Written by Dr. Jochen M. Schaefer, Attorney-at-Law (Germany), Legal Counsel of the World Federation of the Sporting Goods Industry, and of the European Federation of the Sporting Goods Industry (FESI)
This article is primarily based on the grounds of German substantive laws and the jurisprudence of German courts, the legal situation in other European countries might differ.
Introduction:
I very recently represented a well-known sporting goods brand before a German court in temporary injunction proceedings, which had the following factual background:
My client is a long-established manufacturer and seller of high-quality sporting goods products under its well-known brand, which is also part of its company name. Those branded products are equally offered for sale DTC on my client’s own websites targeting consumers in various countries in various language versions including German for the D.A.CH countries.
To facilitate the customer journey for potential and actual buyers in terms of swift orientation and easy differentiation between hundreds of different products within the broad product range of the respective brand, the articles displayed on the websites did not only show numbers but also model names. Such names were, to a major extent, only used for a considerable short time, such as for the respective actual spring/summer and fall/winter collections, and were thereafter replaced by new model names in the following seasons.
The model names were picked and selected by the marketing and sales department of the company without any involvement of the in-house legal department. No prior trademark searches were conducted before selecting a certain model name with the argument raised by the commercial sales and marketing guys that it would be too cumbersome and also too costly to undergo such exercise in each individual case and that such kind of procedure would also create unnecessary delays. Further, one was convinced that it should be clear to anybody that such model names, which only appeared on the respective websites of the brand and on the packaging of an article, yet not on the products themselves, did not constitute a use as a trademark, but were pure identification factors comparable to number sequences distinguishing a certain product from another. Consequently, the overall feeling of the commercial team was that one would be fairly on the safe side and that any legal conflicts were very unlikely to occur.
Yet my clients had to find out pretty soon that their own subjective risk assessment proved to be wrong and that this turned out to be a quite costly experience for them.
In early 2023 they received a cease-and-desist letter from a major German law firm specialized in dealing with such kinds of scenarios, who was obviously systematically screening websites on behalf of its clients looking for the usage of TM-protected names by third parties not only in identical, but also in similar categories of goods.
In line with standard practices widely acknowledged by German courts, these lawyers requested not only the immediate removal of the disputed model name in dispute from the website of my client but also asked for the reimbursement of their legal fees just for the sending of this C&D letter, which already amounted at a very early stage to more than 3.500 EUR. In addition, they asked for damage compensation and requested, in this context, detailed information on the sales of the respective articles, including names and addresses of the manufacturers, suppliers, purchasers, buyers, and quantities of ordered and delivered goods same as on their pricing.
My clients decided to defend themselves and not give in also in view of the fact that the adverse German law firm was notorious for pursuing such kinds of legal actions as numerous comments of other German lawyers in Internet blogs and publications proved. They felt kind of harassed, and this is where I came into play.
First Attempt to Settle Failed
After I had been mandated by my clients to represent them, I had hoped that one could settle this matter very swiftly by convincing the other side that the usage of the respective challenged name, which was also part of the common German language, but at the very same time protected by a German national trademark in a related product class and a registered EU Mark, did not constitute a use in a trademark like fashion, but was just a temporary model name identification, which was not essential for my clients anyway and which they were prepared to give up on a relatively short notice by replacing it with another undisputed generic model name.
Yet, I also made clear in my very first detailed letter announcing my representation to the adverse lawyers that my clients were neither willing to sign the much too broad cease and desist declaration nor to pay any damage compensation in this specific case since they felt they were unfairly attacked by the other side and that the far-reaching claims of their client were basically without merits by explaining why this in our opinion was the case.
What I would have expected as a normal reaction to my letter was, that the colleague on the other side handling that case would have contacted me and would have discussed with me a kind of compromise settlement, yet this did not happen.
Only one week after receipt of my letter, the other law firm filed a motion to issue a preliminary injunction against my clients without any prior oral hearing. And – the competent court located in the city where such law firm had its headquarters granted such injunction right away, which was one hundred percent identical with the various claims the other party and its lawyers had raised in their previous C&D letter…
Next Evolvement
- Under German procedural laws, one is entitled to object to such kind of preliminary injunction and request an oral hearing with the motion to lift the injunction. This required of course a very detailed written brief outlining on the one hand the underlying facts and on the other hand dealing with all the technical legal issues surrounding such kind of case. The plaintiff had smashed us in its motion with tons of case law, which were mostly court verdicts issued already decades ago and which in my opinion were either totally outdated, since the customer journey ordering goods online today is certainly very much different than the one before the World Wide Web existed at all, or, had even nothing to do with the case matter as such, but looked of course at a very first glance impressive, until one undertook the effort to scrutinize and analyze the respective court decision in detail.
After we had forwarded a thirty-page written brief plus comprehensive attachments to the competent court, an oral hearing took place, which however proved to be very frustrating:
- The three professional judges took a highly abstract and formalistic view by just referring to judgments of the German Federal Court of Justice and verdicts of the European Court of Justice, which had been issued decades ago;
- they did not honor the fact that the respective disputed name never appeared visibly on the sports product itself, but just as a model name in my clients’ B2C web store;
- they also did not acknowledge that educated consumers purchasing online do not, or very little care about such model names, but just want to order a certain product bearing a well-known trademark they have confidence in;
- the fact that my clients had repeatedly expressed their willingness in writing to withdraw from using such a model name and to remove it from any marketing and sales materials offline and online during a certain reasonable transition period did also not help;
- further, for the Court, it all in all did not play a role that the products for which the adverse party’s trademarks were registered were by far not identical with those manufactured and distributed by my clients.
