Law of Cards: NBA, MLB, NHL, CLC Go After More Alleged Memorabila Counterfeiters

On December 12, fresh off the heels of their huge victory against almost 900 websites, the NBA, MLB, NHL, CLC, University of Alabama and University of Oklahoma have filed a new lawsuit against as-of-yet unidentified websites. The suit alleges  more selling of unlicensed and counterfeit goods.

So far, this new lawsuit is tracking the strategy of their first suit. The plaintiffs filed their complaint in the Northern District of Illinois (the same court as the first lawsuit) with a motion for a temporary restraining order (very similar motion to the one filed in the first case) to shut down the websites allegedly selling un-licensed goods (identical causes of action). Also, like the first suit, the identities of the infringers are currently "under seal," so we won't learn who the defendants are until later in the action.

From here, I expect the court will treat this lawsuit in a similar way as it did the first suit. It has a different judge, but, I expect he'll grant the motion for a temporary restraining order (a hearing on the motion took place on December 18, and an order will likely soon follow). From there, I expect the court will make that restraining order more permanent, then later issue a default judgment against the defendant websites if they fail to show up to defendant themselves.

The first suit ended in two months. This one will likely last just as long also.

Since this is the second lawsuit of this type from the plaintiffs within less than six months, I imagine we're going to see more of these in the future. And it's a good strategy. The plaintiffs have a set of proven, cookie-cutter filings which they can customize and reuse to shutdown infringers whenever they pop up.

Given this, in a month or two, I'd imagine the plaintiffs will file their third lawsuit in the Northern District of Illinois against a new batch of infringers, which will look very similar to this one. Then that lawsuit will go on for a few months, get wrapped up, and then we'll see another.

It wouldn't shock me to see new plaintiffs adopt similar strategies in the Northern District of Illinois. The NBA, MLB, NHL, CLC, BAMA and OU have trail-blazed an efficient process to shutdown foreign-based websites which allegedly sell counterfeit jerseys. With their success, why should any future plaintiff (like, say the NFL or other sports leagues) want to re-create the wheel? Also, it wouldn't shock me if we see lawsuits of this type in other industries outside of sporting goods and memorabilia.

The information provided in Paul Lesko's "Law of Cards" column is not intended to be legal advice, but merely conveys general information related to legal issues commonly encountered in the sports industry. This information is not intended to create any legal relationship between Paul Lesko, the Simmons Browder Gianaris Angelides & Barnerd LLC or any attorney and the user. Neither the transmission nor receipt of these website materials will create an attorney-client relationship between the author and the readers.

The views expressed in the "Law of Cards" column are solely those of the author and are not affiliated with the Simmons Law Firm. You should not act or rely on any information in the "Law of Cards" column without seeking the advice of an attorney. The determination of whether you need legal services and your choice of a lawyer are very important matters that should not be based on websites or advertisements.

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