Foreign.
Speaker BThe House with Eric G.
Speaker BYour go to source for everything home improvement.
Speaker BWhether you're a DIY enthusiast or just looking to make your space shine, Eric G.
Speaker BIs here to guide you through the latest tips, tricks and trends coming up.
Speaker BIn this week's first hour of the show, Eric G.
Speaker BTalks with inventor Juliet Fassett about a nationwide problem that has plagued inventors and small business owners with patents and trademarks that are trying to market the products they created.
Speaker CGet in and you can start paying your fees.
Speaker CAnd you're getting a, a mark that if you have the wherewithal and the ability to protect it, then you, you can protect it.
Speaker CYou have the ability to do that.
Speaker CBut I mean, through personal experience and in talking about my patents, we're looking at millions of dollars in litigation.
Speaker BSo grab your toolbox, put on your thinking cap and let's get to work right here on AROUND the House with.
Speaker AEric G.
Speaker AWelcome to the Round the House show, the next generation of home improvement.
Speaker AI'm Eric G.
Speaker AThanks for joining me today.
Speaker AThis hour is brought to you by my friends at Monument Grill.
Speaker AIf you're looking for that brand new barbecue this spring, check them out@monumentgrills.com and today we are going to be talking about a lot of things that everybody deals with, participates in and we're talking consumer products and how they get here and how you shop for them as well.
Speaker AAnd we have Juliet Fassett, entrepreneur, inventor.
Speaker AShe created the original Flippy pillow.
Speaker AIf you don't know what that is, you gotta stick around.
Speaker AThanks for joining us here on AROUND the house.
Speaker AHow you doing, Juliet?
Speaker CI am really good, sort of.
Speaker CEric.
Speaker AYeah, yeah.
Speaker AYou know, we are sitting here right now and at the day of recording this, it is the third, we're watching the tariff game go full swing into effect last night.
Speaker AAnd as an entrepreneur, you're sitting here this morning going, what is happening?
Speaker AWhat are you seeing from your perspective?
Speaker CSo I woke up this morning very early.
Speaker CMy chief of operations who is here in Portland, her name is osa OSA sent me a text and said, okay.
Speaker CIt hit.
Speaker CAnd the tariff that we had planned for the current shipment supposed to come in about two months.
Speaker CWe had planned on a tariff of about $10,800.
Speaker CThat tariff as of this morning is now almost $47,000.
Speaker AHoly smokes.
Speaker AAnd I'm trying to say words that are here that are radio friendly.
Speaker CI should have done a profanity check with you first cause, yeah, maybe you'll have to beep some good.
Speaker AI have buttons that do that.
Speaker ASo we're good.
Speaker CWe're good.
Speaker CSo, yeah.
Speaker CSo that is.
Speaker CFor a small business, that is a ridiculous amount of money.
Speaker CAnd of course, it starts a whole domino effect.
Speaker ASure.
Speaker CSo a.
Speaker CIf I can come up with the extra cash, which is a lot of extra cash for a small business to come up with.
Speaker CAnd of course I pay.
Speaker CMy cash is not cheap.
Speaker CRight.
Speaker CI pay never is very expensive for small businesses in particular.
Speaker CSo if I can come up with the money and get the product in, the net result at retail is going to be possibly, it looks like an additional $10 at retail for the product, which is already considered.
Speaker CThe price that we sell the product for averages about $30, which we are not getting rich on.
Speaker C$30 because of the fees and the existing tariffs and what it costs to.
Speaker CAll of the people involved in the business, myself included, are barely getting paid.
Speaker CAnd it's a constant game of trying to figure out how to make any money here.
Speaker CSo this just basically is a freightliner truck to the face.
Speaker AYeah, absolutely.
Speaker ALet's dive into something here before we get into that.
Speaker AAnd I want to talk about the misconceptions that people see out there, the cost of money.
Speaker AWe have a severe banking problem for small businesses out there.
Speaker AWhen you go get a loan for cash flow, things like that, product, things like that.
Speaker AI have seen some astronomical numbers.
Speaker AThis is not the 7% that you might be looking at a home mortgage at.
Speaker CYou could only dream of such a thing, right?
Speaker CYeah.
Speaker AI mean, I'm seeing 20, 30.
Speaker ALike, maybe your credit card's better than what the businesses do, which is, you know, the banking features.
Speaker AIt is incredible what some companies are paying just for operational cash flow out there.
Speaker CThat's right.
Speaker CSo if you look at APRs, I don't even ask my CFO anymore, like what the APR is, because I honestly, if he told me what it was.
Speaker CSometimes they're in the 40s, you know, it's just like, what is the point of doing this?
Speaker CAnd so what that does is it depresses all kinds of economic development at the grassroots level because the cost of capital is so high.
Speaker CIt is a constant struggle.
Speaker CIt's the reason why larger companies always have an advantage, one of the reasons why they have a distinct advantage over smaller businesses.