All in all, the court chamber indicated that it would uphold the interim injunction in all points and not grant any relief to my clients. After I had asked for an interruption of the hearing to be able to get in touch with the General Counsel of my client on the phone, who had been on standby, I returned to the courtroom, and I still managed finally to reach a fairly reasonable settlement with the plaintiff, which however involved a substantial additional financial commitment on part of my clients to be able to make an end to such dispute and to close swiftly the case out of primarily economic practical considerations.
Lesson Learned:
After the quite negative (and for my clients also very costly) experiences we had made in the course of these litigation proceedings, lessons learned are the following:
- A model names without conducting any trademark searches in advance and thus without caring about the risk of possible legal conflicts with third-party trademark owners. Such a gambling strategy might, to a certain extent, be successful over a certain period of time, in particular, if only generic model names are chosen, which, as such, cannot enjoy any trademark protection. Any usage of other distinctive denominations could, however, trigger costly lawsuits, which also bind substantial resources at a brand’s management level, as the above example demonstrates.
- The risk of clashing with third-party trademark rights in such kind of scenarios can nowadays be substantially reduced by conducting prior trademark searches at the national and EU levels (respectively also at the international level if required). This can be easily done online, does not consume much time and even if the results of such searches are frequently not providing the full picture, this kind of quick and dirty analysis does at least mitigate risks.
- In particular, SMEs should be aware of the fact that numerous service providers and law firms are systematically screening the World Wide Web to detect possible IP infringements, which per se is nothing negative, it only takes on a certain negative connotation, if the money- earning aspect is in the foreground and not the legitimate objective to efficiently fight illicit offerings on the internet.
- Company may still decide to pursue the strategy to use such kind of unregistered
Dr. Jochen M. Schaefer is a German practicing attorney based in the Munich area. For several years, he has been representing the World Federation of the Sporting Goods Industry (WFSGI) and the European Federation of the Sporting Goods Industry (FESI) as their legal counsel. He also chairs the WFSGI’s legal committee and is co-chair of the FESI’s digital working group. At the individual client level, he represents a significant number of well-known brands within and beyond the bicycle/sporting goods sector. He is a specialist in national and international distribution topics, intellectual property (IP) and risk management issues, and the drafting and negotiation of comprehensive contracts at the operational level; in particular in the area of European selective distribution schemes. In case of any questions about this article (or in general), he can be reached at [email protected] and at +49 151 1640 7932.
Durham, N.C. – (December 5, 2023) – RockTape, the leader in kinesiology tape and movement products, is announcing the launch of RockFlash Reflective Kinesiology Tape, a new product that combines the supportive and functional benefits of kinesiology tape with reflective properties for enhanced visibility for runners, cyclists and walkers.
RockFlash Reflective Kinesiology Tape is a pre-cut, easy-to-apply tape that may help reduce joint discomfort and expedite recovery. Unlike standard kinesiology tape, RockFlash is made from reflective materials that reflect light from any source, such as headlights, flashlights or streetlamps. The product is ideal for people who are active in low-light conditions, like early-morning or evening runners, cyclists, walkers or outdoor enthusiasts. RockFlash can be applied to various parts of the body for optimal movement and is both water-resistant and latex free.
“We are excited to add RockFlash to our assortment of premium movement products,” said Michael Polk, Chief Executive Officer of Implus. “RockTape is known for providing exceptional muscle support and relief and with this added reflective feature, our customers can stay supported and safe while performing their favorite activities anytime, anywhere.
RockFlash retails for $25.99 and can be purchased on the official RockTape website at www.rocktape.com, Amazon, and at other independent run retailers.
About RockTape: RockTape is a global leader in kinesiology tape and movement products. More than just a tape company, RockTape helps athletes of all levels go stronger, longer with the best kinesiology tape, cutting-edge education, and support products. RockTape is a trusted brand by athletes, coaches, and health professionals worldwide to get people to move more, and move better. Learn more at www.rocktape.com
About Implus: Implus is home to 18 brands in the footwear accessories, hosiery, specialty running, outdoor, fitness and movement categories. As an industry leader in active accessories, Implus is committed to enabling people to live active, healthy, and fulfilled lives, providing innovative products to more than 80,000 retail outlets worldwide. Distributing across more than 70 countries, Implus is headquartered in Durham, North Carolina, with five international offices. Key brands within Implus’ portfolio include Balega®, SKLZ®, Yaktrax®, TriggerPoint™, Sof Sole®, RockTape® and Spenco®. To learn more, please visit www.Implus.com.
Durham, N.C. – (November 21, 2023) – Balega, a leading performance running sock brand, announces participation in The Running Event (TRE) 2023, North America’s premier run and outdoor specialty retail conference and tradeshow. Balega is a platinum sponsor and will be at Booth 1521 showcasing their latest product offerings, including the Balega Blister Resist Light in a new mini-crew silhouette.
“We look forward to once again being at TRE and connecting with our partners in the running community,” said Michael Polk, Chief Executive Officer of Implus. “Following the successful launch of our national Transform Your Run campaign, we are excited to share our latest consumer insights and new products with our retail partners. We will also present this year’s Ubuntu award recognizing a run specialty store that best excels in service and involvement in their local community.”
One of the highlights showcased in Balega’s booth will be the new Balega Blister Resist Light, which will be available in both no-show and mini-crew silhouettes. This sock is ideal for runners seeking protection from blisters and the elements, and features the same moisture-wicking and protective barrier technology as their other Blister Resist socks but with a more weightless feel.
Balega invites all TRE attendees to visit Booth 1521 to learn more about their products and initiatives for Spring 2024. Implus will also showcase RockTape, TriggerPoint, and Spenco across the aisle from Balega in Booth 1515.
TRE 2023 will take place from November 28 – 30 at the Austin Convention Center in Austin, Texas.
