Thailand vows to stiffen resolve against the fake trade

July 6, 2009 14:33 by Robert Johnson

Thailand’s Deputy Minister of Commerce has pledged that in the coming 2-8 months the country will show significant gains in its crackdown and prosecution of intellectual property crimes. As evidence of Thailand’s increasingly harsh climate for counterfeiters, the Deputy Minister announced that over 1.7 million fake articles had been confiscated in the first 5 months of the current year.

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U.S. plans to fove forward with ACTA talks

June 29, 2009 06:55 by Robert Johnson

Ambassador Ron Kirk, the United States Trade Representative, announced the plan to move forward with the negotiation of the Anti-Counterfeiting Trade Agreement (ACTA), after it was reviewed by the Obama administration, as part of an ongoing overall evaluation of the current and pending trade agreements.
 
Ambassador Kirk emphasized that the ACTA is an important part of the U.S. trade agenda. Kirk believes that the international community’s continued commitment to its development marks a significant blow to those that participating in global counterfeiting and piracy. In a press release, Kirk stated that “the ACTA negotiations provide an opportunity to toughen international standards for the enforcement of intellectual property rights, making it harder for counterfeit and pirated products to enter our country and making the world safer for the innovation and creativity that are so critical to the U.S. economy.”
 
In the recent past, the negotiations surrounding the agreement have received some criticism for their secrecy, an issue Ambassador Kirk noted would be addressed with a dedicated page on the USTR website as well as an “open door policy” and town hall meetings to engage and inform the public about the proceedings.
 
According to the press release, the next meeting of the ACTA negotiations is scheduled for July in Morocco. The hope is that an agreement will be reached by 2010.


NY’s New Year’s Resolution? Less Fakes

January 7, 2009 16:12 by LiliAna Andreano

The New York City police force started 2009 off with a big message to Canal Street vendors who peddle counterfeit “designer” goods—not in this town.  Beginning in early December, city inspectors and police officers made a series of raids, the largest of which was on 424 Broadway, a mini-mall housing thousands of counterfeit handbags and other merchandise valuing over $1 million dollars. 

Officers not only uncovered sacks of knockoff goods, but terrible working conditions that endanger the lives of those who work in the building making and selling counterfeit goods. 

“It’s a firetrap,” said Edward Mungin, an inspector with the Department of Buildings assigned to the enforcement unit. “Space heaters, hanging lights, everything about this location is illegal.” 

The raid was just the latest in a concerted effort to close down counterfeit operations in what has become known as the “counterfeit triangle,” in New York City—the blocks between Walker, Canal, and Center Streets. Last year, the city made 2,729 arrests for trademark counterfeiting in a bid to rid New York of poorly made—and illegal—goods. 

New York isn’t the only city taking note of the sharp rise in counterfeiting in the last decade—Los Angeles similarly raided multiple downtown LA locations throughout the holiday season in what they dubbed Operation Clean Sweep. The program yielded 28 arrests, 200,000 counterfeit apparel items worth $2.7 million dollars. Los Angeles businesses lose $5.2 billion annually to the counterfeit market, according to the Los Angeles Anti-Piracy Task Force. 

While counterfeiting has grown recently—encompassing everything from faulty car parts to fake chocolate—local governments have stepped up with special task forces created specifically to fight fakes. 

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IACC, Homeland Security Meet to Fight Fakes

September 30, 2008 09:18 by LiliAna Andreano

Assistant Secretary of Homeland Security for Immigration and Customs Enforcement, Julie Myers, met with members of the International AntiCounterfeiting Coalition in New York City last week. Ms. Myers and Robert Barchiesi, president of the IACC, held a press conference to discuss how to strengthen government and industry ties to better combat counterfeit goods.

“Are we seeing places where more cooperation is needed?” Myers rhetorically asked Women’s Wear Daily. “Yes.”

Federal enforcement agencies and intellectual property owners have fortified their efforts to cut down on the counterfeit goods market, which costs the American retail industry over $30 Billion yearly.

Concerning its role in increasing consumer awareness about the consequences of purchasing counterfeits, Barchiesi said “In many cases, these are produced by forced labor or in sweatshops. We can get to the consumers and say, ‘Listen, the $5 you just spent, you don’t want to think about where it went.”

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Bipartisan Bill Aims to Fight Fakes

September 18, 2008 09:52 by LiliAna Andreano

On September 10, Congress proposed legislation that would secure more money to enforce intellectual property laws and create greater penalties for offenders.

In addition to stopping fakes domestically, the bipartisan bill would allow the U.S. Trade Representative to crack down on foreign countries ignoring U.S. intellectual property.

“We can’t stamp ‘Made in America’ on an idea, but Congress can do more to protect American intellectual property around the world," said Senator Max Baucus.

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Are Fakes Hurting The Job Market?

August 11, 2008 12:37 by LiliAna Andreano

On August 5, Senator Patrick Leahy (D-Vermont), Chairman of the Senate Judiciary Committee investigating counterfeit crime in the United States said the counterfeit industry is costing the U.S. economy at least $200 billion and 750,000 jobs every year.

Leahy, along with committee member Orrin Hatch (R-Utah), is drafting multiple U.S. Senate bills to protect American citizens and the economy from the onslaught of dangerous counterfeits.

The committee met with automotive and pharmaceutical industry experts and product safety researchers, who also expressed their concern for consumer safety.

“A variety of counterfeit products enter the stream of commerce every day, many posing unsuspected serious fire and electrical hazards that endanger the American public,” said Brian Monks, Vice President of Anticounterfeiting for Underwriters Laboratories, Inc.

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Feds Target Purse Parties

August 4, 2008 14:55 by LiliAna Andreano

U.S. Immigration and Customs Enforcement agents are keeping a close watch on “purse parties,” the potentially dubious get-togethers where knock-off luxury purses and accessories are sold. ICE investigator William Wallrapp told a Nebraska television station that global organized crime rings were responsible for selling counterfeit products to Americans who may see it as “no big deal.” Wallrapp also said that the U.S. government has opened a home base in Virginia specifically to investigate counterfeit criminal activity. 

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Los Angeles Woman Arrested for Selling Bogus Botox

August 4, 2008 14:54 by LiliAna Andreano
A California woman has been arrested for selling counterfeit Botox over the Internet to consumers across the country. The U.S. FDA advises consumers to have medical procedures conducted by a licensed practitioner, and ask about the authenticity and origin of their cosmetic fillers before scheduling an appointment.

Non-approved injectable fillers can lead to botched cosmetic procedures. Last year, Daniel Serrano was imprisoned for injecting patients with what turned out to be low-grade silicon, similar to the kind used in auto lubricant, causing punctures in patients’ skin and even paralysis.


US Court Rules in Tiffany vs eBay

July 28, 2008 14:19 by LiliAna Andreano

In contrast to the recent July 2008 French high court ruling against online marketplace eBay for the sale of counterfeit LVMH goods on its website, a US federal court has ruled in eBay’s favor in a suit brought on by luxury jeweler Tiffany.

On July 14, 2008, U.S. District Judge Richard Sullivan in New York found Tiffany responsible for policing its trademark on eBay.

"This ruling allows sellers of counterfeit goods on eBay to victimize consumers,” said Mark Aaron, a Tiffany vice president.

The lawsuit began in 2004 when Tiffany claimed that over 75 percent of Tiffany jewelry sold on eBay was counterfeit.

Nichola Sharp, an eBay spokeswoman countered, “The court ruling reaffirms we have been doing enough to keep counterfeits off the site.”

Important Links:
Court Clears eBay in Suit Over Counterfeit Goods, The New York Times 
Tiffany and eBay in Fight Over Fakes, The New York Times 

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French Court Orders eBay to Pay $61 Million to LVMH

July 23, 2008 14:53 by LiliAna Andreano

Internet auction site eBay has been ordered by a French court to pay $61 million in damages to luxury goods company LVMH Moët Hennessy over the sale of counterfeit LVMH goods on their website.

The ruling favors brand owners who have had a long-standing dispute with re-sale and auction sites such as eBay over who is responsible for policing counterfeit goods on the Internet.

Despite eBay’s improved anti-fraud efforts in the past two years, retailers such as Louis Vuitton say that the plethora of fakes on eBay are damaging their brands’ names and duping consumers.

Pierre Godet, an adviser to LVMH Chairman and CEO Bernard Arnault, told The Independent that the decision to fine eBay heavily was “groundbreaking” and answers “a particularly serious question, on whether the Internet is a free-for-all for the most hateful, parasitic practices.”

"If counterfeits appear on our site, we take them down swiftly," eBay spokeswoman Sravanthi Agrawal told USA Today. The company further stated that their business model is being attacked by brand owners, who want to limit online distribution of authentic items as well as counterfeits.

LVMH represents such luxury brands as Louis Vuitton, Marc Jacobs, Fendi, and Celine.

Important Links:
Moment of truth for Ebay on fake luxury goods, Financial Times
Court orders eBay to pay $61M in Louis Vuitton knockoff case, Associated Press
eBay fined £31m over sales of fake luxury goods, The Independent

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