Amazon will face trademark lawsuit filed by MTM watchmaker

Amazon will face trademark lawsuit filed by MTM watchmaker

In a Monday ruling, the US Court of Appeals for the 9th Circuit said that online retail giant Amazon will face a trademark-infringement lawsuit filed against it by Multi Time Machine (MTM), a Los Angeles-based manufacturer of military-style watches.

In its complaint against Amazon, MTM watchmaker has alleged that online search results published by Amazon can cause confusion for potential customers.

With the Monday ruling by the federal appeals court overturning a 2013 decision won by Amazon at a lower court, the lawsuit filed by MTM against Amazon will now return to the district court in Los Angeles for further proceedings.

In its original lawsuit filed against Amazon, MTM had claimed that the online retailer displays search results of MTM's competitors when customers search for its Special Ops watch style, which is not sold by Amazon.

According to the arguments put forth by MTM, the "initial interest confusion" which Amazon's search results cause for potential buyers of the company's Special Ops watch style constitutes trademark infringement because it '"impermissibly capitalizes on the goodwill associated with a mark and is therefore actionable trademark infringement."

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