Federal Judge Approves Agreement to Remove Knockoff Product From E-Commerce Platforms

A federal judge in North Carolina last week sided with an automotive technology provider in a trade dress infringement case against a foreign company that allegedly sold a knockoff product on Amazon.

U.S. District Judge Frank D. Whitney of the Western District of North Carolina granted a consent judgment Oct. 1 in a patent dispute brought by Power Probe, a Charlotte-based company that provides tools for auto technicians, against Toolsmart Limited, which is based in the United Kingdom. Within a week of filing the complaint, Toolsmart reached an agreement with Power Probe, and Whitney approved a permanent injunction.

The consent judgment and permanent injunction removes Toolsmart’s knockoff tester from sale in the United States.

Power Probe was represented by attorneys of Shumaker’s Charlotte office. Shumaker partner Alex Long said the case is particularly important in a time of increased imported knockoffs being transacted on ecommerce platforms such as Amazon.

“With Amazon’s expansive digital marketplace, businesses have the opportunity to reach millions of potential customers,” Long said in a statement provided to Law.com. “However, there is a growing trend of foreign companies utilizing Amazon’s platform to sell products which are knockoffs or copies of legitimate products. Many sellers are now finding nearly identical replicas of their products on ecommerce platforms such as Amazon.

“Accordingly, now more than ever, it is important to protect intellectual property via patents, trademarks, trade dress and copyright.”

The product at issue involved Power Probe’s PP3, a circuit tester with audio and visual indicators along with LED headlights. Toolsmart’s version, the PP7, allegedly replicated the exact functionality and appearance of the PP3 while copying the same product manual, the plaintiffs alleged.

A complaint was filed by Power Probe on Sep. 25, which included claims for copyright infringement, infringement of its utility patents, and for copies of its protected trade dress. The trade dress included the use of Power Probe’s “signature color”—Power Probe Red—along with the shape of its PP3.

Long was joined by Shumaker attorneys Christy Trimmer, Tricia Magee, Lucas Garber and Tom BenGera.

Counsel for Toolsmart had not entered an appearance in the case.

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