Warning: Counterfeit Watches Inside Your Favorite On-Line Market Place

Tiffany Inc. v. eBay Inc., 600 F.3d 93, established that trademark owners have the burden of policing for counterfeit items when their products are sold in an online marketplace. United States Court of Appeals for the Second Circuit.



You may or may not have noticed someone selling "Authentic" Hamilton Watch Bands on eBay for bargain prices. Or perhaps it's a Panerai or an Omega? You want to buy one. You hesitate. Why? Seems to good to be true?

Let's pretend it's a Hamilton band, because we can use it to observe a real-life situation.

This is another one of those times to proceed with caution. The product may have a Hamilton logo, but may not have been made by Hamilton. It's not unusual for replacement band manufacturers to use the logo of an original brand owner and deliver them in the replacement manufacturer's packaging.

To my knowledge, Hamilton does not work with replacement manufacturers. Instead, the company manufacturers their own replacements and distribute them through their network of authorized dealers - companies like Neiman Marcus, Culwell, Bloomingdale's and so forth.

Alleged New Old Stock Hamilton Band Circa 二〇一六年

Throughout the years, Hamilton prided itself on quality. Today, they make even higher quality products than at any time in their history - regardless of ownership or location. Even within the Swatch Group Ltd, Hamilton continues a tradition of quality. Of the 19 Swatch Group's brands, Hamilton occupies a special place below the exclusive luxury brands and above others like Tissot.

I doubt you will find authentic Hamilton accessories in a low price range. You can expect to pay around $100 for a plain authentic Hamilton Band. Why do so many Hamilton bands in the $20-30 range exist on eBay and Amazon?

They're possible fakes or replacements taken out of the aftermarket packaging and listed as a Hamilton. Call it like it is, Tom. They're not Hamilton watch bands. I bought several for this article and they look nothing like the Hamilton bands in my collection - dating from the late 1930's to 2015.

What's the difference in the construction of the band?

First, understand that the term NOS means an original product in it's original packaging. Notice the catalog page above. In it, you can see the depiction of a band in its original packaging. NOS means that they product is old inventory.
Real NOS Hamilton bands have a unique construction. The company used a single piece of leather for each piece and folded it over, then stitched it. The Hamilton name and crest look like they have been branded into the leather.
Later bands (since the 1980's) also have a leather inside and they too have what appears like a brand or well defined impression. Hamilton also imprints the serial number - a code that begins with an "H". For example, H600324112 is the imprint on my American Classic Jazzmaster Chrono, which some may know as having a Guilloche dial.
The part number always begins with a "H" followed by nine numbers.The part number will have an imprint on the buckle side of the band (the short side).  Also, note the detail under below the buckle in the photo to the right. The second loop is secured to the band. That keeps the loop from falling off if the band is detached from the case for any reason.

Also note the stitching. It's much higher quality, even and away from the edge. Finally, you will not see a country of origin on Hamilton bands. A logical explanation exists for that, but we don't need a ten page discussion on the Swiss watch industry at this point.



Where Do They Come From?

You'll have to ask the sellers. I have. No one's talking.

Asian companies manufacture 98% of the watch bands in the world. Globalsources.com reports 4,564 watch strap manufacturers list on their site. That's a lot of companies competing for the same dollars. Using well-known brand names on their product can give a watch strap manufacturer an advantage. That's just one of many possibilities.

I can't point an accusatory figure at any specific company in Asia or anywhere else. I'm not sure who makes the bands I have acquired.  That said, we have seen outsourcers, such as leather companies, provide products to syndicates of "ask no questions" sellers. Some have "Made in the USA" and some say "Italy" another says Germany. On examination, they have identical stitching, leather, finish, clasps and pin holes.

Here's they rub, Hamilton bands do not come from the US or Italy. Germany? No.

Hamilton Watch Does Not Sell Their Products on Amazon or eBay

When I look on eBay for Hamilton watch bands, I know that I'm not going to find listings from the company. If I'm lucky, I'll find a random listing of a band someone found when a jewelry store closed. According to Hamilton's parent company, Swatch Group, Ltd., authorized Hamilton retailers will lose their standing by listing on eBay, Amazon or similar sites around the world.

I've placed some photos of Hamilton bands I have bought either on eBay or when one of my associates informs me of a jewelry store closing.

