Universal City Studios Intellectual Property Infringement Action | Online Sellers Allegedly Sold Counterfeit Products

Let’s talk about trademark and copyright infringement lawsuits. Today, we’ll be covering the latest Universal City Studios intellectual property infringement action. It’s imperative that the online sellers named in this lawsuit consider the matter seriously. A trademark infringement lawsuit can derail an e-commerce business. You may be wondering how you can best protect your business given the action being taken. The answer to that is the law firm of Stockman & Poropat, PLLC!

Unsure if a response is required? Indeed! Any Defendant named in the Universal City Studios trademark infringement lawsuit needs to provide a response. If this isn’t accomplished in a timely fashion, the court may assume that a given seller is ignoring the notice and the lawsuit itself. What could this sort of negligence result in? It could mean that the court will issue a Default Judgment! In brief, a DJ is a legal decision that is essentially final in scope. Sellers risk losing A LOT of money by putting themselves in the crosshairs of a Default Judgment. Instead of putting your e-commerce operation in that vulnerable position, just respond. If you require assistance in composing the response, Stockman & Poropat, PLLC is here for you!

Stockman & Poropat, PLLC Can Protect Your E-Commerce Operation

Our firm is highly experienced in handling intellectual property issues for e-commerce sellers. And while we treat each case with the utmost professionalism, we’re also a friendly and approachable team! One of our top priorities is the experience of our clientele. We want you to be as inquisitive as you need to be about the big picture and the granular details and everything in between. The only wrong question is the one not asked, we always say. When you work with our award-winning attorneys and stellar support team, you’ll get all the legal guidance you’re seeking, so that you can achieve all your goals as an online seller. Stockman & Poropat, PLLC is a law firm that cares! About you!

Why is Universal City Studios Filing a Trademark Lawsuit?

The big question is, why is Universal City Studios filing this trademark lawsuit against online sellers in the first place? Over the past several years, there’s been a trend in the e-commerce space regarding IP infringement actions. As documented on our blog, major brands and companies have filed numerous federal lawsuits, claiming infringement on multiple levels. In each case, the reasoning is quite similar – that a group of online sellers, all sued as a bunch, are interrelated entities that form a “counterfeit network.” Are you knowingly part of a network of counterfeiters? It’s very possible that you have no idea what Universal City Studios is talking about! That’s where our firm comes in. Stockman & Poropat, PLLC can establish just what level of involvement in the alleged actions you’ve actually had. There’s no pressure to accept that what Universal City Studios claims is accurate!

Alrighty, so you’ve been notified that Universal City Studios is suing you for allegedly selling counterfeit versions of their products. Perhaps you’ve already contacted our firm regarding the matter (we hope so!). But, what is the lawsuit going to do, precisely, to your e-commerce operation? Universal City Studios is going to significantly disrupt your business by having the court approve of a temporary restraining order. This restraining order will abruptly freeze the money in your seller accounts, across platforms, tying up your resources for the time being. The reason behind this is to prevent any further damage to the Universal brand, according to the Plaintiff.

Is It Fair that Sellers Are Getting Hit With a Temporary Restraining Order?

Is it fair that sellers are being hit with an injunction even though the lawsuit is based on allegations? That’s somewhat a matter of opinion, but regardless, you’ll need to act. We wouldn’t want to see any business affected by the Universal City Studios action take a financial blow that threatens their entire operation. As such, Stockman & Poropat, PLLC will develop a legal strategy particular to your situation, to ensure the greatest level of efficacy and protection.

To be sure, sellers have the option of attempting to negotiate with directly, as well. Some sellers may be under the impression that this route to resolution is possibly quicker or less expensive. Unfortunately, our firm has observed and it has been reported that direct settlement negotiations often result in sellers getting much less than what they deserve. The average percentage amount for direct settlements in these sorts of cases lands at around 60%. That would mean, if you directly settle with Universal, more than half of the money in your frozen account will be awarded to the Plaintiff. Stockman & Poropat, PLLC doesn’t exactly consider that a sweet deal. Our firm wants to get you a more robust, appropriate, and fair outcome that allows you to reach great heights as an online seller!

The Plaintiff’s Allegations | Universal City Studios Intellectual Property Infringement Action

Here follows a few excerpts taken directly from the legal complaint. We’re providing these selections so as to further contextualize the reason for the lawsuit. Additionally, by gaining an understanding of the allegations, Defendants can inform themselves and act accordingly:

The success of Plaintiff’s brand has resulted in significant counterfeiting of the Universal Trademarks and copying of the Universal Copyrighted Works. In recent years, Plaintiff has identified many fully interactive, e-commerce stores offering Unauthorized Products on online marketplace platforms, including the e-commerce stores operating under the Seller Aliases. 

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 its Universal Trademarks or copy or redistribute the Universal Copyrighted Works, and none of the Defendants are authorized retailers of genuine Universal Products. 

E-commerce stores operating under the Seller Aliases include other notable common features such as use of the same registration patterns, accepted payment methods, check-out methods, keywords, advertising tactics, similarities in price and quantities, the same incorrect grammar and misspellings, and/or the use of the same text and images. 

Additionally, Unauthorized Products for sale by the Seller Aliases bear similar irregularities and indicia of being counterfeit to one another, suggesting that the Unauthorized Products were manufactured by and come from a common source and that Defendants are interrelated. 

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

Download the legal complaint below:  

Read up on how General Motors Targeted E-Commerce Sellers in a Trademark Infringement Action.