Have you been named in the Leatherman trademark infringement lawsuit filed in Illinois? As a Defendant, your e-commerce account has been frozen by a Temporary Restraining Order (TRO). According to Leatherman, sellers have offered customers in the United States counterfeit products online. The platforms in question include Amazon, Wish.com, eBay, Etsy, DHgate, Temu, Alibaba, and AliExpress. The primary issue with the TRO is that it prevents sellers from accessing the money they have earned from selling Leatherman goods online.
These types of infringement lawsuits typically affect e-commerce sellers based in China. If you are an Amazon seller in China, for example, you may not even fully comprehend the reason behind the lawsuit. Which is to say, it is entirely possible that you are unaware of having committed any wrongdoing. This particular Schedule A lawsuit filed by Leatherman states that a large group of sellers have knowingly orchestrated a mass effort to offer infringing goods. Is this true or accurate? It may or may not be, depending on the actions of a given Defendant.
The Negative Effects of a Temporary Restraining Order…
The TRO impacts every seller named in the suit. That is, regardless of the allegations described in the Leatherman lawsuit. You may have thousands of dollars in your frozen seller account. Leatherman has filed the suit in Illinois and named so many Defendants with the expectation that most sellers will abandon their accounts. They might assume that the Chinese sellers do not have a grasp of the US legal system or the English language, which places them at a disadvantage if they were to take legal action. Furthermore, there is also the concern of how to afford the legal fees, especially considering the frozen monies in your seller account.
Oftentimes, sellers affected by trademark lawsuits seek a settlement. Subsequently, the amount that sellers get when they settle is approximately 60% of the money in their frozen accounts. Why do e-commerce sellers want a settlement? It unfreezes their account and allows the seller to access their money. That decision, obviously, comes at a steep cost. As we alluded to, other sellers may decide to walk away. Any seller accused of infringement and affected by a TRO who walks away allows the court to issue a Default Judgment. That means, you are basically admitting to the alleged wrongdoing. On top of that, the Plaintiff (Leatherman) will be awarded all of the money in your account.
Should Sellers Respond to Infringement Lawsuits?
It is extremely important that you provide a response to the complaint. It will usually not benefit a seller to abandon the issue because then they are simply giving up the money they have already earned. Do not just give up. Going forth with legal action will vastly improve your chances of keeping as much of your money as possible.
The negative result of the TRO is meant to motivate the affected sellers to engage in negotiation with the Plaintiff. Of course, the truth of the trademark infringement and counterfeiting is relevant. However, the existence of the lawsuit has already caused damage to the sellers. Is it a lost cause? No, not necessarily. A thorough look at the details of your actions as a seller will reveal what is or isn’t accurate with regard to the claims in the lawsuit.
Legal Action and Resolution
The team at Stockman & Poropat, PLLC has seen many Schedule A cases just like this one. Contact us today if you have been named in this infringement lawsuit or a similar suit. We can provide you with a clear understanding of the situation at hand, in specific detail, and assist with reaching a resolution that is financially in your best interest. We have helped many clients who have encountered issues related to claims of infringement. Do not walk away and accept a potentially unnecessary loss. Let us figure out a solution that saves you money!
See below for a link to the complaint itself.
Up next we will be discussing Rainbow Friends Copyright Lawsuit.
