The Rise of Trademark Trolls: Small Sellers Beware
Small online sellers are being targeted by law firms using "Schedule A Defendant" lawsuits, a tactic that allows brands to sue multiple sellers at once for trademark infringement. These lawsuits can result in default judgments that leave sellers owing large sums of money and can lead to the closure of their businesses. The lawsuits bypass marketplace programs like eBay's VeRO and instead target sellers directly in federal court. Sellers often receive little notice of the lawsuits, as their identities are sealed, and may only find out when their marketplace accounts are frozen. Legal expert Eric Goldman has called these lawsuits an abusive system of intellectual property litigation and highlights the devastating impact they have on small businesses.