Amazon Gets Scathing Rebuke From Federal Judge In Counterfeit Case

Amazon's counterfeit sales activities face litigation consequences.

May 20, 2021, Los Angeles, CA – Federal Judge Liam O'Grady didn't mince words in his order denying Amazon's Motion for Summary Judgement in a counterfeit product sales case (Maglula, Ltd. v. Amazon.com). "...there are genuine issues of material fact in each of the [plaintiff's] causes of action, and that summary judgment is therefore inappropriate" and "The Court does not believe even the most persuasive presentation of Amazon's evidence would make one iota of difference to a jury," writes the judge. View the order.

"This is a straightforward counterfeit case. Simply put, a number of Chinese manufacturers did their best to create copies, or "knockoffs," of Maglula products, packaging, markings, and literature, so that they could represent to Amazon that these knockoffs were genuine Maglula products. Amazon proceeded to sell these products online as genuine Maglula products. Maglula notified Amazon on multiple occasions, to no avail, that it was selling counterfeit products of inferior quality and ruining Maglula's business," adds Judge O'Grady.

"The Court believes that Amazon's attempts to avoid liability by injecting limited issues in dispute will have minimal impact before a jury. This is simply not a case where Amazon can deflect liability, nor will Amazon be viewed favorably by a jury or the public," concludes the judge.

Maglula, Ltd. makes popular magazine loaders for firearms and alleges in their federal lawsuit that they repeatedly warned, then purchased counterfeits of their trademarked and patented products from Amazon as a direct seller and through Amazon's platforms from third-party marketplace sellers. In one example, Maglula returned a fake Maglula product to Amazon clearly marked "counterfeit." Shockingly, Amazon listed the fake for resale through its return center, 'Amazon Warehouse' and Maglula purchased the marked item. U.S. District Court Magistrate Judge Ivan Davis for the Eastern District of Virginia ordered Amazon to make its inventory of over 33,000 ‘accused Maglula products’ – stored in roughly 200 Amazon facilities around the U.S. – available for inspection by Maglula. This is thought to be the first time that such an inspection order has been made against Amazon in connection with counterfeit goods.

Maglula, Ltd. is represented by FINNEGAN, HENDERSON, FARABOW, GARRETT & DUNNER, LLP / Jeffrey A. Berkowitz, Danny M. Awdeh, and Morgan E. Smith.

Amazon.com, Inc. is defended by DESMARAIS LLP / Justin Patrick and Daniel Wilcox