Key Takeaways

  • False trademark claims can arise from intentional misuse of trademark rights or accidental misuse of registration symbols.
  • On marketplaces like Amazon, false claims can trigger takedowns and revenue loss for sellers, as Amazon typically suspends listings first and investigates later.
  • Businesses may pursue legal remedies for false trademark claims, including claims of defamation, unfair competition, and tortious interference.
  • Proper trademark use, documentation of authorization, and proactive communication with rights holders can reduce the risk of false infringement allegations.
  • Legal counsel can help challenge false claims and protect brand reputation on e-commerce platforms and in the marketplace.

False trademark claims happen often in the business world. Managers and brand owners often have to deal with confusion and misunderstanding over when they can lawfully use the federal registration notice symbol. Many times, a technical violation or misuse of the violation comes from a mistake that is honest. However, sometimes the misuse is intentional or can look intentional if it isn't quickly fixed, once it's discovered.

Legal Consequences of False Trademark Claims

False trademark claims can have serious legal consequences for the party making them. A business that knowingly submits an unfounded infringement notice—such as reporting a competitor’s product as infringing on Amazon—may face civil liability. Common causes of action include:

  • Defamation or business disparagement: If the false claim damages the reputation of another company.
  • Tortious interference with business relationships: When a false claim disrupts the sales or contracts of another party.
  • Unfair competition or false advertising under the Lanham Act: If the claim misleads consumers or improperly damages a competitor.

Courts may award damages, including lost profits, and in some cases, injunctive relief to stop the party from issuing additional false claims. Maintaining clear evidence that a claim was made in good faith is essential to avoid liability.

What Are the Answers to the Most Common Questions Regarding Symbol Misuse?

According to Section 906 of the U.S. Patent and Trademark Office's Trademark Manual of Examining Procedure, here are some of the answers to the most popular questions:

  • The federal registration symbol can only be used in connection with or on the services or goods stated in the federal registration.
  • The symbol can't be used with marks that aren't officially registered with the USPTO.
  • Regardless of the pending status of the application, the symbol can't be used until the mark is officially registered.
  • A person isn't entitled to use the notice just because they're registered in one of the United States.
  • The terms "trademark applied for," "SM," "trademark," and "TM" can be used whether or not the mark is registered, as they aren't statutory or official symbols of federal registration.

What Will Amazon Do If There Are Infringement Claims?

Amazon acts swiftly on any notice claims of infringement that are submitted and completed so they can meet the minimum liability standard. They'll let certain marketplace sellers know which party reported them, for which listing, and how to contact the person claiming ownership. The sellers are on their own after that, however. Unless the seller and their legal team can show that the notice claim isn't true, it's considered actionable and valid by Amazon.

However, many people who would potentially abuse the notice claims now know that anyone is able to submit a form. This doesn't concern Amazon when it comes to the extra verification or vetting process. Investigators will simply look to see if the form is complete in the appropriate spots, stop the listings, and notify the appropriate people. Amazon is not in charge of verifying if the information is valid or correct. The person claiming rights makes a declaration that's legally binding when they fill out the form and sign it.

The seller needs to chase down any party that sends in a false claim against them and show Amazon why the allegations aren't true. Unfortunately, there isn't any guarantee that you'll be successful at this. Amazon won't give out anything besides an email address and won't get further involved to prevent the company from becoming involved in a dispute mediation. Amazon only assesses the documents they get, looks for the seller storefronts, and suspends or warns the seller.

With the number of forms that come in each day, there's no way for Amazon to take the time to verify each one. However, sellers find it frustrating that they may get suspended with no warning. They feel that there's no much sense of protection, even when they follow the rules.

How to Respond to False Claims on E-Commerce Platforms

When facing false trademark claims on platforms like Amazon:

  1. Gather evidence quickly: Retain purchase invoices, authorization letters, or trademark registration certificates to establish your rights.
  2. Contact the claimant: Sometimes, direct communication resolves the issue, especially if the claim was a misunderstanding.
  3. File a counter-notice: Platforms often allow sellers to dispute the claim with supporting documents.
  4. Escalate through legal channels if needed: A formal letter from an attorney can demand withdrawal of a false claim.

Amazon and similar marketplaces generally do not mediate disputes. Acting quickly and presenting strong documentation improves the likelihood of having your listing reinstated.

Steps to Reduce the Chance of Your Store Being Taken Down

To reduce your store from being taken down, there are several steps you can take. First, contact the rights owner to see if they reply with any helpful or additional information. If this gets resolved and they contact Amazon to take back their form, that's the best possible outcome.

If that doesn't work, you can hire a lawyer who knows how to deal with these types of situations. You'll want someone who has dealt with resolving disputes over right's ownership and Amazon. The lawyer can write a legal letter to send to the party or their attorney. If they don't get a reply, they can help you contact the Notice-Dispute teams at Amazon.

Another step is to ask your supplier if you can have the information for the real rights owner. You'll then be able to ask them to give you a letter of authorization or have them talk to Amazon themselves. If you can't get this information from Amazon, you may be able to search the USPTO database to find the rights owner.

Preventing and Mitigating False Trademark Claims

To lower your risk of being targeted by false trademark claims:

  • Maintain complete records: Keep contracts, invoices, authorization letters, and supplier information readily available.
  • Monitor your listings: Regularly check for duplicate listings or suspicious competitor activity.
  • Use trademarks correctly: Ensure your own symbol usage is compliant to avoid counterclaims.
  • Seek proactive legal guidance: An intellectual property attorney can help implement brand protection strategies, including registering marks and monitoring for misuse.

Frequently Asked Questions

1. What is considered a false trademark claim? A false trademark claim occurs when someone wrongfully alleges that another party is infringing a trademark, either intentionally or due to a misunderstanding.

2. Can I sue for damages if someone files a false trademark claim? Yes. Legal claims may include defamation, unfair competition, or tortious interference if the false claim harms your business or reputation.

3. How do I respond to a false claim on Amazon? Collect supporting evidence, contact the claimant, submit a counter-notice, and consider involving a lawyer if the claim is not withdrawn.

4. What steps can I take to prevent false claims? Maintain thorough records, monitor listings, use trademark symbols correctly, and seek proactive legal guidance.

5. Does using the ® symbol incorrectly count as a false trademark claim? Improper use of the ® symbol can lead to technical violations and may appear misleading, so it is important to use it only with registered marks.

If repeated false claims harm your business, consult legal counsel to evaluate a claim for damages. You can also engage attorneys via UpCounsel to handle marketplace disputes and protect your brand.

If you need help with false trademark claims, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.