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
Aggressive Amazon tactics to promote its private-label brands
Amazon pushes shoppers to its own brand before clicking ‘buy’Amazon has introduced a new feature that markets its private-label brands right before consumers add rival products to their shopping carts.The Washington Post conducted dozens of product...
Amazon lists thousands of banned and unsafe products
Dangerous products for sale on AmazonThe platform was found to have 4,152 items that were deemed unsafe by federal agencies, labeled misleadingly, or banned by federal regulators by a report from The Wall Street Journal.These listings, many of which were...
Amazon Launches Operations in Israel
Amazon expands to the fast-growing Middle East marketAmazon announced the start of operations in Israel and launched a website encouraging sellers to start deliveries to Israeli customers.Amazon Services website in both Hebrew and English offers local and...