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.

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.

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.

This time of year, many husbands are scrambling for a last-minute gift for their wives and jewelry is often seen as a perfect solution.  But beware: all that glitters isn’t gold and if a deal is to good to be true it’s likely counterfeit jewelry. Jewelry is an item that has been the target of counterfeiters and forgers for centuries.

While artists have long been inspired by ancient Egyptian, Greek, Roman and Native American designs, to name just a few, there is a huge difference between an artist creating a design inspired by another culture and an unscrupulous person trying to convince a buyer that a ring that was created last month came from a recently opened tomb within a pyramid in Egypt.

That isn’t as far-fetched as it might seem. Forgers have long sought to convince consumers that the item they are selling is legitimate. Counterfeit Rolex and Patek Philippe watches are regularly sold on the streets of New York, and sometimes it can be very difficult to tell the difference…until one of the hands falls off or the sweep secondhand stops moving.  Likewise, luxury jewelers – like Tiffany or Cartier – have a distinctive style that is highly coveted by customers and – unfortunately – also by forgers.

Of course, not everyone who buys a fake Rolex watch or Tiffany ring is being deceived. Some people seek out the fakes as a way to project a champagne image on a beer budget. Nevertheless, in spite of the consumer’s motivations, if the fake jewelry violated the jewelers’ trademark, then it has violated U.S. trademark laws, harmed the original jeweler’s brand, and diluted their overall image, too.

Companies have begun fighting back. Six months ago, Amazon and Cartier filed suit against several businesses selling non-branded counterfeit rings and bracelets made in Cartier’s style on Amazon. The items were non-branded in an attempt to deceive Amazon’s counterfeit detection software. It didn’t work. While this suit is still in U.S. District Court and a final decision seems a way off, some companies have turned to the digital world to protect their brands.

Blockchain technology, most well known in the NFT (for non-fungible tokens) world, is a system that records information and tracks transactions across a business network to ensure authenticity of a digital or tangible product.  It is hoped that this digital pedigree may make it more difficult for counterfeiters to deceive consumers and harm a company’s brand.

More than $1 billion in fake goods were recovered during a counterfeit goods seizure in a raid of a storage facility in Manhattan by Homeland Security and the New York Police Department (NYPD) this past week.

In a statement to the media, the Homeland Security special agent in charge, Ivan J. Arvelo, said that “one purse might seem harmless, but the production and sale of imitation products is far from a victimless crime.”

This was the largest counterfeit goods seizure in history – about 219,000 fake handbags, shoes, clothes and other accessories – poised to enter the market at the beginning of the holiday shopping season.

Buying counterfeit goods on the New York streets has long been an issue, with some consumers seeking out the knockoffs to get a less expensive lookalike of a designer item.

NYPD Commissioner Edward Caban emphasized how seriously authorities view counterfeit trafficking, saying that it “harms legitimate businesses, governments, and consumers.”

Arvelo went on to say, “We will not allow opportunists to convert public warehouses into their own illegal shopping centers, or to wreak havoc on the streets of New York City, nor will we relent in our efforts to combat transnational criminal organizations smuggling these items through our borders.”

If convicted, the two men arrested in the raid and charged with trafficking in counterfeit goods will face a maximum of ten years in federal prison.

As 2022 drew to a close, Congress passed an Act, with bipartisan support, that will enable the Federal Trade Commission (FTC) to enforce requirements geared toward combatting online counterfeit sales.

The Act, called the Integrity, Notification and Fairness in Online Retail Marketplace for Consumers Act or INFORM Consumers Act, is aimed at protecting both consumers and legitimate brand owners from being harmed through the sale of low-quality, counterfeit goods sold online.

The INFORM Consumers Act requires online marketplaces that are directed at consumers, to collect, retain, and disclose information about “high-volume” sellers.  For the purposes of this Act, high-volume sellers are defined in the act as sellers who “conduct 200 or more transactions resulting in total revenues of $5,000 or more during a continuous 12-month period.”

