Facts

JUUL Labs Inc. designs, manufactures, and distributes its JUUL-branded electronic nicotine delivery systems and products related to that such as its devices and disposable cartridges. It owns several registered trademarks for its products, including several JUUL marks. After someone from JUUL's brand protection team discovered that possible counterfeit JUUL products were being offered on the online marketplace, CJdropshipping, JUUL began investigating the possible infringement, and hired an investigative team. The team determined that the items were counterfeit. Through the course of several months, the team continued to investigate by placing larger orders and checking for qualifying characteristics of authenticity. Because the products were being shipped from China and COVID restrictions, the process was lengthened.

Andy Chou is the founder, owner, and CEO of several companies, including CJdropshipping, which, as an online marketplace, connected third-party vendors, suppliers, and wholesalers to customers. JUUL Labs filed suit against Chou, and his companies, alleging trademark violations.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant Chou and his companies infringed on its trademark.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions. They noted that they have an internal system to try to avoid selling counterfeit products and actively discourage by encouraging its own users and employees to report potentially infringing listings.

Result

The court found defendants liable to plaintiff for trademark infringement and counterfeiting and false designation of origin and false advertising in connection with the sale of six of plaintiff's products. After also finding that defendants' actions were willful, the court awarded $2 million in damages to plaintiff and also permanently enjoined defendant from actions pertaining to those violations.