N.D. Ga.

Luxury Clothing Manufacturer Wins Preliminary Injunction Against E-Commerce Merchants

Sportswear Company – S.p.A. v. abci et al., Civil Action No. 1:22-cv-02119-JPB (N.D. Ga. June 24, 2022)

Plaintiff Sportswear Company – S.p.A. filed suit against Defendants abci et al. in the Northern District of Georgia (Atlanta Division) on May 26, 2022, asserting causes of action for federal trademark infringement and counterfeiting and false designation of origin in violation of 15 U.S.C. 1051 et seq. in addition to causes of action for trademark infringement and unfair competition under common law. The Complaint generally alleges that Plaintiff, a manufacturer and distributor of premium men’s and junior’s high-end sportswear and accessories, owns federally-registered trademarks for STONE ISLAND and STONE ISLAND COMPASS LOGO. Defendants, who are foreign entities and/or individuals, allegedly have intentionally marketed and sold a variety of counterfeit goods bearing Plaintiff’s registered trademarks through online marketplaces such as Amazon and EBay without Plaintiff’s authorization and with knowledge of Plaintiff’s trademark rights. Plaintiff simultaneously moved for an ex parte temporary restraining order, an asset freeze order, and an order to show cause. The case was assigned to Judge Jean-Paul Boulee.

The Court granted Plaintiff’s request for a temporary restraining order, an asset freeze order, and an order to show cause on May 27, 2022. In its Order, the Court found that (1) Plaintiff owns federally-registered trademarks which it uses in connection with the sale of its garments and accessories, (2) Defendants advertise and sell goods through online marketplaces using or bearing counterfeit copies of Plaintiff’s marks without Plaintiff’s authorization, (3) Defendants ship their counterfeit products in the United States, (4) Plaintiff will suffer irreparable harm if an injunction is not entered, (5) a temporary restraining order is in the public’s interest, and (6) the balance of harms favors Plaintiff. The Court ordered Defendant to cease from manufacturing and/or selling any articles bearing Plaintiff’s counterfeit marks or any confusingly similar marks. The Court further ordered all financial institutions, payment processors, banks, and/or money transmitters to immediately attach and freeze all assets in any accounts associated with Defendants.

The Court held a hearing to demonstrate good cause why a preliminary injunction should not issue on June 23, 2022 but no Defendant appeared. As a result, the Court granted a preliminary injunction in favor of Plaintiff on the same terms as the Court’s earlier temporary restraining order, asset freeze order, and order to show cause. On June 24, 2022, Plaintiff voluntarily dismissed the suit against three named defendants without prejudice.

Categories: N.D. Ga., PI/TRO, Trademark

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