Better yet allow manufacturers to police their own products.
1) Allow Apple to take down any product listed with the words "official" and "Apple", "iPhone", "iPod", etc. Allow Apple to ban sellers of counterfeit Apple products (with the right of the seller to appeal). Have consequences (fees) if Apple incorrectly reports sellers so that it isn't like the DMCA with no consequences for false reporting.
2) Allow manufactures to specify a list of approved re-sellers on amazon.com. For products with a lot of counterfeits on Amazon currently, this might be the best solution.
3) Allow buyers to report counterfeit products. If enough buyers report a seller as trafficking counterfeit goods, the seller is banned. Require a field of proof in the report. Some of the counterfeit stuff I've bought off Amazon (I didn't know it was counterfeit when I bought it) were missing stickers and logos and such making it pretty obvious when you compared the real thing and the counterfeit. Sometimes the logos are wrong.
It's not like the counterfeit products are benefiting consumers. The ones I've gotten have been within 5% of the price from other retailers. There is no way a counterfeit product is worth 95% of the real deal. When I see a product on Amazon that's half it's normal price that's a pretty clear indicator that it is counterfeit, but when it's 95% of the price, there is no way to tell until it arrives if even then.
It would be complicated and a lot of work, but I don't see any other way to crack down on counterfeit products.
A lot of products I can't purchase on Amazon anymore because I am almost certain to get a counterfeit product. Amazon needs to address this issue. Lawsuits should be part of it, but it won't solve the problem. Lawsuits should only be part of the solution.