Nike Alleges Trademark Infringement | Federal Lawsuit

Nike has filed yet another federal lawsuit to stop online sellers from offering counterfeit goods to consumers. The company alleges that the named sellers have infringed on the brand’s trademarks, which has in turn hurt their business. Have the sellers identified by Nike engaged in the level of counterfeiting as alleged? Well, that’s somewhat to be determined. As of now, Nike has submitted the lawsuit under the belief that this large-scale infringement has occurred.

The Plaintiff intends to establish that the sellers worked collectively to sell counterfeit goods to consumers in the United States. See, Nike has formed the belief that the Defendants actually constitute a type of counterfeit network. By leveraging this network, per the allegations, the named sellers have been able to successfully sell unauthorized products. These unlawful actions, as described by the Plaintiff, have amounted to significant damage, in terms of reputation and revenue. And, due to all of the above, Nike filed the lawsuit. The brand wants to have the court approve of a temporary restraining order!

Don’t take on the entire burden of the Nike trademark lawsuit on your own. Reach out to our team at Stockman & Poropat, PLLC!

Nike Identifies Alleged Counterfeit Network

As we said, the Plaintiff has referred to the actions of the Defendants as a group effort. The allegations, therefore, are going to be applied to every seller as if they had a relationship. Which is to say, the claims of infringement are being associated with all of the Defendants, in totality, as opposed to one by one. It’s this detail that makes the lawsuit a Schedule A case. In many similar infringement actions, brands like Nike sue multiple sellers in one action, rather than filing Nike because they can more or less make wholesale allegations. Frustratingly, this same aspect of the lawsuit can really challenge the viability of any given Defendant’s e-commerce operation!

Stockman & Poropat, PLLC | Nike Trademark Infringement Action

Yes, the allegations are sweeping and the Defendants are being sued as a group. But when it comes to your business and your future, you’ll more than likely want to retain your own legal counsel! When you work with our team and the attorneys at Stockman & Poropat, PLLC, we’ll develop a legal strategy that meets your specific needs as a business. You can expect an unrivaled level of individualized attention and concern for your case, with streamlined communication all throughout the process. A trademark infringement action can seriously derail an e-commerce operation. Don’t feel pressured to figure it out by yourself! Our team is happy to assist.

So indeed, due to Nike’s allegations of counterfeit and infringement, the court is going to approve of a temporary restraining order. What does the restraining order mean for your e-commerce operation? That your online seller account or accounts will be frozen and the money in those accounts will be off limits. For a temporary period, anyway. It’s certainly a serious matter when you’re being prohibited from accessing money you yourself earned. And that’s exactly Nike‘s intention in filing the lawsuit. The brand wants to keep the named sellers from offering any more counterfeit goods, so they’ve sought the injunction. Until the allegations are resolved in some way, shape, or form, the Plaintiff doesn’t want to take any further losses.

Online Sellers Will Benefit from Hiring an Attorney

Having your online accounts frozen can be an incredibly disruptive situation for any online seller. The amount of money in a seller’s account may vary, but whether it’s $100, $100,000, or beyond, we want to ensure your business is protected long term. A trademark infringement lawsuit like this could thrust some vulnerable sellers into the realm of bankruptcy. And if the impact isn’t that extreme, it’ll still be a bit of a battle. Consider that Nike is a multi-billion dollar company with a robust amount of resources. In a sense, and in light of the amount of agency that the Plaintiff has, it’s really a no brainer for you to hire your own attorney!

Nike’s Latest Allegations | Online Sellers Hit With Infringement Lawsuit

Things you’d rather not have happen… A Default Judgment. Plain and simple, the lawsuit requires a response from the affected sellers. You’ll want to provide that response and do so in a timely fashion so as to not have the court issue a Default Judgment. In that instance, sellers could face further financial penalties, including, but not limited to, having all of their frozen money awarded to the Plaintiff! Just respond to avoid this particularly nasty outcome. After such judgments are issued, they can be near impossible to overturn. Save time, money, and an extraordinary headache by contacting our team today!

Don’t Worry! Call Stockman & Poropat, PLLC Today

For additional context, we’re sharing a few sections of the legal complaint. Nike‘s allegations are presented in full in this document, which you may download at the bottom of this article:

Defendants attempt to avoid and mitigate liability by operating under one or more Seller Aliases to conceal both their identities and the full scope of their operations. E-commerce platforms used by Defendants – including Amazon, eBay, and Temu – fail to adequately subject new sellers to verification and confirmation of their identities, allowing counterfeiters to use false or inaccurate names and addresses when registering their e- commerce stores. 

Further, these e-commerce platforms continue to be unable or unwilling to prevent the rampant and flagrant listing of counterfeit products on their platforms. Thus, Nike is forced to file this action to discover the full scope of the infringement and attempt to stop Defendants’ counterfeiting of the registered Nike trademarks, as well as to protect unknowing consumers from purchasing Counterfeit Nike Products on U.S.-facing e-commerce platforms. 

Nike has been and continues to be irreparably damaged through consumer confusion, dilution, and tarnishment of its valuable trademarks as a result of Defendants’ actions and seeks injunctive and monetary relief. 

Contact our team at Stockman & Poropat, PLLC today for a free initial consultation! 

Download the legal complaint below:

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