Interpretation of Amazon’s Neutral Patent Evaluation Process (NPE): How to effectively prevent counterfeit goods from being sold again

Amazon has launched a series of protection measures to combat counterfeit goods and copy-selling, including the Exclusive Program, the Transparency Program, and the latest Neutral Patent Evaluation Process (NPE). The program is designed to resolve allegations of patent infringement by third-party product listings and provide necessary legal support to legitimate sellers.

Overview of the Neutral Patent Evaluation Process (NPE)

NPE is a simple and low-cost procedure designed to resolve allegations of patent infringement against third-party products. Participants can safeguard their legal rights and interests by consulting professional lawyers and safeguarding their rights. When the owner of a certain patent finds that his product is being sold by copycats, he can seek legal help through this procedure.

NPE operation process

1. Initiate an assessment:
   The patentee needs to submit a patent neutral evaluation procedure agreement to Amazon and list the Amazon barcodes (ASINs) suspected of infringement, no more than 50. Amazon will send the accused seller an agreement and offer two options: sign the agreement or remove the product.

2. Payment and Schedule:
   The evaluation fee is $4,000 and is shared by both parties. Payment must be completed successfully during the transaction, otherwise the evaluation process will be affected. The assessment timeline is divided into several stages, with clear time limits for patentees and sellers to submit documentary evidence.

3. Documentary evidence submission:
   After the evaluation begins, the patentee has 21 days to submit a preliminary argument, the seller has 14 days to respond, and the patentee has another 7 days to make supplements. If either party fails to submit on time, they may lose the opportunity to be evaluated.

Evaluation results and subsequent processing

The evaluation results will be given by a third-party lawyer within 14 days. If the patentee successfully proves infringement, Amazon will delete the accused product within 10 working days. Depending on the assessment results, the fees will be handled as follows:

• Full infringement situation: The lawyer will refund the patentee US$4,000, and the cost will be borne by the seller.
• No infringement: The lawyer will refund the seller’s money and charge the patentee’s fees.
• Partial Infringement: The attorney will retain a portion of the fee and distribute it among the parties involved.

Reconciliation options

If the patentee and the seller reach a settlement during the evaluation process, the evaluation can be terminated. The costs involved in the settlement will be borne jointly by both parties, and the evaluator may retain the corresponding fees to defray the costs of the assessment.

Through the patent neutral evaluation process, Amazon provides sellers and patent holders with an effective way to safeguard their rights, so that the interests of legitimate sellers can be effectively protected. This measure also reflects Amazon’s ongoing efforts to combat counterfeit goods and maintain market order.