Having the opportunity to select one of the types of IP licenses available allows businesses to benefit from the privileges of owning exclusive rights to their invention, like the freedom to sell and secure a competitive edge over a specific market.
However, even if the license is a non-exclusive one or a hybrid patent, businesses can maximize their reach and take advantage of the revenue by licensing their intellectual property to multiple parties, as long as these parties are aware of any of their commercial restrictions and policies.
Now, if you are the holder of this IP license and you are looking for ways to benefit from this situation, you can choose to sell your invention on your website, partner with third-party retailers, or use an e-commerce platform like Amazon to reach a broader audience at a lower cost.
In the context of selling on Amazon you will need to comply with certain legal requirements, not only to meet Amazon’s platform policies but also to protect your business and intellectual property. Keep reading and learn more about it.
What do I need to sell my invention on Amazon?
So far this year, it was reported that more than 9.7 million sellers sell on Amazon, with 1.1 million of them coming from the United States. Globally, over 50% of sellers see results within a year, and 52% report approximately a minimum of sales worth $1,000 per month.
Anyone can be part of these statistics, as starting to sell on Amazon is relatively simple. In theory, you just need to create an account, upload your products and wait for a sale.
But of course, this is just the surface; you still need to implement effective marketing strategies, and most importantly, meet certain legal requirements to ensure compliance and protect your business.
With the following information and the guidance of your patent and trademark attorney Miami, navigating these legal aspects would be more manageable.
1.- Secure your IP rights
Amazon does not require sellers to disclose any patent or IP information. When you create an account, you enter into a partnership of mutual trust, meaning that the company expects all new and old members to respect each other’s IP rights.
However, this is not always the case, so it’s your responsibility to verify that no one infringes on your inventions by unauthorized selling or copying your products. This is a key factor you need to consider if you wanna build a good relationship with Amazon. To complete this task, you can take one of the following approaches:
Monitor your listings
Before, during and after creating your account and uploading your products to the platform, you need to monitor your Amazon listing to make sure that neither your business or other sellers are violating any intellectual property rights.
A patent attorney Miami can help you proactively safeguard your intellectual property by ensuring that your patents are properly filed and enforced. They can assist in drafting cease-and-desist letters, taking legal action against infringers, and advising you on best practices for monitoring and protecting your rights on platforms like Amazon.
Apply to the APEX program
For simple cases that can be resolved with a quick evaluation, you can apply to Amazon’s APEX program (Amazon Patent Evaluation Express Procedure). Generally, it focuses on cases of infringement on utility patents related to an article by a manufacturer.
The process begins with an online submission of a request form available on the Amazon Brand Registry. If approved, an Amazon representative will contact you via email. A program guide and a list of requirements will be attached to this email, which includes your contact information and infringement evidence of a maximum of 20 Amazon Standard Identification Numbers (ASINs) of accused products.
Once you submit all the evidence supporting your claims, Amazon will contact the accused party; if they do not answer, their ASIN(s) listed in your submission will be immediately removed from the platform. But if they respond, a three-week evaluation will begin, during which a neutral patent attorney will review the case.
Both parties will pay $4000 to participate in the process, which covers the infringement evaluation. If the patent lawyer favors your claim, the infringing products will be removed from Amazon, and you will be refunded your $4,000 fee. But If the decision favors the accused seller, their products will remain on the platform, and neither party will receive a refund.
2.- Create a Seller Central account
Creating a Seller Central account is a crucial step to selling your invention on Amazon, but it isn’t strictly a “legal requirement” mandated by government authorities. However, in severe legal cases, Amazon may require a verified and updated account to address these issues.
For example, if Amazon suspects fraudulent activity or a violation regarding terms of service, having a Seller Central account helps in tracking and resolving such issues, given that this account provides a record of all translations, communications and activity.
3.- Comply with Amazon’s product safety policy
Complying with Amazon’s product safety policies aligns with broader legal obligations regarding citizen health. Any customer who purchases a product on Amazon does so with the confidence that their purchase is secure and will not cause them any harm.
Listing products marked as restricted, for example, alcohol, drug paraphernalia, weapons or even certain electronics that do not comply with the Radio Frequency Devices policy, could jeopardize your and the platform’s reputation, consumer health, and your business investment.
To prevent any product violation and by extend any severe damage over your business development like the termination of selling privileges, destruction of non-refundable inventory and permanent withholding of payment, we encourage you to review all FBA (Fulfillment By Amazon) products restrictions to make sure your inventions comply with Amazon safety standards.
4.- Have a commercial liability insurance
In the beginning, having your IP license in order will be enough to protect your invention on Amazon. However, if your business continues to grow and you eventually earn $10,000 in a month, according to the platform’s policy, you will be legally required to obtain liability insurance within 30 days of hitting 10k to continue selling.
This is because Amazon, once you are more financially stable and have a wide audience of consumers, deems you capable of covering any financial obligations that may arise from product-related issues.
Liability insurance provides a safety net for both you and Amazon, so consider this investment in your business plan. When it escalates, you’ll be ready to comply with the platform’s policies.
To sell on Amazon, you need to consider certain factors, but with the right resources and the guidance of a trademark and patent attorney Miami, the process will be significantly more efficient. What other factors do you need to look at to secure your business growth? Find more about it in our blog.
