The internet has brought to the fore two challenges to owners of well-known brands of high-quality products. While both existed before the digital age, we have seen an explosion of counterfeit and pirated goods offered for sale online. Equally disconcerting to some of our clients, however, is the rise of unauthorized dealerships, selling “legitimate,” “new” goods actually made or produced for the brand owner.
These unauthorized goods are not counterfeit. The owner of famous brands is not without recourse however. Weapons may exist under trademark and copyright law, in addition to unfair competition, contract law and warranty statutes. For example, even when the goods sold came from the brand owner and have not been sold at retail before, they may be materially different from goods that are sold through legitimate channels, such as not qualifying for warranty protection. Such material differences may entitle the brand owner to sue or threaten to sue for trademark infringement. These rights in turn may provide rights under the DMCA legislation to force a take-down of the online offering.
For a copy of a PowerPoint presentation on dealing with unauthorized dealers, please contact Robert Payne at rpayne@lgpatlaw.com.