Amazon, Xerox and Lexmark sue over counterfeit toners
September 30, 2024
Amazon, Xerox, and Lexmark have launched a joint lawsuit against sellers of counterfeit toner cartridges on the e-commerce platform, citing damages to their brands, revenues, and customer trust.
The lawsuit, filed in the US District Court for the Western District of Washington, alleges that the defendants, including individuals and companies operating under the names Direct Global Supplies and Zeal Est LLC, sold counterfeit toner cartridges through Amazon’s marketplace. These cartridges, falsely labelled as Xerox and Lexmark products, were repackaged low-capacity items misleadingly marketed as higher-capacity, premium products.
The plaintiffs argue that the counterfeit cartridges not only violated intellectual property laws but also compromised the integrity of Amazon’s marketplace. Amazon, which claims to have invested over $1.2 billion annually in combating counterfeit goods, blocked the seller accounts involved in the scheme after verifying the infringing products. In 2023 alone, Amazon employed over 15,000 people globally to fight counterfeit sales, marking this case as part of its larger effort to protect its platform from fraudulent activity.
Xerox and Lexmark allege that the counterfeiters used unauthorized trademarks, counterfeit holographic labels, and fraudulent security features, deceiving customers into purchasing fake products. The companies say these counterfeit sales have damaged their brand reputations and caused financial losses by diverting customers from authentic, high-quality products.
Varkha N. Primalani and Prakash Lakhani, the two key individuals behind the alleged scheme, are accused of operating the counterfeit operation through their companies, Direct Global Supplies and Zeal Est LLC. Amazon’s Brand Registry and Project Zero programs helped identify the counterfeit activity, and Lexmark and Xerox conducted test purchases to confirm the fraudulent nature of the products.
The plaintiffs are seeking damages, an injunction to prevent further sales of counterfeit goods, and reimbursement for legal fees. This case underscores the ongoing challenges faced by e-commerce platforms and brand owners alike in their battle to curb counterfeit sales in global online marketplaces.
In 2023, Amazon, Xerox, and Lexmark filed a joint lawsuit under Case No. 2:23-cv-00577 in the U.S. District Court for the Western District of Washington. The case targeted individuals and companies who allegedly sold counterfeit toner cartridges branded as Xerox and Lexmark products on the Amazon platform. The defendants, including Riverday Ltd. and Smyrna Company US LLC, were found to be advertising counterfeit products bearing fake trademarks of both companies. Amazon shut down the related seller accounts after verification and issued full refunds to affected customers.
Categories : Around the Industry
Tags : Amazon Cartridges Counterfeiting. Lawsuit Lawsuit Lexmark USA Xerox
