Sellers Sued by NHL For Counterfeiting

Hey online sellers! Are you being sued by the NHL for trademark infringement? Getting named as a Defendant in a counterfeit lawsuit can absolutely disrupt your business. If you’re frustrated, that’s very understandable! What you should know is that the notice you’ve received about the suit doesn’t equate to guilt. The legal complaint tied to the case consists of allegations. What you may wish to do before proceeding on your own is to hire an intellectual property attorney! Your lawyer can help with providing a response to the lawsuit and/or negotiating with NHL for a settlement. They can also work with you to establish your identity and develop a resolution that benefits you. 

The NHL Trademark Infringement Claims

What follows is a selection of the claims of infringement filed by the NHL: 

Defendants facilitate sales of Counterfeit NHL 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 store operators like Defendants commonly engage in fraudulent conduct when registering the Seller Aliases by providing false, misleading and/or incomplete information to e-commerce platforms to prevent one from learning their true identities and the scope of their e-commerce operation.

E-commerce store operators like Defendants regularly register or acquire new seller aliases for the purpose of offering for sale and selling Counterfeit NHL Products. Such seller alias registration patterns are one of many common tactics used by e-commerce store operators like Defendants to conceal their identities, the full scope and interworking of their counterfeiting operation, and to avoid being shut down.

This is a trademark infringement action against Defendants based on their unauthorized use in commerce of counterfeit or infringing imitations of one or more NHL Trademarks in connection with the sale, offering for sale, distribution, and/or advertising of infringing goods. NHL Trademarks are highly distinctive marks. 

Respond to the Counterfeit Lawsuit!

If you’re not aware of how to respond to the lawsuit, your lawyer can do so on your behalf! A response to the court isn’t optional, you’ve got to submit one. If you fail to send in a response, you may have to deal with a Default Judgment, which is costly and more troublesome. In some instances, you can have the NHL amend the claims of counterfeit amended by your attorney. They can do that by proving you and your business’ true identity. 

Like many of the other infringement cases we’ve written about, this NHL counterfeit case is a Schedule A lawsuit. This type of lawsuit allows the NHL to sue the Defendants as a group. The allegations are made against several online sellers in one go, as opposed to one by one in separate lawsuits. In part, the Plaintiff and brands like them choose to file Schedule A lawsuits for settlement purposes. The more online sellers sued at once, the larger the settlement amounts the NHL can possibly reach. Direct settlements are on the Plaintiff’s agenda so they may collect a portion of the losses they’ve absorbed due to the alleged infringement. Choosing to settle directly isn’t usually the best resolution for sellers, though. On average, sellers get to maintain possession of just about half of their money that’s frozen because of the lawsuit. 

The Impact of the Temporary Restraining Order

Indeed, the NHL filed a motion for a temporary restraining order (TRO). The TRO will affect the sellers’ online accounts by freezing the money they’ve earned from selling NHL products. You won’t be able to access that money until you find a resolution with the Plaintiff. The reason for the restraining order, according to the NHL, is to stop all alleged counterfeiting from continuing. Any of the Defendants may go ahead and settle directly with the Plaintiff. But, you’ll likely forfeit a substantial amount of your hard-earned money by doing so. Using the services of legal counsel will improve your overall resolution options! 

This trademark infringement lawsuit filed by the NHL will affect the named Defendants. E-commerce operators are already in a very competitive marketplace and a lawsuit like this can be a major blow. Even though the claims of counterfeiting are just allegations, the impact on sellers’ businesses is definitely a real-world issue. We urge any seller affected by the lawsuit to treat it as a serious matter! Definitely respond to the lawsuit, consider your settlement options, and read through the legal complaint to understand the allegations. 

Ultimately, investing in an intellectual property attorney will save you and your business money. The cost of retaining legal counsel is entirely worthwhile. You’ll be able to respond in the correct manner and timeframe, negotiate to the fullest extent, and move forward with your business with the least amount of damage. 

If you’re being sued by the NHL, 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 General Motors Infringement Lawsuit.