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American Eagle Outfitters (NYSE) has sued Amazon.com (NASDAQ), accusing the tech giant of infringing on its “Aerie” and “Offline by Aerie” trademarks by redirecting customers to knock-off products offered by third-party sellers, according to the site XM.
Complaint Filed in New York Federal Court
Filed on Wednesday in the U.S. District Court for the Southern District of New York, the complaint alleges that Amazon intentionally diverted shoppers searching for Aerie products to imitations, even using alternative spellings like "Aeries" and "Aries" in sponsored advertisements. American Eagle asserts that these actions infringe on its trademarks and mislead consumers.
The Pittsburgh-based retailer claims it had rejected Amazon’s request to sell Aerie products on its platform, preferring to build its own brand identity with ambassadors such as Olympic gymnast Aly Raisman and singer Kelsea Ballerini. The retailer sent Amazon a warning on August 9 to cease redirecting shoppers to counterfeit products. According to the lawsuit, Amazon allegedly continued the practice by altering the spellings of Aerie in its sponsored ads to evade detection.
AEO Seeks Damages and Halt to Further Infringement
"AEO protects its brands and cannot allow bad actors like Amazon to confuse and deceive consumers" or to "piggyback off the goodwill, success, and popularity of the Aerie marks," American Eagle said in the filing.
The lawsuit seeks triple damages, punitive damages, and a halt to further infringements, among other remedies. Amazon, based in Seattle, has not yet commented on the lawsuit.
Aerie's Growth and Financial Impact
Launched in 2006, Aerie has grown to be a significant segment of American Eagle’s business, offering intimate apparel, swimwear, and activewear. In 2020, American Eagle introduced "Offline by Aerie," focusing on activewear. The company, which operates nearly 1,500 stores, reported that Aerie generated 32% of its $2.43 billion in net revenue for the six months ending August 3, with the main American Eagle brand accounting for the rest, as can also be seen in this article from CNBC.
Case Information
The case is American Eagle Outfitters Inc et al v. Amazon.com Services LLC et al, No. 24-07251, U.S. District Court, Southern District of New York. For complete documentation, you can check the PACER manual.