About Balega: A leading performance running sock brand in the run specialty market, Balega is a designer and manufacturer of technical performance running socks and part of the Implus family of brands. With a proud American-South African initiative, the company develops its product in several countries, utilizing the best performance yarns produced across the globe. Crafted for a superior fit and unmatched comfort, Balega is committed to the technical excellence, quality, and performance. A brand with ‘sole,’ Balega prides itself on its commitment to the community with projects aimed at enriching those less fortunate than ourselves. In 2023, Balega became Climate Neutral Certified by committing to measure their climate impact, setting reduction targets, and offsetting their carbon emissions. For more information, please visit www.balega.com.
About Implus: Implus is home to 18 brands in the footwear accessories, hosiery, specialty running, outdoor, fitness and movement categories. As an industry leader in active accessories, Implus is committed to enabling people to live active, healthy, and fulfilled lives, providing innovative products to more than 80,000 retail outlets worldwide. Distributing across more than 70 countries, Implus is headquartered in Durham, North Carolina, with five international offices. Key brands within Implus’ portfolio include Balega®, SKLZ®, Yaktrax®, TriggerPoint™, Sof Sole®, RockTape® and Spenco®. To learn more, please visit www.Implus.com.
The latest addition to its roster of Active Gaming experiences, Playfinity’s Gaming Soccerball will cost $129 and offers a groundbreaking fusion of physical and digital play, blending the excitement of gaming with real-world soccer
Oslo, Norway – (November 1, 2023) – Playfinity (www.playfinity.com), the Nordic sports-tech company committed to keeping kids active and engaged in sports through its range of tech-augmented sporting equipment, unveils its new Gaming Soccerball. With the addition of groundbreaking sensor technology and a corresponding gamified app, Playfinity has technologized the traditional soccer ball with the aim of making play, activity, and sports more enjoyable for youth by providing an immersive and engaging experience.
A study by the National Alliance of Youth Sports shows that 70% of children stop playing sports by age 13. Reasons for the declining interest include a lack of enjoyment and the often over-serious nature of competitive sports. Getting kids outside and active is really important; however, children are increasingly growing up in a tech-focused and sedentary world. To tackle this issue and appeal to the world’s most digital generation, Playfinity’s Gaming Soccerball blends screen-time with sports in a fun and engaging way.
The Gaming Soccerball detects and measures activity while transmitting the data via Bluetooth to Playfinity FC, a companion mobile app allowing users to build their team and play matches with and against other real players. Playfinity FC offers a variety of physical games based on skills and drills, developed with the expertise of coaches and professionals in the field. The leaderboards, customizable avatars, and news feeds are aimed at capturing children’s focus while encouraging their participation in physical activities. The Gaming Soccerball tracks metrics such as the number of kicks, distance, speed, airtime, height, and bounces around which the interactive physical soccer ball games have been designed. Playfinity’s range of gamified sporting equipment also includes SmartBall, JumpGames and the Gaming Baseball, which currently has thousands of players across 21 countries. The magic of Playfinity is that kids play more, play longer, and can play with others across the world. This enables kids to be connected via a love of sport, irrespective of location.
Games include:
● Kick-up – which challenges players to complete 20 consecutive kick-ups with three lives.
● Kick-About – where players kick the ball as many times as possible in order to gain ‘virtual energy’ for the game.
● Kick-Up Master – where kids complete as many kick ups as possible in a short window of time.
● Endless Kicker – where players kick the ball as many times as possible to get to the next level.
Conceived by a team of five fathers who recognized the importance of keeping children physically active and engaged in sports, all of Playfinity’s products emphasize durability and longevity. With backgrounds in IoT and Bluetooth, software and toy development, and industrial and creative design, Playfinity’s founders realized that, together, they had the skills and abilities necessary to facilitate tackling the issue of keeping kids active in sports. Their solution was to blend sport with digital gamified experiences, incorporating level progression and rewards to keep kids interested, ultimately improving their skills and fitness while still having fun.
Gaming Soccerball Features:
● Regulation size 4 soccer ball features a smart skin with a flexible form and integrated impact-resistant technology.
● Prioritizes privacy and security, ensuring a safe and engaging experience for children
● Powered by AI machine learning and gaming mechanics, and equipped with cutting-edge sensor technology, optimizing the entire gaming experience
● Fitted with a 110mAh Lithium-ion wireless charging battery, permitting up to 70 hours of play per charge
● Water-resistant and dustproof product
● Gaming progress is tracked and fed back through the app as measurable data.
● Agnostic: enjoy multiple players and profiles with one ball
Pippa Boothman, CEO at Playfinity comments: “Our aim has been and always will be to keep kids active whilst having fun. Our Gaming Soccerball is both a game-changer and a solution to an ongoing problem. Our team’s passion, creativity, and unwavering commitment to the health and wellbeing of kids have led to this creation. The success we have achieved is a reflection of our hard work and our shared vision. At Playfinity, we have poured our heart and soul into creating products that inspire kids to keep moving.”
ABOUT PLAYFINITY: Playfinity was founded in 2016 in Oslo, Norway by five fathers who recognized the urgency in keeping children active and engaged with outdoor sports. Playfinity currently has thousands of players across 21 countries, with a lineup of tech-enabled sporting equipment that aim to create a more active future for kids. Through combining digital gaming and active play, Playfinity keeps children engaged by ensuring that core skill training is fun and rewarding.
Peachtree Corners, GA – (September 25, 2023) – Mizuno, a renowned name in the world of golf equipment, is thrilled to announce the launch of its latest game-changing products, the Mizuno ST-G Driver and Titanium Fairway Woods. These cutting-edge metal woods represent the perfect blend of power and control, offering golfers unparalleled performance and versatility on the course.
