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21 May 2021TrademarksRory O'Neill

Amazon liable over ‘knockoff’ gun accessories

Amazon must enter into talks over damages for counterfeit gun magazine loaders, after an Israeli manufacturer presented “overwhelming” evidence of the e-commerce platform’s liability.

In a strongly-worded order issued on Tuesday, May 18, Judge Liam O’Grady of the US District Court for the Eastern District of Virginia said “this is simply not a case where Amazon can avoid liability”.

Maglula, based in Rosh Ha’ayin, Israel, sued Amazon in 2019, alleging infringement of its patents, trademarks, and copyright over the sale of Chinese-manufactured counterfeits of its UpLULA magazine loaders on the platform.

Last November, the court ordered Amazon to open its warehouse to Maglula for an inspection, after which the e-commerce platform filed for summary judgment on certain issues before the case went to a jury trial.

Amazon wanted the court to declare as a matter of law that Maglula had failed to show evidence of trademark and copyright infringement, as well as counterfeiting. But according to O’Grady, this argument was “meritless”.

“This is a straightforward counterfeit case,” the judge wrote, continuing: “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,” added the judge.

Given these facts, the judge said he saw no room for Amazon to escape liability for the sale of the counterfeits on the platform: “The court does not believe even the most persuasive presentation of Amazon’s evidence would make one iota of difference to a jury.”

The judge said he would not comment on damages, but ordered the parties to “exchange damages positions immediately”. According to the court order, the parties must engage in “good faith mediation”, either through a magistrate judge or a private mediator.

An Amazon spokesperson declined to comment on this story when contacted by WIPR.

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