Counterfeit Products Allegedly Sold Online, Nike Sues Sellers
The athletic apparel and lifestyle giant Nike has filed another trademark infringement lawsuit! This federal trademark action, filed in Illinois federal court, doesn’t differ too widely from other such Nike lawsuits. The brand is gunning for a new batch of e-commerce operators. Who, the Plaintiff says, sold unauthorized, counterfeit goods to consumers in the United States.
Nike describes several unlawful actions engaged in by the Defendants. Interestingly, this type of lawsuit is referred to as “Schedule A,” which refers to the multiple sellers being sued. Nike wants to prove that the named sellers within the lawsuit worked in collaboration with each other. By doing so, the Plaintiff claims the Defendants collectively formed a counterfeit network. Through this alleged network, the listed online sellers exchanged information and practices to continue their counterfeit operation. At least, that’s what Nike says.
Regardless of how accurate the allegations are, because Nike filed the suit, the Defendants will have to act. Maybe you’re certain that your e-commerce business didn’t participate in the unlawful actions described. You may not be absolutely sure that all of your goods weren’t somehow infringing on trademarks. And/or, this entire lawsuit may just be utterly confusing and frustrating! Whatever the case, our team at Stockman & Poropat, PLLC is ready to develop a legal strategy for your exact needs!
Details of Nike’s Latest Trademark Infringement Action
To present a fuller picture of the latest Nike trademark infringement lawsuit, we’ll turn to a few excerpts taken directly from the legal complaint. You may download this document at the bottom of this page:
E-commerce stores operating under Seller Aliases appear sophisticated and accept payment in U.S. dollars and/or funds from U.S. bank accounts via credit cards, and/or PayPal. 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. Nike has not licensed or authorized Defendants to use any of the Nike Trademarks, and none of the Defendants are authorized retailers of genuine Nike Products.
Many Defendants also deceive unknowing consumers by using the Nike Trademarks without authorization within the content, text, and/or meta tags of their online marketplace listings to drive traffic away from Nike authorized channels, but instead to their own infringing sites.
Counterfeit Nike Products for sale by the Seller Aliases bear similar irregularities and indicia of being counterfeit to one another, suggesting that many of the Counterfeit Nike Products may be manufactured by and come from a common source and that many of Defendants are interrelated.
Having a Lawyer May Prove Necessary for Affected E-Commerce Sellers
Why retain an intellectual property attorney at all? As a Defendant, is having your own lawyer a requirement? At Stockman & Poropat, PLLC, we’d say arguably yes, it is! As we noted, each named online seller is going to need their own, tailor-made legal strategy. That’s exactly what our firm can provide! There’s going to be an imposing injunction that’ll more than likely get in the way of your business operation. Also, when Defendants face trademark infringement allegations from a major brand like Nike, they may be intimidated.
Whether that’s the case or due to other reasons, sellers sometimes seek direct settlements. A direct settlement route, as opposed to a legal route wherein you have an attorney, may be more efficient, but it comes with the potential for loss. Our team doesn’t want to see any seller being sued by Nike give the Plaintiff more than they deserve! Stockman & Poropat, PLLC has come to the rescue for e-commerce sellers all across the world and we’re prepared to help you, too.
Here’s the main issue: the injunction. The temporary restraining order, as it’s also called, will be approved by the court in support of Nike’s infringement allegations. Even with the lack of any proof, the allegations themselves will be powerful enough to throw off your business. How’s that going to play out? The restraining order puts a freeze, so to speak, on all relevant seller accounts. So, if you’ve been selling Nike products for some time on Amazon, for example, all your earnings from those sales will be frozen. You won’t be able to touch any of the money you earned! When you consider this fact, you may then see how crucially beneficial having your own legal team will be.
Why Did Nike File Another Trademark Infringement Suit?
And now for a note on the Plaintiff’s intent. Given that we’ve established the means by which the lawsuit will affect sellers, let’s take a look at the reason for the action in the first place. As a Schedule A trademark action, Nike is suing a group or list of e-commerce operators, instead of one by one. Nike’s allegations connected to the supposed counterfeit network allows for this. Because Nike is suing a group of sellers, they’re aiming to have the restraining order in place to halt any further infringing sales. The Plaintiff’s concern is that their brand has been damaged by the actions of the Defendants and it has cost them revenue. Thus, they’ve filed the lawsuit and want to disrupt what they believe is counterfeiting as best they can.
At the end of the day, getting sued by Nike for trademark infringement isn’t anything to sniffle at! If a seller doesn’t respond in a timely fashion, the court may issue a Default Judgment. We strongly suggest all of the affected sellers provide a response for this reason. When a DJ happens, the Plaintiff could end up being entitled to the entire amount of frozen funds in your seller accounts. Rather than needlessly giving up your earnings, consult with our team at Stockman & Poropat, PLLC so we can get you the resolution you need!
Contact our team at Stockman & Poropat, PLLC today for a free initial consultation!
Download the legal complaint below:
Up next you can read about how Universal City Studios Sued Online Sellers for Trademark and Copyright Infringement.