The ST-G Driver – Low Spin Adjustability
The Mizuno ST-G Driver is a 440cc powerhouse featuring a newly optimized Fast Track design, allowing adjustability ranging from a low spin bomber to a fade or draw bias or simply a more stable compact driver. This driver is designed to optimize launch and spin while enhancing ball speed through the innovative CORTECH Chamber.
According to Mizuno’s Director of R&D, David Llewellyn, “The ST-G 440cc is very stable in the category of compact driver heads. The addition of Mizuno’s CORTECH Chamber greatly influenced our ability to create more consistent ball speeds across the face.”
Key Features of the Mizuno ST-G Driver:
- CORTECH Chamber: A stainless steel weight encased within elastomeric TPU, reducing stress on the clubface and providing an extra source of energy, resulting in a solid, powerful sensation at impact.
- Max Convergent Fast Track: Achieve ultra-low spin to mid-low spin settings.
- Compact 440cc Players Profile: A modern pear-shaped design that sits perfectly square in the neutral setting.
- New Beta Rich Ti LFS: A lighter, faster, stronger face material for improved ball speeds.
- Expanded Carbon Toe Wrap: Allows greater shot shape adjustability.
- Tour Tested For Sound: Provides a solid feel at impact across weight settings.
- Quick Switch Hosel: Offers 4 degrees of adjustability for fine-tuning address and trajectory.
Chris Voshall, Director of Product at Mizuno, noted, “We’ve had a significant surge in tour usage for Mizuno drivers over the last few years, and the addition of a more compact 440cc ultra-low spin option will only accelerate that trend.”
The Mizuno ST-G Driver is available in right-hand (9.5 & 10.5) and left-hand (9.5 only) options.
The ST-G Titanium Fairway Woods – Low Spin Meets Performance
Mizuno’s first ST-G fairway wood is a low-spinning, all-Titanium marvel designed to cater to faster-swinging tour staff and solid ball strikers who seek a penetrating ball flight. Like the driver, it is built on the CORTECH Chamber platform, providing golfers with exceptional control and performance.
Key Features of the Mizuno ST-G Titanium Fairway Woods:
- Full Body Ti Construction: Ti-811 body with high-strength multi-thickness Titanium Face for outstanding ball speeds.
- Ultra-low Spin Construction: Combines CORTECH Chamber, an 80g stainless steel sole plate, 8g stainless steel front screw, and a lightweight waffle crown.
- Modern Player’s Pear Shape: Inviting and compact, sits square at address.
- Tour Tested for Sound: Offers a solid feel at impact.
- Quick Switch Hosel: Provides 4 degrees of adjustability for precise tuning.
David Llewellyn, Director of R&D at Mizuno, emphasized the significance of introduction, stating, “The low spin fairway wood is a model that we’ve quietly been working on for several years – the CORTECH Chamber made it a lot easier to achieve.”
The Mizuno ST-G Titanium Fairway Woods are available in right-hand (3W & 5W) and left-hand (3W only) options.
Chris Voshall, Director of Product at Mizuno, stated, “There’s a significant number of our tour players, especially in the US, chasing lower spin with their fairway woods. There are some very good options already out there, so we took our time and ensured we put our time in testing on tour.”
As Mizuno continues to grow in all categories, including the Wood Market, the launch of the ST-G Driver and Titanium Fairway Woods further cements its position as a leader in golf equipment innovation. These remarkable additions provide high-swing speed players and experienced fitters with a remarkable low-spin option, ensuring Mizuno remains at the forefront of the wood-fitting world.
Don’t miss out on the opportunity to elevate your game with the Mizuno ST-G Driver and Titanium Fairway Woods. For more information and to explore Mizuno’s full range of golf equipment, apparel, and accessories, visit mizunogolf.com
ABOUT MIZUNO USA: Mizuno USA, Inc. is a wholly-owned subsidiary of Mizuno Corporation, one of the world’s largest specialty sporting goods manufacturers. Mizuno USA, Inc. manufactures and distributes golf, baseball, softball, running, volleyball, swimming, and tennis equipment, apparel, and footwear for North America. Mizuno USA, Inc. is based in Peachtree Corners, GA
#MizunoSTG
Media Contacts:
Brand Support
[email protected]
Hosted by SBRNet and First and Pen
Football, sports hospitality, retail, the baseball players’ players union, lifestyle footwear, golf, running, data analytics, television production, finance and working for a major brand will all be among the career options presented to students of color at the first ever Get in the Game Conference set to take place October 6-8, 2023 in Baltimore.
Get in the Game is a new event, created by SBRnet and First and Pen to connect sports companies sports with young men and women of color looking to break into the business. The three-day event will feature panel discussions, presentations, workshops, and experiential field trips all designed to educate students about the wide range of career options in the sports business.
“This event is all about the students and showcasing for them the many different jobs and career options available in the sports business,” said Yussuf Khan, president of First and Pen. Khan started his career at ESPN and since then has held a number of executive roles in the sports media business and also teaches at several colleges in the New York area. “My students are constantly asking about jobs in sports and those questions helped inspire us to create this event,” Khan said. “Any student attending Get in the Game will come away with new perspectives on how they can work in sports.”
Get in the Game’s original outreach was to students at Historically Black Colleges and Universities, but it is open to students of color at any school. To date students from North Carolina A&T, Howard, Morgan State, Winston-Salem State, Towson, Fisk University, Lenoir Rhyne University, NYU, Drexel, George Washington and Long Island University have all registered to attend.
In addition to the panels and presentations, Get in the Game will include a career expo, where students can meet with sponsors to learn about specific jobs and internships available in the coming year. Dick’s Sporting Goods, one of the presenting sponsors for Get in the Game, plans to make several offers to students during the event. Executives at lifestyle footwear company Clarks say they will also have jobs and internships available to students who attend Get in the Game.
