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May 9, 2016

Placing Tracking Codes on Products to Combat Unauthorized Online Sales and Product Diversion

In general, the First Sale Doctrine permits a person to sell another’s genuine trademarked goods. However, a failure to abide by or follow a company’s quality controls can give rise to trademark infringement. Placing tracking codes on products can play an integral part in enforcing against ...
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April 28, 2016

Gaining a Competitive Advantage by Stopping Unauthorized Internet Sellers

E-commerce sales continue to increase. In fact, according to data released by the U.S. Department of Commerce in early 2015, online retail sales in the United States totaled nearly $305 billion. This marked an increase of more than 15 percent since 2013. Unfortunately some of this growth is ...
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April 12, 2016

How Brands are Responding to Product Diversion and Unauthorized Online Sales

Many companies tell authorized sellers or consultants that they will sell their products exclusively through them. Such companies might also have written policies against product diversion and unauthorized online sales. This looks good for purposes of marketing and trying to convince ...
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March 31, 2016

Brands Must Police Trademark Infringement on eBay and Other Sites Themselves

If a company suspects that an online seller is engaged in the unauthorized re-selling of its products on websites like eBay, it is up to that company to take action. The brand will need to attempt to enforce their policies and procedures -- to the extent that it has any. While third-party ...
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March 16, 2016

How a Company Operates Can Impact Whether It May Have Legal Claims Against Unauthorized Dealers

Unauthorized dealers and online sellers have become very problematic for many businesses. Such sales can affect those offering high-end luxury products, companies selling salon or skin care products and also multi-level marketing (or MLM) companies. While not an ideal problem to have, affected ...
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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 ...