Major Brand Sues CHB as Importer of Record Entry Filer of Counterfeit Shoes
Nike, Inc. has sued a Customs broker1 for its role as the "importer of record" entry filer in the importation of counterfeit branded merchandise. Nike seeks permanent injunctive relief from the counterfeiting, infringing, and dilution of Nike’s trademarks and the false designation of origin. Nike is also seeking monetary damages.
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Nike alleges that the Customs broker filed entry for 670 cartons of counterfeit Nike footwear. Although the entry documents identified a Texas company as the ultimate consignee, the broker was the importer of record. The broker had a power of attorney allegedly executed by the Texas company; however that company states it did not know the broker, had never authorized the broker to act on its behalf for the importation of any goods, and had not provided the broker with a POA. The broker also coordinated with a California freight forwarder for the further transportation of the entered goods.
Nike also alleges that prior to making entry, the broker failed to make any contact with the Texas company to confirm the importation or their POA. Nike said the broker also failed to make any inquiry as to the nature of the counterfeit footwear, including determining that the goods bore any Nike trademarks.
By fling the entry documentation, Nike charges that the broker deemed themselves to have sufficient interest in the goods and to be responsible for their importation.
Nike also charges the broker with importing and distributing the goods knowing, or willfully ignoring, that they bore counterfeit Nike trademarks. Moreover the broker engaged in a deliberate effort to cause confusion and mistake among the consuming public as to the source, affiliation, and/or sponsorship of said goods, and to gain the benefits of the enormous goodwill associated with the Nike trademarks. Their acts also were likely to dilute, or have diluted, the Nike trademarks.
1The identity of the various John and Jane Does and XYZ companies is not presently known. The complaint will be amended, if appropriate, to include the name(s) of said individuals and/or entities, when such information becomes available.
Complaint, Nike Inc. vs. P.S. Customs Brokerage, Inc. available by emailing documents@brokerpower.com