“I have been around the sports business for 25+ years and am seeing a genuine desire by companies to attract and retain more young men and women of color,” said Mark Sullivan, a managing partner at SBRnet, which distributes data and content to more than 260 colleges and universities across the United States.
The full agenda for Get in the Game can be seen here: https://getinthegameconference.net/GITG/agenda.aspx
Students can register by visiting: https://getinthegameconference.net/GITG/Register.aspx
In addition to Dick’s Sporting Goods and Clarks, sponsors include: On Running, ASICS, Under Armour, The Ad Council, The Baltimore Ravens, Morgan Stanley, The Detroit Tigers, The Detroit Red Ewings, Sodexo Live, the MLB Player’s Association, The American Junior Golf Association, Ohio University, The Footwear Retailers and Distributors of America and Program Productions.
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About First and Pen: First And Pen informs, inspires and connects through voices of color in sports. The publisher is the sports media vertical from The Khanate Group; a media, tech, and eCommerce company fully committed to supporting and investing in underserved and overlooked communities, individuals, and voices of color. Company CEO Yussuf Khan has over two decades of experience in sports and multicultural media. After beginning his career at ESPN, he invested the last 18 years of his career in start-up ventures, building a successful track record at companies such as CSTV (now CBS Sports Network), Interactive One (now Urban One), Big Lead Sports and The Shadow League. The media veteran has a unique and diverse career path with a long history in the fields of multimedia sales, marketing, communications, journalism, and content creation.
About SBRnet: SBRnet is a comprehensive online data platform of nationwide sports marketing analytics, using syndicated and custom proprietary sports fan information for the professional and college sports, consumer research, industry reports, and licensed industry articles. Since 2020, SBRnet has been owned by Neil Schwartz and Mark Sullivan. Schwartz is a 20-year veteran of sports data with stints at Nielsen and SportscanInfo.
Sullivan is an editor and publisher and one of the founders of The Running Event conference and trade show. The pair are also co-hosts of the “My First Job in Sports” web series.
For further information, please contact Yussuf Khan at [email protected] or Mark Sullivan at [email protected].
Thursday, September 21 – hosted by Corsearch
There are two times for you to choose from:
EMEA: 11am CEST, Thursday, September 21
Americas: 1pm EDT, Thursday, September 21
Duration: 45 minutes plus Q&A
Repeat infringement continues to plague online marketplaces and social media platforms, putting consumers and brands’ reputation at risk. But is there light on the horizon? In our upcoming webinar, we explore whether the newly enacted Digital Services Act is a turning point in the fight against counterfeiters and other bad actors – or whether more still needs to be done.
During the session, expert panelists Simon Baggs and Mike Sweeney will be conducting a deep dive into our Three Strikes: Revisited whitepaper, which examines the ongoing harm caused to brands and consumers by repeat infringement despite legislation now being enacted in key markets designed to curtail it.
In Three Strikes: Revisited, we found that the proportion of sellers who most aggressively and repeatedly infringe typically comprises around 4% of sellers enforced, but that those same sellers are responsible, on average, for nearly a quarter (23%) of the illicit activity detected and notified on the e-commerce platforms considered.
What you’ll learn:
- The current dynamics in the e-commerce market
- The true scale of repeat infringement on e-commerce platforms
- The impact of the Digital Services Act
- What platforms could achieve through simple changes, such as a “three strikes” policy
Click here to register for the webinar.
Thursday, September 14 – hosted by Corsearch
There are two times for you to choose from:
EMEA: 11am CEST, Thursday, September 14
Americas: 1pm EDT, Thursday, September 14
Duration: 45 minutes plus Q&A
The second installment of our three-part brand protection series, Stop Brand Abuse follows the path of a fictional retail company as they delve into more complex infringement issues such as phishing scams, fake social media profiles, and lookalikes. Learn how this rapidly expanding brand applies image technology, whitespace analysis and more to take charge of the variety of threats that brands and their consumers face in a digital world.
Tailored to those looking to build out their brand protection program, Stop Brand Abuse offers an essential overview of Corsearch’s advanced online brand protection services and technology – covering how we detect, prioritize, enforce, and report on the risks to brand reputation and consumer trust.
Join our webinar to discover:
- Tackle an array of threats in the form of scams, impersonation and regulatory violations that hinder consumer trust;
- Quickly remove the fakes through the use of logo and feature detection;
- Use whitespace analysis to control your brands’ authorized digital footprint;
- Boost your counterfeit removal at scale; and
- Ensure all touchpoints between your brand and consumers are authentic.
Click here to register for the webinar.
Peachtree Corners, GA – (September 1, 2023) – Mizuno USA, Inc. proudly welcomes Chris Brewer as the newest addition to their leadership team. Brewer, a seasoned industry veteran with an impressive track record of transforming businesses and driving growth in the highly competitive footwear sector, brings a wealth of experience and a forward-thinking vision to the organization.
With a distinguished career spanning over 25 years, Brewer has held key positions at prominent industry players such as Adidas, Under Armour, and Fila. Throughout his tenure, he has consistently demonstrated his ability to reinvigorate or establish businesses and steer them toward resounding success.
“Chris’s arrival at Mizuno marks a significant milestone as we welcome an industry veteran of his caliber,” expressed Tim Rumer, Sr. VP of Business Development at Mizuno USA Inc. “His expertise will undoubtedly propel our running division to new heights.”
Expressing his enthusiasm, Chris Brewer stated, “I am genuinely excited to become part of the Mizuno USA family and embark on this exciting new chapter. Mizuno’s unwavering dedication to excellence and innovation in the running industry is truly inspiring, and I am eager to contribute to its ongoing success.”
