Hallmark Trademark and Copyright Infringement Lawsuit

Hallmark has filed a trademark and copyright infringement lawsuit in federal court! The company that’s synonymous with greeting cards and which has its own television network is suing online sellers for counterfeiting. Since it was only very recently filed, the claims of infringement are currently allegations. Nevertheless, if you’re a Defendant in the case, the Hallmark lawsuit will affect your e-commerce operation. Therefore, it stands to reason that sellers may better handle the suit with the aid of an intellectual property attorney! 

As a seller, you may be curious how your e-commerce business will be affected by the lawsuit. Principally, you’ll have to contend with Hallmark’s temporary restraining order! As these cases go, the Plaintiff will request that the court approve a restraining order. The reason? Hallmark will seek that out because they want to halt what they believe is trademark and copyright infringement. What does that halt look like? A freeze on the seller accounts of the Defendants named in the lawsuit! Any money generated from selling Hallmark products will be frozen. 

How to Manage a Temporary Restraining Order…

The temporary restraining order can truly shake up an online seller’s business. Due to the highly competitive nature of online selling, e-commerce operators need to do everything they can to consistently sell goods to consumers. Having your capital tied up because of the restraining order can cause a severe strain on your business. For these reasons and more, Defendants will want to very seriously look into retaining an intellectual property lawyer. 

While sellers have the option to settle directly with Hallmark, that may not ultimately work out for them. It’s been reported that sellers who try to settle with Plaintiffs (big brands) in infringement lawsuits like this one get to walk away with only about 60% of their money. That’s not precisely what we’d call fair! 

Online Sellers Accused of Selling Counterfeit Hallmark Goods

The Hallmark counterfeit lawsuit claims that online sellers have sold counterfeit versions of the brand’s products. Among the specific products in question are the My Friend Jesus Stuffed Doll and various Rainbow Brite goods. Are you concerned that you may not be able to address the lawsuit in the proper way? Well, that’s a valid thing to worry about. What should sellers know? The basic outline of how to handle being sued by a company like Hallmark for infringement. 

You’ll have to respond to the court! Submitting a response is essentially a requirement. Failure to do so can prolong the effects of the lawsuit on your business and lead to a Default Judgment. Some sellers may be under the impression that the lawsuit isn’t real or that it will resolve itself on its own. That’s not the case! This is a definite reality that the Defendants will need to acknowledge in the appropriate legal manner. Starting with a response! 

Sellers Sued by Hallmark for Infringement

An intellectual property attorney can work with you to submit your response in the right way. It’s not something sellers need to take care of on their own, if they aren’t well versed in how to compose such a response. And when it comes time to enter into negotiation with Hallmark, your lawyer will do so on your behalf. Overall, sellers need to work with an attorney to develop a legal strategy and solution that permits them to maintain the value of their online selling business. That’s why investing in a lawyer is so beneficial when being sued for trademark and copyright infringement! 

Hallmark believes that the Defendants comprise a network of counterfeiters who work together to sell fake products to consumers in the United States. As such, the Plaintiff is suing all of the sellers as a whole by way of this “Schedule A” lawsuit. As with many other brands, Hallmark claims that the actions of the Defendants has cost them lots of money. To that end, the brand will attempt to get some of that loss back through direct settlements with the affected online sellers. In order to preserve your business as much as possible, you should consult with an intellectual property attorney! 

Hallmark Alleges Network of Counterfeiters Infringing on Intellectual Property

Here’s a selection of Hallmark’s allegations of trademark and copyright infringement:

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. Hallmark has not licensed or authorized Defendants to use any of its HALLMARK Trademarks or copy or distribute the Hallmark Copyrighted Works, and none of the Defendants are authorized retailers of genuine Hallmark Products.  

Counterfeiters such as Defendants typically operate under multiple seller aliases and payment accounts so that they can continue operation in spite of Hallmark’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 Hallmark.

Defendants, without any authorization or license from Hallmark, have jointly and severally, knowingly and willfully used and continue to use the HALLMARK Trademarks and/or Hallmark Copyrighted Works in connection with the advertisement, distribution, offering for sale, and sale of Unauthorized 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 HALLMARK Trademarks in connection with the sale, offering for sale, distribution, and/or advertising of infringing goods. 

Have questions? Need 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 Mattel Trademark Infringement Lawsuit.