WWE vs. Bootleggers

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2/17/2006
WWE: Company hires MarkMonitor to clamp down on illegal traders; eBay sellers already affected
Wrestlemag.com @ 5:15 pm
WWE yesterday announced that identity protection company MarkMonitor had been selected to monitor the sale of WWE merchandise via eBay in a move that has already caused confusion and upset for many traders.

The full press release issued yesterday reads as follows:

SAN FRANCISCO, Feb 16, 2006 /PRNewswire via COMTEX News Network/ – MarkMonitor®, the leader in online corporate identity protection, today announced that World Wrestling Entertainment (WWE) has selected MarkMonitor’s Auction Monitoringâ„¢ solution to monitor the sale of WWE® branded goods on eBay and to automate requests to terminate counterfeit and other unauthorized auctions. MarkMonitor’s Auction Monitoring solution is the newest addition to its integrated suite of online Brand and Fraud Protection services that provide end-to-end detection and aggressive response to a growing list of corporate identity-based threats from misappropriation of trademark rights, to unauthorized online sales of gray market and counterfeit goods to phishing.

More than $34 billion worth of merchandise exchanges hands annually at online retail auction sites; and while online retail and wholesale auctions have become major vehicles for the sale and distribution of legitimate products globally, they’ve also become a distribution channel for gray market sales and counterfeiters. A two year customer of MarkMonitor’s Brand Protectionâ„¢, World Wrestling Entertainment (WWE), creator of the popular television and pay-per-view shows such as Monday Night RAW®, Friday Night SmackDown®, and WrestleMania®, turned to MarkMonitor to address the increasing role of online auctions as a source of counterfeit DVDs/Videos and lost revenue.

“The trademark offenses are flagrant. I frequently identify counterfeiters on eBay selling illegal copies of our programming, Home Video releases, and counterfeit clothing,” said WWE associate counsel of intellectual property, Stacy Papachristos. “I used to spend several hours each day searching eBay manually for offenses. With MarkMonitor’s new auction monitoring capability, I’ll receive a daily automated snapshot of suspicious auctions and suspect resellers. Using one integrated workflow system, I can determine whether to send a cease and desist letter, to report the offense to eBay or, in the most egregious cases, request a suspension of the seller, and determine the necessity of further legal action.”

MarkMonitor’s Auction Monitoring gives corporations control of their brands and how their products – legitimate as well as counterfeit – are sold on online auction sites through a comprehensive corporate identity management solution that may also include domain management and fraud and brand protection. The service scans auction sites, identifies and prioritizes the abuses that are most costly or of greatest concern, and enables automated responses which allow for swift, meaningful action on violations.

“Online markets are growing rapidly, and unfortunately they are ideal for gray marketers and counterfeiters. It is no longer possible for companies to manually monitor fraudulent sales and brand abuse, much less take action and track results. MarkMonitor’s Auction Monitoring and other Brand Protection systems automatically find, prioritize and present the most serious problems, and then automate and track shutdown, cease and desist letters and other actions in a central case management system,” said Mark Shull, CEO of MarkMonitor.

Yesterday’s announcement from World Wrestling Entertainment has already seen action taken against traders on eBay, with the company seemingly primarily targetting traders selling material owned by WWE (including WWE, ECW, WCW, AWA and Jim Crockett material). In what is a strange stance from a legal viewpoint, WWE appear to also be going after traders who are selling material that WWE do not hold the rights to. We spoke to one promoter in the United States earlier today who has had a complaint filed with eBay, despite his promotion not selling footage belonging to anybody outside of the promotion itself.

The complaint raised failed to specify why action was being taken and the auction withdrawn, although from what we can gather, WWE may be taking action on the grounds that the material contains footage of former WWE stars who are part of their “Legends” program. If this is the case, it’s highly likely that the majority of promoters in the United States (and elsewhere for that matter) find that trading via eBay will become much harder.