Product resellers are facing staunch opposition from parent companies citing copyright infringement in displaying the product images and names on websites such as eBay.
The Internet, bastion of trade that it is, has revolutionized the way in which companies offer products and services to both the primary and secondary markets.
Specifically, sites such as eBay provide an immeasurable platform for merchants and consumers alike to engage in numerous types of meaningful e-commerce.
I think most people would agree this free market system is wholly representative of the fundamental principles that comprise the spirit of true capitalism.
But don’t tell that to SalonQuest, makers of Aquage shampoo.
The company has threatened legal action against a California woman, alleging unauthorized usage of “copyrighted Aquage containers” in images accompanying a September eBay listing.
Jamie Olson is just like any other entrepreneur attempting to utilize the eBay marketplace to turn a profit. Olson, however, seems to have drawn the ire of SalonQuest in her listing of the company’s salon products with the online auction site.
After having refused to remove the listing as requested by SalonQuest, Olson received another e-mail from a private investigator working on behalf of the company. The Consumer Law & Policy Blog outlines the e-mail as follows:
As you have been previously advised, this office represents SalonQuest LLC on issues relating to the distribution policies of its professional product
lines.
On September 7, 2006, this office contacted you on behalf of SalonQuest concerning your unauthorized sales of Aquage products on eBay. Despite being formally notified that you are violating SalonQuest’s legal rights, you have continued to list additional Aquage products on eBay. Also, you have continued to display copyrighted Aquage containers in your advertisements, yet another violation of SalonQuest’s legal rights under the federal Copyright Act.
SalonQuest would prefer to resolve this issue amicably. However, unless you immediately and permanently discontinue your sales of Aquage products on eBay and through any other unauthorized channels, SalonQuest has authorized us to forward this matter and your file to its legal counsel for further action.
SalonQuest’s case for copyright infringement is weak at best, but it does echo a growing concern for businesses and individuals alike wishing to engage in e-commerce by offering products to the secondary market.
The fact of the matter is that a small business or an individual is less likely to have the financial resources to enter into a lengthy legal battle with a major distributor over alleged misuse of a product name or image in reselling practices, even if the case for said misuse rests on shaky ground.
As a result, manufacturers seems to hold a trump card, putting secondary market resellers behind the proverbial “eight ball” with what mostly amounts to stalling tactics in the legal realm.
To date, Olson has not responded to any of the company’s demands to remove eBay listings containing images of SalonQuest products.
This type of mentality from distributors, however, could potentially dissuade other businesses and individuals from pursuing business strategies geared toward the secondary market in the future.
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Joe is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.