Online Business

Brand protection in e-commerce

In the e-commerce space, the available options are limitless for the consumer. There are endless amounts of products available from anywhere at any time, which is why brand identity is critical in the online marketplace. Considering the tremendous amount of e-commerce companies, there is always the possibility of infringement. This is why it is important that the consumer knows exactly who they are purchasing from.

What is the Amazon Brand Registry?

The Amazon Brand Registry is a program that assists brand owners in protecting their intellectual property on Amazon. The most pertinent feature in this context is its Project Zero Program. Once infringement is proven, the program allows you to blacklist those infringing users.

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Why is Amazon's Brand Registry important?

A popular seller on Amazon is bound to attract infringing parties who seek to capitalize on that brand’s reputation and loyal customer base. The infringing party may produce subpar products and deliver poor customer service. This can result in financial loss and a damaged reputation for the true brand. A trademark registration, however, gives the Amazon seller recourse to take action against the infringing party.

Establishing a trusted brand that customers will return to is key, and the first step is to ensure that your brand identity is protected by a trademark registration. This will safeguard both your brand’s identity as well as your customers from infringing parties. Joining Amazon's Brand Registry gives you the ability to report those infringing listings to keep your brand safe, and your customers satisfied.

How do I join Amazon’s Brand Registry?

To be listed on the registry, your brand must have an active, registered trademark through one of the following government trademark offices: United States, Brazil, Canada, Mexico, Australia, India, Japan, France, Germany, Italy, Spain, Netherlands, Turkey, Singapore, Saudi Arabia, Sweden, Poland, the United Kingdom, the European Union, and the United Arab Emirates.

Once you’ve obtained a trademark registration, you may apply for the registry.

How do I obtain a trademark registration?

Applying for a trademark:

Obtaining a trademark begins with filing an application. Lloyd & Mousilli specializes in intellectual property and can assist you with the trademark application process from start to finish. We will guide you through the process of crafting a goods and services description and selecting appropriate evidence of use. Additionally, our seasoned attorneys are well equipped to advise you on overall IP strategy.

Click here to book a free consultation with a member of our trademark team.

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Can I join Amazon's Brand Registry if my application is pending?

There is a loophole that allows some sellers to apply to Amazon’s Brand Registry even if their trademark is not officially registered yet. Sellers in the United States, United Kingdom, Germany, and India are eligible to apply to the registry while their trademark is pending in the application/examination phase. This is especially advantageous considering the registration process is currently averaging 8 to 12 months for United States applicants.

If you are in one of the above mentioned countries, your brand is eligible to apply to the registry as soon as your trademark application is pending.

How Lloyd & Mousilli can help

Protecting your intellectual property is critical to maintaining your brand’s identity. Our experienced counsel can guide you through the trademark application process to ensure you have the greatest likelihood of achieving registration. We are well-versed in the Amazon Brand Registry process and are ready to help you claim your place on the registry.

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Texas

• Price: The cost of registering an LLC in Texas is more than three times the cost of registering an LLC in California. Texas LLC Certificate of Formation has a one-time cost of $300 for filing through mail or $308 for online filing. Texas also requires the designation of a Registered Agent, with a Texas address, to receive legal documents for the LLC. California residents planning on registering an LLC in Texas should expect to pay about $125 per year for a Commercial Registered Agent.
• Ease of Registration: Like most states, Texas allows online filing and filing through the mail.
• Privacy: Texas does not maintain any information on the ownership of a LLC, except records of the LLC’s registered agent and registered office address.
• Asset Protection: Texas is an exception to the traditional corporate veil rules, and instead follows the ‘actual fraud rule’. Under this rule, owners or members of the LLC cannot be held liable for corporate obligations unless they used the LLC to commit actual fraud.

Delaware

• Price: Between Texas, California and Delaware, Delaware is the most expensive state to register an LLC. The costs of registering an LLC in Delaware often outweigh the benefits a smaller business can expect to receive. The initial one-time filing fee is $90 ($99 for a 24-hour turnaround). Like Texas, California residents can expect to pay up to an additional $100/year for a Commercial Registered Agent. Delaware also requires all Delaware LLCs, regardless of their principal place of business or size, to pay an additional $300/year for the Delaware Franchise Tax.
• Ease of Registration: Like most states, Delaware allows online filing and filing through
  mail.
• Privacy: Delaware allows anonymity and nominee officers.
• Asset Protection: Delaware companies offer the same corporate veil as other states.

The high costs associated with registering and maintaining a Delaware LLC often make it a less than ideal choice for new entrepreneurs. Find out more on Delaware Post Incorporation and Checklist here.

California

• Price: The cost of filing articles of organization in California is $70. There is an additional $20 fee to file a Statement of Information, which needs to be filed every two years. California residents can appoint themselves as registered agents for the LLC instead of paying for Commercial Registered Agents.
• Ease of Registration: Like most states, California allows online filing and filing through
  the mail.
• Privacy: California allows anonymity and nominee officers.
• Asset Protection: California companies offer the same corporate veil as other states.

Will an LLC registered in Texas/Delaware still need a foreign qualification in California if most of the staff and customer meetings will be in California?

Any LLC registered in a state other than California is a foreign LLC and would need a foreign qualification in California in order to transact intrastate business in California. California law classifies transacting intrastate business as the physical presence of company officers, employees, offices, or other facilities within California or if the business plans to develop extensive commercial relations within the state over a long period of time. However, your business does not need to be registered in California if your only connection to California is hiring independent contractors located in California.

You may not have any option other than registering your LLC in California or registering it as a foreign LLC in California if your online business hopes to solicit customers in the state. Failure to register in California can bar businesses from bringing lawsuits in the state. The inability to utilize California’s court system can be particularly detrimental to online businesses with valuable intellectual property prone to infringement. If you wish to register as a foreign LLC in California, then you must provide the same information needed to create an LLC in your state of incorporation and pay all the fees required to register and maintain an LLC in California.