The world of e-commerce is continually thriving, and platforms like Amazon, Etsy, and Shopify have made it easier than ever to sell products worldwide. However, online selling comes with its own risks, some of which many e-commerce sellers overlook, such as patent infringement. If you are sourcing products or launching something new, you may find yourself using someone’s patented idea without even realizing it. And then before you know it, you are receiving cease-and-desist letters and other legal action. In this article, we break down what patent infringement is and how you can avoid costly mistakes as an online seller.

What is Patent Infringement?

Patent infringement happens when you make, sell, or import a product that is protected by someone else’s patent without permission. A patent gives its owner exclusive rights to an invention. This could be a product’s feature, manufacturing method, or even software-related processes. It is worth noting that intent does not matter. Even if you did not mean to, you could still face consequences for patent infringement. For example, if a supplier sold you a product that includes a patented mechanism and you list it for sale, you may still be liable.

How Does Patent Infringement Look on E-Commerce Platforms?

On online marketplaces, patent infringement may show up in several ways, such as:

Offering products that use patented technology without permission

Selling items that closely copy the function or design of patented products

Borrowing product descriptions from a patent or exaggerating features tied to a patented technology

Importing goods that infringe on a patent in the destination country

If you are accused of infringement, the platform can take several actions. First, once a patent holder files a report, your listing may be removed almost immediately. That alone can lower your rankings and even stall sales. Second, if complaints persist or if you disregard notices, your seller account may be suspended. Lastly, beyond platform penalties, a patent owner may pursue legal action, which can result in legal fees and even long-term reputational damage.

How to Avoid Patent Infringement as an Online Seller

The following are ways you can avoid patent infringement as you run your business online:

Do Your Research

Before launching your product, take time to check if key features or functions are already patented. Public databases, such as the USPTO and WIPO, are good starting points, especially if you plan to sell in multiple countries.

Understand What You are Sourcing

If you work with overseas manufacturers, do not assume that they have taken care of intellectual property issues. Ask questions and request documentation to ensure you are not selling a product that is a copy of an existing invention.

Use Licensing When Needed

If a patented feature is essential to your product, licensing can be a safer route. Licensing can help you use such features while compensating the patent owner.

Take Notices Seriously

If you receive a cease-and-desist letter or a marketplace takedown notice, do not ignore it. Respond promptly and review the claim before the issue escalates.

Get Legal Guidance

A consultation with an internet law attorney can help you spot risks early, especially if you’re scaling or launching a new product line.

Contact the Internet Law and E-commerce Attorneys at Revision Legal

For more information, contact the experienced Internet Law and E-Commerce Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.