Tile Files 4 Trademark Infringement Suits For Unauthorized Sales

Tile, Inc., whose products include wireless tracking devices use to locate different items, filed four trademark infringement suits against 888 Digital Inc., CellnTell Distribution Inc., Digital Pavilion Electronics, and S&W Dealz. The suits are filed in the New Jersey District Court, New York Northern District Court, New York Eastern District Court, and the Massachusetts District Court, respectively. Tile is represented by K&L Gates.

Tile accuses the defendants of the “wrongful, unauthorized promotion and sale of Tile’s products.” Tile sells its products through Authorized Resellers; “Tile has also implemented an Authorized Reseller Network in order to guarantee that Tile products sold to consumers meet high standards of quality control.” Tile sells its products using the “Tile” brand; none of the defendants are Authorized Resellers. Tile has registered the “TILE” trademark and using it since 2014. Tile “advertises, distributes, and sells its products to consumers under the Tile Marks.”

According to Tile, the defendants “[offer] for sale and [sell] non-genuine Tile products bearing this registered trademark.” The unauthorized sales do not have Tile’s warranty. Tile concludes that the defendants are deceiving customers, whose products are not covered under a warranty and whose lack of quality damages Tile.

For example, 888 Digital marketed their Tile products as “new” however, 888 Digital is “deceiving customers by selling liquidated, used, or even potentially stolen Tile products” on its website. Meanwhile, Tile believes that unauthorized reseller CellnTell Distribution is selling stolen products on Amazon, despite advertising that they are new. Digital Pavilion Electronics sells “non-genuine Tile products bearing this registered trademark” on Amazon and other sites. Digital Pavilion Electronics claims that these are “new,” however, these are “liquidated or used Tile products.” S&W Dealz also sells unauthorized, non-genuine Tile products on Amazon, claiming they are “new” when they are “liquidated or used” products. The defendants’ actions have caused confusion and deception for consumers and damages Tile’s reputation and goodwill because customers believe they are buying a legitimate Tile product when they are not.

As a result of these unauthorized sales, Tile claims it is “suffering a loss of the enormous goodwill that Tile has created in its trademark and is losing profits from lost sales of products.”  Additionally, Tile claims that these sales and actions have diluted the company’s goodwill and trade name in addition to confusing consumers. Tile states that the unauthorized sellers have infringed on its trademark through “interstate commerce without the consent of Tile, of a reproduction, counterfeit, copy, or colorable imitation of the Tile Marks in connection with the Sale, offering for sale, distribution, or advertising of goods, which use is likely to cause confusion or mistake, or to deceive consumers, and therefore infringes Tile’s rights in the Tile Marks, all in violation of the Lanham Act.” Further, Tile states that Defendants are benefitting from its reputation and goodwill.

Tile alleges that the defendants have willfully and knowingly infringed on its trademark, unfair competition, and false advertising violations, as well as unfair and deceptive trade practices. Tile has sought injunctive relief, an award for damages, costs and fees, pre- and post-judgment interest, as well as other relief as determined by the court.