In the picture below, I've pointed to an authentic Hamilton watch band. I have several similar to the one in the photo. Prior to the 1971 purchase of Hamilton Watch division, the company marked their bands (and other accessories) with the Hamilton crest. Typically, you won't see that on New Old Stock (NOS) bands sold on eBay and Amazon. Occasionally, you will. Expect to pay close to $100 for those.

What about the fake bands? Next you'll want to know how "they" get away with it.

Tiffany Inc. v. eBay Inc., 600 F.3d 93, established that trademark owners have the burden of policing for counterfeit items when their products are sold in an online marketplace. United States Court of Appeals for the Second Circuit.

eBay and Amazon do not have to police their sellers. The trademark owners must do that through a program known as VeRO (Verified Rights Owners).

Here's a quote from the eBay Help & Contact pages:

As part of our mission, we are committed to helping to protect the intellectual property rights of rights owners and to providing our users with a safe and enjoyable place to trade.  

For this reason, eBay has created the Verified Rights Owner (VeRO) Program so rights owners can report listings that infringe their rights. Any person or company who holds intellectual property rights (such as a copyright, trademark or patent) which may be infringed by listings or items sold on eBay is welcomed to participate in the VeRO Program. 

That doesn't mean eBay ignores replicas, fakes and counterfeits. It just means that the Swatch Group Ltd. should police and enforce their trademarks, but they don't. Thus, we have problems with Hamilton watches and accessories. It's as if jerks have free reign to dump fake watchbands on eBay, where I list my watches.

But alas, we can help.

eBay established another program, eBay Against Counterfeits. It's actually a comprehensive program and does work. I'm a Verified Rights Owner and have had to enforce one of my copyrights, but eBay is proactive. Click on the link and get an idea of how the program works.

Here's the Rub

To keep fakes off the site, we have to work pro-actively. I don't mind that, if I see something strange in the course of doing business. In the course of business, I discovered what I believe are fake Hamilton bands.

At first, I thought I found an isolated incident. As I have delved further, I believe the problem is pervasive. Many sellers have listed bands as "Authentic Hamilton" and they look like the first band below, which I refer to as Item 1.

I bought Item 1. I wanted to see if this band came from Hamilton. In my opinion, the answer is "no". The stitching is ragged and unfinished, the inside is soft and flimsy and it doesn't have an a Hamilton part number. The clasp has "Inox" on it, meaning Stainless Steel. Hamilton doesn't put Inox on their clasps or 316L SS. They imprint word "Hamilton" on their clasps. That's my experience.

I photographed Item 2 after removing it from one of my Wilshire watches. As you can see, it doesn't have the Hamilton crest on the long end of the band. It does have Hamilton ed on the clasp. It's well made, properly stitched and made with high quality "skin". I've seen hundreds of Hamilton watch bands and they all have been made with care and the highest quality materials.

Item 3 is a Hamilton band from 1949. It's in excellent condition and quite supple. I maintain it with mink oil. It goes to prove that quality products can last a very long time.

Item 1: Alleged New Old Stock Hamilton Band Circa 二〇一六年

Item 2:  Hamilton Band Circa 1982

Visit Adelsten & Sohne

Item 3: New Old Stock Hamilton Band 16mm 1949

Recap:

The Swatch Group, Ltd. owns Hamilton and they manage all sales channels. eBay is not an authorized sales channel, so Swatch doesn't manage it. If you buy something with a Hamilton stamp on it and you didn't buy it from shop.hamiltonwatch.com  then Swatch will not honor the warranty. That's it.

swatch also has failed to maintain their Hamilton trademark. I have seen homemade watches on eBay with Hamilton movements listed as "Hamilton watches". I find that quite confusing.

Back to the bands:

I purchased Item 1 from a "Top Rated Seller". They had two size 18mm Hamilton bands and that was all. Now, they have 15 listed.

Today, eBay has 93 "Authentic Hamilton" watch bands listed. One seller has the same $25 band listed for $120. Since the price is so high, it must be authentic. Right?

You might be asking yourself, could this be true?

Ponder on this quote from the Matrix.

Morpheus: What is real? How do you define 'real'? If you're talking about what you can feel, what you can smell, what you can taste and see, then 'real' is simply electrical signals interpreted by your brain.

It's stamped Hamilton, so it must be Hamilton, right?


Welcome to the real world.