NBA Sues Online Sellers | Trademark Infringement Allegations

We’re covering yet another NBA trademark infringement lawsuit filed in federal court! For those sellers named in the suit, you may not be guilty of every allegation described by the Plaintiff. Unfortunately, even if you’ve not committed the alleged infringement, the NBA trademark lawsuit will still require your action. What’re the claims made by the NBA concerning the sale of counterfeit products? Let’s take a glance at a few of them: 

Defendants facilitate sales of Counterfeit NBA 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, including, in many instances, by copying the layouts, terms of service, legal notices and/or contact information found on the websites of Plaintiff’s authorized online retailers.

E-commerce stores operating under Seller Aliases omit using NBA 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 Genuine NBA Products. On information and belief, those Defendants that do not use NBA Trademarks in searchable text do so in an effort to avoid detection of their Counterfeit NBA Products. 

Defendants operate under multiple fictitious aliases, the e-commerce stores operating under the Seller Aliases often share unique identifiers, such as templates with common design elements that intentionally omit any contact information or other information for identifying Defendants or other Seller Aliases they operate or use. 

It’s Crucial That Sellers Respond to the Lawsuit!

It’s really crucial that you respond to the latest NBA trademark lawsuit if you’re a Defendant! You don’t want to further entrench yourself and your business in legal complications. Are you keen on handing over all the money you’ve generated from NBA products to the Plaintiff? Likely not! You should prioritize protecting your assets so that your business stays afloat and continues to be successful. By responding, you’ll bolster your e-commerce operation against a Default Judgment. To put it another way, if you don’t respond and a Default Judgment is made by the court, the full amount of the funds in your accounts could be awarded to the NBA. 

Now, what’s the cause for another NBA trademark lawsuit being filed? Similar to other federal counterfeit lawsuits we’ve covered, the NBA has identified an apparent “network” of sellers. This group of e-commerce operators, per the Plaintiff, aims to sell unauthorized NBA products to unknowing consumers. It’s the alleged collective infringement of this “network” that the NBA claims resulted in financial loss. The Plaintiff says the Defendants use off-shore accounts to hide their money and avoid penalty. They also state sellers engage in specific communications to share tactics on how to get away with counterfeiting. Again, these are the NBA’s allegations, but because they’ve been filed in a federal legal context, the Defendants need to take them seriously! 

NBA Counterfeit Allegations, How to Address the Lawsuit

The NBA will have the court approve a temporary restraining order due to these alleged illegal actions! The Plaintiff is interested in stopping any more counterfeit sales, if they can. To address that concern, sellers will be struck by a temporary injunction. When that’s in effect, the Defendants will be blocked from touching the money in their seller accounts!

If you’re curious as to whether or not you’ll be able to withdraw your funds – you won’t. The TRO places a freeze on seller accounts. In most cases, the restraining order only freezes money earned by the sale of a given Plaintiff’s products. But, the TRO may also apply to earnings by way of products totally unrelated to the NBA. Will this lead to sellers going bankrupt? Depending on the health of your e-commerce business, it could. In order to address the lawsuit and not go under, hire an intellectual property attorney! 

Stockman & Poropat, PLLC Doesn’t Want to See You Lose Money

The attorneys at Stockman & Poropat, PLLC don’t want to see your business take a major hit. When you work with our amazing lawyers and incredible supportive team, we’ll invest a hearty amount of tact and energy into saving you time and money! 

Following the approval of the temporary restraining order, the NBA may make an attempt to settle directly with the affected sellers. After all, the Plaintiff wants to regain some of the loss they’ve incurred due to the sellers’ alleged actions. A direct settlement is one way to achieve that. A settlement with the NBA directly, not using the aid of an attorney, is possible, but could be detrimental, too. Overall, sellers walk away with only 60% of the money in their frozen accounts when they go with a direct settlement. We know that the TRO is a big disruption, but our attorneys don’t want to see you get less than you deserve! Which is why we recommend sellers truly consider working with an intellectual property attorney. 

The NBA’s newest trademark infringement action will affect all of the Defendants. The Plaintiff’s belief in the alleged sale of counterfeit items to consumers online is why they’ve decided to sue. Because the lawsuit has been filed, sellers can’t just ignore it! What you need to do is respond, consult with an attorney, and then work with that attorney to figure out a resolution that makes sense. Our lawyers at Stockman & Poropat, PLLC are just the law firm you’ve been searching for! 

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 Ice Cube Trademark Infringement Action.