For media inquiries or further information, please contact:
Leila Taylor
[email protected]
ABOUT MIZUNO USA: Mizuno USA, Inc. is a wholly-owned subsidiary of Mizuno Corporation, one of the world’s largest specialty sporting goods manufacturers. Mizuno USA, Inc. manufactures and distributes golf, baseball, softball, running, volleyball, swimming, and tennis equipment, apparel, and footwear for North America. Mizuno USA, Inc. is based in Peachtree Corners, GA
Quarterly Newsletter – August 2023
With the COVID pandemic behind us, Congress has moved on to recovery. The economy remains sluggish and consumer prices continue to rise. SFIA advocacy has targeted policies to lower consumer costs, create more resilient supply chains, protect IPR, and increase participation in sports and fitness.
TRADE
Agreements
The Administration is pursuing two multilateral trade agreements, the Indo-Pacific Economic Framework (IPEF) and the America’s Partnership for Economic Prosperity (APEP). These are not trade agreements and the U.S. Trade Representative has publicly stated these agreements are: “Not traditional trade deals… we are not trying to maximize efficiencies and liberalization… we are trying to promote sustainability, resilience, and inclusiveness.” SFIA has remained neutral on these multilateral agreements with 13 Indo-Pacific and 11 Western Hemisphere trading partners, due to the absence of Market Access and Tariff Reduction provisions in the agreements.
Indo-Pacific Economic Framework (IPEF)
The IPEF has three main pillars: Trade, Climate Transition, and Labor & Inclusiveness. Fourteen trading partners in the Asia-Pacific region are involved in the IPEF talks to secure more stable supply chains and improve communications and coordination when disruptions occur. China is not part of the IPEF.
America’s Partnership for Economic Prosperity (APEP)
APEP is an agreement between twelve Western Hemisphere trading partners. Like the IPEF, the APEP’s goal is regional competitiveness, reliable supply chains, shared prosperity, and a sustainable environment. To improve efficiency, the agreement includes digitization of customs procedures and binding trade facilitation provisions. The APEP emphasizes worker wages and environmental preservation.
Neither trade agreement includes “market access” or “tariff relief” to liberalize trade between participating countries. SFIA supports efforts to improve supply chains but believes the lack of trade liberalization to facilitate the movement of goods, especially U.S. exports, limits the benefit of these agreements for U.S. companies.
Indian Footwear Quality Control Requirements
India has proposed new testing and labeling requirements for footwear. The new regulations mandate the use of the Bureau of Indian Standards (BIS) for testing and measuring hard labels on performance footwear. The testing must be performed on-site with specific equipment not readily available.
ASTM International, the International Standards Organization (IS0), and the Shoe & Allied Trades Research Associations (SATRA) testing and measurement standards are widely used across the globe and are compatible with BIS. SFIA requested assistance from the U.S. Trade Representative on getting India to use common testing & measuring standards and removing the hard label requirement for performance footwear sold in the Indian market.
TARIFFS
China Section 301 Tariffs
SFIA requested the elimination of Section 301 Tariffs or the re-opening of the exclusion process at a minimum. USTR Tai has publicly stated she believes the tariffs serve a purpose and should not be dropped.
China’s behavior on several fronts helps justify the USTR position as China:
- Failed to Meet Terms of Phase 1 of the China Trade Deal
- Sent Spy Balloon Across U.S.
- Built an Eavesdropping Station in Cuba
- Performed Military Exercises Off Taiwan
- Conducted Aggressive Naval and Air encounters in the South China Sea
In the current environment, expect tariffs of up to 25 percent on Chinese products to continue to be collected by Customs & Border Patrol (CBP).
The Section 301 Tariffs were implemented to punish China for repeated violations of international trade laws. China is doing more to enforce IPR laws, but fake products made in China continue to flow into the stream of commerce. Additional steps are being taken to disrupt imports of counterfeits.
On a related matter, the U.S. Court of International Trade ruled that the Section 301 Tariffs are legal, but that USTR failed to follow proper protocols in collecting public comments. USTR has since convinced the court that its comment process complies with requirements. The decision is under appeal.
Generalized System of Preferences (GSP)
SFIA has urged Congress to pass GSP to incentivize production outside China and lower consumer prices in an inflationary economy. SFIA identified roughly two dozen industry products manufactured in GSP-eligible countries that now have duties of up to 17 percent upon entry into the U.S.
The GSP is a long-established trade program that offers duty-free treatment on imports of products made in more than 110 countries with developing economies. SFIA has identified a number of products made in GSP-eligible countries to avoid duties of up to 17 percent upon entry into the U.S.
The GSP expired on January 1, 2021, and Congress has failed to pass legislation to renew it. The lack of tariff incentives has slowed the movement of production operations out of China, despite Section 301 tariffs, and contributed to higher consumer prices. SFIA has pressed Congress to reauthorize the GSP program immediately.
Miscellaneous Tariff Bill (MTB)
SFIA has pressed Congress to renew the Miscellaneous Tariff Bill (MTB) to eliminate out-of-date tariffs. The U.S. International Trade Commission vetted 82 SFIA petitions requesting tariff relief on industry products and recommended them for inclusion in the MTB. Each petition is capped at $500,000 in tariff relief for a potential of $41 million in tariff relief on SFIA member products.
When overseas production became a threat to U.S. manufacturers, tariffs were applied to foreign-made products to protect domestic manufacturers. Over time, production of many consumer goods moved overseas, and domestic production vanished but the tariffs on foreign-made goods remained in place.
The Miscellaneous Tariff Bill (MTB) offers companies the opportunity to petition for the removal of outdated tariffs on imports of products no longer made in the U.S. SFIA will continue to push Congress to pass the MTB and bring down consumer prices in an inflationary economy.
