A cheaper alternative to patent lawsuits
The program will match a seller claiming infringement and the accused merchant with a neutral, third-party lawyer.
According to engadget.com, the company is testing a program to help fight utility patent infringements. It’s meant to be a cheaper, faster alternative to traditional patent lawsuits, which can cost hundreds of thousands of dollars and take years to settle.
For a $4,000 deposit, the program will match a seller claiming infringement and the accused merchant with a neutral, third-party lawyer. If the accused party doesn’t respond to claims that it violated the seller’s utility patent — which details how a product is used — the product will be removed from Amazon, and the seller will get their $4,000 back. If the accused merchant wants to argue that it should be allowed to keep selling the product on Amazon, it will also have to make a $4,000 deposit. The lawyer makes a decision and collects $4,000 from whichever side loses. The winner will get their deposit back, and according to an Amazon spokesperson, the company doesn’t take a cut from anyone for going through its “Utility Patent Neutral Evaluation” process.
More Amazon news
Amazon will let sellers contact customers directly
Amazon is loosening its grip on customers Amazon is testing a new feature for sellers that will let them contact customers directly by email to notify them of things like new product announcements or sales. It’s a major change from Amazon’s current policy, which is to...
What is Amazon FBA New Selection program?
A no-risk program for new sellers on Amazon Amazon is now offering free storage, free removals, and free return processing for a limited time for new-to-FBA ASINs. On top of that, if you’ve never sold a product using Amazon’s fulfillment services, you can qualify for...
Chinese government is going after Alibaba
China hits Alibaba with record $2.8 billion fine China slapped a record $2.8 billion fine on Alibaba Group Holding Ltd. after an anti-monopoly probe found it abused its market dominance. The Chinese government launched an investigation into Alibaba in December to...