Published on February 4, 2014
Channel IQ | Know What You Don’t Know Series: Enforcing Your Policy - Knowing When to Say “When” David Howell Dustin Busmann Channel IQ 350 W Ontario St, 6th & 7th Floors Chicago, IL 60654 312.846.1199 www.channeliq.com
Introductions Today’s Guest Speakers David Howell Dustin Busmann
What is your problem? Less aggressive than the question might read, but still a valid point. 4
Do the DUE (diligence) Find out as much as possible ahead of time. 5
Do the DUE (diligence) Give yourself some credit 6
The TAO of TaoBao Learning how TaoBao and Alibaba work 8
>700MM >$175B registered users >760MM Products on TaoBao (C2C) March 2013 >$5.78B Sales recorded 11.11.13 Alibaba Group Sites product sales 2012 >70K Consumer Brands on TMall (B2C) March 2013 Alibaba boasts the biggest online sales day in recorded history 171.3MM Transactions Processed by AliPay on 11.11.13 (Global Record) ~$5.29B US Online Sales 2013 Thanksgiving-Cyber Monday 9 Sources: Forbes, Wall Street Journal, Venture Beat, The Economist, eCommerce Bytes, Alibaba Group Report, comScore
Alibaba Enforcement Steps AliProtect | legal.alibaba.com 10
Alibaba Enforcement Steps AliProtect | legal.alibaba.com 1. Register for a free account with AliProtect and submit your infringement claim 2. Once Alibaba receives and evaluates the complaint/notice they will expeditiously take down the listing referred to in your claim 3. They will then notify the seller in writing of the removal of the claimed infringing product listing and provide them with your contact information so that they may contact you directly with an opportunity to respond 4. If the seller objects to the removal of the alleged infringing product listing, the seller may submit a counter-notice to dispute the claim. Upon receipt of such counter-notice, Alibaba may resume the seller’s listing unless they receive notice from you that an action has been filed against the seller in a court of competent jurisdiction for infringement of your intellectual property rights 11
eBay VeRO | Not a Zero FACT pages.ebay.com/help/tp/vero-rights-owner.html eBay has a solid track record for removing infringing listings. Close to 100% in fact. 12
Who are these sellers? Marketplaces statistics - eBay 13 Source: Michael Jones: “eBay: Connected eCommerce”, Sep 2013
Amazon Sellers Support group is here. • https://www.amazon.com/gp/help/reports/infringement 14
1.3MM third party sellers 2009 >2MM third party sellers 2013 Now, look at it like this: 36% 40% 3PS % of total sales Q3 2011 3PS % of total sales Q3 2013 $13.81B net sales Q3 2012 $17.90B net sales Q3 2013 $7.16B * 7% = >$500MM sales by 3PS Q3 2013 % counterfeit goods sales lost to counterfeit goods 15 Sources: Reuters, Consumer Goods Technology, RetailWire, Amazon.com Q3 2013 Annual Report
Amazon Amazon Anti-Counterfeiting Policy If you sell counterfeit goods, we may immediately suspend or terminate your selling privileges and destroy inventory in our fulfillment centers without reimbursement. In addition, if we determine that a seller account has been used to engage in fraud or other illegal activity, remittances and payments may be withheld or forfeited. The sale of counterfeit goods can also lead to legal action by rights holders and civil and criminal penalties. 16
Global Compliance Rates Among Marketplaces Asia/Pacific Europe Americas 0% 20% 40% 60% 80% 100% 17
Cease and persist How to take the next step 18
Marketplaces fallout Dropping the bomb is just the first step 19
Enforcing Your Online Policy The big list of do’s • • • • • • • • • • • • • Register Trademarks for your brands Identify the infringer(s) Qualify the data and find the depth of the problem Form an educated, enforcement strategy Implement solutions immediately Secure appropriate domain registrations Purchase both Gtlds and Cctlds as needed Identify and Recover Typographical domain names Actively Monitor for Online Sellers Make it known you will not honor warranties for items purchased from an unauthorized seller. Remove all products and authorization from online retailers with ineffective escalation policies Create whitelist on your website of authorized retailers Never, never, never stop 20
Enforcing Your Online Policy Where to begin online • • • • • • Global Marketplaces Typo Domain Names Cybersquatting Online auctions Social Media Paid Search Ads 21
Enforcing Your Online Policy Step-by-step 1. 2. 3. 4. 5. 6. 7. Compile list of infringements and qualify results Uncover identities of infringers Collect necessary evidence Send Cease and Desist and Demand letters Submit evidence and filings to appropriate agencies Escalate where applicable If you can’t do it – find someone who can - sometimes you only get one shot at it 22
Enforcing Your Online Policy If you decide to, choose the right solution provider • Select a qualified Brand Protection solution • International and U.S. IP experience • Enforcement that can work independently or in conjunction with your inside and/or outside counsel • Monitoring and Enforcement under one roof • Offers enterprise level investigations • Flexibility to adapt a solution to your specific needs 23
Enforcing Your Online Policy Who’s Duty is it to Police the Internet? 24
Thank You For More Information Please Contact: David Howell: firstname.lastname@example.org Dustin Busmann: email@example.com Channel IQ 350 West Ontario Street, 6th & 7th Floors Chicago, IL 60654 www.channeliq.com
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