amazon expands ip accelerator to europe after us smbs register 6,000 trademarks

With the peak shopping season approaching – a period expected to see an even greater shift to online purchasing this year due to COVID-19 – Amazon has unveiled its newest initiative aimed at reducing the number of counterfeit products offered on its marketplace.

The e-commerce leader announced today that its IP Accelerator program is now available in Europe, specifically in France, Germany, Italy, Spain, the Netherlands, and the United Kingdom. This program is designed to assist small and medium-sized businesses (SMBs) selling on Amazon in securing trademarks for their intellectual property, safeguarding their brands, and addressing the issue of counterfeit sales. The program connects businesses with pre-selected legal firms to handle the necessary work. Participation in the IP Accelerator is free, while the legal services are offered at “low-cost assistance” through “competitive, pre-negotiated rates,” according to Amazon.

This European rollout – encompassing Amazon’s six largest European markets and covering over 150,000 SMBs who represent more than half of the region’s sales – follows the initial launch of the IP Accelerator in the U.S. just over a year ago, in October 2019.

Amazon reported today that the U.S. program has, to date, resulted in 6,000 trademark applications being submitted to the U.S. Patent and Trademark Office by SMBs participating in the program.

Amazon has consistently faced challenges related to counterfeit and other unauthorized items sold through its marketplace – a system built on the principles of large-scale operations, offering shoppers a wide selection of products. The IP Accelerator builds upon numerous other proactive measures taken to combat this issue.

These measures include Amazon initiating legal action – both independently and in collaboration with other parties, and, most recently, acting as the plaintiff in a case that extended beyond its platform to include online influencers.

The company has also developed substantial technology to identify and remove illicit goods.

Furthermore, Amazon is collaborating with governmental organizations, most recently in an effort to prevent the importation of counterfeit products before they are sold or delivered to customers.

Addressing this issue is a continuous undertaking for Amazon; its growth leads to an increase in sellers and products, and consequently, a greater potential for fraudulent items. However, it is crucial for Amazon to succeed in this effort: protecting intellectual property is essential to retain top brands on the platform and maintain consumer trust.

Initiatives like the IP Accelerator are designed to empower smaller sellers with greater control over their brand identities.

The program specifically targets SMBs, not only due to their significant collective sales volume on Amazon, but also because they often lack complete awareness of their legal options and may be concerned about the expenses associated with trademarking. A recent report from the European Intellectual Property Office revealed that only 9% of SMBs have registered IP rights, compared to 36% of larger companies.

“We understand from discussions with small business owners that there is often uncertainty regarding the importance of IP rights and how sellers can obtain them,” stated Francois Saugier, Vice President for EU Seller Services at Amazon, in a press release. “As part of our broader commitment to supporting small businesses, we have established IP Accelerator to make the IP registration process as straightforward and affordable as possible for entrepreneurs in the early stages of their ventures.”

In addition to legal support, SMBs participating in the program can then enroll in Amazon’s Brand Registry, which currently includes approximately 350,000 brands. This registry provides businesses with the tools to manage and monitor their brands, utilizing Amazon’s automated algorithms and offering a dedicated channel for reporting and addressing potential infringements and trademark violations.

An IP publication, IP Watchdog, highlighted that the IP Accelerator is a noteworthy development, in part due to its expedited access to the Brand Registry: Previously, companies were required to have a trademark approved by the patent office before joining. Now, it appears that enrollment is possible as long as the application is underway – through the legal firms selected for the IP Accelerator. Businesses often seek to join the registry to enhance their marketing efforts, and some critics suggest the Accelerator could potentially be used to exploit this system.

(According to the article, another disruptive aspect of the IP Accelerator is its introduction of a pricing structure for trademarking services that deviates from standard practices, potentially impacting a large customer base and potentially establishing a foundation for a broader range of legal services for businesses.)

The provision of business services to SMBs on the platform represents a compelling business opportunity.

Several startups have recently emerged, aiming to acquire and consolidate successful SMBs selling on Amazon, with ambitious growth plans.

Their strategy centers on leveraging economies of scale to improve the operations of these businesses, focusing on areas such as supply chain management, marketing, IP protection, and more. This approach is based on the premise that these small businesses face challenges in achieving further growth independently.

In this context, Amazon’s IP Accelerator potentially offers these smaller sellers additional support to remain independent (or to expand their businesses sufficiently to attract the attention of these consolidating entities).

“Strong ideas are the foundation of every successful business. Bringing those ideas to fruition depends on IP,” said Pippa Hall, Director of Innovation and Chief Economist at the U.K.’s Intellectual Property Office, in a statement. “Understanding, protecting, and maximizing the value of your IP is a critical component of success. A robust IP strategy should be central to every sound business plan.”