Speaker CAnd it's one of the reasons why it makes us so vulnerable with respect to our intellectual property, which is something else we're going to talk about.
Speaker AWe're going to dive into that because we are stepping right into my biggest pet peeve of everything out there, is that Right now.
Speaker ASo it is absolutely incredible.
Speaker AAnd so, yes, without a banking solution or a cash flow solution for most of the businesses we see out there that aren't major U.S.
Speaker Acorporations, I mean, that adds so much inflation to the product price because now you need to order the next round of product.
Speaker AAnd unfortunately, when you're dealing with retail sales, you might be getting paid, you've shipped product, but you might not get paid for 90 days.
Speaker CThat's right.
Speaker CAnd we're in.
Speaker CMy business is particularly fourth quarter heavy.
Speaker CSo we dig a big hole during the front part of the year and then at the end of the year we kind of dig, get our head back out of the hole.
Speaker CBut you have to be able to withstand that negative cash flow for a large part of the year, which is very difficult to survive.
Speaker CAnd you can do things like borrow against your future receivables, but that comes at a tremendous cost, too.
Speaker AExactly, exactly.
Speaker ASo when we see products that, let's say we're either on Shopify or Amazon or whatever, whatever that kind of retail source is that you're working through, that's a big significant part outside of the cost of the product itself that you have engineered, invented, created, brought to marketplace, which of course, you can spend hundreds of thousands to millions of dollars getting it to that point.
Speaker AAnd then all of a sudden that Money has a 40%, you know, APR on it.
Speaker AIt's insane.
Speaker CYeah.
Speaker CI think that to your point, most people look at a product on the shelf in a store and have no idea what is behind that product, the creation of it, the journey it took to get to the shelf, the people behind it and the costs and the difficulty of running a business to get it there profitably and how the whole thing works.
Speaker CIt's, you know, we take these things for granted and we have for a very long time.
Speaker CSo I think, you know, for me it's interesting because I'm part of that system.
Speaker CIt's interesting for me to break it down and look at it.
Speaker CAnd I can't see a single new product on a shelf and not think about the people behind it now.
Speaker AYeah, absolutely.
Speaker AI was at the National Hardware show here a few weeks ago and I'm talking to the new inventors and we were trying to come up with a marketing campaign.
Speaker AAnd he goes, eric, I just bought product for this year.
Speaker AHe goes, I don't have $500 to spend on marketing right now because every dime is set up.
Speaker AYou know, my house is mortgaged.
Speaker CIt's just coming, you know, listen, these are my people.
Speaker CThese are my people.
Speaker CWe put everything on the line to get our dream a reality and to.
Speaker CTo make it work.
Speaker CAnd once you have an indication that your product is sellable and it becomes valuable, you inversely become completely vulnerable to other factors.
Speaker CBut, you know, people sometimes say to me, oh, it's so great.
Speaker CYou're an entrepreneur.
Speaker CYou work for yourself.
Speaker CThat must be really awesome.
Speaker CI want my son or daughter to consider becoming an entrepreneur.
Speaker CAnd that is.
Speaker CThat is exactly.
Speaker CI'm like, for the love of God, your children from doing this, because you can't even begin to understand the stress that you put your family under.
Speaker CAnd then, you know, you also become a bit of a pariah because you're always doing the friends and family fundraising, you know, so it is just not an easy way to go.
Speaker CAnd I can imagine you having that conversation at the hardware show again and again and again with all those people getting out there and putting their hard work into a product that is probably fantastic and giving it a go.
Speaker AYeah.
Speaker AAnd these people are trying to get it into the hardware stores, they're getting it in the online communities.
Speaker AAnd unfortunately.
Speaker AAnd let's jump ahead a little bit here, because I think this is where the train.
Speaker AI mean, if the train hasn't come off the tracks with the money part, trying to bring it to market, the next part is where literally.
Speaker AAnd I'm going to.
Speaker AI'm going to call out the US Government on this one in the Patent Trademark Office for these guys.
Speaker AThe uspto, our policies are so outdated there that you are now on the hunted list from your competitors.
Speaker AAnd there is no one watching out for that small business's best interest because you bring the coolest thing to market.
Speaker AAnd it seems like in 30 seconds, as soon as you make a dent, you now have everybody copying you and putting it to market for half the price of whatever yours is.
Speaker CYes.
Speaker CYeah.
Speaker CSo the USPTO is.
Speaker CIt's very complex.
Speaker CIt has not kept up with the speed of how markets work.
Speaker CSo the law is decrepit and it's not doing the country a whole lot of favors.
Speaker CThere are components of the USPTO that are absolutely and demonstrably prohibiting small business and inventors and innovators from progressing forward and developing new products and new businesses around those products.
Speaker CThat is absolutely true.
Speaker AAnd I can say this as around the house here, because I have a trademark on this as around the house.
