Fulfillment by Amazon (FBA) is a program in which Amazon agrees to store and ship products for a fee so that business owners do not need to rent warehouse space. Also, entrepreneurs’ products are sold on the Amazon website, available for “Prime” shipping to consumers. Though this is an appealing business model, entrepreneurs selling products online using this program may not be aware of the legal traps that could affect them. Partner Karl Kronenberger sat down with Thomson Reuters to outline some of the legal risks involved with selling through FBA.
“The problem that we, as a firm, see more than anything else is the issue of third parties selling their products in a way that purports to be the product of the entrepreneur – this is commonly referred to as “ASIN hijacking,” Mr. Kronenberger said. “Conventional forms of intellectual property infringement are also real problems on Amazon, from the unauthorized use of photographs to the use of stolen advertising copy.”
Though FBA can be a relatively simple business platform, entrepreneurs should ensure that they are adequately protected. Mr. Kronenberger recommends that entrepreneurs take the extra steps to file trademark registrations and copyrights for the products, as well as to properly mark products and the products’ packaging with their patent number.
This entry was posted on Tuesday, April 05, 2016 and is filed under Amazon Marketplace Sellers, Internet Law News.