The Amazon Counterfeit Flood Expands

Adam Baumli

IP Portfolio Manager

adam@ipval.com

Today in an article, CNBC essentially restated much of what I wrote here about Amazon ruining America’s small businesses through their counterfeit smuggling ring.

Highlights from CNBC’s article:

On the Amazon Counterfeiters:

“The prices are lower, the theft seems uncontrollable and consumers who don’t know any better think they’re buying authentic Carved products. When they don’t like the product that arrives in the mail, they leave negative reviews.”

This quote sums up the issue, not only are the counterfeit products hurting direct sales, but also hurting reputation, thus future sales.

I think the article brings up a very valid point here, one that I stated earlier:

“With all that technology, shouldn’t Amazon have an effective way of authenticating sellers, recognizing bots and fake IP addresses and blocking banned images, even if ultimately the fraudsters make up a tiny percentage of merchants?”

“If they’re giving me such a runaround and not wanting to take down stuff, I’d think on the flip side there would be just as much oversight and rigor for someone to become a seller,” said Nidhi Chanani, the owner of Everyday Love Art in San Francisco.”

Amazon makes big money off of these counterfeiters, shouldn’t Amazon be liable for counterfeiting? I don’t think we need more legislation, just better interpretation of the laws as they are right now.  Hopefully, the Federal Circuit agrees.