To comply with this Act, online marketplaces to collect the high-volume sellers’ bank account numbers, government-issued identification, tax ID numbers, and contact information.  Online marketplaces are required to verify this information every year and certify any changes. The Act also requires that the sellers’ names and contact information be made available to consumers through the online product listings, so that consumers have the ability to contact the seller directly and, if not receiving satisfaction from the seller, can report electronically and/or telephone any suspicious activity occurring in the online marketplace.

In a statement as the Act was making its way through Congress, eBay, perhaps the most well-known online marketplace but certainly not the only one, said that it “is committed to ensuring its platform is a trusted and safe marketplace for buyers and sellers. The new INFORM Consumers Act represents a good faith effort…to enable a safe and transparent online buying process.”

The challenge, of course, is that many of the worst counterfeiters operate anonymously and from outside the United States.  Studies have estimated that counterfeit products cost the U.S. economy approximately $54-70 billion in lost revenue each year.  On such a massive scale, this is not the work of a petty criminal, but the result of organized criminal activity. 

Michael Hanson, the senior executive vice president of public affairs for the Retail Industry Leaders Association (RILA) was quoted in Loss Prevention Magazine as saying that he believes the INFORM Consumers Act is a tremendous first step, but RILA supports the formation of a federal task force comprised of representatives from Homeland Security, the Department of Justice, the FBI, the FTC, and the U.S. Postal Service to concentrate the power of law enforcement on the problem. “Establishing a federal task force that pulls together all of the respective agencies that have jurisdiction over organized retail crime is necessary to enhance collaboration and transparency in the fight against sophisticated crime rings. Many of these criminal syndicates are using the profits derived from the sale of stolen goods to fund additional violent criminal activity in our communities such as human trafficking, gun smuggling, narcotics, and terrorism – it makes collaboration between agencies more important than ever.”

The INFORM Consumers Act, which was brought about through the efforts of the International Anti-Counterfeiting Coalition, will go into effect on June 27, 2023. At that time, all online marketplaces will need to implement policies to provide for the necessary collection of all high-volume sellers’ information.

Last month, the heads of the intellectual property (IP) offices in the G7 nations – United States, Canada, France, Germany, Great Britain, Italy, and Japan – along with the World Intellectual Property Organization (WIPO), pledged to work together to promote innovation and combat piracy, IP infringement and counterfeiting.

The IP leaders issued a joint statement saying in part, “We recognize that an effective international IP system is necessary to incentivize innovation and creativity worldwide. In light of the far-reaching negative social and economic consequences of IP infringements, fostering a positive culture of IP and fighting counterfeiting and piracy are equally important and represent two sides of the same coin.”

While cooperation across the G7 nations is significant and should not be dismissed, it’s only a first step and it will be interesting to see what this cooperation looks like going forward and how it will address the vast majority of fraudulent filings that are coming from non-G7 nations.

The problem is that in less than a decade, trademark applications in the United States alone have increased astronomically from 6,323 trademark applications in 2014 to more than 175,000 filed in 2021. Most of the increase in filings can be tracked to fraudulent filings from entities in foreign nations, like Russia, Pakistan, and particularly China, whose applications have grown by more than 2,700 percent since 2014.

The United States Patent and Trademark Office (USPTO) has issued orders to show cause against the most egregious offenders, which, if carried to their conclusion, will prohibit those entities and the attorneys representing them, from filing trademark or patent applications on behalf of themselves and other clients. Enforcement must start somewhere, but the sheer volume of filings may make it seem like trying to stop the rise and fall of the ocean’s tides.

Nevertheless, the USPTO and others in the world community recognize that efforts must be made to protect IP rights if innovation is to flourish. The nations understand that innovation is the best hope to address some of the major issues facing the world in the coming years.

For innovation to be successful, the innovator must be able to sell, trade or license their patented technologies and prevent others from making, selling, retailing, or importing that technology illegally and/or fraudulently. This begins by respecting IP rights and enforcing the laws against those who refuse to respect those rights.

If you have any questions or concerns about filing a trademark registration, an IP attorney at Ference and Associates, LLC, will be happy to speak with you. Please visit www.ferencelaw.com or call (412) 741-8400.