Imagine getting sued by NASCAR… without even knowing it. That is essentially what has happened this week. The sanctioning body has gone to the federal court over a massive counterfeit merchandise operation. But the catch is that the people it’s suing aren’t named anywhere in the public filing.
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That’s not because NASCAR doesn’t know who they are or they made a mistake while filing. But it’s because it doesn’t want them to know what’s coming their way. NASCAR has filed what is known as a “Schedule A” lawsuit. It is a legal strategy increasingly used to catch online counterfeit networks before they can go ahead and wipe their storefronts clean, empty bank accounts, and disappear under a new identity.
The federal civil trademark case, filed under the Lanham Act in the U.S. District Court for the Western District of North Carolina, targets what the sanctioning body describes as a vast, secret network of counterfeit merchandise sellers.
“This trademark infringement action is part of NASCAR’s continuing efforts to safeguard its goodwill and trademarks against persistent online infringement by foreign-based counterfeiters and infringers,” the sanctioning body wrote in its filing.
The complaint describes the defendants as individuals, corporations and limited liability companies, partnerships and other entities identified only in a sealed, ‘Schedule A” attached to the lawsuit. Even the exhibit showing the counterfeit products has been removed from the public docket. You bet, this isn’t a clerical error either!
The fight is against all those shops who sell fake gear. The ones who slap official team logos and driver numbers onto knockoff shirts, hats and toy cars. And these NASCAR claims are not some run-of-the-mill industry but a well-funded operation. They go through lengths to ensure their end goal is achieved.
They use fake company names, false addresses, and blurred photos to trick automated computer filters. They also apparently cycle through multiple business aliases to stay ahead of the Department of Homeland Security enforcement efforts. They create fake storefronts designed to resemble the authorised NASCAR retailers, and keep the profits in offshore bank accounts outside the country’s jurisdiction.
Now, the case has been assigned to US District Judge Kenneth Bell. He also presided over NASCAR’s high profile anti-trust dispute with 23XI Racing and Front Row Motorsports last year. While that case is more about NASCAR’s business relationship with its race teams, this is around protecting the sport’s intellectual property from alleged counterfeiters.
The truth is that not only does fake gear hurt the team, sponsors, and official stores that keep the sport running, it also hurts the brand’s reputation. It most importantly ends up fooling fans and taking away their hard-earned money, given many shop from these unknown sellers unknowingly. But the fight against fake merch has always been a nightmare for the sports leagues.
In 2023, the NFL had to shut down over 500 counterfeit sellers just to manage the problem. Taking down one listing never really solves the problem because the same seller will come back under a new name a few hours later.
That is also why Schedule A lawsuits are becoming common. Originally, it was used by luxury brands battling counterfeit handbags and designer clothing. But now the same thing helps sports leagues target these sellers. It allows companies to identify who is actually behind the accounts before they get a whiff and vanish.
NASCAR further asks the court to remove such advertisements promoting the counterfeit products and also prevent the storefront from appearing in any search result for NASCAR merchandise. This isn’t NASCAR’s first use of this strategy, though.
Just this month, the sanctioning body secured a preliminary injunction in a similar lawsuit filed in New York, temporarily preventing another group of alleged sellers from selling products NASCAR says infringed on its trademarks.
Also, this is one among several of the legal battles that are going on around the sport. JGR and Spire Motorsports are locked in a dispute over stolen information. Legacy Motor Club’s charter-related litigation is still making its way through the courts.