Tag / IPR

by Mike Poverello

eBay Authentication Service for luxury handbags – outlawing counterfeits

counterfeit handbags

[Picture: Ian Law/Shutterstock]

The following article, written by Katrina Megget, was published online by Securing Industry, detailing endeavours of the ‘online marketplace’ in counteracting the online sale of counterfeit products.

E-commerce sites, such as Amazon and Alibaba and including eBay and Groupon, have faced recent criticism for the level of fake products being sold on their platforms and for what, many have described, as poor efforts to stamp out these counterfeit goods.

Online marketplace eBay has officially launched an anti-counterfeiting and authentication programme for luxury handbags sold on its platform.

The service, known as eBay Authenticate which had previously been announced in January (2017), will verify, list and sell high-end handbags from 12 brands on behalf of sellers, with the aim of boosting shopper confidence in the products.

“We’re making it even easier for our buyers to shop quickly and confidently for luxury handbags,” said Laura Chambers, vice president of consumer selling at eBay. “With tens-of-thousands of high-end handbags currently available, eBay is primed to boost customer confidence in selling and shopping for an amazing selection of designer merchandise. We also believe our sellers will love this service, as it provides them with a white-glove service when selling luxury handbags.”

The service, which is only available in the US at present, is opt-in and works by using expert middle-men to ensure goods sold and bought online aren’t fake.

Sellers who have registered with eBay Authenticate, send their handbags to third-party industry experts partnering with the marketplace who verify the bag’s authenticity and then photograph, list, sell and ship the handbag to a buyer on behalf of the seller.

Verified handbags will be marked with an “Authenticity Verified” label and backed by a 200 per cent money back guarantee. Non-verified products will be returned to the seller at no charge.

Media reports suggest prices will be set by the expert rather than the seller, and will be based on eBay sales over the past 90 days.

The seller will receive 80 per cent of the final selling price, which eBay said was nearly twice as much as comparable online services.

The service is available for luxury handbags and wallets valued at more than $500 and currently includes 12 high-end brands, Balenciaga, Burberry, Celine, Chanel, Christian Dior, Fendi, Goyard, Gucci, Hermes, Louis Vuitton, Prada, and Valentino.

An introductory, limited offer will see the service accept luxury handbags valued at $250 and above until the end of January where sellers will receive 90 per cent of the final sale price.

eBay, which has 171 million active buyers worldwide, is looking to expand the programme to other brands and product categories in 2018.

According to the online marketplace, a woman’s handbag is purchased every 13 seconds on eBay in the US. But there is growing competition from other online retailers that focus on pre-owned fashion and accessories, such as The RealReal and Tradesy, which offer authentication services to keep fakes off their sites.

eBay had originally announced plans for the authentication service back in January. At the time of the announcement, Chambers said: “We know that many shoppers may be hesitant to purchase high-end products online. This service is designed to help quell some of those concerns and – in turn – enhance the opportunity for our sellers to get top dollar for their items.”

According to eBay, less than a fraction of a percentage point of all items listed on eBay are identified as potentially fake. But that hasn’t stopped infuriated brand owners taking action against eBay – the online marketplace has previously been sued by luxury brands LVMH and Tiffany & Co.

Feeling their reputations at risk, both Amazon and Alibaba have introduced a number of measures and have even sought legal action against counterfeiters to prove they are taking the issue seriously.

eBay’s authentication move shows it is following suit. The firm already has a number of detection and enforcement tools to fight fakes, including the Verified Rights Owner (VeRO) programme, which allows more than 40,000 rights owners to quickly report possible counterfeit goods.

Source: securingindustry.com, Katrina Megget, 18 October 2017.

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by Mike Poverello

Dubai and Saudi Customs host IPR awareness workshop

dubai-customs-holds-ipr-awareness-workshopDubai Customs has held an Intellectual Property Rights workshop with the participation of eminent Customs delegations from the Kingdom of Saudi Arabia and the Kingdom of Bahrain. Representatives of the Ministry of Economy, Abu Dhabi Customs, Dubai Health Authority and a host of personnel from Dubai Customs were also present.

The attending delegates praised Dubai Customs efforts in raising IPR awareness and the role it plays in educating and involving specialists of stakeholder entities, whether on the state government level or at the GCC level. Such efforts are directed towards tightening the grip on counterfeiters, better serving manufacturers, investors and traders rights and ultimately protecting consumers from the consequences and threats posed by illicit trade in fake goods.

Yousuf Ozair, Director of Intellectual Property Rights Department at Dubai Customs stated on this occasion, “Dubai Customs places IP Rights on the top of its priorities, and is always keen on forging better ties and reinforcing cooperation with local and GCC customs authorities and administrations in order to achieve optimal results in combating the trading of infringed items.

