Hello there, I’m Dan, a seasoned expert in the print-on-demand business, e-commerce, and online marketing with a deep-seated understanding of SEO. My mission is to help you thrive in the world of online profits and create sustainable passive income. Today, I want to shed light on a growing issue on one of the largest online marketplaces – Etsy. We’re going to delve into Etsy’s handling of copyright infringement, a concern that affects many sellers, particularly the smaller businesses trying to carve out a space for themselves in the bustling online market.
People have told me a lot of stories about how their accounts got banned for minor violations, how their own designs have been stolen, and all they’re getting are the cold shoulder and pre-written e-mails from Etsy. So let’s dive deeper into what’s actually happening and if it’s worth signing up for Etsy.
The Problem with Copyright and Trademark on Etsy
On any given day, Etsy has a staggering amount of merchandise available for sale, almost a 100 million products. However, there’s a hidden thorn amidst this flourishing garden – the frequent banishment of sellers because of unintentional copyright infringement. More often than not, these account takedowns are precipitated by false claims and aggressive trademark squatters looking to profit from unsuspecting small business owners.
It’s a troubling situation, and it’s further exacerbated by the perception that Etsy’s system of handling copyright violations is uneven, often leaving the big players unscathed while punishing the small sellers who may have unintentionally crossed the line or is still learning.
The Double Standard
Consider this: Etsy is teeming with products that are clearly in violation of copyright laws. Unauthorized Disney, Gucci, Nike or Warner Bros prints? They’re all over the place. These big sellers, leveraging automation and deploying blatantly infringing products, generate millions of dollars in revenue each year, yet their stores remain active. One can’t help but wonder why.
Let me share an example. A quick search of “Disney” on Etsy yields a sponsored product that is clearly tagged with both Disney and Minnie Mouse. A simple $16 t-shirt, with thousands of sales and clear copyright violation. Is this licensed merchandise approved by Disney? No. Yet the store selling this print has amassed over 20,000 sales, which equates to at least $320,000 of revenue, mostly from selling unauthorized Disney and Star Wars merch.
The Impact on Small Sellers
As a small business owner trying to succeed on Etsy, it can feel like you’re fighting an uphill battle. Despite playing by the rules, you may find your account at risk over a single unintentional mistake. This system doesn’t just threaten your Etsy store – it threatens your whole business and possibly your livelihood.
For instance, you might find your shop taken down because you used a trademarked term, like “supreme“, as a simple adjective in your product description. Now this is a simplification, but almost every word these days has been trademarked. It’s a harsh reality that sellers on Etsy must face. Even more disheartening is seeing your designs replicated en masse and sold, while you don’t see a penny from these sales.
The Bigger Picture: Systemic Inaction
At the heart of this issue is Etsy’s seeming indifference to addressing this systemic problem. Despite the rise of technology and even AI, they have yet to implement a program to halt products containing famous trademarks until they’ve been verified by a human. It’s hard to shake off the feeling that Etsy might be willing to look the other way, letting the revenue from these big sellers take precedence over upholding copyright law and protecting smaller sellers.
What You Can Do to Protect Your Business
Despite these concerns, Etsy remains a significant platform for online sellers. If you choose to sell on Etsy, proceed with caution. Be aware that your store might be taken down overnight. It’s vital to build your e-commerce store on a more secure platform where you have complete control over your content. Shopify, Woocommerce, and Squarespace are great alternatives where you own your store and can back it up.
Remember, there are predatory sellers who watch for small, successful stores, waiting to pounce once they’ve gained traffic and sales. They might trademark your designs or the phrases you use, then hit Etsy with DMCA notices, reaping the benefits of your hard work while you face a lifetime ban from Etsy.
Don’t believe me? Search USPTO’s trademark database for any word you have printed on a shirt or poster. Someone will with 99% likelihood have registered it and if you are unlucky, it can be used against you. It doesn’t matter if it is a legitimate trademark or not for how you are using it. Etsy will listen to them, not you.
Should I be selling on Etsy?
Don’t forget, you are not the owner of an Etsy store – Etsy allows you to manage one of their numerous stores that you’ve created for them, until they decide otherwise. If you’ve built a successful business on Etsy and find yourself blocked, transferring or starting anew will be a challenging task that could result in significant revenue loss.
In conclusion, if you’re serious about your online business, consider platforms where your hard work cannot be easily taken away. No one is truly safe on Etsy, and it’s essential to keep this in mind as you navigate the world of online selling.
Here are some quick links to some great alternatives I recommend for hosting your print-on-demand store.
