The 7 Steps To Successfully Responding To Product Knockoffs
Step 1:
Know the 5 Types of Knockoffs
There are 5 types of knockoffs — counterfeit, gray market, white label, parallel import, and look-alike. Counterfeits are copies that bear no trademark and often infringe on intellectual property rights. Gray markets may be legal or illegal in the country of sale; they're legal if they are imported from a different region where the product is not patented. White label products have been sold by one company but rebranded for resale under another name. These can also be counterfeit, but their origins tend to be more concealed than with other types. Parallel imports are those imported from a different region where the product is not patented. These are legal in the country of sale, though they often violate trademarks.
Step 2:
Know Where and Why Knockoffs Occur
Knockoffs arise due to one or both of two factors — demand and supply. Demand is created by cultural and economic differences. For example, markets having a higher income, lower price sensitivity, or both see greater demand for knockoffs. Supply stems from manufacturers trying to bridge gaps in geographic distribution or fill gaps where no authorized sales channel exists for the product.
Step 3:
Make Sure You Are Legally Protected
A trademark is a word, phrase, symbol or design that identifies the source of a product or service. A trademark can be registered or unregistered. Registered trademarks are protected for 10 years and listed in the Trademark Registry, but there is no guarantee that the mark will be found distinctive by consumers. Unregistered trademarks are not listed in the registry and need to be used properly to be recognized as a trademark. Common law trademarks are identified by way of consumer customs and practices. Proper use of your trademark requires marking it with "®" when it appears on products or as part of business communications. It also means making sure others don't use your trademark without permission.
Step 4:
Respond to Knockoff Sellers and Manufacturers When You Find Them
When you spot a knockoff online, send an e-mail to the webmaster — include your trademark registration number, along with a link to the source of your product. If you don't know who runs the site, send your request to the webmaster's Internet service provider (ISP). Also contact the owners or managers of online marketplaces that are facilitating sales of knockoffs for cut-rate pricing, as was done with eBay in January 2011. Don't be shy about making formal complaints. And if a sale is advertised on social media sites such as Facebook or Twitter, alert those services to copyright infringement issues.
Step 5:
Do Your Part for the Economy and Your Brands
E-commerce sales have increased over 800 percent during the past two years, but counterfeits are making off with a large share of that money. Each counterfeit product sold online is estimated to cost manufacturers as much as $100 million, which is equivalent to 17,000 U.S. jobs lost every month. That's why it's important for consumers to report counterfeit and knockoff products — especially on Facebook — so that brand owners can work together with industry organizations to put a stop to the problem on the Internet.
Step 6:
Don't Let Knockoff Sellers Get You Down
Some knockoff sellers advertise on social media. If you believe that a company is infringing on your trademark, gather evidence and do your research by performing a trademark search. Consult with an attorney if there are significant damages, as any monetary loss can be recouped through civil litigation. Don't wait more than six months to contact a lawyer, however, as the statute of limitations may begin to run at that point. Counterfeits can be removed from the market either by means of a civil suit or by an administrative action before the U.S. Customs and Border Protection (CBP). If a cease-and-desist letter doesn't work, consider sending a complaint to the U.S. International Trade Commission, which has the power to block imports of cheap goods.
Step 7:
Report Companies That Further the Knockoff Problem By Selling Knockoff Products Directly To Consumers Online
Ethical companies are not allowed to sell their products online directly to consumers, and using such tactics only makes things more difficult for brand owners trying to protect their trademarks from infringers. But if you find any direct sales of counterfeit products listed as "pre-sales" or "unavailable," report them to the Internet Association. The association is working with Google, Facebook and others to find a solution to the problem of direct sales, which are prohibited by a court order.
Step 8:
Take Legal Action Against Knockoff Sellers and Manufacturers Who Are Not Willing To Stop Their Illegal Activities
If you're not making any headway with your approach toward knockoffs, you can always file a civil lawsuit against the infringer. Make sure you have all of the proper documents and evidence in order to make your case — don't forget to document everything. Send cease-and-desist letters if necessary and always keep detailed records for your own reference in case the matter arrives in court.
Step 9:
File a Criminal Complaint Against Those Who Are Selling and/or Importing Knockoff Products
Sometimes, the best way to ensure that the knockoff industry is kept out of business is through criminal prosecution. Take your trade secrets, research and other information to the authorities if you believe that these goods violate intellectual property laws. Under federal law, it only takes one person making more than $5000 worth of infringing goods to be charged with a misdemeanor who fails to stop selling them after being requested by law enforcement officials. Although this remedy may seem harsh, if you're not making any progress toward getting an online seller or manufacturer to clean up its act, you could be next.
Step 10:
Report Illegal Activity That You Have Witnessed to Law Enforcement When the Online Sale of Counterfeit Products Is Linked to a Crime
If you see counterfeit products being sold online, report this illegal activity to law enforcement agencies. Agencies such as the FBI, U.S. Postal Inspection Service and the United States Secret Service are on the front lines of trademark infringement investigations, and they actively patrol social media sites for counterfeit products. They also monitor websites where no sales channels such as eBay or Amazon exist, so they may spot potential knockoff sellers using Internet search terms such as "miles davis. " If law enforcement officials are able to link the online sale of counterfeit products to an actual crime, they may be able to take action against the sellers and get help from other agencies, such as the Bureau of Customs and Border Protection.
Step 11:
File a Complaint With Law Enforcement If You See a Crime That Involves Counterfeiting Products
Watch out for crimes committed in which knockoff products are used. For example, if you see sales of counterfeit perfumes that contain poisons or a crime is committed by someone who stole a knockoff purse, report that person to law enforcement officials as soon as possible. Provide police with any information you have about the crime, including pictures or video of the same incident.
Conclusion
Counterfeit and knockoff products can be dangerous, and brands are losing out on potential sales when their trademarks are stolen. Not only is it important for consumers to be aware of counterfeit products, but they also need to report these illegal actions as soon as they're discovered. Brand owners need to work together with companies that deal in e-commerce to prevent knockoffs from being sold online, and they should also invest in Internet security software. Fortunately, there are many steps that consumers can take to protect the brands that they love.
About the Author: Online Reputation Management Reviews is a one plain woman who acts as an expert networker and writer which has been providing highly qualified services since 2016.