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Welcome to our March 2016 Newsletter! Please take the time to read the article and contact us should you have any questions or concerns.


Law Offices of Salar Atrizadeh

Online Counterfeiting and Product Diversion

In recent years, e-commerce has become a commonplace in society. Consumers are able to purchase an item with a click of a button and have it delivered to their doorsteps in a matter of days. With the rapid rise of e-commerce, counterfeiters have found a new medium to sell their items. Counterfeiters have moved from the sidewalks to the world-wide-web, i.e., the Internet. Since consumers are buying items based on images and descriptions created by the seller, it is easier for counterfeiters to sell counterfeit items unbeknownst to consumers. Not only are consumers at risk with this new issue, but businesses can also find themselves at risk. Do you own a business that sells authentic items? Are you concerned about the possibility of counterfeit items appearing on the web? Then you should contact a law firm that can assess your legal rights.

It is uncontested that online counterfeiting can affect a business's bottom line. Not only will it cause consumer confusion, but it can have a negative impact on the business's reputation, profits, and good will. With counterfeit items ruling the web, it is harder for consumers to determine if the item is genuine or not. Without the ability to determine authenticity, the business is losing out on a sale. Also, if the consumer is unhappy with the product, it can affect the brand's reputation for high-quality items. As for good will, counterfeit items can tarnish the brand's name, and ultimately the brand's value in commerce.

Product diversion is also a problem within the realm of e-commerce. Product diversion occurs when a person sells a product at an unauthorized location for less than the retail price. The biggest problem with product diversion is that the product goes through many unauthorized channels and can be tampered with unbeknownst to the consumer. The consumer then is at risk of potential dangers to his/her life and health. It also places the business at risk because of the adverse effects resulting from use of the product.

Now, both online counterfeiting and product diversion have become major issues in the e-commerce industry. Not only is it easier for counterfeiters and sellers of diverted products to sell items online, but it is easier for consumers to place themselves at risk with a click of a button. At the end of the day, businesses will feel the pinch. Their name, reputation, goodwill, and sales are at risk. Not only will those items be at risk, but often times they will occur without their knowledge until it is too late. As such, businesses should invest in effective methods to deal with counterfeiters.

For more information about your rights, you should consult with an attorney. At our law firm, we assist clients regarding e-commerce, intellectual property, and technology-related issues.

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