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February 16, 2016

A Zero Tolerance Policy to Prevent Product Diversion and to Stop Unauthorized Sales

Companies seeking to stop and prevent product diversion should consider adopting zero tolerance policies. In essence, a zero tolerance policy amounts to using actual consequences to mold authorized distributors’ behaviors. The goal of an anti-diversion policy is deterring authorized ...
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February 2, 2016

Strategies for How to Stop Grey Market Sales Online

Grey market goods generally refer to items manufactured in one country and imported into another without the trademark owner's consent. Often referred to as parallel imports, grey market goods can be problematic for businesses. Specifically, those that take steps to prohibit importation into ...
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January 25, 2016

How to Detect and Stop Counterfeit Online Sales From Damaging Your Brand

Most consumers are unable to distinguish the average counterfeit product from a legitimate product. In fact, according to a recent study, nearly one in four consumers have unknowingly been a victim of counterfeit online sales activity and bought a counterfeit product on the internet. Thus, the ...
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January 19, 2016

Anti-Diversion Efforts vs. New York Warranty Law

Trademark law is one of the key tools for stopping unauthorized sellers. When an unauthorized seller offers products that are materially different than genuine products, it may infringe the company’s trademark. Many businesses have a warranty or guarantee that only apply to products bought ...
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January 4, 2016

Using Graduated Enforcement Systems to Better Control Authorized Distribution, Stop Product Diversion Online

Control authorized distribution For years, brands have contracted with distributors to sell their products on an exclusive basis in an effort to control authorized distribution. However, unauthorized online sales are challenging this business model and causing numerous problems. Many brands ...
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December 30, 2015

How Unauthorized Sellers Are Getting Products and How They Can be Stopped

Unauthorized sellers are causing problems for many brands. Most brands, however, are unsure how to stop these sellers and their impermissible sales. Others simply attempt to combat the unauthorized sellers in an ineffective manner. This can be because the “leaks” in their authorized ...
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December 8, 2015

Legal Tools for Enforcing Agreements with Sellers: Inducing a Breach of a Seller Agreement

Earlier this year, we looked at the importance of providing notice of restrictions in distributor agreements and seller agreements. When defendants are unaware of the restrictions of sales to resellers in distributor agreements, the tortious interference claims can fail. In the second part of ...
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November 25, 2015

Strategies for Stopping Online Product Diversion, Unauthorized Online Sales

Businesses across many industries want to control product distribution. Among other things, they do not want third parties to engage in product diversion and sell their products below retail prices. However, many businesses are, indeed, finding their goods online at reduced prices. This issue ...
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November 17, 2015

Unauthorized Sales: The ‘Material Difference’ Exception

One who purchases a trademarked good may ordinarily resell that product without infringing the trademark owner’s mark. This is what is referred to as the "First Sale Doctrine." This principle--a common defense to trademark infringement claims--only applies to the resale of “genuine” ...
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November 2, 2015

Arbitration Clauses and Unknown Unauthorized Sellers

Arbitration has become so popular, brands often include arbitration clauses in authorized seller agreements as a matter of course. However, in the fight to stop unauthorized online sales, these clauses can create a problem when legal action is necessary to pursue an unknown breaching seller. By ...