eBay Seller Sues printer maker Dymo as a result of Vero Complaint

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Printer Manufacturer Obstructs Sale of Printer-Compatible Labels on eBay, Threatens First Amendment Rights

Florida Resident’s Sale of Printer Labels Does Not Infringe on Printer Maker’s Intellectual Property

A Florida resident should be allowed to inform consumers that he is selling computer printer labels compatible with Dymo-brand printers but not manufactured by Dymo Corp., Public Citizen said in a lawsuit filed April 24 in a Florida federal court.

The lawsuit, which was filed in the U.S. District Court for the Middle District of Florida, seeks to guarantee Rene F. Mohl of Ponce Inlet, Fla., the right to tell eBay users that he is selling printer labels compatible with printers made by Dymo, a Stamford, Conn., company. The lawsuit also seeks to prevent Dymo from interfering with future sales of the compatible printer labels and to compensate Mohl for lost sales.

Mohl has sold the labels on eBay since January, but Dymo has threatened to sue Mohl if he continues to use the Dymo name on eBay or elsewhere.

Because Mohl’s printer label listing on eBay is a form of speech, it is protected by the First Amendment. Currently, however, Mohl is prevented from telling consumers that his labels are compatible with Dymo’s printers because Dymo complained to eBay, erroneously claiming that Mohl’s labels infringe upon Dymo’s trademarks and that the sale of the labels voids consumers’ printer warranties. Dymo has threatened legal action against Mohl if Mohl uses Dymo’s name or parts numbers. Mohl is continuing to sell the printer labels on eBay, but because he is not using Dymo’s name or parts numbers he has suffered a major loss in sales.

Dymo’s trademark infringement claims threaten basic principles of our competitive marketplace, the suit says...

“This is just another example of how corporations are exploiting eBay’s Verified Rights Owners program to curtail legitimate competition by small online retailers,” Beck said...

full press release: http://www.citizen.org/pressroom/release.cfm?ID=2183

copy of the lawsuit (.pdf format): http://www.citizen.org/documents/MohlComplaint.pdf

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Update:

Public Citizen Litigation Group said the lawsuit it filed against Dymo Corp. on behalf of eBay seller Rene Mohl has been settled...

Dymo Corp. settled the case in mid-July. According to a press release issued by Public Citizen Litigation Group, Dymo Corp. agreed not to interfere with Mohl's right to inform consumers on eBay that he is selling compatible computer printer labels not manufactured by Dymo Corp.

A copy of the settlement agreement sent to AuctionBytes by Greg Beck of Public Citizen Litigation Group revealed that Dymo Corp. had agreed to pay $5,000 to the plaintiff's counsel, and that Dymo represented that its conduct "of the type alleged in the complaint" was improper and contrary to Dymo's policies,... and that it "has taken steps to ensure that it does not recur."...

full article: http://auctionbytes.com/cab/abn/y06/m08/i02/s01