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Individuals and businesses who sell on eBay may find themselves the target of an intellectual property violation notice. eBay allows IP holders to report listings that violate their copyright, trademark, or patent. Sellers can protect themselves by learning the steps they can take to respond to a claimed violation.
Understanding Intellectual Property on eBay
Selling goods on eBay can implicate various intellectual property rights, such as patents, trademarks, or copyrights. As a result, eBay’s seller policies include provisions designed to protect parties’ IP rights and act against sellers who post items that may violate intellectual property rights. For example, eBay’s policies prohibit sellers from listing counterfeit items that may infringe upon manufacturers’ copyrights, trade dress, or design patents. eBay sellers also may not sell items they or another party have manufactured that infringe upon a patent or trademark holder’s rights.
eBay operates a Verified Rights Owner (VeRO) program, which allows IP holders and their authorized representatives to report eBay listings that infringe upon intellectual property. IP holders can report listings that bear the holder’s trademark without the holder’s authorization, items that include unauthorized copies of the holder’s copyrighted media, listings that make unauthorized use of a holder’s copyrighted or trademarked images or text, or goods that infringe upon a holder’s patent rights.
Common IP Disputes Faced by eBay Sellers
Examples of IP disputes that eBay sellers may find themselves in include:
- Copyright violations: A seller may face accusation of copyright violations by selling unauthorized copies of media such as music albums, TV shows, movies, or computer software.
- Trademark infringement: IP disputes may involve trademark infringement claims when an eBay listing advertises a counterfeit item (such as a fake handbag or wristwatch) or sells a genuine brand-name item without the manufacturer’s/trademark holder’s authorization (i.e., a gray market item)
- Patent infringement: An eBay seller may receive an IP notice if they sell a product whose design or function infringes on another party’s patent rights.
What Happens If You Receive an IP Notice
When eBay receives an IP complaint, it emails the seller who posted the listing. This email explains why eBay removed the seller’s listing and how to contact the purported IP rights holder directly for more information. eBay requires sellers who receive IP notices to contact the IP rights holder who filed the complaint that led to the delisting of the seller’s listing first; sellers may contact eBay if the notification email does not include the rights holder’s contact information or if the right holder does not respond to the seller’s contact after five business days.
Sellers who receive IP violation notices may face various disciplinary actions from eBay, including:
- Delisting of the reported listing
- Account restrictions, such as mandatory manual review of future listings before eBay will publish them or limiting the number of active listings the seller may have
- Suspension or termination of the seller’s account
Defending Against IP Claims
If you believe that a party has wrongly reported your listing for an IP violation, you can protect yourself by taking the following steps:
- Review the notification email to understand the alleged IP violation.
- Contact the rights holder that reported your listing for more information, including verification of their IP rights (such as a copyright/trademark registration, patent, or IP license agreement)
- Contact eBay if you have proof of your authorization to use the IP at issue or if the party who reported your listing fails to provide verification of their IP rights
- Contact an intellectual property attorney to discuss your rights and options for responding to an IP claim against your eBay listing
Best Practices to Avoid IP Disputes
eBay sellers can protect themselves from intellectual property disputes by implementing the following best practices in their operations:
- Verify a product’s authenticity before listing: When selling products not obtained directly from the manufacturer, eBay sellers should verify the product’s authenticity to prevent potential counterfeiting claims from the manufacturer/brand owner.
- Use original product images and descriptions: Sellers can avoid IP disputes that might arise from creating new product descriptions/images that a manufacturer/brand owner may claim falsely represents or describe the product.
- Review the VeRO program for restricted brands: eBay sellers can check VeRO for brands that have expressly prohibited the listing of their products on the platform (except through authorized sellers).
- Obtain authorization before reselling products: Sellers should ensure they have authorization from a manufacturer/brand owner to resell products.
Contact an IP Litigation Attorney Today
If you receive an IP violation notice due to your selling activities on eBay, get experienced legal counsel to protect your rights and interests. Contact The Keleher Appellate Law Group, LLC, today for an initial consultation to discuss your options for resolving an eBay IP dispute.