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Etsy suspended my shop for "trademark infringement" but the claim is completely bogus - $4k in orders pending

Started by coffee_and_contracts_6 · Apr 15, 2025 · 6 replies
For informational purposes only. This is not legal advice. Platform disputes and intellectual property issues require individual consultation.
CA
coffee_and_contracts_6 OP

I'm panicking right now. My Etsy shop got suspended yesterday for alleged trademark infringement. I make handmade jewelry - completely original designs that I create myself.

The takedown notice says I'm infringing on someone's trademark for "minimalist geometric earrings." I looked up their trademark and it's literally just a description of a style, not a specific design. Their trademark is for "GEOMETRIC LUXE" and I never used those words anywhere.

I have $4,000 in pending orders that I can't fulfill, and Etsy is holding all my funds. I've been selling on Etsy for 3 years with zero issues. This feels like a competitor trying to shut me down.

How do I fight this? Etsy's appeal process seems designed to favor the trademark holder. Do I need a lawyer?

CA
coffee_and_contracts_6 OP

I just checked USPTO. Their trademark "GEOMETRIC LUXE" is registered for jewelry, but it's just the brand name. I don't use that name anywhere. My shop is called "Aria Handmade Jewelry" and my listings say things like "modern gold earrings" and "minimalist stud collection."

Looking at their Etsy shop, they sell very similar style jewelry. This really does seem like they're just trying to eliminate competition by claiming I'm infringing when I'm not.

How detailed does my counter-notice need to be? And what are the risks if I file it?

SE
SecurityConsultant_8 Attorney

Based on what you've described, this sounds like trademark bullying - using IP claims to suppress legitimate competition.

For the counter-notice, include:

  • Statement that you have a good faith belief the claim is erroneous
  • Explanation that you use your own brand "Aria Handmade Jewelry," not their "GEOMETRIC LUXE" mark
  • Evidence: screenshots of your listings showing your branding, not theirs
  • Citation that style/design descriptors (like "minimalist" or "geometric") are not protectable
  • Photos of your original designs with creation dates if possible

The risks of filing a counter-notice:

  • If you file, Etsy will likely forward it to the claimant
  • They then have 10 business days to file a lawsuit against you, or Etsy will restore your shop
  • If they sue, you'll need to defend yourself (costly, but you can countersue for malicious prosecution)
  • If you file a false counter-notice knowing you're infringing, you could be liable for damages

In your case, the risk seems low. They would have to prove in court that your use of generic descriptive terms creates consumer confusion with their brand. That's a very weak case.

LM
lawyer_mike_d_13

I went through this exact thing last year with my pottery shop. A competitor claimed I was infringing on their trademark because I used the word "modern" in my listings and they had "Modern Clay Co" trademarked.

I filed a counter-notice explaining that "modern" is a common descriptive term and I wasn't using their brand name. They never sued, and Etsy reinstated my shop after 10 days.

The waiting period was agonizing, but the competitor clearly knew they didn't have a real case. If they had sued, my attorney said we could have gone after them for abuse of process.

SE
SecurityConsultant_8 Attorney

On the held funds: Etsy's policy is typically to hold funds for 45-90 days after a suspension, but if your shop is reinstated via counter-notice, they should release them sooner. Check your Etsy Payment Account for the specific hold period. You may need to contact Etsy support to expedite release after reinstatement.

On contacting the claimant: I generally advise AGAINST direct contact. Here's why:

  • Anything you say can be used against you if they sue
  • They might try to intimidate you into staying down
  • It won't speed up the process - the formal counter-notice is what matters

Let the process work. File your counter-notice through Etsy, and let them forward it to the claimant. Then it's on the claimant to either sue or back down.

Pro tip: After this is resolved, consider filing a complaint with Etsy against the claimant for abuse of the IP reporting system. Etsy claims to penalize false reports, though enforcement is inconsistent.

CA
coffee_and_contracts_6 OP

Update: I filed the counter-notice 4 days ago. Etsy confirmed they forwarded it to the claimant. Now I'm in the 10-day waiting period.

This is so stressful. My summer sales season is being killed by this. I've had to email all my customers about delays.

Crossing fingers that they don't actually sue. I really don't think they have a case, but the uncertainty is brutal.

RK
rachel_k2_11

Update from the future: Etsy has gotten even worse about this. I just had my print shop taken down for using the word "boho" in my listings. Someone trademarked "Boho Prints Co" and is claiming that anyone using "boho" as a descriptor is infringing.

I filed a counter-notice using the template from this thread. Etsy's IP team is completely overwhelmed and it took 3 weeks just to get confirmation they received my counter-notice.

The trademark trolling problem on Etsy has gotten out of control. There are companies that literally trademark common descriptive words just to harass competitors. Etsy needs to do a better job screening these claims before auto-suspending shops.

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