The court has functionally blocked Deckers's standard 'Schedule A' tactic against chinese counterfeiters via email service, likely forcing the company to either use formal hague convention service (costly and slow) or abandon smaller defendants. traders should watch for a spike in ugg counterfeit availability and potential revenue erosion from grey-market sales. the judge's criticism of repeated refiling suggests systemic litigation risk and possible reputational damage as a repeat procedural abuser.
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Executive Summary
The court dismissed deckers outdoor corp's counterfeiting lawsuit against defendant litfun for lack of personal jurisdiction, ruling that email service on a chinese defendant with a known address violated the hague convention. the ruling aligns with the seventh circuit's may 2026 holding in kangol v. hangzhou chuanyue silk and the court's own prior order in a related deckers case. the dismissal is without prejudice, but the judge cautioned that this was the seventh dismissal before a federal judge in deckers's 'schedule a' litigation campaign, highlighting procedural abuses and possible judge shopping.
Court Ruling Details
Key Facts
- Deckers Outdoor Corp. sued 64 Chinese online retailers for trademark counterfeiting of UGG Tasman slippers.
- Defendant Litfun moved to dismiss for improper service; the court agreed that email service violated the Hague Convention.
- The Seventh Circuit (Kangol LLC v. Hangzhou Chuanyue Silk, May 29, 2026) recently held email service on Chinese defendants with known addresses impermissible under the Hague Convention.
- Deckers's prior Deckers v. A AO et al. (June 23, 2026) opinion was relied on—the court found Deckers failed to show reasonably diligent efforts to verify Litfun's Walmart store address.
- This dismissal (without prejudice) is the seventh dismissal Deckers has suffered in federal court against the same defendant/related entities.
- The judge separately detailed a pattern of 'pinching' (dropping defendants by amendment to avoid skeptical judges and refiling new cases) and cautioned against judge shopping.
- The motion to dismiss on joinder/res judicata grounds and a motion to strike were denied as moot (court lacked jurisdiction to reach them).
Financial Impact
No monetary damages awarded; the dismissal denies Deckers the ability to enforce IP rights and seize counterfeiters' assets in this case. The ruling impedes Deckers's e-commerce enforcement strategy but does not quantify a specific financial impact.
Risk Factors
- Loss of effective IP enforcement mechanism against Chinese online counterfeiters may accelerate erosion of UGG brand premium and pricing power.
- Judge-shopping/abuse-of-process accusations could lead to sanctions, fee awards, or dismissal with prejudice in future filings.
- Other district judges may follow this reasoning, compounding enforcement costs across multiple cases.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 court opinion from CourtListener.
| Document | Accession Number |
|---|---|
| COURT-RULING Data (Synthetic) | court-qzh4jlzu-DECK |
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