If you spend some time browsing Amazon, you will likely notice a surplus of products that resemble pop-culture icons. From Teenage Mutant Turtles socks to Bob Ross coffee mugs, e-commerce marketplaces are riddled with these items using trademarked likenesses, words, symbols, or phrases. An unfortunate reality for popular brands selling on eCommerce marketplaces like Amazon and eBay is that many unauthorized third-party sellers use their trademarks without a license, making them guilty of brand infringement.
What is Brand Infringement?
Mexican artist Frida Kahlo is a famous icon whose image is seen on a wide range of products. You can find dozens of items on Amazon using her image, ranging from puzzles to candles. Recently, The Frida Kahlo Corporation filed two lawsuits on March 4 against online retailers to crack down on the unauthorized use of the Frida Kahlo brand. This case, and another in 2018 by the Frida Kaho Corporation against a major toy manufacturer, are examples of alleged brand infringement.
In a previous GreyScout blog, we explained the basics of copyright law in the e-commerce space and expressed how important it is for online brands to ensure their products do not infringe on trademarks. Trademarks distinguish a brand and its products from competitors’ logos, slogans, brand names, and other elements.
The difference between a Trademark and a Copyright
While a trademark protects the name or logo that identifies a company or product, a copyright is a legal right granted to the creator of an original work, such as literature, music, art, film, or software. A copyright gives the owner exclusive rights to use, distribute, and reproduce the work. These rights are typically granted for a specific period, allowing the holder to control how the work is used and to receive compensation for its use.
Avoiding Brand, Copyright, and Trademark Infringement
While it is essential for brands operating in the e-commerce space to take steps to protect their IP, it is equally important that they understand brand infringement to avoid costly legal issues. Trademark and copyright holders are becoming savvier and can crack down on brand infringements.
There is a good reason for brands worldwide to take infringement seriously. One of the most immediate impacts that brand infringement can have is on the balance sheet. Counterfeit products and unauthorized use of IP divert sales from authentic goods, reducing market share and profitability. Brand infringement is so damaging that Nike battled Kool Ky – a social media influencer and sneaker maker – in court for over two years. Nike alleged that Kool Ky’s creations infringed on their brand’s designs. Ultimately, Kool Ky was ordered to pay Nike $1M in damages. Suffice it to say that infringing on another brand’s rights is costly.
Protecting your Brand
Building an e-commerce brand requires creating various IP elements such as logos, brand names, slogans, and other forms of original content. Each element is susceptible to brand infringement by nefarious actors in the e-commerce space. Some protections are automatically applied to unique content. However, vigilance in identifying and addressing misuse is crucial. While e-commerce platforms like Amazon, eBay, and Walmart offer their merchants essential IP protection tools such as the Amazon Brand Registry, eBay VeRO, and Walmart Brand Portal, advanced brand protection tools with up-to-the-minute monitoring are often needed to find perpetrators and take action quickly.
The Bottom Line
While the tools mentioned above provide a basic level of protection, brands should implement more sophisticated measures to prevent infringement. As the e-commerce sector continues to grow exponentially, more and more people are looking to get in on the action and knowingly selling products that infringe on another brand’s rights. On the other side, inadvertently violating another brand’s trademark, copyright, or patent can lead to a costly legal battle. By proactively addressing brand infringement with protection tools such as GreyScout, businesses can protect their revenue and brand integrity on competitive eCommerce marketplaces.
