Late at night, cross-border e-commerce seller Xiao Li stared at his computer screen, the percentage signs on his profit report glaring back at him. A sudden realization struck—had he unknowingly used the term "100%" in his product descriptions? Could this innocent-looking phrase potentially land him in legal trouble and wipe out his hard-earned profits?
This concern is far from unfounded. Recently, Saule, LLC, the trademark holder of "100%," has launched another wave of intellectual property enforcement actions, leaving many cross-border sellers on edge. What exactly is behind this controversy, and how should sellers respond?
The Origins of the "100%" Trademark
To understand the current situation, we must examine the history of the "100%" trademark. Founded in 1982, Saule's "100%" brand first gained recognition in the motocross industry, where its distinctive designs became synonymous with racing equipment. Over decades of development, the company has registered 274 trademarks with WIPO (World Intellectual Property Organization), including numerous product design patents.
The current controversy centers around its U.S. registrations for Class 9 and Class 25 word marks, covering products ranging from sports goggles and motorcycle eyewear to caps, gloves, and apparel. Saule initially attempted to register these classifications in 2007 but faced rejection due to conflicts with existing marks. After persistent efforts—including multiple appeals with substantial evidence demonstrating the brand's market presence and coexistence with similar marks—the company finally secured registration in 2021.
Escalating Enforcement: Challenges for E-Commerce Sellers
Saule has significantly intensified its enforcement efforts. On August 24, 2022, the company filed a new infringement lawsuit in New York (Case No.: 22-cv-7204), represented by Thoits Law. This follows similar actions in 2018, 2019, and 2020.
For cross-border sellers, this presents serious challenges. Law firms specializing in intellectual property enforcement frequently obtain temporary restraining orders (TROs), freezing sellers' payment accounts and creating cash flow crises. Even settling such cases consumes significant time and resources, while litigation proves even more protracted and costly. Moreover, infringement records can damage seller reputations and potentially lead to account suspensions.
Protective Measures for Affected Sellers
While concerning, sellers have several proactive options to mitigate risk:
1. Comprehensive Content Review: Immediately audit all product listings, particularly titles, descriptions, and keywords, removing any unauthorized uses of "100%."
2. Trademark Research: Conduct thorough trademark searches through USPTO or professional tools before product development and listing.
3. Industry Monitoring: Stay informed about trademark enforcement trends to adjust business strategies accordingly.
4. Legal Consultation: Seek qualified intellectual property attorneys when facing potential infringement issues.
5. Strategic Response Planning: Evaluate settlement versus litigation options carefully with legal guidance if served with claims.
6. Enhanced IP Awareness: Strengthen understanding of trademark, patent, and copyright laws to prevent future violations.
In today's competitive cross-border e-commerce environment, compliance forms the foundation for sustainable growth. Respecting intellectual property rights not only avoids legal pitfalls but builds consumer trust and market credibility.