Last month, Managing Partner Stanley Ference of Ference & Associates joined Jonathon Kersting of the Pittsburgh Technology Council on 10 Minute Tech Talks to discuss a topic every US entrepreneur selling online should care about: how recent trade policies could finally level the playing field for US-based businesses competing in a global marketplace.

In this quick but powerful episode, Stanley breaks down the real risks entrepreneurs face from international competitors — and how changes in trade policy could offer a path to fairness and opportunity.

Here are five key things you need to know:

1. Foreign Sellers Currently Undercut US Businesses
   Stanley explained how foreign sellers, especially from countries like China, are flooding e-commerce platforms with knockoff versions of US-made products. These copies often look identical and are sold at a much lower price, sometimes using the exact same marketing and images — devastating legitimate sellers.
2. The De Minimis Loophole Gives Foreign Sellers a Free Pass
   Under the “de minimis” rule, products shipped into the US valued under $800 aren’t subject to tariffs, taxes or even inspection. This has allowed millions of low-cost packages from abroad to enter the US market unchecked, creating an unfair advantage for foreign manufacturers.
3. Trump’s Executive Order Seeks to Close That Loophole
   The Trump administration has targeted this issue by issuing an executive order to curb the de minimis exception. While full implementation is currently delayed to avoid overwhelming customs infrastructural changes, the move signals a potential shift that could make foreign goods more expensive — giving US businesses a fighting chance.
4. China’s Fast Fashion Giants Are Already Feeling the Heat
   One of the largest beneficiaries of the de minimis loophole is Shein, the Chinese fast fashion juggernaut. As a direct result of these policy shifts, Shein has slashed its IPO valuation by billions. That’s a sign these changes could significantly alter the competitive landscape in favor of American sellers.
5. Entrepreneurs Need to Stay Informed — and Act Now
   This isn’t just politics. This is business strategy. Stanley emphasized that understanding and adapting to trade policy shifts could protect your revenue, intellectual property and long-term viability. These changes could “rewrite the rules of online commerce,” offering a rare opportunity to compete on more equal footing.

Takeaway:

If you’re selling products online, it’s time to pay attention to how trade policy is evolving. The playing field may finally be leveling — and that could mean growth, security and sustainability for your business.

Understanding the complexities of intellectual property (IP) law is crucial for businesses aiming to protect their innovations, sales and to maintain a competitive edge when selling on Amazon or other online marketplaces.  

Comprehending Intellectual Property

Intellectual property encompasses creations of the mind, such as inventions, literary and artistic works, designs, symbols, names and images used in commerce. Protecting these assets is essential to prevent unauthorized use and to capitalize on your innovations.

Patents

Patents grant exclusive rights to inventors, allowing them to prevent others from making, using or selling their inventions without permission. Our attorneys assist clients in preparing and prosecuting patent applications across various technical fields, including computer hardware, software, life sciences, chemical, electrical and mechanical industries.

Trademarks

Trademarks protect brand identifiers like logos, names and slogans that distinguish your products or services. We guide clients through the trademark registration process, ensuring that their brands are legally protected and advising on enforcement strategies against infringement.

Copyrights

Copyrights safeguard original works of authorship, including literary, musical and artistic works. Our firm prosecutes copyright registrations, staying abreast of legal trends to effectively protect your creative assets.

IP Litigation and Online Protection

In cases of infringement, our experienced litigators represent clients in enforcing their IP rights. We also offer online protection services through our eFence program, targeting counterfeit products and unauthorized use of IP across digital platforms.

Developing an IP Strategy

A proactive IP strategy is vital for businesses, especially for startups and entrepreneurs. Implementing a prevention strategy using thorough research can help avoid inadvertent infringement and protect your assets.

At Ference & Associates, we are committed to providing personalized attention and exceptional counsel to help you navigate the complexities of intellectual property law. Our team of skilled attorneys is dedicated to protecting your innovations and ensuring your business thrives in today’s competitive landscape.

Protecting your intellectual property (IP) is crucial for maintaining your brand’s integrity and profitability on platforms like Amazon. Unauthorized sellers and counterfeit products can erode customer trust and damage your reputation. Implementing a robust IP protection strategy is essential for Amazon sellers.

Protection service agencies are not a complete solution. At Ference & Associates we not only pro-actively monitor your IP but we take down counterfeit sellers in a swift and cost-effective manner.