Speaker AIf I go out there and start chasing down everyone that is violating my trademark across the country, just in the classifications that I have, which the US Government protects, and I'm using air quotes for all you listening on the radio show, on the podcast, it is now my obligation to go out and spend hundreds and hundreds of thousands of dollars potentially each year to protect it.
Speaker AAnd the USPTO goes, yep, you have every right to do it.
Speaker AKnock yourself out.
Speaker AAnd I think we need to remake this entire system because you get that.
Speaker ABut it's completely on you to go do it.
Speaker AAnd there's no small business inventor out there that could ever have a chance to chase this stuff down without some serious government help to back you up.
Speaker CAbsolutely.
Speaker CAnd you know, it's ironic that the president, you know, made the bulk of his fortune licensing his trademarks.
Speaker AMm.
Speaker CWhich I think is really interesting because you can imagine what would happen with people trying to rip off and infringe on his trademarks.
Speaker CRight.
Speaker CHe's someone that can enforce his trademark.
Speaker A95% of the people with trademarks out there cannot.
Speaker AWould struggle to do that.
Speaker CThat's absolutely true.
Speaker CThe other thing about the USPTO is that it's run by fees.
Speaker CSo, so we are subsidizing an agency that has, is like, is, it's like a one way gate, right.
Speaker CLike you can, you can get in and you can start paying your fees.
Speaker CAnd what are you getting for it?
Speaker CYou're getting, you're getting.
Speaker CWell, you're getting something.
Speaker CYou're getting a mark that if you have the wherewithal and the ability to protect it, then you, you can protect it.
Speaker CYou have the ability to do that.
Speaker CBut I mean, through personal experience and in talking about patents, we're looking at millions of dollars in litigation.
Speaker AYeah.
Speaker AAnd who has that money?
Speaker ANo one does.
Speaker AYou know, and I know people out there that have purchased insurance to protect that.
Speaker AAnd they still have to pay $20,000 out of pocket first.
Speaker AAnd then it goes into.
Speaker AThey're covered up to 100, but then if they get any money back, that first pays off the insurance company.
Speaker ASo.
Speaker AYou know what I mean?
Speaker AIt's a sick cy.
Speaker CSo stupid.
Speaker CI mean, really, come on, you're paying.
Speaker AYou know, huge premiums, and then there's really no way to win.
Speaker CNo, there is no way to win.
Speaker CThere really isn't.
Speaker CAnd honestly, Eric, I think, I think something that, it's my understanding that the reason.
Speaker CSo this is.
Speaker CYou talk about the law, you talk about criminal versus civil.
Speaker CRight?
Speaker AYes.
Speaker CTrademark infringement, patent infringement.
Speaker CThis falls under civil litigation, which is very expensive and privately funded.
Speaker CRight.
Speaker CI think we have to look at criminalizing this activity.
Speaker CI think we have to.
Speaker CAbsolutely.
Speaker CThe Reason it doesn't rise to.
Speaker CI think the way it's been explained to me, the reason it hasn't been criminalized is because you are supposed to be able to get monetary damages on the civil side.
Speaker CBut because of the avalanche of activity in infringement, there's no way people can get after it enough like you and me to get compensated.
Speaker CSo criminalization is one thing that I think would make a big difference.
Speaker AI agree.
Speaker AI've been watching another company that I saw at the hardware show a couple years ago and they don't know I'm talking about this.
Speaker ASo this is just my experience.
Speaker AI want to make sure and say this.
Speaker AIq Vice.
Speaker ASo work iq vice.
Speaker AThey make this cool articulating vice.
Speaker AThey have all the patents, they have all the trademarks, they have everything there.
Speaker AThey throw it on Amazon last year for about 350 bucks.
Speaker AThey do.
Speaker AGreat.
Speaker CMonths later, where's it made?
Speaker CWhere's it made?
Speaker AIt's made in USA.
Speaker AMade right here in the U.S.
Speaker Agreat company.
Speaker AWhat happens six months later?
Speaker AAnd I'm on Amazon right now and I'm going to look at the exact copy right here that is made by Real Avid, which is a direct 100% knockoff.
Speaker ALike they took it and made it overseas and they're selling it for 299.
Speaker AIs do you know, copying this?
Speaker CIs it an American company or.
Speaker ANo, this is coming right out of China or over Hershey's.
Speaker COkay.
Speaker ANot made in America.
Speaker AAnd I'm looking at it right here.
Speaker AThey have basically copied it.
Speaker AAnd if I look down on their reviews and they've got a ton of them, I can tell you that they have sold so many of these as a copy knockoff.
Speaker CRight.
Speaker AYou know, and again, these guys have to go out.
Speaker AThey have, I'm going to see on their stuff right here.
Speaker AI mean they've got so many reviews on here.
Speaker AThey've got 411 global ratings just on people that have taken the time to review it.
Speaker ABut it's a dead knockoff compared to.
Speaker CLet me, let me try to untangle this a little bit.
