Amazon False Counterfeit Claims Putting Honest Sellers Out of Business

Let’s discuss Amazon false counterfeit claims. Amazon is leaving the door open for e-commerce sellers to falsely claim trademark infringement against their competitors. Which is to say, thriving online marketplace operators are being put out of business. This is a direct result of Amazon’s flawed internal method for reporting trademark infringement. As an online seller, you may become the victim of this unfair system and lose your hard-earned livelihood. Amazon has developed some of the world’s most advanced technology, therefore you would think they are capable of developing a system which could better identify and filter these false complaints at the filing stage.

Amazon Needs to Start Protecting Sellers from False Trademark Infringement Claims

The scenario we are referring to typically sticks to a similar pattern of malicious behavior.  Competitors specifically target an Amazon seller just like you. One whose account has thousands upon thousands of successful sales and positive reviews. These ill-intentioned folks have developed a strategy to take you and your business down. Sadly, Amazon is providing the avenue for them to do so in just a few clicks. 

Online Sellers Are Going Out of Business Due to Amazon’s Report Infringement Model 

As of right now, all your competitor has to do is visit Amazon’s “Report Infringement” page and fill out their Report Infringement Form. And just like that, they have submitted a claim that you are committing an intellectual property violation. In some cases, the complainant is abusing a trademark that has not been applicable for years, aka a “Dead Trademark.” Amazon is basically allowing this to happen because they do not closely scrutinize these claims. 

Case in Point:

Most recently, our attorneys came across a hard-working seller who received a counterfeit complaint, which resulted in the suspension of their Amazon account. Upon review, the trademark asserted had been abandoned over 20 years ago and was for a completely difference category of goods and services. In addition, the filing party had absolutely no affiliation with the owner of the abandoned mark used to take down this honest seller.

We believe it should take less than a minute to verify the active status of a trademark as well as the class of goods and services it protects. Amazon needs to streamline this process, because above all, it would protect the honest sellers that comprise the very heart and soul of the company’s shopping experience.

Amazon Needs to Improve the Report Infringement Process For Determining Validity of Counterfeit Claims

Unfortunately, such a vetting process does not exist. Worse yet, Amazon will often side with the competitor, which leaves honest, successful sellers like you out in the cold. Taking all of that info consideration, It stands to reason that Amazon needs to improve its process for determining the validity of counterfeit claims. Amazon is not protecting sellers like you, the very entities that built the value of the company from the ground up into the massive global marketplace it is today. Furthermore, due to the lack of infrastructure to determine trademark validity, you are vulnerable and may already be the victim of such false claims by vicious competitors. 

The legal team at Stockman & Poropat, PLLC has a deep knowledge of and vast experience in handling these matters. We will contact the competitor who filed the claim on Amazon, demand they retract the claims filed, and aid you in appealing to Amazon to demonstrate that the complaint is false. Beyond these efforts, we will also bring litigation against the sellers who filed falsely and arbitration against Amazon if required, in order to restore your account as quickly as possible. 

Feel free to email us or call (718)-657-7400 for more information on this subject. If you found this content helpful, be sure to review our blog weekly for new updates and information for e-commerce sellers.

Be sure to check out our articles regarding Amazon Temporary Restraining Orders (TRO) related to Crayola, General Motors, and Telfar!