Using Intellectual Property to Fight Counterfeiting: Ference & Associates’ Approach

Ference & Associates specializes in combating online counterfeiting and offers comprehensive services to protect your brand:

• Market Surveillance: We continuously monitor online marketplaces to identify potential counterfeiters.
• Legal Enforcement: Our team takes swift action against infringers by filing cases against unauthorized sellers on platforms like Amazon, eBay, Alibaba and AliExpress.
• Strategic Counseling: We provide guidance on registering your IP, enrolling in brand protection programs and developing distribution plans to safeguard your products.
• eFence Program: Our proprietary eFence program offers online protection services, targeting counterfeit products and unauthorized use of IP across digital platforms.

Counterfeit rings of bad actors producing products are a growing global issue, threatening consumer safety and brand integrity. Amazon’s Counterfeit Crime Unit (CCU) has long been at the forefront of combating this problem, leveraging partnerships with brands like Cisco to dismantle counterfeit networks. Together, these efforts have led to criminal convictions, including prison sentences and fines, reinforcing the importance of collaboration in the fight against counterfeiting.

The Power of Collaboration

The CCU’s partnership with Cisco exemplifies the impact of joint efforts in protecting customers and maintaining brand trust. By working closely with brands to investigate and gather intelligence on counterfeiters, the CCU takes proactive measures such as:

• Removing problematic product listings.
• Blocking accounts of bad actors.
• Referring counterfeit cases to law enforcement for further action.

But their efforts don’t stop there. Beyond immediate protective actions, the CCU collaborates with brands to ensure bad actors are held accountable, fostering a safer marketplace for consumers and businesses alike.

Recent Successes Against Counterfeit Networks

The Demir Ring

In October 2024, a federal court in New Jersey sentenced Israfil Demir to 364 days in prison and three years of supervised release for trafficking counterfeit Cisco products. His two co-conspirators, Sadri Ozturan and Musa Karaman, received sentences of five months in prison with home confinement and 364 days in prison, respectively. Together, they trafficked as much as $1.5 million in counterfeit goods, harming both customers and the Cisco brand.

The Aksoy Operation

Earlier this year, another counterfeit operation led by Onur Aksoy faced justice. Operating multiple companies and dozens of online storefronts, Aksoy imported and sold millions of dollars’ worth of counterfeit Cisco products in the U.S. The New Jersey federal court sentenced him to six years and six months in prison. This conviction was the result of a joint criminal referral by Amazon and Cisco, demonstrating the effectiveness of coordinated actions against large-scale counterfeit networks.

Protecting Customers and Brands

Cisco has emphasized the importance of these collaborations in protecting customers and ensuring the authenticity of its products. Neil Sheridan, Senior Director of Brand Protection at Cisco, remarked:

“Maintaining the integrity and quality of our products and protecting our partners’ and customers’ investment in Cisco solutions is a top priority. The Cisco Brand Protection team appreciates the strong collaboration with Amazon’s CCU, and we thank our colleagues in U.S. law enforcement and the Department of Justice for their efforts to bring these individuals to justice.”

Sheridan also encouraged customers to purchase products only through Cisco-authorized channel partners to avoid defective and potentially dangerous counterfeit products.

Amazon’s Commitment to Fighting Counterfeits

Amazon’s CCU continues to make significant strides in combating counterfeit goods. Since its inception, the CCU has pursued over 21,000 bad actors through litigation and criminal referrals to law enforcement. Kebharu Smith, Director of Amazon’s CCU, reaffirmed Amazon’s dedication:

“Amazon is committed to ensuring that the products in our store are safe and authentic. When counterfeit products are identified, we work closely with brands like Cisco and law enforcement to protect our customers and aggressively pursue the bad actors to hold them accountable.”

A Global Impact

These recent successes highlight the importance of partnerships between corporations, brands, and law enforcement in eliminating counterfeits. By combining resources and expertise, Amazon’s CCU and its partners continue to create a safer marketplace while dismantling counterfeit operations at their roots.

For consumers, the message is clear: Always purchase products through trusted, authorized channels to ensure authenticity and safety. For businesses, the CCU’s efforts serve as a powerful reminder of the value of collaboration in protecting brand integrity and customer trust. Together, we can build a counterfeit-free marketplace.

If you are dealing with a counterfeit issue and need counsel, please contact Ference & Associates at 412-741-8400.

The WTR Brand Strategy Summit, held in New York on October 8-9, 2024, brought together senior brand leaders, legal professionals and policymakers to explore critical topics in brand protection and trademark enforcement. Stanley D. Ference, Founder of Ference & Associates, was honored to be among this group of leaders in the field of intellectual property.

