Overstock Sues Fellow Discounter Nomorerack for Trademark Infringement

Overstock.com is saying “no more” to Nomorerack.

The Salt Lake City–based e-tailer has sued competing discount site Nomorerack, saying the flash seller is infringing on its trademarks by purchasing Google ads with the word overstock in them.

In a complaint filed in Utah federal court, Overstock.com claims New York City–based Nomorerack, which sells jewelry, has taken out online ads prominently featuring the word overstock in a nearly identical font to its trademark.

“In these advertisements and others displayed on the Internet, Nomorerack intentionally and regularly capitalizes Overstock as though it was proper noun to foster additional confusion with the Overstock.com brand,” the complaint says. 

It also charges that Nomorerack has a D rating with the Better Business Bureau of New York—which has since fallen—and that Overstock is hurt by its association with the site. 

Nomorerack could not be reached for comment. However, its CEO told Fortune: “This lawsuit is frivolous and reflects the growing competitive threat from NoMoreRack.… The term overstock is common English, and we use it at times to accurately describe surplus products we are selling at deep discount on our site.”

According to Techcrunch, Nomorerack did $100 million in business in 2012 and around $300 million in 2013. It recently secured $40 million in financing. 

This isn’t the company’s first trademark battle: In 2012, Nordstrom, the owner of the Nordstrom Rack trademark, sued the company over its use of the word Rack. In November, a federal judge delivered a setback to Nordstrom, saying the two trademarks weren’t “particularly similar.”

JCK News Director