Posts Tagged: "VeRO"

Brand Enforcement in the Amazon Age: What You Need to Know About Project Zero

As online marketplaces have been created and subsequently evolved over time, there always seems to be a point where counterfeits and diverted gray-market goods make their way onto those marketplaces. eBay was one of the first e-commerce sites that gave brand owners and trademark owners the ability to review, monitor and take down infringing goods. This program was called VERO (Verified Rights Owner Program). Alibaba and Amazon are now making their own similar efforts to rid their platforms of counterfeit and infringing goods in an effort to keep the big brands interested in selling on their sites.

Are e-Commerce Sites Protecting Innovators & IP Owners?

Mark Lopreiato, the inventor of the Forearm Forklift, recorded sales of $4 million in 2008 but since then has seen a 30% drop, which he attributes to cheap replicas available on eBay and Amazon. In point of fact, there have been a number of examples of innovative companies suffering from the sale of replicas on Amazon and other e-commerce sites. In extreme cases, global brands like Birkenstock have stopped business with Amazon and other e-commerce retailers altogether. Sustained pressure on e-commerce sites from both professional and governmental bodies have yielded some results in recent years, with almost every major site now offering some level of IP protection tool or process. This also serves the interest of bigger sites as Amazon, eBay and their Chinese counterpart Alibaba are shielded from legal liability, provided they can offer a timely takedown service for IP owners.

Understanding the eBay VeRO Program

Collectors love eBay because it allows them access to items them may never otherwise be able to purchase. Bargain hunters love eBay for the ability to buy items at a much lower cost than normal retail. But, sometimes costs are lower because the goods infringe on someone’s intellectual property. Section 512(c) of the DMCA provides a safe harbor from liability for “online service providers” (OSP), like eBay, as long as the OSP: (1) does not receive a financial benefit directly attributable to the infringing activity; (2) is not directly or circumstantially aware of the presence of infringing material; and (3) promptly takes steps to remove purported infringing material upon receiving notice from copyright owners. To streamline this process, eBay created the Verified Rights Owner (VeRO) program. It allows intellectual property rights owners to request that eBay remove listings that infringe on their intellectual property rights, including copyrights, trademarks, and patents.