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 is forced to end its “Price parity” policy
Amazon quietly ends controversial pricing agreements with sellers Amazon will no longer require its third-party sellers to price their products lower than on other competing websites It quietly eliminated a clause in its contracts that critics have called...
Senator Elizabeth Warren wants to break up Amazon, Google and Facebook
Senator Warren’s crusade against Big Tech The influential Massachusetts senator and presidential hopeful Elizabeth Warren has been a longtime critic of the consolidation of economic power by Amazon, Google and Facebook. Now she’s making their break-up a...
90% of shoppers in the UK use Amazon
Almost half of the shoppers have access to Prime Amazon is going nowhere it seems. Despite the competition, UK shoppers are routinely turning to Amazon for their shopping needs, with almost half using a Prime membership. According to the research conducted...