Strategies for Overcoming Price Erosion Authorized distributors violating minimum advertised price (MAP) policies, unauthorized sellers, counterfeit sellers, and traffic diversion schemes can all contribute to price erosion. Price erosion, as seen in the infographic below, can significantly damage manufacturers and their brands. Therefore, it is important that manufacturers and brand...
The First Sale Doctrine and Establishing Legal Claims to Overcome It
Manufacturers Can Create Material Difference and Quality Controls Manufacturers often look to trademark law to stop unauthorized online sales of their products. However, online resellers are typically immune from any liability for selling genuine trademarked products. This is due to what is known as the First Sale Doctrine, described below....
Vorys and Market Track Host Webinar
Whitney Gibson, head of Vorys’ online enforcement group, is co-hosting a webinar with Market Track on stopping unauthorized sales. The webinar is free and will be held on January 26 at 2:00 PM Eastern. In the webinar, Gibson and Market Track will discuss the full enforcement cycle and how brand owners can...
Video: Vorys’ Online Seller Enforcement Program
Vorys has developed an Online Seller Enforcement Program which incorporates innovative graduated enforcement systems that combine technology, investigation, and legal tactics to monitor, identify, and eradicate unauthorized online sellers. The internet has made selling products more competitive than ever. It has also led to an increasing number of unauthorized sales. Unauthorized...
Three-Step Approach to Stopping Unauthorized Online Sales on eBay
Unauthorized sales on eBay and other third-party websites are significantly impacting many businesses. To overcome this problem, we recommend a three-step approach to addressing these unauthorized sellers as follows, with more details listed below: First, a company should revise its policies, procedures and agreements. The goal is to be able to: 1) establish potential legal...
Stopping Unauthorized Online Sales and Product Diversion: A New Approach (White Paper)
We have developed a new approach to confronting and stopping unauthorized online sales. This approach combines legal, technology and investigation-based techniques into a comprehensive system designed to efficiently and effectively stop unauthorized online sales. In our recently published white paper entitled “Stopping Unauthorized Online Sales and Product Diversion”, we explain the importance...
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 distributors from engaging in product diversion. In other words, companies must...
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” goods. In other words, the First Sale Doctrine does not apply...
Unauthorized Third Party Sellers Are Problematic for Manufacturers and Brands
Many brands today are noticing that unauthorized third party sellers are selling large amounts of their products over the internet. Some of these brands are working hard to stop product diversion and the related unauthorized online sales. Others, however, are not — or they simply do not know how to deal...