Fitbit targets supply chain interception in TM suit

US-based activity trackers company Fitbit has sued a US company and a number of sellers for trademark infringement, dilution and counterfeiting.

Fitbit filed its suit against Laguna 2, Joel Blank and unnamed defendants at the US District Court for the Northern District of California on Friday, January 6.

The technology fitness company argued that the defendants sold non-genuine versions of Fitbit products on e-commerce sites, including Groupon, eBay and Overstock.

Fitbit added that the sellers infringed and diluted its trademarks and competed unfairly, and has asked for a permanent injunction against the defendants.

"These products were originally manufactured by Fitbit, but because they did not meet Fitbit’s high quality standards, they were designated to be scrapped and/or recycled," according to the suit (pdf).

The sellers intercepted Fitbit’s supply chain and the products were placed in “counterfeit packaging” and resold through numerous online retailers under the guise that they were “refurbished” genuine Fitbit products.

Groupon previously returned thousands of the Fitbit-branded products to the defendants, after consumers purchased them from the e-commerce site and returned them.

Fitbit owns a number of trademarks for the ‘Fitbit’ term and the company’s dotted diamond-shaped logo. The marks cover electronic devices, pedometers, altimeters and software for fitness tracking information.

These marks have been used in commerce since approximately 2009.

The suit said that on Groupon alone, the defendants have sold more than 200,000 ‘Fitbit’ products over the past two years. In addition, $80,000 worth of fake ‘Fitbit’ products have been sold on eBay in that time, the suit said.

Fitbit is asking for triple damages, statutory damages, costs, reasonable attorneys’ fees, pre-judgment interest and a trial by jury.

A spokesperson for Fitbit told WIPR that it would not comment beyond the complaint.