Online Sellers Sued | General Motors Federal Trademark Lawsuit
Hey there online sellers, did you know that General Motors has filed a recent trademark infringement lawsuit? The newest General Motors federal trademark lawsuit will affect several e-commerce sellers. In this article, we’ll provide an overview of the case, the allegations, and what sellers can do once they’ve been named in the lawsuit.
Before we go any further, let’s address what many online sellers may be considering at the outset. Settlements. Yes, sellers who’re being sued by General Motors may negotiate a settlement directly with the Plaintiff. The attraction of making this kind of move comes from the efficient resolution a seller might attain. Please do note that when sellers attempt to settle with brands like GM, without a lawyer, they typically don’t get a favorable percentage. And, what’s that a percentage of? Your own money!
See, once the GM federal trademark lawsuit picks up momentum, the court will more than likely approve of a temporary restraining order (TRO). With the TRO in place, sellers’ online accounts and the money in them will be frozen. That’s what you’d be negotiating with General Motors over. In effect, you’d be trying to settle for a substantial percentage of the money your online business earned. There’s a possibility that the restraining order will apply to money other than that gained by selling GM products, too. So, the lawsuit is certainly a big deal and sellers should take the matter very seriously.
How to Get the Best Settlement?
What should sellers do to negotiate the greatest available settlement? Hire an intellectual property attorney! Our lawyers at Stockman & Poropat, PLLC have worked with countless online sellers dealing with Schedule A infringement lawsuits. Our laser-focused experience in this area of the law and e-commerce has helped numerous sellers all over the world.
To further emphasize the point, the GM trademark lawsuit is a harsh reality for the named sellers. Each and every seller who is a Defendant needs to provide a response to the lawsuit. The response is more of a requirement than anything. Without a response, sellers could then get slammed with a Default Judgment. Know that your online business’ success moving forward depends on how you handle this lawsuit. All of the Defendants have a right to take their own legal action. Doing so proactively and with a team of intellectual property attorneys that have your back.
The most appropriate place to start, in terms of proactivity, is with the legal complaint. Therein, sellers can find General Motors allegations of trademark infringement. Knowing the reasons why you’re being sued, according to the Plaintiff, will allow sellers to be more informed and make better decisions. And if you have questions about anything detailed in the legal complaint? Again, that’s where an intellectual property attorney can become a necessity.
Who Is Entitled to Retain Legal Counsel?
If you’re based in China, the United States, or another country, you are entitled to obtain legal counsel. The lawsuit and the restraining order will likely disrupt your normal e-commerce operation. Don’t just walk away! If you do choose to do nothing, all of the money in your frozen account will be awarded to General Motors. Sellers who get sued for alleged sales of counterfeit products deserve a resolution that’s fair. In essence, if you invest in legal counsel today, you save money tomorrow. You’re not out of options just because the GM lawsuit was filed. In fact, there may be plenty of ways you can respond, negotiate, and move forward.
Everything associated with the lawsuit, as of now, is in the form of allegations. The trademark infringement General Motors claims has not yet been proven. What is it that GM is saying the named sellers did? Let’s review some of the claims as written in the legal complaint…
GM’s Allegations of Trademark Infringement
GM has identified many fully interactive, e-commerce stores offering Counterfeit GM Products on online marketplace platforms such as Amazon, eBay, AliExpress, Alibaba, Walmart, Wish.com, Etsy, DHgate, and Temu, including the e-commerce stores operating under the Seller Aliases. The Seller Aliases target consumers in this Judicial District and throughout the United States.
Defendants facilitate sales of Counterfeit GM Products by designing the e-commerce stores operating under the Seller Aliases so that they appear to unknowing consumers to be authorized online retailers, outlet stores, or wholesalers. E-commerce stores operating under the Seller Aliases appear sophisticated and accept payment in U.S. dollars and/or funds from U.S. bank accounts via credit cards, Alipay, Amazon Pay, and/or PayPal.
E- commerce stores operating under the Seller Aliases often include content and images that make it very difficult for consumers to distinguish such stores from an authorized retailer. On information and belief, Plaintiff has not licensed or authorized Defendants to use any of the GM Trademarks, and none of the Defendants are authorized retailers of genuine GM Products.
Counterfeiters such as Defendants typically operate under multiple seller aliases and payment accounts so that they can continue operation in spite of GM’s enforcement. E- commerce store operators like Defendants maintain off-shore bank accounts and regularly move funds from their financial accounts to off-shore accounts outside the jurisdiction of this Court to avoid payment of any monetary judgment awarded to GM.
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 Lululemon Trademark Infringement Lawsuit.
