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December 8, 2015

Legal Tools for Enforcing Agreements with Sellers: Inducing a Breach of a Seller Agreement

Earlier this year, we looked at the importance of providing notice of restrictions in distributor agreements and seller agreements. When defendants are unaware of the restrictions of sales to resellers in distributor agreements, the tortious interference claims can fail. In the second part of ...
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November 25, 2015

Strategies for Stopping Online Product Diversion, Unauthorized Online Sales

Businesses across many industries want to control product distribution. Among other things, they do not want third parties to engage in product diversion and sell their products below retail prices. However, many businesses are, indeed, finding their goods online at reduced prices. This issue ...
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November 17, 2015

Unauthorized Sales: The ‘Material Difference’ Exception

One who purchases a trademarked good may ordinarily resell that product without infringing the trademark owner’s mark. This is what is referred to as the "First Sale Doctrine." This principle--a common defense to trademark infringement claims--only applies to the resale of “genuine” ...
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November 2, 2015

Arbitration Clauses and Unknown Unauthorized Sellers

Arbitration has become so popular, brands often include arbitration clauses in authorized seller agreements as a matter of course. However, in the fight to stop unauthorized online sales, these clauses can create a problem when legal action is necessary to pursue an unknown breaching seller. By ...
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October 9, 2015

Risks Associated With Buying Products From Unauthorized Sellers

There are many reasons why people might choose to buy products from unauthorized sellers online. For example, there is the ease of purchasing the product over the internet, especially if the product is only sold through a select number of distributors; the ability to purchase products under the ...
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September 25, 2015

Unauthorized Third Party Sellers Are Problematic for Manufacturers and Brands

Many brands today are noticing that unauthorized third party sellers are selling large amounts of their products over the internet. Some of these brands are working hard to stop product diversion and the related unauthorized online sales. Others, however, are not -- or they simply do not know ...
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September 14, 2015

Scraping off UPCs Can Give Rise to Trademark Infringement

Courts can hold parties liable for Trademark Infringement under the federal Lanham Act for something seemingly as trivial as scraping off unique production codes (UPCs). Under the First Sale Doctrine, a purchaser of another's genuine trademarked good can ordinarily resell that product. In other ...
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September 3, 2015

Negotiating With an Unauthorized Seller: Five Things to Consider

A business pursuing legal recourse against an unauthorized seller will likely find itself negotiating with him or her. Settlement agreements should be fact-specific. Thus, a business should not recycle a standard agreement and use it in every case. However, there are several things businesses ...
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August 26, 2015

Keeping Authorized Sellers Informed and Happy

Brand owners and manufacturers are not the only ones with something at stake when it comes to online sales. Beyond the businesses themselves, authorized sellers are also concerned about product diversion and unauthorized sales on third-party websites. When companies arrange for their products ...
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August 19, 2015

Combating Unauthorized Sales: How to Deal With Unauthorized Resellers

Companies often struggle with how much time and effort to put into curbing unauthorized sales. For some, the problem seems so widespread that the fight can seem fruitless. After all, selling products online is easy and most websites offering third-party sales are easy to use. But does this mean ...