Knobbe Martens partner Greg Phillips, Co-Chair of the firm’s Trademark and Brand Protection practice, was quoted extensively in the recent World Trademark Review article, “Trader Joe’s Targets US Distributors in Alleged Counterfeit Tote Bag Crackdown”.
In the article, Phillips offered his perspective on the key issues in a lawsuit filed by Trader Joe’s accusing a U.S.-based logistics company of trademark infringement and selling alleged counterfeit, marked-up versions of the grocery chain’s popular tote bags. Phillips noted that this trademark enforcement strategy is often used by U.S. brand owners to target the “weak link” in a counterfeiting distribution chain, in order to temporarily bypass more complex overseas enforcement operations.
Beyond the practical and financial benefits of targeting “downstream” bad actors in trademark enforcement efforts, Phillips shared how this type of lawsuit can help brands mitigate reputational risks caused by the presence of counterfeit goods on the market. By filing a public lawsuit, he noted, Trader Joe’s is signaling a care for their customer base that associates its brand with cost-effective products rather than overpriced goods.
Discussing how companies should approach anti-counterfeiting efforts, Phillips encouraged brand owners to “consider a multi-pronged enforcement strategy that targets different points in the distribution chain.”
Read Phillips’ full comments in World Trademark Review [subscription required].
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