The licensing arm of the NBA on Tuesday sued numerous e-commerce store operators that are believed to be run by individuals in China and other countries, accusing them of selling unlicensed and counterfeit NBA products.
NBA Properties, which manages the league and teams’ trademark affairs, says the alleged counterfeiters—collectively labeled “Partnerships and Unincorporated Associations”—engage in a multifaceted strategy to deceive consumers in the U.S. and elsewhere. The defendants are portrayed as in “constant communication with each other” through QQ.com chat rooms and sellerdefense.cn, kuajingvs.com and other websites. Their communications allegedly involve the sharing of “tactics” for “operating multiple accounts,” as well as for “evading detection” and handling litigation.
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The defendants are also depicted as operating under “multiple seller aliases and payment accounts.” In addition, they allegedly move funds from U.S.-based bank accounts to offshore accounts on a regular basis. Those steps are designed to evade the reach of U.S. legal jurisdiction and make it more difficult for the NBA and other leagues to identify them.
Other deceptive steps alleged by the NBA include copying the layouts, terms of service, legal notice and other content of authorized online retailers. Consumers, who also see seemingly legitimate payment methods such as Amazon Pay or PayPal, are sometimes duped given the similarity in appearance between legitimate and illegitimate websites.
NBA Properties stresses that its trademarks are essential for protecting the brands of the league and its franchises and are used in numerous products. Apparel, caps, jewelry, toys, furniture, pennants and bags are especially targeted by counterfeiters. The complaint notes that in 2021, U.S. Customs and Border Protection made seizures of goods with IP violations totaling over $3.3 billion; most of seized goods “originated from China and Hong Kong” and were shipped via international mail and courier services.
The complaint, drafted by Justin R. Gaudio and other attorneys from Greer, Burns & Crain, demands an injunction to block the unlawful activity. NBA Properties seeks an order that would compel relevant domain name registries to “unlock and change the registrar of record” for the domain names so they go under NBA Properties’ control. The company also wants an order that would require eBay, AliExpress, Amazon and other online marketplace platforms to “disable and cease displaying any advertisements” that use counterfeit and infringing goods.
NBA Properties further demands monetary damages and reasonable attorneys’ fees and costs. However, given the challenge of identifying the responsible parties—let alone forcing them to comply with a U.S. court order—realistically enforceable remedies are limited.
The case is before U.S. District Judge LaShonda A. Hunt.
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