The event emphasized innovative strategies to combat the growing challenges of counterfeit products and intellectual property infringement, particularly in the digital realm. According to Stanley Ference, “This event reminded brand owners of the importance of protecting their intellectual property from counterfeiters.”

2024 WTR Brand Strategy Summit Key Takeaways

Key takeaways from the summit include discussions on mobilizing consumers to play a more active role in monitoring the anti-counterfeit market, leveraging new technologies to report unauthorized advertisements and fake profiles and drawing clear boundaries between fan engagement and infringement. A standout session focused on how to educate consumers and fans about the fineline between brand admiration and unauthorized exploitation.

Furthermore, participants emphasized the importance of preparing for changes in the digital landscape, particularly with the introduction of new domain spaces. Legal and brand protection experts underscored the need for forward-thinking approaches to adapt to these evolving challenges.

In summary, the summit highlighted the importance of collaboration between brands, legal professionals, and consumers to protect intellectual property in the digital age. The key message was clear: proactive and innovative strategies are essential to staying ahead in an increasingly complex and global marketplace.

A 2021 study by Fakespot, a company specializing in detecting fraudulent reviews, found that about 30% of online reviews on major platforms like Amazon are fake or unreliable. Other studies suggest that up to 10-15% of reviews on Yelp and 4-6% on TripAdvisor may be fraudulent.

To combat the proliferation of fake online reviews, the Federal Trade Commission (FTC) announced a new rule aimed at combating fake reviews and testimonials, prohibiting their sale or purchase, and allowing the agency to pursue civil penalties against those who knowingly violate the regulations.

Protecting Consumers and Honest Businesses From Fake Reviews

“Fake reviews waste people’s time, money, and undermine fair competition,” said FTC Chair Lina M. Khan. “This new rule enhances our ability to fight deceptive advertising, protect consumers from being misled, and promote a fair and honest marketplace.”

Key Provisions of the Final Rule

The rule, finalized after a series of public comments and hearings, outlines strict prohibitions to curb the use of deceptive reviews:

1. Fake or Misleading Reviews and Testimonials: The rule bans fake reviews, such as those generated by AI or created by individuals who have not actually used the product or service. It also prohibits businesses from buying or selling such reviews and from using testimonials that misrepresent the experience of the reviewer.
2. Paid Reviews: Companies are prohibited from offering any form of compensation or incentives in exchange for reviews that express a specific positive or negative sentiment, whether the offer is explicit or implied.
3. Insider Reviews: The rule bans reviews from company insiders—like officers, managers, employees, or agents—unless their connection to the business is clearly disclosed. This includes reviews solicited from insiders’ family members or employees.
4. Deceptive Review Sites: Businesses are prohibited from falsely presenting websites or platforms they control as independent sources of reviews, especially when these sites include reviews of the company’s own products.
5. Review Suppression: The rule prohibits businesses from using threats, intimidation, or false legal claims to suppress negative reviews. It also prevents companies from misrepresenting the overall sentiment of reviews on their websites when they have selectively suppressed negative feedback.
6. Misuse of Social Media Metrics: The rule bans the sale or purchase of fake social media indicators, like followers or views, when these metrics are used to misrepresent a business’s influence or popularity.

Strengthening FTC’s Enforcement Abilities

This final rule addresses the limitations of case-by-case enforcement and enhances the FTC’s ability to penalize violators. The Supreme Court’s decision in AMG Capital Management LLC v. FTC had restricted the FTC’s capacity to seek financial relief for consumers, making this new rule an essential tool for deterrence.

The rule will take effect 60 days after publication in the Federal Register.

Artificial intelligence continues to become more integrated into processes and systems of all kinds. The proliferation and refinement of artificial intelligence large language models and use thereof has allowed for additional uses of such models, including in the legal field. This article explores initial efforts to integrate AI models with the patent prosecution process, in particular.

The patent prosecution process generally includes two distinct aspects: the drafting of the patent application to be filed with the United States Patent and Trademark Office (USPTO) and the prosecution of the application in order to obtain a patent. The use of AI models has increased in the prosecution space with at least some models being used to assist in generating templates for responding to Office Actions and attempting to generate remarks responsive to the Office Actions. However, claim amendments during prosecution and the drafting of the patent application have generally been left to human patent practitioners due to nuances at the intersection of legal terminology, claim interpretation, court case decisions, and patent drafting requirements provided by the USPTO.

Nonetheless, AI could feasibly be leveraged to assist in drafting portions of the patent application. The first area of the patent application where AI could be leveraged is the background section of the patent application. This section generally discusses the field relating to the patent application. Since this section is not particularly specialized in a patent application drafting sense, the AI model can be easily given a prompt to generate a paragraph or two describing the field relating to the patent application.

