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> Gray market = not using official supply chain. That is the traditional meaning of grey market, but I don't think that's what Amazon meant here. Amazon isn't
by speedplane 7y ago
> Gray market = not using official supply chain.
That is the traditional meaning of grey market, but I don't think that's what Amazon meant here. Amazon isn't threatening to import Tile and Sonos devices from other countries, they are threatening to use cheaper no-name knock-offs. The meaning of "gray market" has expanded over time.
- makomk 7y agoI think that's exactly what Amazon meant here. See the comment someone posted elsewhere in the discussion about PopSockets suing companies who resell their actual, genuine products sold by them at wholesale for lower retail prices than they want under the dubious pretext that they become counterfeits simply through leaving the approved retail chain.
- speedplane 7y ago> I think that's exactly what Amazon meant here. See the comment someone posted elsewhere in the discussion about PopSockets I can't speak to PopSockets, but both Tile and Sonos are companies that are small enough to still have a huge amount of runway within the U.S., Europe, and Japan. I would be very surprised if this dispute was because Tile/Sonos were selling their products at a discount abroad and Amazon was threatening to bring that discount into the U.S. The far more likely scenario is that Amazon is threatening to promote cheaper knock-off goods that likely infringe patent and trademark rights. The reason that Amazon can get away with this, is that enforcing those patent and trademark rights is incredibly expensive, potentially millions of dollars a year. Amazon is smart and knows the cost of litigation, and likely asks for discounts close to (but a bit less) than the amount that it would cost the company to actually defend their rights.