Building an eCommerce brand requires significant time and money, as the creative elements, from website copy to promotional images, require considerable time and money.
According to Shopify, the design and development of an eCommerce website alone can cost between $2,000 and $20,000.
In launching an online business, there is a seemingly endless array of intellectual property (IP) elements that business owners need to protect from infringements. Even something as simple as a domain name can be considered a form of IP requiring protection from bad actors. In 2023, for example, the quickly growing eCommerce platform
Temu fought and won a legal battle against 20 website domains they claimed infringed on their trademarks.
Keeping pace with IP, copyright, and trademark law basics is essential. As technology advances at an unprecedented rate—particularly regarding Artificial Intelligence (AI), as mentioned in a previous GreyScout blog—threats to copyrights are becoming increasingly pervasive.
As eCommerce is a worldwide business, it can be incredibly challenging for brands to enforce copyright protections across global markets. However, with the proper education, due diligence, and online protection tools, brands can stay one step ahead. While daunting, it is vitally important for businesses to thoroughly understand their rights as IP owners while having access to the legal and technological tools needed to protect them. The very survival of the company can depend on it.
The Basics of Copyright Law
While there is no “international copyright law,” there are protections globally in key treaties between countries. For example, 116 states worldwide—including the U.S., China, and the United Kingdom—adhere to the WIPO Copyright Treaty (WCT), which deals with the protection of works and the rights of their creators in the digital space.
Copyright laws typically protect tangible works such as graphic design elements, logos, photographs, music, written material, and artworks. These laws prevent others from copying, distributing, or making derivative works without permission. In most countries, copyright protection automatically applies to creating a job. However, it is still advisable that brands register their trademarks within the markets they operate to provide further legal protections.
Copyright ownership typically belongs to the work’s creator, except in cases where it is produced underemployment or contract. For example, if an eCommerce brand hires a copywriter to craft Amazon product listings, the brand, as an employer, owns the rights to the finished product. Below, we’ll dive into the concept of “fair use,” which permits the limited use of IP in the interest of media reporting, research, and other exceptions.
Famous Copyright Infringement Cases
As noted above, advances in technology often bring threats to IP with them. In the early 2000s, for example, the world was consumed by the rise of peer-to-peer file-sharing software, which posed a significant threat to the copyrights of artists in the music industry.
One of the most famous copyright infringement cases is those brought against file-sharing service Napster by major U.S. record labels and individual artists. This case was pivotal in highlighting the profound impact of technology on copyrights and IP. Napster was founded by U.S. law to facilitate the widespread unauthorized sharing of copyrighted music files, highlighting the need for robust copyright enforcement policies which keep up with the pace of technology. In the end, as a file-sharing service, Napster was shut down and forced to pay $26 million in damages to various parties in the music industry.
This case changed how IP and copyrights are safeguarded in an increasingly digital world, leaving a lasting impact on the legal landscape of eCommerce.
Another famous case highlighting the importance of protecting visual elements was that of the media outlet Associated Press (AP) versus artist Shepard Fairey. This case was centred around the unauthorized use of an AP photograph in Fairey’s Obama “HOPE” poster.
The poster utilized a photograph of former U.S. President Barack Obama taken by an AP photographer without obtaining permission or licensing. The case highlighted the complexities of copyright law, as Fairey argued that his use of the photograph constituted fair use as political commentary and artistic expression. After a four-year legal battle, a settlement was reached. However, the Fairey case provided a crucial lesson in proper attribution and licensing when using copyrighted works, even in the context of artistic and political expression.
Key Takeaways
Whether it’s a high-profile case like the one brought against Napster by Metallica, Dr Dre, and other significant artists or something as simple as the plagiarism of a short blog post, copyright case studies provide some critical lessons for eCommerce businesses. According to the Copyright Claims Board in the United States, even “small copyright claims” can see infringements lead to the payment of statutory damages as high as $150,000 per work infringed. Suffice it to say violating the copyrights of another business could spell financial ruin for an eCommerce brand.
The cases highlighted above punctuate the importance of securing proper permissions and licenses for all elements used in branding and commercial products. They also show that clear and documented agreements between parties are crucial to prevent misunderstandings regarding the use and ownership of IP. Perhaps most important in keeping up with technology, real-time monitoring of the digital space for potential infringements and prompt enforcement of rights has become a must-have element for any eCommerce business.
In addition to having the right tools and policies in place, understanding the complexities of copyright law worldwide and being ready to defend those rights in court is necessary to ensure that creators and businesses can safeguard their IP effectively.
The Bottom Line
Returning to the early days of file sharing with Napster and the present day’s rise of AI models creating tangible creative works such as blog posts and images, we have seen the impact of rapid technological advances on IP rights. While major eCommerce platforms often offer their merchants brand protection tools such as the Amazon IP Accelerator, addressing the evolving threats posed by tech-savvy bad actors demands additional robust measures. To effectively navigate the competitive landscape of eCommerce, leveraging online brand protection software like GreyScout becomes vital.
In addition to education, legal counsel, and due diligence, implementing brand protection software integrated with major eCommerce platforms such as Amazon is a proactive step a brand can take.
GreyScout swiftly identifies and mitigates threats to IP and other illicit practices that can harm a brand’s reputation.
