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Key Takeaways: The Challenges of Detecting IP Infringement Online

According to the National Intellectual Property Rights Coordination Center, cases initiated against intellectual property theft are up 21%, with the sharpest growth occurring in the online space. In a recent webinar hosted by LegitScript, Peter Szyszko, CEO of White Bullet, delved into the pressing issue of online IP infringement and how to stop it. Read the key takeaways from our discussion and then watch the webinar on demand.

Understanding IP Infringement

Szyszko first divided IP infringement into two primary categories: copyright infringement and trademark infringement. Copyright infringement, often manifesting as digital piracy, involves the unauthorized distribution of copyrighted material such as movies, sporting events, games, and software. Trademark infringement typically involves counterfeit products that deceive consumers by mimicking genuine goods​​.

Regulatory Landscape of IP Protections

The regulatory environment around IP infringement has evolved significantly. Szyszko discussed several noteworthy regulations, including the Digital Millennium Copyright Act (DMCA) in the US and its counterparts, the Electronic Commerce Directive in Europe and the Copyright Act in the UK. These regulations facilitate the removal of infringing digital content from online platforms​​.

Recent legislation such as the US INFORM Consumers Act and the EU's Digital Services Act (DSA) have introduced measures to increase transparency and accountability. The INFORM Consumers Act mandates online platforms to identify high-volume third-party sellers, aiming to reduce counterfeit sales by ensuring seller legitimacy. Similarly, the DSA imposes stricter requirements on large platforms, ensuring quicker removal of illegal content and providing mechanisms for trusted flaggers to report infringements​​.

Challenges in Detecting IP Infringement

One of the significant challenges highlighted was the difficulty in distinguishing between legitimate and counterfeit goods or pirated content. For instance, counterfeit products often mimic the appearance and branding of genuine items, making detection challenging even for sophisticated platforms. Similarly, determining whether digital content is legally distributed requires meticulous analysis of licensing and distribution rights​​. Watch the webinar to see real case studies of these challenges.

Solutions to Stopping IP Infringement

Technology will play a key role in detecting and stopping IP infringement online. White Bullet’s approach to combating IP infringement leverages advanced technology to identify and mitigate risks. Their platform uses AI to analyze various signals such as keywords, image recognition, and metadata. This technology helps in identifying potentially infringing content, which is then risk-scored to prioritize enforcement actions​​. LegitScript now incorporates White Bullet's technology into its Marketplace Monitoring solution for e-commerce platforms.

Future Outlook of the IP Infringement Landscape

The webinar concluded with a discussion on the future of IP infringement prevention. Szyszko noted the importance of ongoing innovation in detection technologies and the need for robust collaboration between regulatory bodies, technology providers, and online platforms. The partnership between LegitScript and White Bullet exemplifies such collaboration, aiming to enhance the detection and removal of counterfeit goods from e-commerce platforms​​.

Learn More

Want to reduce your risk of IP-infringing sales? Learn more about LegitScript’s Marketplace Monitoring for e-commerce marketplaces and our Merchant Monitoring for banks, payfacs, and ISOs. Our combination of advanced technology and human insight helps you manage your risk while growing your business.

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