Amazon has launched many programs to prevent counterfeit products from being sold. From the exclusive plan, the transparent plan, to the Zero plan launched some time ago, they are all protecting legitimate sellers and maintaining order on Amazon. For counterfeit and copycat products that already exist on the platform, Amazon is beginning to test a new anti-follow-up plan: the Patent Neutral Evaluation Process (NPE).
What is the patent neutral evaluation process?
To effectively address claims that third-party product listings infringe invention patents, Amazon offers a simple, low-cost process called the Neutral Patent Evaluation Process (NPE). The main content is to directly open the lawyer consultation and agent rights protection functions to third-party sellers-when sellers with patents find that their products are being sold by copycats, they can use this function to provide relevant information to lawyers. The lawyer will evaluate the seller’s application and decide whether to remove the counterfeit product.
The Neutral Patent Evaluation Process (NPE) is a simple, low-cost, voluntary and confidential process provided by Amazon to effectively resolve allegations that third-party products infringe invention patents. Owners of U.S. invention patents can list the Amazon barcode ASINs (no more than 50) of products that infringe their patents, and neutral third-party attorneys will quickly evaluate whether these products are infringing. If lawyers conclude that the accused product infringes the patent, Amazon will force the product to be removed. The cost of the appraisal is $4,000 and will be borne by the party who fails the appraisal, with no fees from Amazon.
1. How to start the assessment?
To initiate an evaluation, the patentee will submit a Patent Neutral Evaluation Process Agreement (the “Agreement”) to Amazon, setting out all of the information in Appendix 1. Amazon will then send the agreement to each seller listed as being accused and give the seller 2 options: either sign and return the agreement within three weeks with all the information written in Appendix 2; or remove the accused from Amazon. alleged products. After receiving the seller’s information, Amazon will select a neutral individual as an evaluator from a list of attorneys with experience in U.S. patent disputes.
2. Payment and Schedule
The third-party lawyer will contact the patentee and each seller and instruct both parties to remit $4,000 to the lawyer. If the patentee fails to submit within 2 weeks, the payment submitted by the seller will be refunded; if a seller fails to submit within 2 weeks, the lawyer will notify Amazon, and Amazon will delete the accused product.
3. Submit written evidence
After the patentee and seller submit the $4,000 in a timely manner, the third-party attorney will develop a schedule for submitting written arguments. Generally, the schedule will provide:
1. The patentee has 21 days to conduct a preliminary argument;
2. The seller must respond within 14 days;
3. The patentee has 7 days to respond.
Neither party can request changes to the timetable. Except that the patent owner can waive the response, if the seller fails to submit the requested information in time, the third-party lawyer will make a ruling against the seller and forfeit the $4,000 paid.
4.Decision
The third-party lawyer will respond within 14 days. There are two situations:
1. The patentee can prove that the accused product infringes;
2. The patentee cannot prove that the alleged product infringes.
In the first case, the lawyer will not provide a reason; in the second case, the lawyer will briefly explain the reasons why the patentee cannot prove infringement. Neither party was able to contact counsel or ask questions about the attorney’s decision, and there was no process for that or reconsideration.
5. Handling of payments after evaluation
Everyone must be very concerned about the final destination of this $4,000. Here comes the explanation!
During the evaluation process, the following situations will occur:
① If the lawyer believes that the patentee can prove that all accused products are infringing, the lawyer will refund the US$4,000 paid, and the US$4,000 fee will be shared equally among the sellers participating in the evaluation. If more than one seller participates and is found to be infringed, the attorney will give the portion in excess of $4,000 to an Amazon Smile charity chosen by the patentee.
② If the lawyer believes that the patentee cannot prove that any of the accused products is infringing, the lawyer will refund the seller’s money and retain the patentee’s US$4,000.
③If the lawyer believes that the patentee can prove that some of the accused products are infringing (and some are not infringing), the third-party lawyer will:
(i) Retain US$2,000 from the patent owner’s deposit and refund the balance;
(ii) Refund all payments to sellers who have no infringement;
(iii) US$2,000 will be charged to sellers accused of product infringement, which will be shared equally between them.
In summary, no matter what the circumstances, a third-party attorney will not charge more than $4,000 after making a judgment in the appraisal.
6. Reconciliation
If the patentee and a seller notify the attorney that the dispute has been resolved before the patentee responds, the attorney will terminate the evaluation of that seller or, if there is only one seller, the evaluation will be terminated entirely. If this settlement is reached, the appraiser may retain up to $1,000 to cover the cost of his or her appraisal, which will be split equally between the parties. If the settlement occurs after the patentee responds but before the appraisal is completed, in order for the appraisal to be terminated, the appraiser may retain up to $2,000, obtain $1,000 from the patentee, and retain a total of $1,000 from the participating sellers.
7. Evaluate the effect
If the lawyer determines that the patentee can prove that the accused product infringes, Amazon will remove the accused product within 10 working days after receiving the evaluation results; if the lawyer determines that the patentee is unlikely to prove that the accused product infringes Amazon has no obligation to take any action.