What’s the name of the game? Birkenstock wins against Amazon in court

German company Birkenstock won a court ruling that stops Amazon from luring customers to their site when they search for misspelt variations of the brand name, such as ‘Brikenstock’ or ‘Birkenstok’.

Customers being directed onto Amazon might come across bad quality counterfeits of Birkenstocks…

Last week, Reuters UK reported on how the sandal manufacturer convinced a German court that Amazon had booked variations of the Birkenstock name as keywords in Google AdWorks. This would take shoppers misspelling the brand onto Amazon to find the shoes there rather than on the Birkenstock site.

Since customers being directed onto Amazon might come across bad quality counterfeits of Birkenstocks, the company argued an injunction was necessary to protect the brand’s reputation.

But surely this would stop Birkenstock from getting sales for its own, original items, on Amazon?

Well, not exactly – Birkenstock has had a rocky relationship with Amazon over recent years. Last year, Birkenstock USA stopped supplying products to Amazon, and authorizing third-party sellers to Amazon. The company also filed various complaints against Amazon, including that the site allows the sale of items that breach Birkenstock trademark rights.

The truth is that Amazon makes money with these fakes […] As far as we’re concerned, Amazon is an accomplice…

Last week, Birkenstock CEO Oliver Reicher followed suit. Stating that the retailer “failed to proactively prevent” the sale of fake goods, he issued a declaration of termination of business relations with Amazon. He told German newspaper Spiegel News Weekly; “If you sell dodgy merchandise on our marketplace, you have to answer to that,” adding, “the truth is that Amazon makes money with these fakes […] As far as we’re concerned, Amazon is an accomplice.”

A spokesperson for Amazon, whilst declining to comment on the court proceedings of last week, has said that “Amazon prohibits the sale of fraudulent products,” and that the company works to prevent fraudulent goods from being sold on its website.

In terms of sales and profit for the German shoemaker – one might consider that cutting ties with Amazon could be dangerous for the company. Recent industry figures show that Amazon was the leading e-retailer in the US for 2016. In a world of evolving global commercial trends, companies must adapt and react – and internet shopping is a trend that in particular has sky-rocketed over recent years.

By withdrawing its own sales, it may also be leaving a Birkenstock-shaped gap on the Amazon site for counterfeit items to fill…

Although the brand has made a brave effort to crackdown on counterfeit sales, it could also be losing sales on Amazon for its authentic stock.  By withdrawing its own sales, it may also be leaving a Birkenstock-shaped gap on the Amazon site for counterfeit items to fill.

The court ruling in question is a step towards the prevention of counterfeit sales. The injunction picked on a digital quirk that allowed counterfeits to be accessed easily and unsuspectingly. Being the first of its type, the real benefits and consequences of pursuing a this kind of lawsuit are yet to be seen.