Amazon lawsuit targets bad actors for invalid trademarks and fake complaints. A new lawsuit targets bad actors who obtained invalid trademarks or filed fake complaints in an effort to remove products from the Amazon store.
Amazon's Counterfeit Crimes Unit
Amazon's Counterfeit Crimes Unit (CCU) has initiated legal action against several individuals who fraudulently obtained invalid trademarks to gain entry into the Amazon Brand Registry. These individuals also submitted numerous false infringement claims to have legitimate Amazon sellers and their products removed from the platform. Such deceptive takedown requests not only harmed Amazon sellers but also limited product choices for customers, undermining the overall integrity of Amazon's marketplace.
The lawsuit additionally targets two other parties who aided in this fraudulent scheme: an attorney previously sanctioned by the USPTO for violating its conduct rules, and a company called Asin Enterprise Management Consulting Ltd. Both entities benefited financially by charging fees for filing these invalid trademark applications and helping their clients access the Brand Registry.
After certain clients misused their access to Brand Registry, they filed fraudulent infringement claims against legitimate sellers, making it more likely for customers to purchase from these dishonest actors.
This lawsuit is part of a broader initiative aimed at combating abusive notice submitters who target Amazon’s sellers, following the company's initial lawsuits on this matter in 2023.
“This lawsuit clearly demonstrates Amazon's commitment to taking all necessary actions to hold wrongdoers accountable and to protect our selling partners,” stated Kebharu Smith, director of Amazon’s Counterfeit Crimes Unit.
“The defendants in this case intentionally misled Amazon’s sellers, customers, and the marketplace, or they aided in this deceptive behavior. Our goal with this lawsuit is to dismantle the defendants’ operations and prevent them from causing further harm throughout the retail supply chain.”
Launched in 2017, the Amazon Brand Registry is a complimentary service designed to help brands thrive on Amazon while safeguarding their brand and intellectual property rights. This program enables brands to utilize image search technology, allowing them to identify and report counterfeit products through the “Report a Violation” tool. When Amazon receives a valid infringement notice or notices any misuse, they promptly take action to protect customers and sellers, including shutting down the accounts of those engaging in fraudulent activities.
Proactive tools help combat counterfeiters
Proactive measures are essential in the fight against counterfeiters. Amazon, in collaboration with Thought Catalog, the independent publisher behind Thought Catalog Books, has taken legal action against individuals attempting to sell fake books on its platform. The lawsuit highlights how the accused provided false documents and identification to bypass Amazon's seller verification system. They went on to promote and sell counterfeit books that violated Thought Catalog's trademarks and copyrights, misleading customers regarding the books' authenticity and their connection to Thought Catalog.
Thought Catalog is part of Brand Registry and Project Zero, which enables brands to directly eliminate counterfeit listings from Amazon’s marketplace. They have effectively utilized these resources to spot and tackle counterfeiting attempts. Through test purchases, Thought Catalog verified that the physical books were not genuine and violated their intellectual property rights.
In response, Amazon promptly removed the relevant selling accounts and issued refunds to all impacted customers. “Thought Catalog is dedicated to maintaining the integrity of our books,” stated Noelle Beams, Chief Operating Officer at Thought Catalog. “Counterfeit books are detrimental to both authors and readers, and we are resolute in our mission to safeguard intellectual property rights against those who seek to profit from illegal sales. We appreciate Amazon’s support in holding these fraudsters accountable.”
Fight Against Counterfeiting
Amazon has implemented strong measures to fight against counterfeiting attempts. Utilizing advanced technology, the platform continuously monitors billions of product detail page changes each day to detect any signs of misuse, such as new listings or modifications to existing ones. With the help of this innovative technology, a dedicated team of data scientists, and close collaboration with brands, Amazon can spot patterns and investigate reported counterfeit cases more thoroughly.
When abuse is identified, the Counterfeit Crimes Unit (CCU) and a group of investigators take action to track down these offenders and stop their activities. Since its inception in 2020, the CCU has taken legal action against over 21,000 individuals involved in counterfeiting, referring many cases to law enforcement, and has successfully removed more than 7 million counterfeit items from the market, ensuring they don’t enter the supply chain. The lawsuits have been filed in the federal U.S. District Court for the Western District of Washington under specific case numbers:
- 2:24-cv-01471
- 2:24-cv-01464
