SIIA and other organizations have well documented the problem of copyright infringement on auction and resale sites such as eBay, Amazon, Craigslist, iOffer and other similar sites.  SIIA and its members monitor these sites and perform test purchases looking for infringing content, and sometimes file lawsuits against the offending sellers.  The tide of these cases has not stemmed in 2009, as the need to maintain an effective deterrent presence continues -- both to protect the intellectual property interest of its members, and to protect their consumers against fraudulent attempts to pass off substandard goods as the "real thing."

SIIA has settled dozens of cases in the past year on behalf of its software and content members, some of which will be described in an upcoming SIIA press release.  The results have ranged from substantial financial penalties, to seller bankruptcies, and in some cases even jail time.  Dozens of more cases are on the way.  In tandem with SIIA's other educational efforts, the litigation programs aim to discourage careless or illegitimate online sellers attempting to make a "quick buck" by reselling copyrighted works (often obtained from unknown or suspicious sources), and encourage buyers only to use known, verified sites and sellers to make purchases.

About two years ago, SIIA developed the first eBay auction enforcement program in the software industry.  Later, the program was expanded to include other content.  SIIA staff monitors eBay for infringing goods, and also receives reports from member companies and eBay buyers.  Many dozens of illegal sellers have been sued and paid thousands of dollars in damages (and penalty).  Some knew full well what they were doing and paid a substantial penalty – included jail time in some cases, bankruptcy in others.  Other sellers simply thought they had stumbled upon an easy way to make a quick buck, and did not sufficiently investigate the source of the goods they sold.  Unfortunately, copyright infringement is a strict liability offense (no intent needed) so even the simply careless sellers are held legally responsible.

The greatest indication of SIIA’s auction enforcement success is that pirate sellers have now begun to migrate to other auction sites and similar consumer sites, such as iOffer, Amazon, and Craigslist.  That is not to say that piracy has been eliminated from eBay; it has not.  But while eBay once stood out as the most obvious forum to obtain pirated software and other illegal goods, its competitors now pose a similar threat to consumers and copyright owners.  

Thus, SIIA and its members have begun targeting some of the other auction sites for “clean up.”  The first infringement suits against sellers on Amazon and iOffer were filed last week.  iOffer has offered its cooperation, understanding that infringing goods harms the reputation of its site and undermines consumer confidence.  Soon, lawsuits will likely follow on Craigslist and similar services.

The upshot is that consumers need to be careful what they are buying not only on eBay, but all similar sites.  Many of the sellers are either intentionally selling counterfeit goods, or “drop shipping” the product, i.e. ordering shipment directly from a foreign country such as China and never inspecting the goods.  Read the product listing closely.  Compare the price to “off the shelf” items in retail stores or other trusted sources, such as the software publisher itself.  If an online store is listing a work at a price that seems to good to be true, it probably is.  And if you receive a product that turns out to be counterfeit, contact the software publisher or SIIA.  We probably cannot get your money back, but we can help stop the infringer from harming other consumers.