Dropshippers don’t often think about copyright infringement until it’s too late. Dropshippers don’t set up dropshipping businesses expecting to be sued for copyright violation. Dropshipping is a popular e-commerce business model and can be made a full-time career. Dropshipping is a time-intensive business that requires a lot of effort. You don’t want to end up spending hundreds, or even thousands of dollars on copyright violations.
You need to know how to avoid copyright infringement, whether you are a beginner or an experienced dropshipper. Dropshipping is expected to grow to nearly $560 million by 2025. Brands are now actively looking for copyright infringements.
Doba helps dropshippers grow their businesses by providing them with access to top-quality suppliers and products. Our platform allows you to easily add products to your website and sync orders quickly. Without compromising copyright, we’ll help find the best products for your business.
So that your business is successful, we’re sharing our top tips to avoid dropshipping copyright infringement. Each copyright infringement could cost you anywhere from $500 to $30,000 Dropshipping is not worth the risk. These tips will help you avoid copyright violations that could lead to your loss of profits or even the closure of your dropshipping site.
What does copyright infringement mean?
Copyright infringement occurs when you copy works that are protected under copyright law and do not have permission from the rights owner. You will be violating the exclusive rights and control of the copyright holder if you don’t get permission.
To obtain rights to copyrighted materials, you will usually have to pay a fee or royalties. Rights holders can also bring legal action against anyone who uses their material without permission. Depending on how severe the copyright violation was, you might receive a takedown notice to remove an item from your dropshipping site or be subject to civil litigation.
Images and products that are copyrighted
Counterfeiting can be a serious violation of copyright and could even result in criminal prosecution. Dropshipping is a way to ensure that vendors you choose aren’t selling copyrighted items. Dropshipping companies like Alibaba are well-known for selling copyrighted products, especially from Disney brands.
Also, be cautious about the photos you use in dropshipping stores. Although you might believe that attribution of a photo to the owner and credit are sufficient, it is not enough for copyright law. To use the photo, you will need their explicit permission. Any alteration to the image is a violation of moral rights.
These are our top tips for how to avoid a copyright violation for dropshipping businesses.
1. Only work with authorized distributors
Dropshipping vendors that have permission to use copyrighted material can be found. Dropshipping vendors who are licensed and accredited distributors should have no problem adding these products to their website. Dropshipping vendors can also get their products directly through the manufacturer or copyright holder.
There will be Chinese factories producing products that violate copyright and trademark laws. China has no copyright laws, and illegal items are the norm.
If you are a licensed distributor or vendor, you can still sell licensed items or brand products on your dropshipping site. You can sell your products through your dropshipping shop if they are legal.
2. Find out more about the factories
Dropshippers want to feel confident about the products they add to their website. Every situation should be approached with an open mind and an eye for auction. There are some fraudulent authorized distributors. These vendors claim to be authorized resellers but have forger their licenses. They might also claim to be authorized resellers of ‘overstock’, but they may lie about having a cosmetic defect’.
The term “cosmetic defects” is often used to describe counterfeit or unauthorized copies. This term is used to hide imperfections that could otherwise indicate an item being counterfeit or an illegal copy.
You should find out the location of any factories that manufacture items you are adding to your shop. If the vendor claims that they are selling “overstock”, ask the distributor for proof that the products come from their factories.
3. Create your product listings
You need to be cautious with not only the product images, but also the text of your product listing. Copying and pasting product listings from another retailer’s site without permission is a violation of copyright.
Dropshipping merchandise from an authorized distributor won’t give you permission to use their product descriptions. If you are not able to write engaging copy, writing a product description can be difficult and time-consuming. Hire a freelancer to create original, engaging descriptions for your website.
4. Photograph the item yourself
For product listings, the best thing you can do is to purchase samples of the products and take photos. These photos can be used for product listings or social media, which is a win-win situation for organic content creation. You can create a better product description by having the product in hand. You’ll also be able to inspect the item and take your photos, for which you will retain the copyright.
5. You might consider selling white-label products
White label products are a good option when choosing products to dropship on your website. These products are those that the manufacturer permits other companies to rebrand and then sell with their logo. White label products are sold in their original form, or can be rebranded with no copyright issues. This includes personalized items such as mugs, t-shirts, and customizable items like makeup bags.
6. Learn the basics about copyright law
If you are sued by copyright holders, it won’t matter if you claim that you don’t have any knowledge about copyright. You should learn about copyright law if you are serious about dropshipping. Websites of the U.S. government – such as the Copyright Office Copyright Office will provide all the information you need to fully understand copyright.
7. Do not forget to mention trademarked names or products
You can’t forget trademarked names or products, just like copyrighted articles. Both trademarks and copyright work together. A trademark is usually identified by its (r) symbol located next to its name, or TM. A trademark is an intellectual property that is protected by law.
This is illustrated by Disney’s baby Yoda character, which went viral following the release of The Mandalorian. The trend was quickly adopted by keen entrepreneurs who began creating everything from stickers to coffee cups to t-shirts. Disney then intervened.
Disney took legal action against trademarked products that included terms such as ‘The Mandalorian, ‘baby Yoda, and ‘Star Wars. Etsy sellers had their listings removed and in some cases their shops removed from the site. Disney is an example of a company that actively takes action against dropshippers and vendors who sell trademarked or copyrighted goods.
Dropshipping websites can’t sell a mouse-shaped dish or bowl without violating trademark law. It’s not a way to guarantee that you will receive a Disney takedown notice, even though it may seem innocent.
Avoid branded products when you choose which items to sell through your dropshipping site. Doba can help you locate authorized branded products to sell on your dropshipping site to protect your business.