Auction site Bidz.com has filed suit in the U.S. District Court for Central California alleging that eBay has infringed upon its registered trademark "$1 NO RESERVE" auction, creating unfair competition, false designation of origin and trademark dilution of Bidz famous mark.
The suit alleges that Bidz.com's "$1 NO RESERVE" Mark auction sales and purchases over the Internet were among the largest, developing an incredibly strong brand recognition and power in the marketplace.
Upon learning of eBay's infringing use on September 10, 2003, Platintiff's sent a letter to eBay demanding they cease all use of the mark. Bidz.com is seeking a permanent injunction enjoining eBay from using the trademark and is seeking damages as the Court finds appropriate. "We have worked extremely hard establishing our brand and we don't intend to let eBay unfairly capitalize on our efforts," stated David Zinberg, CEO of Bidz.com.
Bidz.com sued eDeal Services Corporation in July for breach of contract.