Speaker CSo you don't actually know for sure that Real Avid is a Chinese.
Speaker CIt could be an American based company.
Speaker AVery true.
Speaker CRight.
Speaker CThese could be Americans that have gone abroad and source taken your friend's product.
Speaker CWhat's the name of the original patented version?
Speaker AWork iq.
Speaker AYep.
Speaker CSo they could have taken the Work IQ product, taken it to China, had a lower quality knockoff created and then they're just importing it, right?
Speaker AYep.
Speaker CSo it could be an American company.
Speaker CJust importing the.
Speaker CRight.
Speaker CSo that's, that's an important point.
Speaker AYeah.
Speaker AAnd to add to your point, I could literally walk into Home Depot, walk down the faucet aisle, grab a package of your favorite name brand kitchen faucet.
Speaker AI can jump on a website, I can UPS, FedEx, DXO, whatever, ship it overseas to a company in China and they take a look at it, take it apart.
Speaker AAnd though it would be possibly against the law, they could ship that back to me in the same brand packaging and show up at pallets at my house.
Speaker CIt is absolutely against the law and it absolutely happens all the time.
Speaker CYes.
Speaker ASo this is how common this is.
Speaker CSo here's, and here's the problem as it relates to Amazon.
Speaker CI don't know if your friend's company has possibly participated in the Apex program.
Speaker CDoes that sound familiar?
Speaker AI've heard of it.
Speaker AI have no idea because I haven't talked to him about it.
Speaker AYou know what I mean?
Speaker CSo this is actually an interesting thing because it is something that Amazon has done to try to give some credence to US patent owners rights.
Speaker CAnd Apex is a program where, and I've been through it, where you call out the people that are selling your patent infringing product.
Speaker CRight.
Speaker CYou call them out and they have a very cost effective third party evaluation process by which a third party trained patent evaluator will look at the ripoff and look at the original patent and see if there is infringement and then delist the product if infringement is found.
Speaker CSo if your friends.
Speaker CYes, but there are ways to game that system.
Speaker CAnd this is where the rats keep getting smarter.
Speaker CRight.
Speaker CThere are ways for them to slow down the process, to halt the process.
Speaker CIt is not perfect, but it can be helpful.
Speaker CAnd I like the Apex program and I like it as a template for other big retailers because I had the same problem with Walmart.
Speaker CMy Kroger story is particularly interesting.
Speaker CTarget, cvs, Walgreens, on and on and on.
Speaker CBut if we had retailers and the National Retail Federation, if they were engaged in a program like Apex, that would go a long way to helping people like us protect our patents in a cost effective manner.
Speaker CAnd it really is cost effective for everybody.
Speaker CA lot of these retailers will complain about the cost of administrating such a program.
Speaker CBut the truth is it's nothing.
Speaker CThese are multibillion dollar retail companies.
Speaker CThey can afford to run these little programs.
Speaker AYeah.
Speaker AAnd it just, it helps the businesses.
Speaker AAnd you know something, if they advertise that out there as a, when you're dealing with us, we're protecting the small business.
Speaker AConsumers would go, hey, that's cool.
Speaker CI think that it really needs to be championed by the National Retail Federation and adopted across the board.
Speaker CIt's something that I'm working on, but we'll see how it goes now.
Speaker CSo let me explain something, the other side of this coin to you just.
Speaker CAnd I know you know this, but let's make sure that your listeners kind of get an idea of how this works when you apply to be a vendor to any of these big retailers.
Speaker CSo your friends, obviously, they're trying to get into Lowe's and Home Depot, for example, Right?
Speaker CThey will sign a vendor agreement that says if there is any kind of intellectual property challenge to this product, it is not the retailer's responsibility to deal with it, it's the vendor's responsibility.
Speaker CRight.
Speaker CSo they don't care if there's IP infringement.
Speaker CWhat does the retailer care about?
Speaker CThey want to have cost performance on every square inch of real estate in that store.
Speaker CThey want products that come in and go out, which means they want the lowest possible prices for the best possible products.
Speaker CRight.
Speaker CSo they don't have an incentive to protect IP unless their hand is put to the fire.
Speaker CAnd this is how the retailers become, unfortunately, complicit.
Speaker CI get it.
Speaker CThey're publicly traded.
Speaker CThey're trying to work on their shareholder value.
Speaker CIt's all about efficiency and floor space.
Speaker CBut they are destroying the innovation of all those inventors at the hardware show launching their products.
Speaker CThey are helping us to eat our own arm off.
Speaker CAnd it's disgusting.
Speaker AAnd not only is it square footage in a store, square inches, it's the same thing with their websites online.
Speaker CAbsolutely everything.
Speaker AIt's the same thing, the same program.
Speaker CIt's absolutely the same thing.
Speaker AYou know, and that's the problem now.
Speaker AGreat example.
