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COOK COUNTY RECORD

Monday, November 4, 2024

BRABUS GmbH alleges Online Retailers Sold Counterfeit Products Violating Trademark Rights

Federal Court
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In a significant legal move to protect its brand, a renowned international company has filed a lawsuit against multiple defendants accused of selling counterfeit products online. On October 16, 2024, BRABUS GmbH lodged the complaint in the United States District Court for the Northern District of Illinois, targeting individuals and entities allegedly operating unauthorized online stores that infringe on its trademarks.

BRABUS GmbH, a company known for its high-quality automotive products and accessories, claims that these defendants have been unlawfully using its registered trademarks to sell counterfeit goods. The complaint outlines how these online marketplace accounts, identified in Schedule A of the filing, are deceiving consumers by posing as legitimate sellers of BRABUS products. According to the plaintiff, these actions have caused substantial harm to their brand's reputation and financial standing due to consumer confusion and dilution of their trademark value.

The lawsuit highlights that the defendants are primarily based in foreign jurisdictions such as China but conduct business across the United States through interactive commercial websites. These sites reportedly offer shipping to U.S. customers and accept payments in U.S. dollars while selling products that bear counterfeit versions of BRABUS's trademarks. The plaintiff argues that this activity constitutes willful trademark infringement and counterfeiting under federal law (15 U.S.C. § 1114), false designation of origin (15 U.S.C. § 1125(a)), and violations of the Illinois Uniform Deceptive Trade Practices Act (815 ILCS § 510/1 et seq.).

BRABUS GmbH is seeking several forms of relief from the court, including temporary and permanent injunctions against the defendants to prevent further use of their trademarks. They also request an order requiring online platforms like Amazon, PayPal, Aliexpress, Alibaba, and Joom to disable accounts associated with these counterfeit activities. Furthermore, BRABUS seeks monetary compensation for damages incurred due to these unlawful acts—potentially tripling actual damages or statutory damages ranging from $1,000 to $2 million per infringement instance.

The case underscores ongoing challenges faced by brands in combating counterfeit sales on digital platforms—a problem exacerbated by sophisticated tactics used by counterfeiters such as creating multiple fictitious identities and utilizing advanced search engine optimization techniques to mislead consumers.

Representing BRABUS GmbH are attorneys Michael A. Hierl, William B. Kalbac, and Robert P. McMurray from Hughes Socol Piers Resnick & Dym Ltd., based in Chicago. The case is being heard under Case No. 24-cv-10464.

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