June 12, 2007

Are Unfair Takedowns Becoming EBay's Trademark?

We've had quite a few stories here (see "Embroidery Piracy and EBay/PayPal Privacy" for example) about abuses of the power EBay's Verified Rights Owner (VeRO) programs gives vendors to arbitrarily take down auctions. But while most of those stories have involved takedowns over alleged copyright infringement, one reader's recent experience suggests that trademark claims might be an area where the abuses are even

As she began the process of getting EBay to reinstate her account - which includes having to take a condescending online tutorial on intellectual property and swearing that you'll never be bad again - the reader also was able to contact with other EBay sellers whose Don Ed Hardy auctions had been taken down. "Some sellers who had not yet actually sold any Don Ed Hardy goods were told by the fraud department that 'test purchases' had proven their goods were counterfeit," the reader wrote. "Some were told that it didn't matter they could prove their merchandise was authentic - Don Ed Hardy would continue to take down their listings via VeRO by citing 'violation of a trade agreement' between the company and its distributors. And all were threatened as I was with trademark litigation that could result in treble damages, paying their legal costs, etc."

Our reader was not inclined to put up with any such nonsense, and contacted everyone she could think of to get the nervy Nervous Tattoo folks to back down. "I have filed several formal complaints with agencies here and in California where Don Ed Hardy is located," she wrote. "I also contacted the Public Citizen organization which has done a lot of work in this area. In addition to that, I tried contacting Mr. Henry Mandell, the president of Don Ed Hardy, on several occasions to respectfully ask that they remove any black marks against me with EBay. I did reach one Ed Hardy sales representative who admitted the items were made for AAFES 'off price' and were indeed authentic. But the 'fraud department' continued to say they would not allow me to list my items again."

Perhaps it was just the cumulative effect of all the steps she took, but ultimately the reader did succeed in finding a Nervous Tattoo official who acknowledged the authenticity of the merchandise and permitted her auctions to proceed. But the reader certainly remains unsettled by the experience, particularly how EBay leaves those falsely accused of trademark infringement to beg for mercy from their accusers. "One thing I learned in this situation is that the counternotice provisions in DMCA takedowns don't work for trademark infringement accusations," the reader wrote. "With trademark law, the burden of proof seems to lie more with the accused than the accuser. This whole thing should have never happened, but it just seems that with EBay a VeRO member can claim counterfeit any time they want as many times as they want with no repercussions whatsoever."

It's pretty scary to think there are actually circumstances where one would be better off if the DMCA applied, but that does seem to be the case here. Of course, it's certainly true that trademark holders like Don Ed Hardy/Nervous Tattoo suffer from the sale of truly infringing products on EBay and elsewhere online all the time. But there needs to be some sort of balance that prevents trademark holders from abusing the system just because online sellers of authentic goods may be undercutting their price. Otherwise, EBay may find its brand standing for unfair takedowns in all our minds.

Read and post comments about this story here.

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gg 14-Apr-09 10:09am
I was making jewerly using Ed Hardy temporary tattoo's, which I have consulted an atty, plus other knowledgable people on this subject. I was told it was perfectly legal. For instance if you were to take a t-shirt that had a Corona bottle on it (you purchased this t-shirt)and silk screened somewhere on the shirt Mexican Drinking Team, it is legal. I took the tattoos, which I purchased and applied them to jewerly, and Ebay took it off. They stated Nervous Tattoo said it was a violation. If you look at the guitar pic jewerly, it is the same thing.
percyporno 26-Aug-09 3:13am
I was trying to sell 6 genuine Ed Hardy t-shirts on Ebay and because they were doing ok, I had an Ebay e-mail saying I had breached Ebay rules because of Nervous Tattoo saying I had violated Copyright law. So I have now had my account suspended for 7 days and can not sell until then.
Greg81 8-Oct-09 9:36pm
If you need help on an unfair Vero takedown take a look at http://www.Bogustakedowns.com If someone files a fraudulent takedown they can be sued.

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