CASE TRX Flashcards
(6 cards)
What made TRX a target for counterfeiters?
TRX had strong market demand, a high price-to-cost ratio, and a one-size-fits-all design—ideal traits for counterfeit products.
Example: Counterfeiters could sell fake TRX systems for $45 compared to the real product’s $180 price.
Why are design patents more useful than utility patents in online marketplaces?
Online platforms like Amazon enforce design patents more readily because they are easier to verify than complex utility patents.
Example: A design patent on TRX’s strap appearance could be enforced without a court ruling.
What is the difference between a counterfeit and a knock-off?
A counterfeit uses the original brand name and design, while a knock-off mimics the product without using the brand name.
Example: A fake TRX with the logo is a counterfeit; a similar strap without the logo is a knock-off.
Why was suing counterfeiters a difficult decision for TRX?
Lawsuits are expensive, time-consuming, and may not result in financial recovery or stop other infringers.
Example: Even if TRX won a case, the infringer could declare bankruptcy and other copycats could remain.
How did TRX eventually gain Amazon’s cooperation?
TRX threatened to go public with its story, prompting Amazon to assign a brand protection director to work with them.
Example: After a letter to Amazon’s general counsel, TRX became a trusted partner in anti-counterfeiting efforts.
What tactics did counterfeiters use to boost sales online?
They used fake reviews, copied images, and bought search ads using TRX’s trademarks.
Example: A fake review might claim a knock-off was better than TRX, written by a “personal trainer.”