Speaker AI reach out to Apple when I find podcasts that are infringing on it, and about 60% of the time, Apple goes, oh, I see that.
Speaker AThat's.
Speaker AI mean, I even had one as a great example where somebody tried to copy the name and they tried to trademark it, and the USPTO went, heck, no.
Speaker AYou're.
Speaker AYou know, they.
Speaker AThere's no way you're going to do this.
Speaker AI sent that letter that I could pull off the USPTO website to Apple and they went, yeah, you're going to have to deal with that civilly.
Speaker CRight?
Speaker ASeriously, this.
Speaker AThey are calling this exact person out saying, no, that causes confusion.
Speaker CYou can't use that.
Speaker AI send that over and I've got A letter saying that from the pto.
Speaker AAnd Apple goes, yeah, that's still not enough.
Speaker CYeah.
Speaker CSo they're doing this thing now where they're like, yeah, you'll have to get a court order for us to pull this down.
Speaker CYeah.
Speaker AAnd it's insane.
Speaker CThat's your job, Eric, is to go around policing trademark infringement and getting court orders.
Speaker ARight?
Speaker AYeah.
Speaker AAnd that's the insanity part.
Speaker AI know you see that as.
Speaker AIt's the same thing.
Speaker AIt's like, oh, yeah, great.
Speaker ASo now I'm gonna have to hire eight attorneys because now I'm gonna have to deal with them in the states that are dealing with that.
Speaker CYeah, yeah.
Speaker CThe net effect of this is, you know, when you look at the net effect of it is really just destruction at the bottom of the economy and concentration of wealth.
Speaker CIt all just rolls up to the people that are the strongest and can just get away with this type of theft.
Speaker ANow, on the retail side, let's talk about, like, the Costcos and those kind of people.
Speaker AIf you go into Costco, usually, my experience with companies that I've worked with in the past, they want to see whatever that number is, 10, 12, 15%, your product has to be cheaper than other retail locations of that product or similar product.
Speaker AThe problem is, if you've got somebody ripping off on Amazon that's copying your product, that's now 40%.
Speaker AThat really hurts your relationship there because those big box retailers go, well, that's cheaper.
Speaker AThat's not a good deal for our members.
Speaker CYes.
Speaker CSo, Eric, that's a.
Speaker CThat's actually.
Speaker CThat's a great segue into the example of what happens to me.
Speaker CSo my product.
Speaker COkay, so my product, which is a tablet accessory, right.
Speaker CI created and patented, and this is hyperbole, but not so much.
Speaker CIt is like the best tablet accessory on the planet.
Speaker CI mean, I have one.
Speaker AYes, it is.
Speaker CThat's right.
Speaker CI sent you one.
Speaker AYou sent me one.
Speaker AIt is.
Speaker CDo you like it?
Speaker AIt's awesome.
Speaker AWorks well.
Speaker CI'm so glad you think so.
Speaker CSo that product, which took seven years to develop and patent, Right.
Speaker CSeven years of my life and my husband's life, who's an optical engineer, we patented.
Speaker CWe did all the right stuff.
Speaker CAnd I start my businesses, I always have, by doing what I call bump starting the business, which a bunch of your listeners will recall having a stick shift car and having to roll start it, right?
Speaker CSo true.
Speaker CI bump start my.
Speaker CI don't go out and raise a bunch of money based on pie in the sky projections.
Speaker COn paper, I develop the Products, I start selling them, I get cash moving through the company, and then I go out.
Speaker COnce I've proven the viability of my product, then I go out and raise money.
Speaker CAnd it takes a very long time to do this, of course.
Speaker CSo I did all of that and it culminated in the product being a sellout on QVC in November of 2018.
Speaker CSold out in November.
Speaker COkay.
Speaker CHalf a million dollars in sales in 12 and a half minutes.
Speaker CIt was spectacular, right?
Speaker CSpectacular.
Speaker ASpectacular.
Speaker CBy February of 2019, Ontel Products Company based right here in New Jersey, American Company, was selling its rip off on television.
Speaker CAnd my girlfriend from la, Bonnie calls me and says, there's a flippy ripoff on television.
Speaker CI was like, no, it can't be.
Speaker CIt's probably not an.
Speaker CIt's probably just a Me too.
Speaker CSomething that kind of looks like.
Speaker CNo, this was an actual patent infringing ripoff selling on television.
Speaker CBy the summer of 2019, that product was in every Walmart, bed bath and beyond, every big retailer in the country.
Speaker CAnd when I reached out to them, okay, so I'm sending, you know, letters telling the people that this product is a ripoff of mine.
Speaker CMm, the head.
Speaker CIt's, it's disgusting.
Speaker CThey ignore you because they have these indemnifications agreements from the vendor.
Speaker CSo they don't give a shit.
Speaker CThey don't know.
Speaker CSo what happened?
Speaker CIn particular the case, the case with Kroger is really interesting.
Speaker CSo here in the Pacific Northwest, we have a Kroger retailer called Fred Meyer.
