Chrome Hearts’ legal counsel is keeping busy as its latest lawsuits look to once again topple alleged trademark infringements.
The Hollywood-based company has four open lawsuits filed in May and June in Illinois district court against an unidentified group of defendants. The identities of the defendants were sealed. However amendments to the lawsuit show Chrome Hearts going after sellers on Temu in three of the four cases.
Attorneys for Chrome Hearts allege the defendants sell counterfeit product online aimed at U.S. shoppers and, more specifically, Illinois residents.
“This action has been filed by Chrome Hearts to combat e-commerce store operators who trade upon Chrome Hearts’ reputation and goodwill by offering for sale and/or selling unauthorized Chrome Hearts products, including jewelry, bags, shoes and other accessories,” the June lawsuit said.
The sellers in these cases are part of a “counterfeiting operation” that use different aliases to make tracing difficult, the lawsuit alleged. They move money around across off-shore accounts to avoid paying out on any legal judgements they lose, the lawsuit alleged.
Chrome Hearts said it believes the defendants operate out of China and “other foreign jurisdictions with lax trademark enforcement systems or redistribute products from the same or similar sources in those locations.”
An exact amount being requested from the defendants includes not more than three times an unspecified amount of profits made from the counterfeits, $2 million for each unlawful use of the Chrome Hearts trademarks, $150,000 for each piece that infringes on its trademarks and attorneys’ fees.
Hiding in Third-Party Retail
Chrome Hearts’ lawsuit underscores the challenges in transparency of seller and sourcing information through third-party marketplaces.
The lawsuit cited U.S. Customs and Border Protection figures from 2021 in which seizures of counterfeits amounted to more than 27,000 products worth over $3.3 billion. The value of those goods is up from the prior year’s $2 billion worth of counterfeit products. The majority of what was seized in 2021, 24,000 items, came from China and Hong Kong.
Chrome Hearts blasted platforms for not “adequately” subjecting sellers to “verification and confirmation of their identities.”
The group of lawsuits in Illinois raises the question of whether third-party platforms hold legal responsibility when it comes to counterfeit sales.
Chrome Hearts Evolution
Chrome Hearts got its start in 1989 mostly producing well-crafted motorcycle gear founded by Richard Stark, Leonard Kamhout and John Bowman. It has since evolved well beyond that into fine leather products, apparel, jewelry and home goods.
Stark bought out his partners in the ’90s and now runs it with his wife Laurie Lynn Stark.
Interestingly, it’s become a luxury fashion brand that seemingly wants very little to do with the fashion industry.
“To me, Chrome Hearts has got nothing to do with the fashion world,” Stark told Japan Times in 1999. “We don’t have any seasons. I make things when I wanna make them because I wanna make them.”
Even still, it’s attracted a high-profile clientele that has included Madonna, David Beckham, Sharon Stone, Rihanna, Drake, Cher, Billy Idol, Bella Hadid and other celebrities.
The attention and exclusivity of the brand—sold mostly through its own retail stores and select boutiques—has inspired the knockoffs.
“Chrome Hearts is known for combining the look of rugged apparel with sterling silver details to make highly desired fashion apparel and accessories,” the company’s lawsuit said.
To date, Chrome Hearts has sued Fashion Nova twice, Urban Outfitters and Grails among other companies for stepping on its trademarks.
Its lawsuit against sellers on third-party platforms said Chrome Hearts is a multi-million-dollar brand. Litigation against Crocs last year indicated the business has generated in excess of $1 billion in sales since the company’s start and that it spends over $1 million each year on advertising and marketing.
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