This is why working with an IP attorney can be so helpful!

Daimler Alleges Counterfeit Network Damaged Brand

The legal complaint for the Daimler trademark infringement lawsuit contains all of the allegations of counterfeiting. We’ll take a look at a few selections of text from the complaint below. This should provide more context for the lawsuit:

Defendants are working to knowingly and willfully import, distribute, offer for sale, and sell Counterfeit Products in the same transaction, occurrence, or series of transactions or occurrences. Defendants, without any authorization or license from Plaintiffs, have knowingly and willfully used and continue to use the DAIMLER Trademarks in connection with the advertisement, distribution, offering for sale, and sale of the Counterfeit 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 DAIMLER Trademarks in connection with the sale, offering for sale, distribution, and/or advertising of infringing goods. The DAIMLER Trademarks are highly distinctive marks. Consumers have come to expect the highest quality from Daimler Products sold or marketed under the DAIMLER Trademarks. 

E-commerce stores operating under Seller Aliases omit using DAIMLER Trademarks in the item title to evade enforcement efforts while using strategic item titles and descriptions that will trigger their listings when consumers are searching for Daimler Products.

Daimler Sues Online Sellers

In short, Daimler has filed the lawsuit to address the infringement the brand has perceived. As seen in the legal complaint, the Plaintiff believes they’ve identified a counterfeiting network. Among other allegations, the “network” is said to have communicated to share best unlawful practices. The Plaintiff also alleges that the Defendants use off-shore accounts to hide their money so they won’t have to pay any damages. Again, to review the allegations of infringement in full, you can review the complaint, which is available for download at the end of this post.

Given that the lawsuit consists of allegations in its embryonic stage, the question of guilt is still up in the air. Not all of the Defendants will be equally guilty of everything the Plaintiff states they did as part of the “network” of counterfeiters. Nothing has been proven yet! Sellers who have an attorney can collaborate with them on figuring out just why they’ve been named in the lawsuit. From there, the Defendants can develop a legal strategy with their lawyer that accounts for how to move forward, while saving time and money!

If Daimler is suing you and your e-commerce business for trademark infringement, be sure to respond! Any Defendants who chooses not to recognize the seriousness of the lawsuit may face a costlier, more complicated scenario. By responding, sellers prevent themselves from getting mired in a Default Judgment. Presumably, no one wants to have to contend with a Default Judgment because it’s extremely tough to overturn. Even if you aren’t in agreement with what the Plaintiff alleges, you should still respond and likely hire an intellectual property attorney!

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 latest Canada Goose Trademark Infringement Action.