Amazon Third Party Reseller Sued Amazon

Amazon Promised a Seller – No More Suspensions or Bans

Amazon Third Party Reseller Sued AmazonIn a California case, an Amazon third party reseller sued Amazon because Amazon was using the Seller’s trademark.

While the marketplace reseller had to go to court, Amazon eventually settled with the reseller. The reseller sued for trademark infringement, unfair competition, and false advertising.

In this case, an Amazon reseller sued Amazon for using the reseller’s mark in Amazon’s online pay per click ad campaigns. Amazon also used the Seller’s trademark in its promotions on various search engines.

Amazon failed to obtain the reseller’s permission to use the marketplace seller’s trademark.

The reseller argued that Amazon used the reseller’s trademark to divert online traffic to a landing page on Amazon’s website. The reseller argued that Amazon was using its trademark to sell competitors products.

The claims included that Amazon was, in effect, stealing customers.

The reseller argued that Amazon’s improper use of their trademark cost the reseller sales. The reseller argued that it lost money in lost profits.

We are unaware if Amazon issued any policy violations, suspensions or bans. However, since Amazon agreed to reinstate selling privileges, we think that there must have been suspensions of the Seller’s account. If there was a suspension, there was probably at least one hold placed on the reseller’s account and their money withheld and period of time where the seller’s revenue and profits went to zero.

We do not know if the resellers submitted any Plan of Action or admitted to any Amazon policy violations.

What did Amazon give to the reseller to settle this case against them?
  1. Amazon reinstated the reseller’s selling privileges. The reseller was put back on Amazon’s platform (there was no further suspension or ban)
  2. Amazon agreed to stop using the reseller’s trademark
  3. Amazon agreed to not restrict or suspend the reseller in any way for any reason
  4. Amazon agreed that even if the reseller violated Amazon’s policies that would typically end up with an Amazon ban, Amazon would only notify the reseller of the violation and allow 30 days to correct
  5. If the reseller leaves Amazon, Amazon will not use the trademark at all unless the resellers allow others to use its trademark
Amazon Third Party Reseller Sued Amazon

What does this case tell us?

If Amazon uses your trademark, you can end up with a settlement that is useful: a future with no suspensions or bans.

Name and legal citation: AYSE SEN v. AMAZON.COM, INC., No.12cv2878, SOUTHERN DIST. OF CA, 2013.

If you are interested in what Amazon has argued in hundreds of lawsuits around the United States, has published the Amazon Law Library, Volume 1. The book is available on Amazon.

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