Oakley | Patent Infringement Claims

Oakley, one of the biggest eyewear and apparel manufacturers in the world, has filed a federal lawsuit against online sellers. The brand filed this Schedule A lawsuit to combat e-commerce sellers who have sold patent infringing products. The legal complaint associated with the case states the Defendants’ unauthorized sale of Oakley goods was intentional and unlawful. Bear in mind, however, that this is a claim of alleged activity. The filing of the lawsuit in federal court does not mean any sellers were found guilty. Regardless, the Temporary Restraining Order (TRO) ordered against the Defendants, for the alleged infringement, means their seller accounts were frozen. 

The Defendants affected by the TRO in this patent infringement case are likely frustrated and/or confused. We have seen many other similar Schedule A lawsuits. In typical fashion, this case aims to prove that e-commerce operators deliberately set out to fool the consumer. The design of sellers’ online stores is meant to lead the public into believing the retailer is authorized to sell Oakley products, though they are not, per the lawsuit. The suit also says, by providing incorrect identification details and using off-shore bank accounts, the Defendants are skirting around the law so as to continue their infringement. Not only that, but sellers who are infringing on the patented goods work together, as an illegal network, to more successfully achieve these deceptive goals. And, according to Oakley, all of the unlawful selling activity has damaged the value of the brand itself. 

Sellers who have sold Oakley products on various platforms may be affected by the lawsuit and the restraining order. That includes on online marketplaces like Amazon, Temu, DHgate, AliExpress, eBay, Walmart, and Wish.com. 

Oakley Schedule A Lawsuit

If you are new to Schedule A lawsuits like this, you may not know that these are filed frequently by major brands like Oakley. Schedule A refers to a big group of online sellers who are sued all at one time. The Defendants are also hit with the TRO at the same time. This legal strategy works out well for huge brands because it allows them to claim infringement by several sellers, not just one, which saves time and money on the legal end. What retailers like Oakley also know and expect, is that many of the sellers will not provide a response. When a named seller in an infringement case does not respond, the lawsuit can proceed against them. That means, the money that is in the Defendant’s frozen account will be awarded to Oakley. 

Provide a Response to the Court

If you are one of the Defendants, please respond to the court! Sellers who do not respond might end up facing a Default Judgment, which requires they pay damages, possibly in addition to having to forfeit the money in their frozen e-commerce account. Perhaps you are not sure how to respond to the court. That is another aspect of the lawsuit that the Plaintiff likely anticipated. As stated in the complaint, many of the Defendants live and/or operate in China or other locations outside the United States. As such, sellers may not have a working knowledge of the US legal system and how to navigate it. Additionally, to take legal action against claims of infringement in the US requires legal counsel and legal fees. Many times, Defendants in these cases just walk away and take the loss. Other sellers negotiate with brands and try to reach a settlement. 

Having legal counsel on your side will dramatically improve your situation. When it comes to settlements, sellers usually receive about 60% of the funds frozen in their account. The rest of the money would then be awarded to Oakley. An intellectual property attorney can assist sellers by finding resolution and moving forward with more than just 60% of their hard-earned money. Of course, every seller’s business operation is different and legal solutions will vary from client to client. There is rarely an occasion where walking away completely is the best choice for sellers. As an e-commerce seller, you should explore all legal options prior to accepting a settlement directly from the brand that filed the lawsuit. 

Explore Your Legal Options: Accepting a Settlement Could Cost You Money

The team at Stockman & Poropat, PLLC has come to the rescue of many online sellers dealing with restraining orders and Schedule A lawsuits. We take the time to comprehensively assess each client’s e-commerce situation and create legal solutions that actually work. Our goal is to ensure your business operates at the highest level and makes the most money. If you need help with any kind of infringement lawsuit made against your online business, we can help. Contact us for a free consultation! 

Download the legal complaint below:

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