NBA Targets E-Commerce Sellers in New Trademark Lawsuit
Greetings online sellers and e-commerce enthusiasts alike! This article, NBA Targets E-Commerce Sellers in New Trademark Lawsuit, is going to cover the most recent NBA trademark lawsuit. In which a group of sellers are being sued for counterfeit sales.
Before we go any further and dive into the details, let’s take a look at the allegations. The following excerpts constitute a sampling of the entire allegations. You can read through all of them in the legal complaint (downloadable at the end of this page):
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.
On information and belief, Plaintiff has not licensed or authorized Defendants to use any of the NBA Trademarks, and none of the Defendants are authorized retailers of Genuine NBA Products.
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.
Are You Getting Sued by the NBA? E-Commerce Sellers Need Legal Protection
It may be redundant to say so, but every e-commerce operation depends on cash flow and revenue to continue operating. Why’re we noting something that is overwhelmingly obvious? Because your revenue and/or cash flow may very well be disrupted by this latest NBA trademark action.
And, in what form will this disruption of funds be observable? It’s what is known as a temporary restraining order, or TRO. The restraining order will be approved by the court due to the allegations outlined by the Plaintiff, NBA. These sorts of trademark lawsuits are quite common in the e-commerce universe and many companies and brands get approval from the court for TROs. It’s a frustrating reality, but a reality nevertheless: while the allegations are not proof of any unlawful activity, sellers will be impacted by the injunction. The best way to protect against the damage that can result from such a restraining order, is to work with an intellectual property law firm. Our team at Stockman & Poropat, PLLC is ready to protect your business!
Want to just directly settle with the NBA and skip the process of aligning with an IP attorney? You may take that route, but consider the implications and likely outcome. On average, online sellers accused of counterfeit sales can only achieve a 60% settlement with Plaintiffs. That would mean, you get to keep a little more than half your money, while the NBA takes the rest! Are you keen on protecting your business from this sort of loss? Stockman & Poropat, PLLC can provide you with the tools you need to achieve just that.
Make No Mistake, The Temporary Restraining Order Can Hurt Your Business
Make no mistake, the temporary restraining order has the potential to be truly damaging. Let’s say you’ve been slaying the e-commerce market, racking up sale after sale, and you’ve amassed $100,000 in earnings in your seller accounts. The NBA trademark lawsuit will freeze ALL of that money, rendering it inaccessible. If you’re operating at such a high volume, that money is necessary to maintain your selling momentum. Thus, the freeze that comes with the TRO can throw your whole operation right off track. On the other side of things, another Defendant may have only $5000 in earnings. When that seller is hit with the injunction, they’re immediately vulnerable in terms of going bankrupt. Either way, sellers ought to equip their business with the aid of an intellectual property attorney!
Perhaps one or more of the Defendants either read this article or the complaint, or possibly neither, and decided that the issue isn’t worth their time. As in, maybe the seriousness of the NBA lawsuit isn’t apparent to them. Or, maybe they assume that if they just ignore the lawsuit it’ll resolve on its own. That’s not the case! The latest NBA trademark infringement lawsuit is undeniably serious and will definitely not be resolved without sellers themselves taking action.
In fact, ignoring the lawsuit and failing to respond to it could cost you even more money. The lack of a response may give the court reason to file for a Default Judgment. In the event that outcome comes to fruition, penalties may abound and the decision is typically not over-turnable. To be brief, sellers should take the suit seriously and respond! Our firm can answer all of your questions pertaining to this subject.
Stockman & Poropat, PLLC Delivers on Legal Solutions for Online Sellers Around the World
Stockman & Poropat, PLLC is an award-winning law firm spearheaded by attorneys who have an atypical degree of familiarity with all things e-commerce and legal. Our team has the necessary experience to deliver on solutions for issues that arise for sellers facing trademark lawsuits. Our firm prides itself on our uncommon ability to develop creative legal solutions for an international clientele that result in favorable outcomes. Which is all great! But, in addition to all of that technical jargon, we’re also just a friendly and welcoming place! We want our clients to feel at ease when communicating with us, so that you can ask us questions and receive answers quickly and painlessly. At the end of the day, we know that sellers like you deserve to protect their businesses and that’s exactly what we do!
Contact our team at Stockman & Poropat, PLLC today for a free initial consultation!
Download the legal complaint below:
