Posts Tagged: "counterfeits"

The full Senate Judiciary Committee convened today for a hearing titled, “Cleaning Up Online Marketplaces: Protecting Against Stolen, Counterfeit, and Unsafe Goods,” in which witnesses explained the continuing challenges of policing stolen and counterfeit products in online marketplaces. The panelists included small business owners, internet platform advocates, academics and retail store representatives.

On October 25, the European Union Intellectual Property Office (EUIPO) issued a study exploring the growing misuse of e-commerce channels for trade in counterfeits. The report provides a quantitative review of both the expansion of Internet commerce as well as a growing number of counterfeit seizures by border officials in recent years. The EUIPO’s report also profiles common aspects of counterfeit supply chains, as well as regulatory frameworks established to reduce the spread of counterfeits online.

Over the past several weeks, it has been our pleasure at IPWatchdog to be a media sponsor for the excellent programming on intellectual property and the innovation ecosystem produced by the Global Innovation Policy Center (GIPC) of the U.S. Chamber of Commerce. The last in the series, an overview of the common thread running through innovation ecosystems, took place on Wednesday, April 28. “One thing we all have in common is that everyone wants more innovation and creativity to meet societal challenges, never more so than in a pandemic,” Patrick Kilbride, Senior Vice President for Global Innovation Policy at the United States Chamber of Commerce, told IPWatchdog following the conclusion of the Innovation Ecosystem series. “Sustaining the global middle class through COVID will require a steep trajectory of innovation. Our experience working with businesses of every size and sector, and governments around the world, shows intellectual property rights as a central enabler of innovation.”

The U.S. Chamber of Commerce’s Global Innovation Policy Center (GIPC) held a webinar on Tuesday, April 6, as part of its Innovation Ecosystem series, titled “Worth Protecting,” which included Steve Francis, Assistant Director, HSI Global Trade Investigations Division Director, National IPR Coordination Center, as one of the panelists. Francis explained that public-private partnerships have been key to combating the spike in illicit activity that has occurred during the COVID-19 pandemic. 85%-90% of illicit activity on seizures over the last five years has originated from Hong Kong and China, said Francis.

Owners of trademarks and copyrights registered in the U.S. have available a potent enforcement tool to stave off entry of increasing volume of infringing and counterfeit goods into the U.S. – recordation of these rights with U.S. Customs and Border Protection. CBP has recently extended recordation eligibility to pending copyright applications on a temporary six-month basis. The investment for recordation is nominal, the process is simple, and the IP rights enforcement services received in return are significant.

It has likely been a while since most of even used a pencil – but would we use them more if they grew flowers, trees and herbs? Enter, Sprout World, a company founded on the concept of sustainability that credits patents as playing a large part in its success. In late 2012, Michael Stausholm, the company’s founder, happened upon a Kickstarter campaign launched by three MIT students for a pencil one could use and then plant in the ground to grow flowers, herbs, vegetables and even trees. “I saw it and thought it was a wonderful idea,” Stausholm says. “I had been working in sustainability for many years and everyone was talking about it, but what was it actually? The pencil was a wonderful way of illustrating the concept.”

Intellectual property rights continue to be the Rodney Dangerfield of assets – they “can’t get no respect.” The reasons are complex, but not terribly surprising, given the increased speed and importance of technology in recent years. Compounding the disconnect are many individuals and businesses who prefer to view IP rights as impediments, not assets that can be licensed or otherwise monetized. In their mind, pilfering content, using someone else’s invention or borrowing a name or image is akin to a “white” lie that does no real harm. This myth has been perpetuated over time in different ways by other IP holders and consumers who would prefer not to pay for what they need. The result is a strangely inhospitable environment for IP that dissuades innovation and depresses value.

The Washington Football Team’s (formerly the Washington Redskins’) move to change its name and logo has sparked a flurry of fans looking to “cash in” as national retailers pull the team’s merchandise off their shelves. Fans everywhere are hoping to snatch up any remaining Redskins-branded memorabilia they think may be worth money someday, which in turn is putting them at risk of purchasing knockoff items. Advancements in technology have made it harder to discern between what’s fake and what’s authentic, and the rush to find Redskins gear may make things worse as fans make snap-purchasing decisions and accidentally buy a knockoff item. 

In late July, water bottle maker Hydro Flask and parent company Helen of Troy Limited filed a complaint with the U.S. International Trade Commission (ITC) asking the agency to institute a Section 337 investigation against a series of 25 respondents, most of which are located in China, over their alleged infringement of Hydro Flask’s trademarks and design patents. The legal action highlights the difficulties being faced by many American brand owners during the COVID-19 pandemic and how Congressional action could help to ensure that these small businesses are able to effectively enforce their IP to prevent counterfeit imports.

On August 17, the United States Court of Appeals for the Second Circuit vacated and remanded a decision of the district court in Tiffany & Co. v. Costco Wholesale Corp. In particular, the Circuit Court held that the district court’s determination that Costco was liable for trademark infringement and counterfeiting was inappropriate at the summary judgment stage. In November 2012, a customer alerted Tiffany that Costco was selling diamond engagement rings that she believed were being advertised as Tiffany & Co. rings. Costco admitted to selling rings with identifying signs using the phrases “Tiffany setting,” “Tiffany set,” or “Tiffany style,” and in some instances using only the word “Tiffany” for identifying the setting style of the ring. The rings identified by the customer were accompanied by signs reading “Platinum Tiffany.”

On June 9, the full Senate Judiciary Committee held a hearing titled “COVID-19 Fraud: Law Enforcement’s Response to Those Exploiting the Pandemic.”  The hearing, which was led by Chairman Sen. Lindsey Graham, R-S.C., included testimony by William Hughes, Associate Deputy Attorney General United States Department of Justice, The Honorable Craig Carpenito, United States Attorney District of New Jersey, Calvin Shivers, Assistant Director Criminal Investigative Division Federal Bureau of Investigation, and Michael D’Ambrosio, Assistant Director United States Secret Service Department of Homeland Security. Following an acknowledgment of the tragic death of George Floyd by each of the witnesses, the testimony focused on the response to fraud that has resulted from the COVID-19 pandemic, including the sale of fraudulent personal protective equipment (PPE) and cyber-enabled fraud. In general, Hughes focused primarily on the Department of Justice’s response to criminal conduct relating to the COVID-19 pandemic, Carpenito focused on hoarding and price gouging, Shivers focused on fraud schemes and illicit finance activities that seek to exploit the COVID-19 pandemic, and D’Ambrosio focused on the U.S. Secret Service’s work to counter cyber and financial crimes exploiting the pandemic.

Online shopping has become a huge part of our everyday lives. In fact, 15% of all 2020 retail sales are projected to take place online. Unfortunately, despite their convenience, e-commerce retail platforms also provide fertile ground for counterfeiters because shoppers cannot physically examine the products being sold and shoppers often cannot identify the ultimate seller.  Worse yet, online counterfeiting is not limited to fake fashion and luxury goods, but more often involves poor quality or tainted products that endanger the health and safety of the purchaser. Reported incidents of dangerous online counterfeit purchases have included children’s car seats that disintegrate in crashes, engine oils that contain dirt and water, cold medications that are simply sugar pills, and cell phone adapters that can shock or electrocute consumers. Counterfeiting is no longer a sort of comic fakery that only dupes designer bargain hunters. Rather, it has become a real problem for everyday consumers.

This week in our nation’s capital, the House of Representatives hosts a number of committee hearings related to technology and innovation. Various hearings will explore online sales tax impacts on small businesses, unsafe counterfeit products bought by American consumers, uses of blockchain technology among small businesses, issues with veteran electronic health record systems, U.S. Cyber Command’s 2021 budget and the role of advanced nuclear reactors in creating a cleaner economy. Over in the Senate, a pair of hearings on Wednesday will discuss issues with securing the 5G supply chain and data surveillance concerns caused by partnerships between major tech firms and China. Elsewhere in D.C., the Information Technology and Innovation Foundation and the Aspen Institute host a joint event focused on reducing sources of carbon from industrial processes.

In November, 2019, amendments to the Customs Code of Ukraine regarding the protection of intellectual property rights when moving goods across the customs border came into force. The principle of international exhaustion of rights was officially introduced into Ukrainian legislation with this Law.

This week in Other Barks & Bites: the U.S. Supreme Court hears oral arguments over copyright status of the Official Code of Georgia Annotated; the Federal Circuit remands Ericsson appeal to calculate release payment in patent license; Apple, Ford and others urge the USPTO to retain policy against injunctions on companies practicing SEPs; Huawei asks the Fifth Circuit to undo the FCC’s ban preventing it from supplying U.S. networks; Sergey Brin and Larry Page relinquish executive duties at Google; U.S. antitrust regulators explore Amazon’s cloud business; Washington politicians send letter to ALI over Copyright Restatement Effort concerns; and Qualcomm challenges Judge Koh’s class action certification at the Ninth Circuit.