AI could also likely assist in defining the “problem” that the invention or technology attempts to solve. The problem is generally described near the beginning of the detailed description, and the narrative describes how the current state of the field is deficient. This section may also identify current solutions to the problem. Essentially, this section establishes the problem that is being solved by the current application and how the conventional solutions are failing to adequately solve the problem. While a little more specialized than the background section, this section is not so specialized to patent drafting that the AI model would struggle with assisting in drafting such a section, particularly if the human providing the prompt is skilled in prompting AI models.

After these sections, the detailed description gets more specialized to patent drafting and particularly to the invention being described within the specification. The challenge presented is that AI models, which are based on known information, are being asked to provide information regarding a novel solution. Additionally, there are concerns related to providing new or sensitive information to a third-party who is hosting the model and there may also be concerns regarding export controls, foreign filing licenses, and national security interests.

In other words, while AI models can still be useful in assisting with drafting the remaining portions of the detailed description intended to describe the aspects of the invention, the use of AI with respect to the drafting of the patent application should be carefully considered and performed. A skilled, human user could draft prompts to create initial drafts that the human user could utilize and refine, either manually or utilizing generative AI. Such a method may be particularly useful for the portions of the detailed description that focus on known technology. The patent practitioner can instead focus on the novel or unique portions of the detailed description, thereby creating a hybrid detailed description that is partially generated by the AI model and partially generated by the human patent practitioner.

To date, drafting claims and making claim amendments during prosecution have been left to human patent practitioners. Claims are such a unique aspect of patent prosecution that it is difficult to train AI models on how best to either draft claims or amendment claims in response to an Office Action.

Particularly in drafting patent claims, a patent practitioner starts with a disclosure by an inventor. The practitioner must understand what the invention is and identify the unique features of the invention to be included within the claims. A good patent practitioner walks a line between getting just enough in the claims to obtain an allowance and adding too much information which result in very narrow claims that are only marginally useful to the patent holder. Strategy is involved. Additionally, the requirements placed on patent applications, legal language that must be used, and other nuances, make drafting claims a very subjective process, particularly for good claims. Therefore, the adoption of AI models in the claims process may take some time.

For now, the human patent practitioner retains the critical function of reviewing the patent documents prior to submission. It is incumbent upon the human to make sure that the details are technically accurate, that they accurately reflect the invention contemplated by the inventors, and that they meet all requirements for patent applications established by the United States Patent and Trademark Office and any applicable court cases.

In conclusion, the human practitioner still serves a critical purpose and cannot be completely replaced by the AI model at this time. However, AI models can be leveraged creatively to assist in various aspects of drafting patent applications in a cooperative relationship with human patent practitioners.

Jodie Spade is patent lawyer with Ference & Associates. She has significant experience with intellectual property in artificial intelligence.

Professionals in the aviation and aerospace industries are increasingly concerned that the cause of recent safety issues are a result of counterfeit titanium components.

What is Titanium?

Titanium is a chemical element that when alloyed with another metal like steel or aluminum provides a strong, lightweight and corrosion-resistant material that is instrumental in the aerospace and aviation industries, among others.

It was recently discovered that some titanium components used in aircrafts have developed small holes that appear to be caused by corrosion. This does not happen with genuine titanium. Investigators believe that the problematic components are a result of counterfeit titanium, supplied to Boeing, as well as other manufacturers, using fake documentation, as first reported in the New York Times.

While the investigation by both the Federal Aviation Administration (FAA) and Boeing is still ongoing, if this counterfeiting is widespread, the implications for the aviation and aerospace industries presents a serious safety issue for an industry that has had several high-profile problems in the past year. If there are questions about all titanium components on all aircraft,  there may be significant repercussions for consumers.

The number of planes available for transportation has already been restricted due to the incidents such as the Boeing plane that lost its door mid-flight. If additional planes need to be inspected due to the possible presence of bogus titanium, it will limit the number of flights available, which will likely result in higher fares for the limited available flights and other travel woes.

In addition to aviation, titanium is used in biomedical applications like artificial hips, knees and heart valves because of its lightweight, strong and durable qualities. There is nothing to indicate that counterfeiting extends to biomedical industries, but the investigation about where this counterfeit titanium has come from is just beginning.

Identifying the fake documentation and tracing it back to a source will provide some additional answers about how widespread this problem is. It will go a long way to calming nerves about safety in all of the uses of titanium. We will continue to report on this issue as more information becomes available.