Tips to Protect Your Brand Against Online ......Cyber Robbery Internet EffectInternet Effect • Increase in ecommerce sites with fake goods • Increase in domainIncrease in domain

Cyber Robbery

WELCOME TO OUTDOOR UNIVERSITY®

Cyber Robbery:Cyber Robbery:Tips to Protect Your Brand Against

Online CounterfeitingOnline Counterfeiting

Presented by

Cyber Robbery

Alina Halloran

VP, Global Online Brand Protection

OpSec Security, Inc.

Presentation Focus:Online Exposure for the Outdoor Industry & Best

Practices in Enforcement

Cyber Robbery

C G th & C t f itieCommerce Growth & Counterfeiting

• B2C ecommerce will reach $1 2 trillion worldwide in 2012*B2C ecommerce will reach $1.2 trillion worldwide in 2012

• B2B ecommerce will reach $12.4 trillion worldwide in 2012*

• 22% of consumer goods sold online are counterfeit!**

• 3 product categories (computers apparel and consumer• 3 product categories (computers, apparel, and consumer electronics) represented 44%+ of online sales ($67.6 billion) in 2009*

*F t R h*Forrester Research**World Intellectual Property Review

Cyber Robbery

• Online counterfeit sales are increasing

Common Challenges in the Outdoor Industry

• Consumers are looking for bargains & aren’t well educated about the issues of counterfeiting

• The Internet is global, dynamic, and vastg , y ,• It’s difficult to quantify the size and scope of the problem• Many don’t know where to begin • Combating counterfeiters online can feel like whack a mole• Combating counterfeiters online can feel like whack-a-mole• Budget constraints limit ability to take action• It’s a challenge to measure success

Cyber Robbery

K A Wh C OKey Areas Where eCommerce Occurs

B2CB2C Auctions

B2B Trading Platforms

Social MediaRetail Sites Sponsored Links

Retail Websites

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O td I d t E A l iOutdoor Industry Exposure Analysis

• Included 15 Outdoor Industry Companies• Analyzed exposure on:

– B2C Auction Sites– B2B Trade Boards– Retail Sites

• Blinded Examples

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B2C Trading Platform Exposure O C

Outdoor Industry Exposure (15 Companies)B2C Platforms

Outdoor Industry Companies358,930 listings

 100,000

 120,000109,022 

83,761  B2C Platform Alexa* Rank

across 15 outdoor brands

 60,000

 80,000

,

73,000 68,040 

ber o

f Llistin

gs

B2C Platform Alexa RankTaoBao 13

Amazon.com 15eBay US 21Craig’s List 34eBay UK 97

 20,000

 40,000

16,352 

5,155 3,600 

Num

b eBay UK 97eBay Canada 1,063

iOffer 1,688

A lower traffic rank indicates a

 ‐eBay.com eBay.ca TaoBao eBay.co.uk Amazon iOffer Craigslist

(top 50)Platform

higher volume of visitors

Cyber Robbery

B2C Trading Platform Exposure Example - XYZ

•eBay seller: golfmanx413 •eBay seller changed ID in September 2010•Selling multiple colors and sizes in ‘factory packaging’y p g g•Offered below retail price

Cyber Robbery

B2B Trade Board ExposureO COutdoor Industry Companies

17 383* li ti

8 242

Outdoor Industry Exposure (15 Companies)B2B Platforms

17,383* listings across 15 outdoor brands

 6,000

 8,000

 10,000 8,242 

4,765  4,376 

r of Listin

gs

B2B Trade Board Alexa* RankAlibaba 90

Made‐In‐China 1,066DHGate 1,361EC21 2,383

 ‐

 2,000

 4,000

Alibaba DHGate ECPlaza EC21 Tradekey

189  136 

Num

ber

A lower traffic rank indicates a higher volume of

ECPlaza 3,356TradeKey 11,259

Alibaba DHGate ECPlaza EC21 TradekeyPlatform

gvisitors

At an avg quantity of 500 units per listing, total volume is: 8.7M!g q y p g

Cyber Robbery

B2B Trade Board ExposurepOutdoor Industry Companies

FOB Price: US $13 - 15 / Pair Get Latest Price

2011 Hot Selling Vibram Outsole Waterproof Outdoor Hiking Shoes

Port: XIAMENMinimum Order Quantity: 1200 Pair/PairsSupply Ability: 5000 Pair/Pairs per DayPayment Terms: L/C,T/TSample or Mini-Order: Order now via

Supplier DetailsppJinjiang Boteng Shoes Co., Ltd. [ Fujian, China (Mainland) ]Business Type:Manufacturer, Trading Company

Cyber Robbery

Retail Website Exposure O td I d t C iOutdoor Industry Companies

www.perfectwinter.net

4 Brands

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Retail Website Exposure O td I d t C iOutdoor Industry Companies

www.northfacesaleoutlet.com

4 Brands

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What Can You Do?CB2C Auctions

B2C Auctions

• Monitor platforms consistently• Terminate infringing listings through IP Protection program• Obtain seller contact detailsObtain seller contact details• Conduct seller link analysis to detect high volume

sellers/networks & investigate• Pursue monetary damages, where applicable

R t t i• Request account suspension• Terminate payment processing accounts (PayPal, Western

Union, Visa, M/C, etc.)