Speaker CThere's about, I don't know how many stores, how many doors they have, as they say, locations.
Speaker CIt's, it's, I think it's around 300, maybe more.
Speaker CI don't know.
Speaker CSo, so, you know, of course all my friends in town are familiar with what I'm doing and everyone sees the rip off in Fred Meyer.
Speaker CI start, my phone is blowing up, as we say, with friends congratulating me on the huge display in Fred Meyer.
Speaker CAnd I have to explain to all these people, no, this is a ripoff.
Speaker CThis is not my product.
Speaker CSo I reach out to Kroger.
Speaker CI have, you know, the head of the headquarters for Fred Meyer are right across the river from me in Portland, and I know many people that have worked there.
Speaker CAnd actually I had a former employee of my own company that left to go work there.
Speaker CAnd so the woman that I knew that had previously worked there said, you know, the company is all about expanding their vendor base and including women owned businesses.
Speaker CSo you should write, you should write to Kroger and tell them about this situation and see if they will work with you.
Speaker CSo I wrote to Kroger.
Speaker CAnd what happened?
Speaker CTheir head of IP wrote me a note saying not only was my letter, it was a little strident the way I phrased it.
Speaker CNot only was my letter not well received, but they're not going to do anything about this problem because by policy, right, Air quotes, policy.
Speaker CWhat they do is they send my complaint back to the people who are stealing from me to get this resolved, right?
Speaker CThis guy says to me, we have nothing to.
Speaker CWe're just making bank on your product.
Speaker CWe don't really give a shit.
Speaker CWe want you to go back to that billion dollar company that's ripping you off and we want you to work it out with them.
Speaker CThem.
Speaker COkay.
Speaker CSo that's bad enough, right?
Speaker CThat's bad enough.
Speaker CBut then many months later, I was on the phone with my friend Josh Malone.
Speaker CJosh Malone created a product called Bunch of Balloons.
Speaker CBest selling toy on the planet, pretty much.
Speaker CI mean, huge, huge, huge hit success.
Speaker CWe're on the phone and we're talking about Kroger and he says, yeah, that, that head of IP for Kroger really did not like having to testify in my lawsuit.
Speaker CHe was not happy to be put on the stand.
Speaker CAnd I said, wait a minute, I know that.
Speaker CI know that guy.
Speaker CThat's the guy that told me to piss off.
Speaker CWhen did that happen, Josh?
Speaker CAnd he gave me the date.
Speaker CThat same guy had been subpoenaed and had testified in Josh's lawsuit a year before.
Speaker CI reached out to him to tell him, and here's the clincher.
Speaker CYou know what?
Speaker CIt's the same company that infringed on Josh's product, that infringed on mine.
Speaker CIt is a.
Speaker CAbsolutely.
Speaker CA cartel, in my opinion, of a process that disembowels inventors and innovators.
Speaker AAbsolutely.
Speaker CThen there's nothing you can do.
Speaker AKnowingly being done.
Speaker AKnowingly being done.
Speaker C100%.
Speaker C100%.
Speaker CWow.
Speaker CIsn't that crazy?
Speaker CThat's so crazy.
Speaker ANot.
Speaker AIt is.
Speaker AIt's there.
Speaker AYou know, clearly you've got companies out there that are looking at things going, guess what?
Speaker AWe're making our money, we're making our margins.
Speaker AWe've got great margins and we are not worried about the ethics of doing business.
Speaker CI don't think ethics is like these people, the people that run this company, Ontel.
Speaker COkay.
Speaker CLet's just say scumbag's gonna scum, right?
Speaker AYeah.
Speaker CI mean, come on, these are billionaires.
Speaker CThese people fly on private jets.
Speaker CI mean, these people and their attorneys, I might add, are also scumbags.
Speaker CWe're talking 1% people that steal from people like you and me to be able to keep their jet share and their $20 million condo purchases in Miami and their private jet trips to Paris going.
Speaker CRight.
Speaker AAnd they just go take another product and make more margin to pay for the next set of lawsuits.
Speaker CAnd a lot of people get worked up thinking China is the source of so much of this right here.
Speaker CHomegrown, fraudulent patent, trademark infringement all day long right here.
Speaker AOh, yeah.
Speaker AYep.
Speaker CJust happens to be in New Jersey.
Speaker AYeah.
Speaker AAnd they're just outsourcing the product to the cheapest place they can find it because quality is not a concern.
Speaker CYou're just going to move product.
Speaker CSo this is actually a really good point, Eric, and this is where things get complex.
Speaker CBoth of us make our product in China.
Speaker COkay.
Speaker CMy product, as much as I tried and I tried very, very hard to make it in the U.S.
Speaker Cwhat I learned, and I knew this because I was in the fashion industry before, was that the type of cut and sew business, this type of textile manufacturing business, does not exist anymore in the US it does to some extent.
