Peanuts Sues Online Sellers | Counterfeit Lawsuit

Sold any Peanuts products lately? If you’re an online seller who offers Peanuts products to consumers in the United States, perhaps you’ve heard of the newest lawsuit. Peanuts Worldwide is suing e-commerce sellers for trademark and copyright infringement! This is an absolutely real and serious federal lawsuit. Any seller named as a Defendant in the case will be affected by a temporary restraining order. To prevent your business from losing more money than it needs to, consider hiring an intellectual property attorney! 

Among the best ways to fully comprehend the details of the lawsuit is by reading the legal complaint. In brief, Peanuts believes that the sellers they’ve identified are selling counterfeit goods as part of a network. The Plaintiff further claims that the actions of the Defendants have caused damage to the brand.

Peanuts Worldwide Claims of Intellectual Property Infringement

Here’s a selection of some of the Peanuts allegations made against online sellers:

Defendants are working in active concert to knowingly and willfully manufacture, import, distribute, offer for sale, and sell Unauthorized Peanuts Products in the same transaction, occurrence, or series of transactions or occurrences. 

Without any authorization or license from Plaintiff, have jointly and severally, [Defendants] knowingly and willfully used and continue to use the PEANUTS Trademarks and/or copies of the Peanuts Copyrighted Works in connection with the advertisement, distribution, offering for sale, and sale of Unauthorized Peanuts Products into the United States and Illinois over the internet.

Defendants’ unauthorized use of the PEANUTS Trademarks in connection with the advertising, distribution, offering for sale, and sale of Unauthorized Peanuts Products, including the sale of Unauthorized Peanuts Products into the United States, including Illinois, is likely to cause and has caused confusion, mistake, and deception by and among consumers and is irreparably harming Plaintiff.

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. Plaintiff has not licensed or authorized Defendants to use any of the PEANUTS Trademarks or copy or distribute the Peanuts Copyrighted Works, and none of the Defendants are authorized retailers of genuine Peanuts Products. 

Respond to the Lawsuit!

Perhaps you’re wondering what could happen if one of the sellers didn’t want to address the lawsuit. The situation wouldn’t improve! Any seller named as a Defendant in the Peanuts lawsuit should definitely respond. If any seller chooses to ignore the lawsuit and/or not respond to the court, they could then have to accept a Default Judgment. Also, the money that’s frozen in your seller account due to the restraining order – that might be awarded to Peanuts, in full. If you’re intimidated or confused, that’s all the more reason to hire an attorney. Our team of intellectual property lawyers can work with you on the response, any negotiation, and settlements! 

Why can’t one of the accused sellers reach a direct settlement with Peanuts? There’s nothing stopping any one of them from doing just that. What we like to stress, though, is that most direct settlements between sellers and brands don’t result in favorable outcomes. Sellers are risking walking away with just about half of the money that’s tied up due to the lawsuit. By working with an attorney, you can likely access resolutions that are more financially sound. 

Peanuts Seeks Temporary Restraining Order

As we mentioned, Peanuts will get a temporary restraining order approved by the court. When that is active, the Defendants online seller accounts will be frozen. Any money in the account will be inaccessible to the sellers. That’s how Schedule A trademark and copyright infringement lawsuits tend to go. And the Plaintiff, like many other brands, is claiming that the injunction is required to stop the infringement. Whether or not that’s true or true to every single seller listed on the lawsuit’s Schedule A is to be seen. 

Even withstanding the fact that the Peanuts lawsuit is based on allegations, sellers will be impacted. The Defendants will have to respond to the lawsuit and develop a resolution so they can move forward. While the cost of retaining an attorney may seem excessive, it could save you a considerable amount long term. Are you truly a part of an international network of ill-intended trademark and copyright infringers? If you don’t believe you are, or don’t believe you’ve done what Peanuts claims, most certainly speak with an attorney! 

Any seller named as a Defendant can do something active to address this situation. Sellers need to access the money in their online seller accounts. How could they not?! The restraining order that will be issued forth as part of the lawsuit is no small thing. To develop a legal solution, to consider possible negotiation or settlement options, sellers will benefit from legal counsel. The allegations made by Peanuts may not even apply to you and your business! Regardless of individual circumstance, sellers deserve the right to a fair outcome. 

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

Download the legal complaint below:

Up next we will be discussing the latest Hallmark Federal Counterfeit Lawsuit.