De Minimis Exemption
It is estimated that more than two million packages a day enter the U.S. under de minimis rules, effectively avoiding inspection, duties, taxes, and fees. To bypass CBP oversight, products must have a value of less than $800 to qualify as a De Minimis shipment. Since the implementation of Section 301 Tariffs, Chinese manufacturers have increased the use of the De Minimis Exception to avoid tariffs. The use of De Minimis also offers counterfeits an avenue for entry into the U.S. without CBP scrutiny, putting consumers at greater risk of harm from counterfeits.
Congress is exploring ways to reign in the use of the De Minimis exception to circumvent tariffs and inspections. The “Import Security and Fairness Act” (H.R.4148) is bi-partisan legislation to ban companies in non-market economies like China from using the $800 De Minimis threshold to import products into the U.S. CBP would be required to collect additional information on all De Minimis packages and could bar bad actors from using the De Minimis rule to deter abuse of the exceptions offered on low-value shipments.
SUPPLY CHAINS
West Coast Port Labor
SFIA asked for the Administration’s help in finalizing a new labor contract to avoid unnecessary delays at 29 west coast ports. Labor Secretary Su engaged in the contract talks leading to the Pacific Maritime Association (PMA) and International Longshoreman & Warehouse Union (ILWU), reaching a tentative deal on a new labor contract on June 15th.
In response to pressure from the business community, manufacturers, and shippers, the Administration intervened in the labor talks to avoid disruptions or a strike.
The Unions will vote to ratify the new labor contract followed by the PMA. If all parties ratify the new contract, an artificial disruption in supply chains will be avoided.
UPS Strike
The United Parcel Service (UPS) moves an estimated 20 million packages a day, worth an estimated $3.8 billion or almost 6% of US GDP. The current UPS labor agreement expired on July 31 and negotiations between the International Brotherhood of Teamsters and UPS resolved most of the issues, but stalled over starting wage for part-time workers. SFIA pressed President Biden to intervene in the labor talks to ensure there was not an unnecessary disruption in supply chains. On July 25, The Teamsters and UPS reached a tentative agreement on a new labor contract. The Teamsters will remain on the job through the ratification process, avoiding a potential strike.
The Teamsters viewed the UPS labor talks as an opportunity to highlight their ability to represent workers and get better labor deals as they look to expand into companies like Amazon. Teamsters President Sean O’Brien stated the UPS labor talks are “… the largest collective bargaining agreement in any private sector union,” and the contract could “set the tone and set the standard high for labor — not just the Teamsters but the entire labor movement.”
Labor unrest is an area where government involvement has avoided domestic disruptions in supply chains. The President and Labor Secretary were instrumental in resolving rail and west coast port strikes. SFIA appreciates the Administration’s engagement in UPS negotiations to secure the new labor agreement and avoid unnecessary disruptions in supply chains.
Rail Detention & Demurrage Charges
SFIA is working to reduce excessive fees collected on containers stored in rail yards by pushing for clarification on oversight of rail storage fees and having fees billed through ocean carriers put rail under the Ocean Shipping Reform Act (OSRA) umbrella to give the Federal Maritime Commission (FMC) jurisdiction over rail storage fees.
Railyards are charging excessive D&D fees that must be paid directly to railroads to release cargo. Railroad cargo is unregulated, falling outside the scope of the Ocean Shipping Reform Act (OSRA) and the rail cargo is not under the jurisdiction of the Surface Transportation Board.
INTELLECTUAL PROPERTY RIGHTS
The INFORM Consumer Act
SFIA applauds the implementation of the INFORM Act to deter online sales of counterfeit products to preserve brand equity and protect consumers from sub-standard, unsafe products. The Integrity, Notification, Fairness in Online Retail Marketplace (INFORM) Consumers Act went into effect on June 27, 2023.
The new law provides greater oversight of the online marketplace and better protects intellectual property rights to help shield consumers from risks posed by counterfeit products. The INFORM Act requires online retailers like Amazon, eBay, and Etsy, to collect tax ID numbers, government-issued IDs, and bank account information of sellers. Consumers will have access to the business names and addresses, the contact info of the seller, and the country of origin of the products sold. Failure to comply with the INFORMS Act could result in fines of up to $50,000 for each violation.
REGULATION AND ENVIRONMENTAL STEWARDSHIP
Digital Labeling
Digital Labels offer the flexibility to provide information on care, content, importer requirements, the origin of the product, and its content to meet reporting requirements across the globe. SFIA joined 130 organizations representing global sportswear, performance apparel, footwear, and fashion interests on a letter requesting a move to digital labels.
Information provided through labels is critical to consumer education for informed purchasing decisions. Hard labels require 5.7 million miles of label tape annually, generating an estimated 343,000 metric tons of CO2. SFIA fully supports supplying consumers with information on care, content, country of origin, and other importer requirements to meet the web of labeling laws in a global marketplace, but believes there is a better platform to deliver this information.
Digital labels deliver information to consumers in a more environmentally responsible way. Digital labels are not limited by label size — information could be more easily read online and modified to meet any country’s product information requirements.
In short, digital labels are more efficient, offer greater flexibility, and provide an environmental benefit by eliminating hard labels many consumers remove anyway.
PARTICIPATION
Prior to the pandemic, Congress had a great appreciation for physical activity’s role in reducing obesity, diabetes, cardiovascular disease, respiratory illness, arthritis, certain cancers, and other chronic conditions. The pandemic highlighted the critical role activity plays in good mental health. There is a mental health crisis in America, especially for our young people. The rise in teen substance abuse and suicides was fueled by isolation. Now, cost and access barriers to youth sports are sidelining kids. SFIA supports policies to lower costs and invest in youth sports infrastructure to increase participation.
