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Dell Files Trademark Infringement Suit Against Prominent Online Electronics Retailer.

NEW YORK, April 17, 2009 -- Computer manufacturer Dell Inc. filed a federal trademark suit against the prominent online electronics retailer Tiger Direct citing unethical business practices negatively impacting the DELL brand.

The complaint filed on behalf of Dell states Tiger Direct adopted without permission the marks "Dell SuperStore" and "Dell Monitor Shop." Dell further alleged that Tiger Direct represented itself as "a Dell representative." Dell also alleged that Tiger Direct falsely described some of its products for sale bearing the DELL mark were "Brand New Dell PCs at Blowout Prices." Tiger Direct is also accused of representing: older and discontinued computers as state of the art, used and or refurbished computer were new, and equipment as covered by a Dell warranty when a warranty did not exist or was provided by a third party.

The lawsuit is the culmination of a rocky relationship between the parties.

Dell began its business in 1987 by selling computers and related equipment directly to consumers. Under some circumstances, Dell has permitted some "Value Added Resellers" (VAR) and more recently "Certified and Registered Partners" to sell new Dell merchandise per the terms of an agreement which expressly prohibited using Dell's name or trademarks in manner likely to confuse the public as the nature of their relationship to Dell, imply approval or sponsorship by Dell, or the use of phrases like "authorized reseller" or "legal partner."

At one time Tiger Direct was an authorized reseller of Dell products until their status was suspended in or about May, 2007 for numerous and repeated breaches of Dell's terms and conditions.

The pleading filed also complains of an unauthorized variation on the DELL logo being used by Tiger Direct which Dell argues will "confuse the public as to the source, sponsorship, nature or quality of Defendant's products, services and business, and for the creation and use by Defendant of a DELL logo that mimics and bastardizes Dell's world-famous DELL Logo."

Dell is claiming causes of action for: trademark infringement, trademark dilution, false advertising, false and misleading representations of fact, unfair competition, and breach of contract.

The DELL trademark is federally registered and Dell could recover defendants' profits and any damages sustained by the plaintiff. In assessing damages the court may enter judgment for any sum above the amount found as actual damages, up to three times. When a court finds a defendant intentionally counterfeited a registered trademark, the court must, unless the court finds extenuating circumstances, enter judgment for three times such profits or damages, whichever is greater, together with a reasonable attorney’s fee unless the Plaintiff elects for statutory damages up to $1,000,000 per counterfeit mark per type of goods or services sold, offered for sale, or distributed.