Speaker CWe do have sweatshops that exist in the U.S.
Speaker Cbut the size of this industry is very small.
Speaker CAnd I'm not sure that it's even in our best interest to try to encourage that type of manufacturing to come back to the US I'm not sure we even want it.
Speaker CSo.
Speaker CSo.
Speaker AExcellent point.
Speaker CRight.
Speaker CI don't think it's in our best interest for a variety of reasons.
Speaker CSo I don't.
Speaker CWhat I do is I have my factories audited for health and safety of the workers.
Speaker CAnd I have been working with the same factory for a very long time and feel comfortable doing business with them.
Speaker CWe're very friendly and collaborative.
Speaker CRight.
Speaker CSo I don't know the factories that this other company, Ontel, is using.
Speaker CI don't know if they're using Uyghur labor, which is essentially slave labor.
Speaker CI don't know.
Speaker A100% is.
Speaker CI don't know.
Speaker CBut what I can tell you is that we also employ an enormous amount of Americans on this side of the equation between marketing operations, warehousing, fulfillment, shipping.
Speaker CIt's just because the source of my product is China does not mean that we don't help to employ a lot of Americans along the supply chain.
Speaker AAbsolutely.
Speaker CAnd so this is one of the complexities of this situation, and it's just not a simple, everything has to be made in the US Kind of you can't just throw a switch.
Speaker CWe have to be selective and strategic about the industries that we want to encourage to stay here and the ones that we want to encourage to come back.
Speaker AYes, 100%.
Speaker CAnd through the history of time, the world has chased less expensive labor costs.
Speaker CThis has been going on since we started manufacturing clubs.
Speaker AIn the 80s when I was a kid.
Speaker AOh, that's made in Japan.
Speaker CRight, right, right.
Speaker AAnd you know, I'm 54 years old.
Speaker AOh, that's made in Japan.
Speaker AOh, you bought one of the Fender guitars.
Speaker AOh, that's the Japan version.
Speaker AThat's not as good.
Speaker COh my God, Eric.
Speaker CSo check this out, check this out.
Speaker CIn the late 80s, I lived in Japan.
Speaker CI was a ski instructor in Japan.
Speaker CAnd then I also worked at Toyota Chuo Kenkyusho.
Speaker CToyota Chuo Kenkyusho is the think tank for Toyota Corporation.
Speaker CSo I was teaching English to people that were the best scientists for Toyota in the entire world.
Speaker CAnd this is 1989.
Speaker CI'm having conversations with my clients about what they were working on.
Speaker CThese are physicists.
Speaker CAnd they said, we're working on a battery for an electric car.
Speaker CAnd I was like, electric car?
Speaker CWhat are you talking about?
Speaker AIs that a toy?
Speaker CWhat is that smoking, whatever.
Speaker CLike, you know, and they said, juliet, in your lifetime, you are going to drive an electric car.
Speaker CAnd of course I was like, have you guys ever heard of a little company called Exxon?
Speaker CLike, exactly.
Speaker CLike, I couldn't, I couldn't believe.
Speaker CBut you know, and look, this is, you know, not that far away.
Speaker AI mean, this is very close.
Speaker A60 years from then, you know.
Speaker CYes, these things, this is how development happens.
Speaker CIt happens very slowly.
Speaker COver time, things change.
Speaker CAnd I think that we have to really be careful about wishing to have certain parts of manufacturing come back to the States.
Speaker AYes.
Speaker AI think what we have to do is one, we need to really not just fly off the handle on that, but really be strategic in that.
Speaker CYes, I agree with you.
Speaker CAbsolutely.
Speaker ABut really, it doesn't matter if we do.
Speaker AIf we can't protect a majority of business owners out there that are being victimized by other, like you said, American companies that are not innovating their gym, just ripping and repeating.
Speaker CYes.
Speaker CWell, a friend of mine, Byrne, said, you know what their R D stands for?
Speaker CIt's not research and development, it's rip off and duplicate.
Speaker AExactly, exactly.
Speaker CIt's just their M.O.
Speaker AIf I walk into my local luxury plumbing retailer, the little shop here in Portland like Chown Hardware, that's been there for, you know, 145 years.
Speaker AAnd I go talk to their.
Speaker AThey're wonderful people, the great family.
Speaker AIf I go talk to their sales people, every week they have people coming in to buy parts for their luxury shower system that they're.
Speaker AThat they ordered online that had the name brand on it.
Speaker ABut when they order the parts, maybe it's for a shower, it's a.
Speaker AA valve extension or something like that.
Speaker AAnd the people come back and go, it doesn't fit.
Speaker AWhere would you get it?
Speaker AI bought it from this online retailer.
Speaker CRight.
Speaker AIt doesn't fit because it was a knockoff piece.
Speaker CIt wasn't an original from that manufactured by that company.
Speaker CThat is required by the engineering of the real maker.
Speaker AYes, exactly.
