Importance of Trademarks on Amazon’s Brand Registry
If you are an Amazon seller, it is highly recommended you obtain trademark protection for your brand and enrol in the Amazon Brand Registry. Amazon’s Brand Registry provides a variety of tools to monitor brand representation and prevent the sale of counterfeit goods on Amazon.
in order to take advantage of the Amazon Brand Registry you first must have:
- A trademark with an active or pending registration;
- A trademark registration number, or application number granted that the trademark is pending registration; and
- A list of categories that the brand falls under.
The Amazon Brand Registry provides registered users with the ability to directly address counterfeit products. Those suspected of being bad actors are automatically removed from Amazon and the sale of these counterfeit products halted. Through Amazon’s ‘Counterfeit Crimes Unit’, the company additionally holds bad actors responsible through “building cases, undertaking investigations, and pursuing civil litigation”. Furthermore, trademarked brands registered under the Amazon Brand Registry are protected under ‘Project Zero’, which offers several benefits:
- Suspected counterfeits are proactively blocked from being listed on Amazon;
- Brand owners can directly remove products they think are counterfeits, which information is fed into Amazon’s algorithms to better catch counterfeits proactively in the future; and
- Product serialization allows brand owners to apply a 2D code similar to QR codes on their products that uniquely identifies and authenticates the legitimacy of their brand.
There are also numerous ways that the Amazon Brand Registry helps registered merchants grow, including:
- Access to prioritized product advertisements, displayed on headlines of search pages;
- Customizable brand storefronts and the ability to specify in-depth product descriptions; and
- Prioritized search results that are pushed by Amazon’s internal algorithm.
If you have a brand you want trademarked in Canada or the US, please feel free to contact one of our IP attorneys. We are licensed to practise in both Canada and the US and can assist new business owners obtain trademark protection for Amazon Brand Registry enrolment.
US Beneficial Ownership Information Registry
On January 1, 2024, the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) launched the online BOI E-Filing System and began accepting Beneficial Owner Information Reports pursuant to a new compliance regime under the Corporate Transparency Act.
1. Who needs to file?
Starting January 1, 2024, all non-exempt entities formed or registered to do business in the United States are required report Beneficial Owner Information (“BOI”) to FinCEN by January 1, 2025. This includes all corporations, LLCs, limited partnerships or similar entities created by filing a document with any US state, territory or Indian tribe as well as foreign non-US entities that are registered to do business with any US state, territory or Indian tribe.
2. Who is a beneficial owner?
A beneficial owner is any individual who, directly or indirectly:
- exercises “substantial control” over a reporting entity; or
- owns or controls 25% or more of the ownership interests (equity, stock, voting rights, convertible instruments or any other instrument, contract or other mechanism used to establish ownership) of a reporting entity.
An individual exercises “substantial control” of a reporting entity if such individual:
- serves as a senior officer (for example, president, CEO, COO, CFO, general counsel and any other key officer position of a reporting entity);
- has authority over the appointment or removal of any senior officer or a majority of the board of directors; or
- directs, determines or has substantial influence over important decisions made by a reporting entity.
3. What information needs to be provided?
A reporting entity is required to provide the following information about Beneficial Owners:
- full legal name;
- date of birth;
- current address; and
- unique identifying number and an image of government-issued identification (US passport, state-issued driver’s license, or a foreign passport).
4. Who is exempt from the Beneficial Ownership Information filings?
There are 23 exemptions, which are listed in greater detail in the Small Entity Compliance Guide by FinCen.
One of the key exemptions is for “large operating companies” that: (1) employ 20 full time employees in the US; (2) has a physical presence in the US; and (3) filed federal income tax for the previous year demonstrating more than $5,000,000 in gross receipts or sales.
Other key exemptions are for inactive entities that are not engaged in active business and for subsidiaries of any other exempt entities.
5. What does this mean for you?
If you are a beneficial owner of a US entity and not exempt from the filing requirements, failure to maintain and file a BOI Report by January 1, 2025 may result in fines up to $500 per day per violation and potential imprisonment.
Please reach out to the Voyer Law team to discuss your Beneficial Ownership Information filing requirements and whether your entity qualifies as an exempt entity.
LLCs are Bad for Canadians (Mostly)
US Provisional Patents
Weekly, we receive phone calls from prospective clients inquiring about provisional patent applications. While provisional patent applications have a number of benefits, especially for cost-conscious startups and entrepreneurs, we too often encounter misconceptions concerning the protections that a provisional patent application provides. In this blog post we will cover what a provision patent application is, its positives and negatives.
What is a provisional patent?
A provisional patent application is essentially a placeholder patent application filed with the US Patent and Trademark Office. Once filed, you have up to 1 year to convert the provisional patent application into a full utility patent application and, if not converted, the provisional automatically expires. Once the utility patent application is filed, the subject matter of the utility patent application (ie. invention) will be granted a claim date effective as of the date the provisional patent application was filed.
There are a few formal provisional drafting requirements, including a title, the name(s) of the inventor(s), address of the inventor(s), correspondence address, and a written description. At times, a drawing on the back of a napkin can be sufficient. The provisional application is not publicly available, and the USPTO does not conduct any review of it.
It is critical to understand that no patent rights are granted by the provisional patent application, except for the ability to file for a full utility patent application within the 1-year time frame for the invention described in the provisional patent application.
Positives
There are a number of benefits to a provisional patent application, namely:
1. Preserves your intellectual property rights as of the provisional’s filing date, which is critical in advance of any public disclosures you are contemplating;
2. Relatively inexpensive, with the cost of a provisional application being substantially less than a full utility patent application;
3. Is not made publicly available;
4. You are “Patent Pending”; and
5. May appeal to investors by beginning an intellectual property portfolio.
Negatives
The downsides to a provisional patent application are:
1. Does not issue as a patent;
2. Is not a utility patent and, unless converted into one, lapses after one year;
3. Since it is not reviewed by the USPTO, no stance is taken on whether the invention is patentable; and
4. Only exists under US law with no similar structure existing in Canada or Europe.
We believe that provisional patent applications are an immensely valuable resource for our clients, especially where deployed as a cost-effective means to secure a filing date for a subsequent utility patent in advance of contemplated public disclosures of the invention. However, when considering a provisional patent application, it’s critical to keep in mind that it’s a stepping stone to a full utility patent, and not a stand-alone patent application itself.
Feel free to reach out to the Voyer Law team to discuss provisional patent applications and a filing strategy for your invention.