Toyota Sues E-Commerce Sellers | Trademark Infringement

If you’re a seller being sued by Toyota for trademark infringement, what should you do? Hire an intellectual property attorney! A federal trademark lawsuit can’t be ignored. Your e-commerce business will be disrupted by the suit. Wondering if the notice you’ve received represents an actual legal action? It certainly does. That’s why we want to work with you and your business, so that you can get back to selling and maintain as much of your money as possible. 

What will the Toyota trademark infringement lawsuit actually do to your business? First and foremost, the Plaintiff will get the court to approve a temporary restraining order. When that restraining order is in motion, your online seller account will be frozen. Any money you’ve earned from selling Toyota products – you won’t have access to it, temporarily. Because of this, sellers may wish to settle directly with the Plaintiff and move on. Some Defendants might choose to just walk away. Settling with Toyota, without an attorney, is an option, though you may not get a good resolution. And, regarding walking away, we wouldn’t want to see any seller do that because then the money in your account will be awarded to the Plaintiff in full. 

How to Negotiate a Fair Settlement

Let’s cover the matter of settlements. Why wouldn’t the Defendants get a good resolution with a direct settlement? In the majority of instances, it’s been reported and observed that direct settlements provide sellers with approximately half of the money in their frozen account. For those who hire an intellectual property lawyer, the chances of a fairer, more robust settlement are improved. For example, if you work with one of the attorneys on our team, we are more likely to obtain an appropriate settlement amount as compared to if you tried to negotiate on your own. This isn’t a decision to make without being totally informed! 

Are sellers permitted to not respond to the lawsuit? In theory, you could choose not to respond, but as we said, the amount of money in your frozen account will be given to Toyota. Not only will that happen, there’s a chance that the court could then also issue a Default Judgment. If a Default Judgment is issued against your e-commerce business, that can cost even more money and is tough to overturn in any way. Simply speaking, sellers who’re getting sued by Toyota in this trademark lawsuit should definitely respond! Need assistance with drafting and sending the response? We’ve got your back. 

Are You Intimidated by the Toyota Trademark Lawsuit?

Are you feeling intimidated by the Toyota trademark lawsuit? Perhaps it’s more of a frustration. Both reactions are completely reasonable, but that doesn’t mean you can’t still take practical action. The allegations of counterfeiting and trademark infringement are very real. At the same time, the claims are not set in stone. The allegations are based on what Toyota believes based on certain information they’ve gathered. When you hire an intellectual property attorney, you’ll be investing in the future of your e-commerce business. Depending on your business practices, we may be able to clear you of any alleged unlawful conduct. When you work with a lawyer, you can develop a specific legal strategy that is focused and deliberate. All that being said, it’s safe to say that there’s not much cause for fear or frustration when you have a game plan. And we can draw that up for you! 

To distill the lawsuit down to a few key points… Toyota claims that their intellectual property was infringed on by the Defendants. The marks in question are tied to several of the brand’s automotive models, such as the Camry, Rav4, Prius, Corolla, and Land Cruiser. According to the Plaintiff, the sellers work as part of a network of counterfeiters to sell infringing products. Where are these products supposedly sold? On multiple e-commerce platforms, like Amazon, DHgate, Walmart, Etsy, eBay, Wish.com, and more. 

Don’t Ignore the Lawsuit! Respond and Hire an Attorney

Everyone knows the brand name Toyota. They’re a huge company that’s been a leader in the car industry for decades. That’s why this trademark infringement lawsuit isn’t something to diminish. If you’re a seller named in the lawsuit, you’ll want to thoroughly read through the legal complaint. Understand exactly what the Plaintiff is alleging. And if you have any questions concerning Toyota’s claims, you can discuss that with an attorney to achieve maximum clarity! 

The Toyota trademark lawsuit allegations of infringement read in part as follows: 

Toyota has identified numerous fully interactive, e- commerce stores offering Counterfeit Toyota Products on online marketplace platforms such as Amazon, eBay, AliExpress, Alibaba, Wish.com, Walmart, Etsy, DHgate, Temu, and TikTok, including the e-commerce stores operating under the Seller Aliases.

Defendants have targeted sales to Illinois residents by setting up and operating e- commerce stores that target United States consumers using one or more Seller Aliases, offer shipping to the United States, including Illinois, accept payment in U.S. dollars and/or funds from U.S. bank accounts and, on information and belief, have sold Counterfeit Toyota Products to residents of Illinois. 

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 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. On information and belief, Toyota has not licensed or authorized Defendants to use any of the Toyota Trademarks, and none of the Defendants are authorized retailers of genuine Toyota Products. 

Download the legal complaint below: 

Up next we will be discussing the latest Converse Trademark Infringement Lawsuit.