MANHATTAN (LN) — A federal judge in the Southern District of New York granted NASCAR a preliminary injunction and asset freeze against unidentified sellers of infringing merchandise on May 14, vacating relief for one defendant who challenged jurisdiction.
U.S. District Judge AT found that NASCAR was likely to prevail on its trademark infringement claims against the majority of defendants listed in Schedule A of the complaint. The court ruled that the defendants had knowingly and willfully infringed NASCAR’s marks by selling counterfeit goods through online marketplaces including Amazon, Walmart, PayPal, and Shop Pay.
The order enjoins the defendants from manufacturing, advertising, or selling any goods utilizing NASCAR’s marks. It also bars them from using the marks in metatags, webpage titles, or advertising links, and prohibits them from altering or closing seller aliases on any marketplace.
The court also ordered an asset restraint, directing financial institutions including Amazon, PayPal, Payoneer, Ping Pong Global Solutions, Coinbase, and eBay to locate and freeze accounts associated with the defendants. The institutions must provide written confirmation of compliance within five days.
Judge AT denied the motion as to one defendant, Royaura, after finding that NASCAR failed to demonstrate a likelihood of success on the merits against that specific party. The temporary restraining order previously entered was vacated as to Royaura.
The court authorized expedited discovery, requiring the financial institutions to provide identifying information for the defendants, including contact details and account balances, within five days. Defendants served with the order must respond to interrogatories and produce documents within seven days.
Judge AT approved service by electronic mail or publication, noting that the defendants’ addresses were unknown or unverifiable despite NASCAR’s due diligence. The court found that electronic service was reasonably calculated to provide notice and did not violate the Hague Service Convention.
NASCAR posted a $1,500 bond, which will remain with the court until a final disposition of the case. Defendants subject to the order may move to dissolve or modify it on two days’ notice.