Below is a guest post from Amazon Sellers’ Lawyer, a legal team dedicated to defending sellers’ rights by applying legal strategies to protect their accounts and handle account suspensions, complaints and policy violations.
What is a trademark?
A trademark is a symbol, phrase, or some other device that distinguishes ownership of a product or service. For example, the way that McDonald’s writes the “M” and the Nike swoosh are both trademarks. When you see either, you know what to expect.
United States federal law governs trademarks. Trademarks are described in section 32(1) of the Lanham Act a set of federal laws. A trademark is intended to stand as a mark of quality. They can be viewed at the government’s website for the USPTO (United States Patent and Trademark Office).
People that buy products from Amazon third-party sellers often rely on trademarks when making purchases. When they see a trademark, buyers know they are getting quality goods even though the seller is not an authorized reseller.
What is trademark infringement?
Trademark infringement occurs when someone takes a trademark, like the Nike swoosh, and puts it on a non-Nike shirt. If you take someone’s mark and put it on your product, that is clearly trademark infringement.
What is NOT trademark violation in the United States is also clear: if you buy and then resell a real Nike shirt with the swoosh, it’s the real deal and there is no trademark violation. If you buy brand name goods at Walmart on their discount rack and resell the goods, there is no trademark violation.
What may be trademark infringement is where one person uses a word, letter or symbol that is close to another company’s trademark. For example, if you use the same type of stripe that Adidas uses but make it four stripes instead of three, it may or may not be a trademark violation. The legal test is as follows: is your mark likely to confuse a buyer as to what they are purchasing. The test is known as the “likelihood of confusion.”
A likelihood of confusion occurs “when the consumers viewing the mark would probably assume that the product or service it represents is associated with the source of a different product or service…”
What could happen if you receive a complaint for Amazon trademark infringement?
What happens in a court of law if you lose a case where you are sued for trademark violation? Section 1125(a) of the Lanham Act states that merchant sellers shall be liable in a civil action to any person that is likely to be damaged by the Amazon marketplace seller or Amazon marketplace reseller’s trademark infringement. This means that you could owe money if you are sued.
To bring an action under the law, actual damages need not be shown. You do not have to show that you actually lost money. To bring a case for trademark infringement, you must merely show the likelihood of damages.
In our experience however, it is rare for a trademark issue originating on the Amazon platform to reach litigation. This is because most rights owners are satisfied once the accused stops any infringement. This means, when dealing with Amazon, most rights owners will file a trademark violation through the Amazon platform before deciding to prepare for trial.
Until recently, if a trademark complaint was made against your Amazon account, it meant instant suspension. Amazon did not have an employee acting as a “gatekeeper” so to speak to make sure that trademark (and other IP) complaints were legitimate. Unfortunately, we have seen many sellers take advantage of this system; they file baseless complaints against their competitors in hopes of getting their selling privileges removed. We have felt the effects of this injustice at Amazon Sellers Lawyer since our inception.
How do I get my account reinstated?
Previously, the only way to get selling privileges reinstated after a trademark complaint has been made against you was to communicate with the rights owner (trademark owner) and try to convince them to remove the complaint. This usually requires explaining either why you are not infringing, or apologizing and agreeing never to sell the accused products again. This may sound simple, but can be extremely frustrating when you are forced to deal with a rights owner who will not cooperate or does not understand the law. Further, when other sellers refused to withdraw a baseless complaint, those wrongfully accused had no recourse.
It seems like Amazon has realized the extent of this injustice and may finally have appointed a “gatekeeper” or “watchdog” to ensure that only valid complaints are filed. We have recently seen a new email from Amazon that is giving accused sellers the opportunity to dispute trademark (and other IP) complaints.
Example of email:
The basic steps for handling a frivolous patent complaint are below.
Remaining a top competitor on the Amazon platform requires more than just selling a popular product. It requires playing by the rules and avoiding suspensions. The more you know, the less likely you will make mistakes. We know that trademark issues are prevalent on the Amazon platform and hope that this article helps explain how to best handle them. If you want to learn more about Amazon trademark infringement, false advertising or speak with CJ about your particular issues, call us. Or, purchase our book, the Amazon Law Library, Volume I available on Amazon.com.