Liability incentivizes cooperation between brands and platforms – that makes it easier for small platforms to enforce

Upon the implementation of this new test, it would take at least eighteen months for online marketplaces, third-party vendors, and consumers alike to feel its positive impact.257 In the beginning, online marketplaces will likely expend more costs on personnel and machine-learning technology to comply with robust anti-counterfeiting measures.258 At first blush, it might seem that this proposal only benefits large online marketplaces. However, this is far from the case. E-commerce giants like Amazon and eBay would need to hire more personnel, like private investigators, to screen listings for possible infringement.259 Smaller companies like Etsy, for instance, who make money by empowering sellers, would also benefit.260 For example, better communication and greater collaboration between brand owners and online marketplaces can increase the detection of counterfeit activity.261 Alibaba, for example, provides automatic notice and takedown measures.262 If a seller fails to reply to an original complaint of trademark infringement, Alibaba automatically removes the listings with the products.263 According to Alibaba, it spends more than $16.1 million annually in efforts to combat counterfeiting.264 The marketplace, which aims to support small businesses, delists infringing listings as soon as possible.265 Brand owners would also be more likely to cooperate with online marketplaces’ investigators regarding their recent products and designs by meeting with them occasionally and providing them with informational documents.266 Third-party sellers using the platform could opt to take their business elsewhere in the absence of anticounterfeiting resources.267 Therefore, the long-term effects will likely weigh against any short-term difficulties.