FCA Federal Trademark Infringement Lawsuit

Are you one of the Defendants getting sued by FCA for trademark infringement? Just because FCA is suing you, doesn’t definitely mean you’re guilty of what the brand alleges. Every one of the allegations made against you and your online business is a claim, not a condemnation. Whether you did or didn’t engage in the infringement described, the exact actions relevant to your business will differ from the other Defendants. Which is to say, the allegations are not definitely applicable to you or the other sellers. It really depends on your individual e-commerce operation. At Stockman & Poropat, PLLC, our team offers tailor-made legal strategies for our clients, so that we can most effective address the lawsuit at hand!

Even though the level of your guilt may vary depending on the allegation in question, every Defendant’s e-commerce business will be affected by the FCA lawsuit. And, due to this fact, you’ll want to absolutely provide a response to the court! If you choose to or fail to respond, then your business may face a Default Judgment. In the event that a Default Judgment is issued, sellers may face steep financial penalties. Not only this, but if you want to overturn a DJ, the chances of doing so can be difficult.

Sellers Will Have to Address the Restraining Order

Now, the main cause of stress and difficulty with trademark infringement lawsuits is the temporary restraining order. After the lawsuit is filed the Plaintiff will request that the court approve a restraining order. What this injunction does is freeze the money in your seller accounts! So, if you for any reason don’t respond, you risk having all of that money awarded to FCA. It’s quite a big deal! That’s truly why responding to the lawsuit is so imperative! You don’t want to needlessly hand over all of the money you worked so hard to earn.

With the temporary restraining order, sellers will be prevented from accessing the money in their online seller accounts. Of course, this could definitely throw your business off kilter! FCA is seeking the injunction because “on information and belief,” the Defendants have willingly sold unauthorized, counterfeit products to consumers in the United States. The Plaintiff wants to put a hold on this alleged unlawful activity as soon as possible. That’s because FCA claims they’re losing money and having their reputation damaged by the infringement. Our team knows that when online sellers go through the process of being sued for trademark infringement, it can be very difficult. As intellectual property attorneys, our goal is to streamline the process of addressing the lawsuit as much as we can. In the end, we want you to maintain your business and your money!

FCA Lawsuit Applies Pressure on Online Sellers

The gravity and impact of the FCA lawsuit may lead to the application of a great deal of pressure on the Defendants. To be specific, this pressure could persuade some of the named sellers to directly settle with the Plaintiff. When Defendants take that route, it may be less cumbersome than hiring their own attorney, but it will likely result in sellers taking a loss. On average, sellers who attempt to directly settle with the big brands that are suing them for infringement get unfair resolutions.

Generally speaking, the direct settlement amounts hover at around 60% of the frozen money in your accounts. On the other hand, when you hire your own intellectual property attorney, they can negotiate for you and work out a more agreeable outcome. Whatever you choose to do, our team completely understands. But, if you do work with our attorneys, we’ll do our best to ensure you keep the maximum amount of your money!

Hire an Intellectual Property Attorney!

Let’s examine a few of the allegations made by FCA, excerpted directly from the legal complaint itself, which you can download at the end of this article:

[The online sellers] 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 FCA, have knowingly and willfully used and continue to use the FCA Trademarks in connection with the advertisement, distribution, offering for sale, and sale of Counterfeit Products into the United States and Illinois over the Internet. 

Defendants’ unauthorized use of the FCA Trademarks in connection with the advertising, distribution, offering for sale, and sale of Counterfeit Products, including the sale of Counterfeit Products into the United States, including Illinois, is likely to cause and has caused confusion, mistake, and deception by and among consumers and is irreparably harming Plaintiff. 

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

Our team at Stockman & Poropat, PLLC is spearheaded by intellectual property attorneys who know the e-commerce world in and out. Our legal strategies for clients facing infringement lawsuits is second to none. We’ve successfully helped online sellers facing counterfeit allegations all around the world. And we hope to help you, too!

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 Nike Trademark Infringement and Counterfeiting Action.