Personal Health Investment Today Act (PHIT)
Mental health remains a priority in Congress, and both sides agree on the need to do more to prevent and treat mental illness. The connection between activity and mental health was emphasized during the pandemic, but the participation costs barrier has gotten higher. SFIA is pressing for the inclusion of the PHIT Act in Health Savings Account reform legislation under consideration in Congress.
PHIT would allow Americans to use funds held in HSAs, FSAs, and other pre-tax medical accounts to pay for physical activity expenses as a form of prevention. The use of pre-tax money would effectively reduce consumer costs of activity by 25-37 percent to lower the financial barrier to participation.
Expenses incurred to play youth sports, engage in adult fitness, participate in outdoor recreation, and other activities would be eligible for PHIT. Registration and tournament fees, membership dues, camps, clinics, and personal trainers are all covered expenses. Equipment, including home fitness equipment, is PHIT-eligible, but apparel and footwear that can be worn casually are not.
PHIT (H.R. 1582) is off to a great start in 2023 with 47 bipartisan co-sponsors in the House, including a dozen from the Ways & Means Committee which has jurisdiction over PHIT due to the tax incentive. In the Senate, PHIT (S.786) enjoys support from 16 Senators, including the #2 Republican, John Thune, who is the lead sponsor, and #2 Democrat Dick Durbin, who is a co-sponsor.
Youth Sports Infrastructure
SFIA is leading the effort to build more youth sports facilities. SFIA worked with Senator Jon Ossoff (D-GA) in drafting the “Youth Sports Facilities Act of 2023” to create more places for children to participate in sports, physical education, and other physical activities. The bill would dedicate funds for the construction of new sports facilities in underserved rural and urban areas with high levels of substance abuse or violence.
Local governments, non-profit organizations, and schools would be eligible for grants through a competitive grant process managed by the Secretary of Education. Low-income communities with limited-to-no access to sports facilities would receive grant priority. Projects include gyms, athletic fields or courts, swimming pools, fitness centers, rock climbing walls, ice arenas, pools, and other recreation spaces. Grants can also be used to upgrade existing facilities and purchase sports equipment.
SFIA is currently seeking a Republican to Join Senator Ossoff on the Youth Sports Facilities Act.
Youth Sports Economic Impact Study
Youth sports generate revenue and create jobs in every community across the U.S. SFIA is leading the effort to capture the economic impact of this large industry to help promote investments in youth sports, participation incentives, and other policies leading to a more vibrant youth sports culture in America. SFIA has secured the help of top Appropriations Committee Member Chuck Fleischmann (R-TN) to lead the effort to fund a Bureau of Economic Analysis Youth Sports Economic Impact Study to capture the economic contributions of youth sports across America.
The Bureau of Economic Analysis estimates the total economic output of the outdoor recreation industry to be $862 billion annually… more than mining, utilities, and farming and ranching. $862 billion puts outdoor recreation at 1.9 percent of the U.S. GDP. Outdoor recreation is not in every community in America, but youth sports are.
Youth sports facilities employ administrative, maintenance, and concessions staff to serve players and their families. The facilities are home to leagues that hire administrative staff, referees, and coaches. Youth sports facilities host clinics and tournaments which fill local hotel rooms and restaurants, further contributing to local economies. Leagues using facilities pay for their use and purchase uniforms and equipment for teams. And it’s not just the economic impact inside the youth sports complex — these facilities are a magnet for additional investment in communities as fueling stations, fast food and convenience stores, grocery stores, and chain drug stores are often developed around a facility, adding more jobs and contributions to local economies.
Name, Image, Likeness (NIL)
Bipartisan NIL legislation was introduced in the Senate by Joe Manchin (D-WV) and Tommy Tuberville (R-AL) on July 25th. The Protecting Athletes, Schools and Sports Act (PASS) would protect student-athletes, preserve college sports, increase NIL transparency, moderate the Transfer Portal, promote the health and safety of student-athletes, and give NCAA greater oversight.
In the House, the Committee on Energy & Commerce held a March hearing on NIL. All committee members and every witness, except the ‘unionize athletes’ advocate, agreed on the need for a national NIL law to level the playing field and provide transparency in the recruiting process.
Currently, 30 states have NIL laws and 20 do not. Witnesses and committee members agreed that the inconsistent laws are bad for college sports and are confusing to student-athletes. ‘Collectives’ that allow boosters to combine their resources to pursue potential players are a major problem. Laws regulating ‘Collectives’ vary widely from state to state, further tilting the NIL playing field. Small school sports programs, non-revenue, and Title IX sports are all threatened by NIL.
To date, the “Student Athlete Level Playing Field Act” (HR3630) is the only NIL bill introduced in the House. The bill would prohibit universities from blocking student-athlete NIL deals, and prohibit boosters from offering incentives to recruits and athletes in the Transfer Portal. An oversight body would be created to make recommendations on NIL and establish a dispute resolution process.
With the NIL playing field slanted heavily in favor of schools in states with NIL laws that allow boosters to have a role in the recruitment of high school players and the transfer of players from other schools, additional NIL bills have been teed up by Senator Ted Cruz (R-TX), Congressman Gus Bilarakis (R-FL) and jointly by Senators Richard Blumenthal (D-CT), Corey Booker (D-NJ) and Jerry Moran (R-KS) but none have been introduced.
Earlier this year, the NCAA announced that its NIL rules take precedence over state laws, further muddying the waters. ‘Collectives’ from USC (CA), UGA, UTENN, Ole Miss, University of Washington, and Clemson formed The Collective Association (TCA) to help clarify the current rules for student-athletes and universities and recommend new policies to improve the current system. It is unclear if the TCA is just playing defense or will work with Congress on a national NIL law.