“We always seek to present our officers with the latest training courses on the means and methods of combating counterfeit trading. This is done in tandem with our partners in the private sector and the trademark owners, who are granted such regular platform to present their products and the latest techniques for detecting infringed items that surely affect their market shares.”

Ozair also pointed out that the consolidated efforts of the Unified IPR Task Force(established in 2006) in collaboration with all government entities within the UAE had proved very efficient in deterring attempts of illegal import of counterfeit products via customs ports. “In 2014, over 300 seizures of IPR-infringing items were recorded, covering a wide range of products worth more than AED 36 Million, and in the Q1 of 2015, more than AED 4 million worth of counterfeit goods were seized in 40 cases,” he said.

Yousef Al Hashemi, Jebel Ali Customs Center’s Management Director, said, “Dubai Customs has been doing well in terms of trade facilitation and protection of society against all potential risks and threats, by developing and utilizing the latest smart information technology in inspection and examination operations. Such adaptation represents our efficient response to the growing Dubai foreign trade, helping us to achieve the optimal balance between trade facilitation and compliance.”

The attending trademark owners, Hello Kitty, Mars, Wipro, Burberry, Hermès, Barcelona, Botiga and Emerson have also presented the audience with the tools and techniques on identifying copied products from genuine ones.

Dubai Customs directs major effort to the advocacy and awareness campaigns on IPR, seeking to educate the public about the serious dangers of consuming counterfeit products on their health and safety. As many as 48 such awareness events were organized in 2014, benefiting a total of 11,800 people. Source: Dubai Customs

by Mike Poverello

Drop in fake goods seized by EU Customs

Fake goods being destroyed

Fake goods being destroyed

Customs in the European Union (EU) detained almost 40 million products in 2012, suspected of violating intellectual property rights (IPR), with an original goods retail value of just under €1 billion, according to an annual report published by the European Commission.

The previous year, close to 115 million ’fake’ items had been seized, worth more than €1.27 billion. However, the number of recorded cases for detained goods last year was down only slightly on 2011.
This is thought to be due to the strong growth in small shipments of counterfeit merchandise ordered via the Internet.

Globally, 30% of the goods seized were cigarettes followed by a miscellany of goods (11%), packaging materials (9%), clothing (8%), toys (4%) and perfumes and cosmetics (3%). The vast majority were destroyed.

In terms of the number of cases, most of the detained goods had been shipped by air, post and express, whereas maritime container transport was the main mode for the number of articles seized.

In over 92% of all cases, Customs action was triggered whilst the goods concerned were under an import procedure.

“Customs is the EU’s first line of defence against fake products which undermine legal businesses,” said Algirdas Šemeta, Commissioner for Taxation, Customs, Anti-fraud and Audit.

He stressed that the annual report illustrated “the intensity and importance of the work being done by Customs in this field. I will continue to push for even greater protection of intellectual property rights in Europe, through our work with international partners, the industry and Member States.”

China was by far the principal origin of the fake goods. However, other countries were the primary source for specific product categories. For example, Morocco for foodstuffs, Hong Kong for CD/DVDs and tobacco product accessories (electronic cigarettes and the liquid fillings for them), and Bulgaria for packaging materials. Source: EU Commission

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by Mike Poverello

Counterfeit luxury products not simply a question of trademark infringement

stock-photo-intellectual-property-and-related-words-in-word-collage-100324247Smart, Biggar, and Fetherstonhaugh, a Canadian law firm practising exclusively in intellectual property and technology law, advises that deterring counterfeiters is particularly important to luxury brand owners. For this reason, they should always keep in mind that augmented damage awards may be available when seeking concurrent relief for copyright infringement as well as trademark infringement. Similarly, brand owners in copyright industries should keep this in mind and consideration should be given to seeking both copyright and trademark relief in all counterfeiting and pirating scenarios in Canada. Considering the question from the point of view of luxury brand owners exemplifies the point.

Copyright aims to protect against the unauthorised reproduction of original literary, dramatic, musical and artistic works. Logos and designs or patterns used by luxury brands may constitute artistic works in which copyright subsists in Canada. Further, in the case of a counterfeit item, such works are clearly reproduced without the consent of the copyright holder.

Smart & Biggar states that even though trademark and copyright law each protect different interests, they are not mutually exclusive and in many cases the sale and distribution of a counterfeit product or a pirated copyright work may constitute both trademark and copyright infringement. In such circumstances, they recommend brand owners to be mindful of the possibility of claiming both trademark infringement and copyright infringement not only to maximise their damages but, ultimately, to have an increased deterrent effect on counterfeiters [in Canada]. Source: Smart & Biggar/Fetherstonhaugh