American Eagle Outfitters said that Amazon used its Aerie and Offline by Aerie brand names in misleading ways, according to a complaint it filed in Manhattan federal court against the online retailer. According to a lawsuit, Amazon was said to have tricked customers into buying counterfeits of products instead of the real thing through ads and search results with Aerie branding. AEO is claiming financial damages and wants a court order to restrain Amazon from using its trademarks.
Facts Of The Litigation
Amazon allegedly made use of the trademarked brand of Aerie without due permission, hence confusing customers to believe they were buying real Aerie. According to the complaint, the sale customers would then click on those fake adverts, but they'd be redirected to pages offering only 'knock-offs and 'dupes' of Aerie items. American Eagle had earlier rejected Amazon's proposal to sell Aerie due to its need to preserve control over its branded goods as well as the shopping experience.
American Eagle Outfitters Inc. said it informed Amazon.com of a trademark dispute over a month ago, which led the online retailer to use misspellings such as 'Aeries' and 'Aries' in its ads. That has caused customer confusion and damaged the reputation of Aerie, the retailer said.
Amazon's Ongoing Battle With Counterfeit Claims
This would not be the first lawsuit accusing Amazon of trademark infringement. The e-commerce company had taken similar complaints from German firms, including Birkenstock and Daimler AG, over counterfeit goods sold on its platform. Amazon has acted on this issue; the company has initiated teams that will sue counterfeiters and develop tools to help brands guard their trademarks.
Aerie's Revenue And Trademark Protection
American Eagle wants to protect its brands and also prevent consumers from being deceived by counterfeit products. The lawsuit seeks treble damages, plus other miscellaneous penalties, plus permanent injunctive relief preventing American Eagle from ever misusing its trademarks again. Aerie, which launched in 2006, generated 32 percent of American Eagle's $2.43 billion in revenue for the six months through Aug. 3, with the legacy American Eagle brand producing most of the rest.