Amazon's New Terms of Service Explained Paragraph 4: Private Label Sellers

Summary

The video discusses the changes in Amazon's Business Solutions Agreement (BSA), particularly focusing on paragraph four which deals with licenses and intellectual property rights. The updated agreement modifies the language regarding the perpetual and irrevocable rights granted to Amazon, raising concerns about sellers' control over their materials, trademarks, and copyrights. The video highlights potential issues with the agreement, including Amazon's expanded rights to use sellers' intellectual property across its platforms and affiliated businesses, and suggests that sellers should be aware of these changes to protect their interests.

Takeaways

• 📜 The new Amazon Business Solutions Agreement (BSA) involves significant changes to sellers' contracts, particularly regarding intellectual property rights.
• 🔍 Paragraph four of the BSA focuses on licenses and intellectual property rights, which used to grant Amazon perpetual and irrevocable rights but now has been modified.
• 📝 Sellers are required to waive their rights to Amazon for the duration of their ownership of the original and derivative intellectual property rights, but it doesn't pass on to heirs.
• 🚫 Amazon has removed language that allowed them to reproduce, perform, display, and other rights, but has added more control over sellers' materials.
• 💭 The term 'materials' is broadened to potentially include trademarks, logos, copyrights, and licenses, which could impact private label sellers and their unique product differentiation.
• ⚖️ The BSA contains contradictions, stating that sellers can request removal of their products or intellectual property rights, but also asserts Amazon's right to use the materials without consent.
• 🔗 Referential use under trademark law is included, which typically allows third parties to use trademarks for commentary or educational purposes, but Amazon's retail role blurs this line.
• 🌐 Amazon's rights extend to all associated properties and affiliates, encompassing a wide range of current and future Amazon-owned businesses and advertising spaces.
• 🤝 The changes may lead to Amazon hijacking listings and selling counterfeit products, and sellers need to be aware of their rights and potential leverages against such actions.
• 📚 Education on the BSA provisions is crucial for sellers to make informed business decisions and to know how to argue their case if they face issues with Amazon.

Q & A

What is the primary focus of the video?

The primary focus of the video is to discuss the changes in the Business Solutions Agreement (BSA) with Amazon, particularly paragraph four, and its implications for sellers regarding licenses and intellectual property rights.

Who is the speaker in the video?

The speaker in the video is CJ Rosenbaum, the founding partner of the firm.

What does the video claim about the awareness of the BSA among Amazon sellers?

The video claims that many Amazon sellers are not aware of the existence of the Business Solutions Agreement, which is their contract with Amazon.

How has the language regarding the perpetual and irrevocable rights in the BSA changed?

The language has changed from 'perpetual and irrevocable' to a waiver of rights for the duration of the seller's original and derivative intellectual property rights, which means the rights are waived only for as long as the seller owns them.

What concerns does the speaker express about the updated provisions related to the seller's materials?

The speaker expresses concerns that the updated provisions may include the seller's copyright materials and licenses, which could potentially allow Amazon to act as a hijacker on the seller's product.

What is the significance of the removal of certain language related to Amazon's reproduction and performance rights?

The removal of this language indicates a shift in the agreement, potentially giving Amazon more control over the seller's intellectual property rights and the ability to use them without the seller's consent.

How does the speaker describe the internal consistency of the paragraph discussing intellectual property rights?

The speaker describes the paragraph as internally inconsistent, as it allows the seller to request the removal of their materials but also states that Amazon can use the materials without the seller's consent.

What does the term 'referential use' in trademark law typically refer to?

Referential use in trademark law typically refers to the use of a trademark in commentary, news programs, or instructional guides, where the trademark is used to describe or discuss the product rather than to claim ownership or endorsement.

What does the speaker suggest about the potential challenges to the new provisions in the BSA?

The speaker suggests that the new provisions may not stand and that they will challenge them in arbitrations, as they believe the provisions broaden Amazon's rights at the expense of the sellers.

What advice does the speaker give to Amazon sellers regarding the BSA?

The speaker advises Amazon sellers to educate themselves on the provisions of the new BSA, to understand their rights and the potential discrepancies, and to know where their leverages are in case they have a problem with Amazon.