Online Sellers Accused of Infringing on Tory Burch Trademarks

Tory Burch is suing several online sellers for trademark infringement! The luxury fashion designer brand alleges that the Defendants strategically hide their identities and engage in sales of counterfeit goods. According to the Plaintiff, sellers on platforms like Amazon, Wish.com, Walmart, Etsy, eBay, and others have sold these infringing products. Any seller named in the lawsuit should understand that it is real and not something to ignore! 

What are the allegations Tory Burch has put forward in the lawsuit? Let’s look at a few of the claims: 

Defendants facilitate sales of Counterfeit Tory Burch Products by designing e-commerce stores operating under the Seller Aliases so that they appear to unknowing consumers to be authorized online retailers, outlet stores, or wholesalers. E-commerce stores operating under the Seller Aliases appear sophisticated and accept payment in U.S. dollars and/or funds from U.S. bank accounts via credit cards, Alipay, Amazon Pay, and/or PayPal. 

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 discovery of their true identities and the scope of their e-commerce operation.

Even though Defendants operate under multiple fictitious aliases, the e-commerce stores operating under the Seller Aliases often share unique identifiers, such as templates with common design elements that intentionally omit any contact information or other information for identifying Defendants or other seller aliases they operate or use.  

Are You a Defendant? Don’t Dismiss the Lawsuit!

The biggest reason why you as a Defendant shouldn’t dismiss the lawsuit is because that will further harm your business! What happens in Schedule A infringement cases like this one? Sellers are subjected to a temporary restraining order (TRO). The TRO allows the Plaintiff to stop the Defendants from accessing the money in their selling accounts. Due to the belief that counterfeiting has occurred, Tory Burch wants to cease the perceived infringement from continuing. If a Defendant walks away, they are not just letting Tory Burch collect all the money earned from selling their products. They could also be hit with a Default Judgment. This will cost additional money and is very difficult to overturn. 

By seeking legal counsel, online sellers can handle this trademark infringement lawsuit in the most effective way possible. These lawsuits can intimidate sellers. Either because they don’t understand the legal system or have a solid command of English. That’s what your attorney is for! An intellectual property lawyer can provide a response to the court on your behalf. And, wherever the opportunity exists, present a solid argument in opposition to the allegations of counterfeit. In the event that a Defendant wants to reach a settlement, an attorney can work that out for you, as well. 

Without a doubt, retaining a lawyer is an expense. However, when facing serious allegations of trademark infringement, online sellers should consider an attorney a worthwhile investment. Intellectual property law in the United States can be quite tricky and confusing. Having an attorney and taking your own legal action in response to the lawsuit will give your business the upper hand in the long run! 

Seek Legal Counsel | Provide a Timely Response | Consider Alternatives to Direct Settlements

Any Defendant affected by the restraining order and the lawsuit must provide a timely response to the court! We don’t recommend pretending the case isn’t real. Schedule A infringement lawsuits give the Plaintiff power. Meaning, they can claim that counterfeiting damaged their business. Because of this, Tory Burch then has the wherewithal to try and reach settlements with the Defendants on an individual basis. The restraining order is a very persuasive tool with regard to settlements. Sellers are not always flush with the greatest cash flow. Getting barred from accessing money can put an online business in a precarious position. The Plaintiff knows this. What the Defendants ought to know is that most settlements in Schedule A infringement lawsuits leave sellers with 60% of the money they’ve earned.

If you were to accept this, in this case the rest of the money would be awarded to Tory Burch. From that point on, the seller could once again operate their online store. And, use what little they have left to continue their business. Will it be enough to survive the blow of the lawsuit? That’s the key question. What can sellers do aside from take a predictable loss by negotiating a settlement directly with Tory Burch? Hire an intellectual property attorney to handle the matter for you! With your own attorney and legal strategy, you’ll be able to improve your chances at keeping the largest share of your hard-earned money. With your resources intact, you may sustain your business even though the lawsuit impacted it with a restraining order.

Contact our team at Stockman & Poropat, PLLC today for a free consultation! We have provided legal solutions to online sellers around the world affected by infringement lawsuits. Let us help you and your business today! 

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Up next we will be discussing the Trademark Lawsuit Over Ramones Products.