Amazon.com, Inc. (NASDAQ:AMZN) has a new initiative that is expected to reassure its customers on the protection of their intellectual property. For a while now, the retailer has been struggling with issues of counterfeit goods, which have been a throwback to its business. The company’s aim is to clean its Marketplace site to make it a collaborator to brand owners rather than a threat.
It has introduced the so-called brand registry, which will allow registration of logos and intellectual property by any brand. Amazon’s Marketplace vice president, Peter Faricy says that this will go a long way in assisting the e-commerce to bring down listings when counterfeits are flagged.
The move reflects Amazon’s efforts to court increasingly important third-party sellers
There have been several lawsuits associated with counterfeits, which are more often than not discounted editions of authentic goods on Amazon. As a result, a lot of retailers and third-party sellers who are significantly important to Amazon have either pulled away or reduced their businesses from the Marketplace.
However, Amazon will not just watch as it loses business, it has embraced an obligation of protecting its third-party sellers and especially so their trademarks and other IP. This is the only way they can entice more vendors as Faricy states. He says, “This puts Amazon in the position where we can protect your protects across the Amazon Marketplace.”
Apparently, records have it that about 50% of units sold on Amazon are from the third parties. Why then would the company not intervene at a time of vulnerability?
An additional program from Amazon
Amazon is not alone in its war against counterfeit goods; Alibaba Group Holding Ltd (NYSE:BABA) and eBay Inc (NASDAQ:EBAY) have also been victims. It is perhaps for this reason that it is giving an additional perk. Its program is known as “Transparency,” will allow vendors label their packaging with codes. This will in return help customers counter-check their goods against the information provided.
Right from the onset of its commitment to counterfeit products, it is clear that Amazon has the best interest of its consumers at heart. Meanwhile, Amazon’s stock closed at $843.20 a decline of $13.77 or 1.61%.