In a dynamic world e-commerce Intellectual property protection and correct product labelling have become key elements of branding. Recent legislative changes, including the mandatory implementation of GPSR regulations together with EAN codes, complicate the situation for traders. Below, we discuss the most important aspects that manufacturers and distributors should know in order to not only secure their rights, but also to maintain profitable business relationships.
Intellectual property as a foundation for brand protection in e-commerce
If your company has patent protection and registered trademark (or other protection rights), you automatically gain the exclusive right to label your products. Proving that you have a protection number (e.g. visible on the packaging or label) is an essential argument that strengthens your position as the sole, rightful owner of the solution in question.
Rebranding without a licence - legal implications for distributors
Often distributors introduce their own labels, rebrand or rebrand without a signed licence agreement, leading to an infringement of intellectual property rights. In practice, their right to rebrand is very limited unless expressly granted by the owner.
Such a situation not only undermines the brand image, but can also lead to time-consuming litigation for compensation and the return of unearned benefits. It is therefore worth taking care of clearly worded licence agreementsIn addition, it is important to ensure that the rules of such rebranding are strictly defined or regulate the prohibition of such actions by contractors. Subsequent attempts to regulate this matter may make relationships with distributors much more difficult or even lead to their termination.
Problems with manufacturer labelling on e-commerce platforms
It is becoming increasingly common on e-commerce platforms such as Amazon or E-bayexhibitors mislabel their products. Sometimes the actions are unconscious or mistaken, but sometimes they are deliberate actions by traders.
For example, including the name of the distributor under the 'Manufacturer' heading, even though the products are manufactured by another entity, is misleading to consumers and this constitutes an illegal act. This may not only result in administrative or criminal sanctions, but also negatively affect sales due to reduced trust in the seller-distributor, and this in turn may also negatively affect the turnover of the actual manufacturer.
It is therefore worth ensuring that the legal relationship with all contractors and distributors is properly regulated from the outset in order to ensure transparency in the relationship, minimise the risk of legal disputes and build lasting business partnerships based on mutual trust.
GPSR Regulation - new obligations to label products with EAN codes
Implementation GPSR regulations (General Product Safety Regulation) requires manufacturers and distributors to label products with the EAN codes. This solution aims to provide transparency of information for consumers and enhance product safety.
As a result, companies need to define the precise rules for rebranding and distribution, which requires updating commercial agreements and implementing new operational procedures.
Negotiation strategies with distributors when implementing GPSR
In order not to lose key distributors, it is worth implementing flexible licensing agreementswhich will allow partners to use their own labels. Negotiations for co-labelling may be proposed (co-branding), preferential commercial conditions or additional marketing support, which will compensate distributors for any costs resulting from the implementation of new procedures.
Consequences of non-implementation of the GPSR Regulation for manufacturers and distributors
Failure to implement the principles of the GPSR Regulation entails a number of risks - from financial and administrative penalties after loss of access to e-commerce platforms and negative impact on brand image. That is why it is crucial to get started now:
- undertake a detailed analysis of distribution agreements in terms of rebranding and product designation clauses,
- send official summonses to companies that infringe your intellectual property rights,
- negotiate with distributors, offering flexible licensing solutions, joint marketing campaigns and technical support for the implementation of new procedures,
- invest in updating product labelling systems to meet the requirements of the GPSR Regulation and ensure safety and transparency of information for consumers.
Do you have questions about GPSR implementation or need additional negotiation strategies? Feel free to contact our law firm - we will help tailor solutions to your company's specificities and market situation.
Contact us:
- Tel: 606608089
- Email: sekretariat@bktkancelaria.pl
- www.bktkancelaria.pl
