Ecommerce Sellers Face Crackdown Over IP Violations

This article provides an in-depth analysis of recent intellectual property infringement cases in cross-border e-commerce, revealing risks related to trademarks, patents, and copyrights. It offers a blacklist of infringing products and corresponding strategies to help sellers avoid risks and operate safely. The emphasis is on proactive prevention and building a robust intellectual property risk control system for sustainable development. By understanding and mitigating these risks, sellers can minimize the chances of store account suspension and ensure long-term success in the competitive cross-border e-commerce market.
Ecommerce Sellers Face Crackdown Over IP Violations

Cross-border e-commerce sellers optimizing product listings for traffic growth must now simultaneously navigate an increasingly complex landscape of intellectual property risks. Recent legal actions have resulted in over 500 store suspensions, spanning trademark, patent, and copyright violations across multiple product categories.

Recent High-Risk Infringement Cases

1. Boardriders: Extreme Sports Brand Trademark Violations

Brand Owner: Boardriders IP Holdings, LLC

Industry: Extreme sports apparel, footwear, and accessories

Case Details: Filed June 12, 2024 (Case No. 24-cv-2564) in Georgia by The Sladkus Law Group

Risk Analysis: The brand holds 20 registered trademarks across broad categories, with over 400 stores already targeted.

Action Required: Immediately audit listings for any Boardriders-related trademarks including "Baicloud" and similar variations.

2. Luckymogo Technology: Repeat Trademark Offender

Case Details: Filed July 19, 2024 (Case No. 24-cv-6107) in Illinois by Whitewood Law LLC, following a previous March 15 filing (24-cv-2163) that affected 98 stores.

Action Required: Conduct thorough research on this obscure brand's trademarks before listing related products.

3. Crye Precision: Military Gear Trademark Protection

Brand Owner: Crye Precision LLC

Industry: Military and law enforcement equipment

Case Details: Three simultaneous filings on July 16, 2024 (Cases 24-cv-5977/5979/5981) in Illinois by GBC law firm.

Action Required: Strictly avoid using "CRYE PRECISION" in listings for tactical gear.

4. Electrolit: Electrolyte Drink Trademark Claims

Brand Owner: CAB Enterprises, Inc.

Industry: Sports hydration products

Case Details: Dual filings July 2-3, 2024 (Cases 24-cv-1689/2527) in Texas by Alston & Bird.

Action Required: Use generic descriptors instead of brand-specific terminology for electrolyte products.

5. Tire Claw: Anti-Theft Device Trademark

Brand Owner: Winner Royalty International, LLC

Industry: Security products

Case Details: Filed July 1, 2024 (Case 24-cv-5547) in Illinois.

Action Required: Verify all security product listings for potential "TIRE CLAW" trademark violations.

6. Plant Traps: Triple-Threat IP Case

Brand Owner: D Squared Plant Traps LLC

Industry: Decorative gardening products

Case Details: Filed June 25, 2024 (Case 24-cv-5288) in Illinois alleging trademark, patent (USD1003076S/1005008S), and copyright violations.

Action Required: Avoid using "PLANT TRAPS" or "RAILSCAPES" trademarks, similar product designs, or any branded visual content.

7. Phone Case Holder: Design Patent Infringement

Brand Owner: Raynara, LLC

Patent: USD765662S for circular phone case holders

Case Details: Filed July 16, 2024 (Case 24-cv-5973) in Illinois.

Action Required: Carefully compare product designs against the patented holder before listing.

8. Metal Punch Tool: Design Patent Case

Brand Owner: Guangdongsheng Shunhechuanmei Co.

Patent: USD1006076S for metal nibbler attachments

Case Details: Filed July 11, 2024 (Case 24-cv-05863) in Illinois.

Action Required: Verify tool designs against the patented specifications.

Understanding IP Infringement Types

Trademark Violations

Unauthorized use of registered marks in product listings remains the most common infringement. Sellers must verify all brand names, logos, and distinctive phrases through trademark databases before inclusion in titles, descriptions, or keywords.

Patent Infringements

Design patents (protecting ornamental appearances) and utility patents (covering functional innovations) both pose significant risks. The recent cases demonstrate particular vulnerability in accessory and tool categories where similar designs proliferate.

Copyright Issues

Product images, videos, and descriptive text copied from brand websites or other sellers frequently trigger copyright claims. All visual and written content should be original or properly licensed.

Emergency Response to Store Freezes

Upon receiving a Temporary Restraining Order (TRO) notice:

  1. Immediately preserve all relevant sales records and product information
  2. Engage specialized IP counsel to evaluate the claim's validity
  3. Determine whether to pursue settlement or legal defense
  4. Remove all potentially infringing content during the evaluation period
  5. Document corrective actions taken for potential mitigation arguments

Proactive Risk Management Strategies

  • Implement pre-listing IP verification for all new products
  • Conduct monthly audits of existing inventory for potential violations
  • Train staff on basic IP recognition and avoidance techniques
  • Maintain documentation of product sourcing and design processes
  • Consider third-party IP monitoring services for high-risk categories

The evolving enforcement landscape requires sellers to balance marketplace optimization with rigorous IP compliance. By understanding common pitfalls and implementing structured prevention systems, businesses can reduce legal exposure while maintaining competitive visibility.