BundleShieldSee sample report

How Strict Is Etsy About Intellectual Property Reports? What Etsy's Own Seller Handbook Says

Direct answer: Etsy describes a process in which it removes specified content when it receives a report that complies with its policies, keeps a record of each report, and may take action on the account after repeat reports. Etsy says it considers each account "case-by-case". This guide summarizes what Etsy itself says in its Seller Handbook article on intellectual property, and nothing else. It is not legal advice, and it does not predict what Etsy would do in any particular case.

TL;DR: According to Etsy, a compliant report leads to removal of the identified listings and an automated notice to the seller. Etsy says it only accepts reports from the IP owner or an authorized agent, with good-faith statements under penalty of perjury. Etsy says repeat reports can lead to loss of account privileges, even if you do not relist the item. For copyright, Etsy describes a counter-notice. For trademark, it points sellers to contact the reporting party. Read Etsy's current policy, since it can change.

How Etsy says it handles reports

Etsy's article says its policies "are based on case law, best practices, and the Digital Millennium Copyright Act (DMCA), require Etsy to remove any specified content when we receive a report of infringement that complies." If a listing is reported, "the seller will receive an automated IP infringement notice after the listing has been deactivated."

Note the order: in Etsy's description, the listing is deactivated and then the seller is notified. For the copyright side of that, see our guide on why a platform may remove before a dispute is settled.

Who can report

Etsy writes: "Many sellers express concern that a competitor has reported them. However, we don't accept reports of infringement by just anybody—only from the intellectual property owner or the owner's authorized agent". It adds: "We also require that the complaining party provide statements of good faith made under the penalty of perjury. There could be costly penalties if a complaining party makes material misrepresentations about the infringement."

That is Etsy's description of its policy. It does not say that no report is ever mistaken, and this guide does not claim that. If you believe a report is wrong, the next sections cover what Etsy describes.

What Etsy says to do after a notice

Etsy encourages sellers to "directly contact the party that provided the report to Etsy if you have questions about the infringement claim," and says "You can also consider speaking to an attorney." It states that "Etsy can't speak on behalf of the intellectual property owner (or their authorized agent) regarding why your content was identified as infringing or how to resolve the issue."

Etsy also says: "Don't create additional listings for this content unless the issue is resolved with the other party. Repeat reports of infringement may result in the loss of account privileges."

For copyright, Etsy says: "If you have a good faith belief that material removed or disabled as a result of a notification of copyright infringement to Etsy involved a misidentification or mistake, you may file a counter notice". The counter-notice requires a statement under penalty of perjury. For trademark, Etsy says: "your best option is to directly contact the party that submitted the report." Our guide on how to file a DMCA counter-notice covers the copyright steps, and responding to an IP notice on Etsy covers the platform side.

Repeat reports and your account

Etsy answers the question "As long as I don't relist the infringing item, will my account be okay?" this way: "Each time Etsy receives a report of alleged infringement from a complaining party, we keep a record of it and contact the seller. When we receive repeat reports of infringement regarding a particular shop, allowing the shop owner to continue selling can put Etsy at serious risk. Even if the seller doesn't post that particular item ever again, it's possible that other items in that shop may also have problems."

It continues: "We consider each account on a case-by-case basis, and in certain situations, we make the difficult decision to close a seller's shop, in addition to all other shops the seller operates." Etsy also says that for sellers who opened new shops under new accounts, "we revoke all Etsy account privileges (both buying and selling on Etsy)."

Etsy does not publish a number of reports that triggers action in this article, and this guide does not supply one.

What this means for sellers

Where a preflight helps

A BundleShield preflight is a check you run before you list. It takes your ZIP with the license text inside and flags brand-name patterns in filenames and readable license text, byte-identical duplicates and unsafe active content, with a per-file result of Clear, Review or Remove and the reason attached. It does not scan the artwork, and it cannot predict whether a report will be filed or how Etsy would respond. Clear means no issue flagged by these limited checks. The checks are rule-based: every upload is checked against the same rubric, the same way. A risk check, not legal clearance. See what a report looks like on the sample report page.

Sources