Cyber Robbery

What Can You Do?fB2B Trading Platforms

B2B Trading Platforms

• Monitor sellers offering large quantities offered at deep discounts• Terminate infringing listings (on boards that operate IP

Protection programs)• Create seller target lists to support case building & investigative

efforts• Join the OIA Task Force & cooperate with other OIA membersJoin the OIA Task Force & cooperate with other OIA members

on investigations to save money and increase impact

1

Cyber Robbery

What Can You Do?Retail Websites

Social MediaRetail Sites Sponsored Links

Retail Websites

p

• Monitor independent retail sites • Identify hub/storefront networks• Analyze pricing, payment methods and other key attributes

P i iti f ti b d ti it• Prioritize for action based activity • Conduct seller link analysis to identify high volume players• Suspend payment vehicles- PayPal, Western Union, Visa/MC, etc.• Submit request to de-index counterfeit sites from Googleq g• Leverage social media IP protection policies to remove infringing

content• Pursue UDRPs for domains that are infringing on your trademarks

Cyber Robbery

In SummaryIn Summary…Approach Description

Monitor & Assess Exposure • B2C Auctions, B2B trade boards, domain names, retail websites, sponsored links social mediasponsored links, social media

Quantify & Measure • Establish a baseline of activity from which to measure; provide to senior management for support

Network Analysis • Analyze marketing affiliate networks to identify most harmful operatorsoperators

Case Building • Online investigations and intelligence gathering to build a case for litigation; collaborate with other OIA members to share costs

Test Purchases • Purchase goods to confirm counterfeit and use as evidence

Infringement Notifications • C&D letters to infringers• DMCA notices to ISPs• NOCI notices to platforms for takedowns

UDRP • ICANN dispute resolution process for recovery of rogue domains infringing on your trademarksg g o you t ade a s

Stop Payment Processing • Liaison with payment processors to suspend accounts of counterfeiters

Industry Trends • Latest developments of Internet platforms, recent legal precedence, new legislation, OIA Internet Task Force

16

g ,

Cyber Robbery

Randall S. Rabenold

Global Investigations Coordinator for the The North Face® brand

Owner, Vaudra Ltd.www vaudra comwww.vaudra.com

Cyber Robbery

I t t St t• 1st Quarter 2008

Internet Stats1 Quarter, 2008– Removed 240,000 fake items

• 1st Quarter, 2009f– Removed 15 million fake items

• 6,250% increase

Cyber Robbery

Internet EffectInternet Effect• Increase in

ecommerce sites with fake goodsIncrease in domain• Increase in domain registrations, particularly cyber & p y ytypo squatting on THE NORTH FACE trademarktrademark

North-face-outlet-sale.com

Cyber Robbery

ONLINE SALES OF FAKESONLINE SALES OF FAKESWERE BOOMING.

Cyber Robbery

CBP St tCBP Stats• Increase in air shipment seizuresIncrease in air shipment seizures• Slight decrease in cargo shipment

seizuresseizures

What does itmean?mean?

Cyber Robbery

Counterfeiting Economy

• Increase in online sales• Increase in small air shipmentsp

Wh ?Why?

Cyber Robbery

Means of Internet SalesO li ti & l ifi d d it• Online auction & classified ad sites

• Stock lot sales & trade boards • Retail website sales • Social networksSocial networks• Spam / Phishing

B2B il d ff / Ph t li k• B2B e-mailed offers / Photo links• Parked / Inactive Domains

Cyber Robbery

Making the Most of VeROMaking the Most of VeRO& Unhappy eBay Sellers

Cyber Robbery

Case Study: Unwitting eBay Informants

S• US eBay seller, eztrade• Complained about

removed listingsremoved listings• Said his jackets HAD to

be originalbe original• As proof, sends an

invoice identifying his domestic supplier

Cyber Robbery

From Online to On the Ground…

Cyber Robbery

B2B Internet Offers

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When Considering Enforcement against China-based Websites… g

…not anymore.

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Case Study: Rogue Websites, Fujian

• Recent civil action• Global reach• Global reach• How it started &

where it ledwhere it led• Fujian Sharing tactics

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Rogue websites (cont.)• Case is ongoing• Self-fundingg

- Over $1.7 million collected & paid- Over 1 400 websites deactivatedOver 1,400 websites deactivated

Cyber Robbery

Questions?Alina Halloran

VP, Global Online Brand ProtectionOpSec Security, Inc.

[email protected]

Randall S. RabenoldGlobal Investigations Coordinator for the The North Face® brand

Owner, Vaudra Ltd.,[email protected]

Cyber Robbery

Cyber Robbery

Th k YThank You