Amazon pilots new IP dispute programme

The world's largest e-commerce marketplace and computing platform, Amazon, is attempting to strengthen intellectual property protection for those selling on its platform. Currently, it is trialing a new non-profit scheme called the 'Utility Patent Neutral Evaluation process'. The process aims to manage patent infringement disputes between sellers and infringers on the Amazon website.

In the event that a seller raises a complaint against an infringing product for sale on Amazon and the complaint is not contested, the infringing product will be removed from Amazon. However, if the complaint is disputed by the person selling the allegedly infringing product, then this is when the Amazon program will step in with their legal team.

As part of the program, the parties will then each deposit $4,000 to Amazon who will assign a third-party lawyer to arbitrate the dispute. Amazon has specifically employed a legal team versed in technology and patent law as part of the process.

The successful party will receive its $4,000 deposit back, while the losing party's deposit will be taken by the lawyer for their time and work.

The platform has introduced the scheme, which is aimed at small-to-medium business, with the intention of reducing the costs and time spent on assessing utility patent claims. Patent lawsuits can often take years to resolve however Amazon's program is intended to solve disputes within four months and costs just $4,000, which is refundable for the winning party.

If you have any questions on the above, please do not hesitate to contact the team at McDaniel & Co. on 0191 281 4000 or legal@mcdanielslaw.com.