Speaker AAnd this.
Speaker AThis happens to this day.
Speaker AAnd people are putting in absolute garbage out there.
Speaker AAnd so many people don't even realize it, though, you know?
Speaker CSo not too long after Fred Meyer started selling the ripoff, I an email from a woman that lives in Vancouver, Washington, and she said, you know, I bought this product at Fred Meyer, and I got a problem here because this thing has bled red all over my very expensive white duvet.
Speaker CAnd she contacted me, thinking.
Speaker CThinking it was a flippy when it was a pillow pad sold by Fred Meyer that they sourced from Ontel.
Speaker CAnd I had to explain to her that it wasn't my product.
Speaker CIt's like, why don't.
Speaker CWhy don't they just, you know, stick a pencil in my eye?
Speaker AYeah.
Speaker CI mean, come on.
Speaker AAnd your only choice is to go after and spend potentially a million dollars on litigation.
Speaker CIt's millions.
Speaker AChasing.
Speaker AYeah.
Speaker CYes.
Speaker CYes.
Speaker AChasing this stuff down.
Speaker CYes.
Speaker AAnd that's way more than any company's profit margins are.
Speaker ASo on paper, your hamstring, you can't do anything about it.
Speaker CAnd I am very fortunate to actually now be in litigation against these companies.
Speaker ANice.
Speaker AAnd I know we can't probably talk too much about that, but at least you're in the process of that, because I know how litigation goes on that you get stuck and.
Speaker AAnd, But, I mean, sheesh.
Speaker AFinally, you probably have millions of dollars in damages out there that you're trying to get.
Speaker CWell, you know, attorneys don't take cases if they don't think that they're going to win it, and they don't feel confident that there's recovery to be made.
Speaker CSo.
Speaker ASo maybe you'll get some jet, some titles to jets and things like that.
Speaker CI'm going to own a bunch of real estate in Miami.
Speaker AExactly.
Speaker AYou'll have two Gulf Streams sitting in an airport someplace that you got a Title to while you're going, I won't.
Speaker CBe able to afford to move it five feet, correct?
Speaker AYeah, exactly.
Speaker CI'm going to sit in it while.
Speaker AYou'Re trying to figure out how you're paying for gas for your car next week.
Speaker AI mean, that's the thing of a small business owner, right?
Speaker CLike it the 2007 Honda Fit, you know, just God love it, keeps going so.
Speaker AExactly.
Speaker AExactly.
Speaker AWell, we are running out of time in the show here, but I really wanted to bring this attention up and you and I will continue this conversation another episode because I know we have just scratched the surface of this and we could make this into a three hour Joe Rogan show where we're sitting here diving into this.
Speaker ABut I really want to, in 2025 starting, start making this more aware for people out there because it is a massive problem.
Speaker AEvery single one of my friends that have a service or business that is trademark patented is fighting this exact same battle.
Speaker AWhich just means that for you people, the consumers out there, that's showing up in the cost of your products and.
Speaker CThe function of them.
Speaker CYes, absolutely.
Speaker CThank you so much, Eric.
Speaker CI want you to refer anyone that's having patent infringement problems to me because I have become very active and an advocate for helping people like myself.
Speaker CAnd I have met in the past many years an enormous amount of attorneys and funders of litigation and ways.
Speaker CI've learned ways to try to address these problems.
Speaker CSo I will do anything I can to help other American inventors and innovators protect their patents.
Speaker APerfect.
Speaker AYeah.
Speaker AGuys, send me a message over here@aroundthehouseonline.com that goes into my email box.
Speaker AI will connect you with Juliet.
Speaker AAnd then of course, people out there that need to have something where they can sit there and use their tablet while they're laying on the couch or the bed.
Speaker AAnd they gotta get the original flippy pillow.
Speaker ANot the bad copy one that's gonna ruin your couch or whatever else.
Speaker AJuliet, where do they find those?
Speaker CWe sell primarily on Amazon.
Speaker AThere we go.
Speaker AThere we go.
Speaker AI'll put the link in the show notes down here where you can find that.
Speaker ASo that way you can find it out there, guys.
Speaker ASo that way it's on the podcast on the radio.
Speaker AJust head over to around the House online and look at the podcast.
Speaker AYou'll find it over there as well.
Speaker AJuliet, thanks for taking the time today.
Speaker AThis has been so informative.
Speaker AI learned a lot and I've been watching this for a while of how this problem just keeps growing and growing.
Speaker CAnd growing, growing I really appreciate you taking an interest in this problem, Eric.
Speaker CI'll look forward to having a beer together.
Speaker AAbsolutely.
Speaker AWe're just getting started on this one.
Speaker AThanks again.
Speaker CI'm going to be setting up camp in your garage.
Speaker AYou got it.
Speaker AYou got it.
Speaker AI'm Eric G.
Speaker AYou've been listening to around the House.
Speaker BWe will see you next week for more around the House.