Judge hands victory to online retailer NoMoreRack.com.
Here’s an update on a lawsuit I wrote about in October.
Upscale retailer Nordstrom, which also operates outlet stores under “The Rack” name, sued online flash sales and discount site NoMoreRack.com. It claimed NoMoreRack.com’s brand and domain name infringed its trademarks.
This week the judge on the case denied Nordstrom’s motion for a preliminary injunction against NoMoreRack. Had Nordstrom succeeded, it would have forced the defendant to stop using its brand, which would have had devastating effects on its business.
In denying the motion for a preliminary junction, judge Ricardo Martinez wrote:
…Nordstrom likely cannot prevail on the merits of either the trademark infringement or dilution by tarnishment claims. Further, even if Nordstrom had raised serious questions going to the merits, it fails to demonstrate a likelihood of both irreparable harm and that the balance of equities tips sharply in its favor. Thus, with the current evidence on record, Nordstrom likely cannot prevail on the merits of its trademark infringement claim.
Of course, this does not mean Nordstrom cannot win its case against NoMoreRack. But it’s a key victory for the startup that recently raised $12 million.