Faked in China: Inside the Pirates’ Web

(Reuters/News Center)

Anybody could tell right away that the Louis Vuitton shoulder bag was fake because it was delivered in a recycled box that once shipped batteries.

Warnings printed on the inside of the box read: “Danger Contains Sulfuric Acid” and “Poison - Causes Severe Burns” — not the sort of messages that would normally accompany a product from one of the world's most iconic luxury brands.

But it sure looked real. It was dark brown, sported a braided strap with brass fittings and the Louis Vuitton monogramme stamped all across the bag.

I had ordered the bag from a website called www.ericwhy.com for this special report, which explores the growing problem of counterfeit merchandise sold over the Internet.

Reuters wanted to trace the problem from a consumer in Washington D.C. to the shadowy producers based in Guangzhou China, where my colleague Melanie Lee found the illicit workshops and markets. Read more here.

INTERPOL and Hong Kong Customs Join Forces to Improve Regional Police and Customs Anti-Counterfeiting Co-operation

(Web Newswire)

Greater emphasis on the leadership role of police and customs and the benefits of working collaboratively is the focus of the 2010 International Law Enforcement Intellectual Property (IP) Crime Conference which opened today (October 19) in Hong Kong.

The conference is the first to be held in Asia and brings together some 500 law specialist IP crime investigators, prosecutors and private sector investigators from 48 countries. Co-hosted by INTERPOL and Hong Kong Customs in partnership with Underwriters Laboratories Inc. (UL), the three-day event (19-21 October) concentrates on collective efforts to work together to break organized crime. It will include a series of operational workshops to enable subject matter experts to discuss how all those affected by counterfeiting and piracy can better work together to break up the organized criminal gangs which manufacture and distribute fake goods on a regional and increasingly global scale. Read more here.

Related: Text of AG Holder's Remarks Before Intellectual Property Summit in China

Countries Release Text of Anti-Counterfeiting Pact

(Reuters – Doug Palmer)

An international pact to fight global trade in counterfeit and pirated goods moved closer to reality on Wednesday when countries participating in the talks released the final draft of the proposed deal.

“This text reflects tremendous progress in the fight against counterfeiting and piracy – a global crime wave that robs workers in the United States and around the world of good-paying jobs and exposes consumers to dangerous products,” U.S. Trade Representative Ron Kirk said in a statement.

China, the source of much of world’s counterfeit goods production, was not a party to the talks.

Kirk called on the nearly 40 participating countries to quickly finalize the Anti-Counterfeiting Trade Agreement (ACTA) after reaching a tentative deal last week in Tokyo. “The leadership shown by our ACTA partners in reaching solutions on tough issues should send a strong message to pirates and counterfeiters that they have no place in the channels of legitimate trade,” Kirk said. Read more here.

Customs Agents Grab Counterfeit Detergent in Wash.

(Associated Press)

U.S. Customs and Border Protection officers have seized nearly 1,500 cartons of counterfeit laundry detergent that arrived in Seattle by ship from China.

Included were 5,000 boxes of detergent that resembled Tide and 3,600 bags that resembled the Ariel brand. In a statement, Customs says the products not only bore protected trademarked names, they falsely claimed they originated in the United States. Read more here.

Watered-down ACTA Approaching Conclusion

(Bridges Weekly)

Controversial multi-country negotiations on an “Anti-Counterfeiting Trade Agreement” are within striking distance of conclusion, according to a leaked draft text.

The secrecy surrounding the talks took another hit this week when Knowledge Ecology International, a Washington-based non-governmental organisation, posted the draft on its website, along with a note stating that the United States was alone among participating governments in opposing the draft’s release.

While the secrecy has steadily eroded, with regularly leaked draft texts and greater support for transparency among the dozen-odd mostly industrialised countries taking part in the talks, the prospective agreement has continued to draw fire for other reasons.

Critics have charged that the terms being considered go well beyond what is necessary to target counterfeiting, and would create new intellectual property protections that surpass existing multilateral rules and upset the carefully constructed balance in the WTO’s agreement on intellectual property. They worry that if an accord entered into force, it could threaten internet freedom, access to technology, and the availability of affordable medicine in poor countries. Read more here.

US Immigration and Customs Enforcement Targeting Counterfeit Merchandise

(Fanhouse.com)

The NFL and other pro sports leagues are working with federal authorities to curb the flow of counterfeit products, the U.S. Immigration and Customs Enforcement (ICE) recently announced.

ICE agents based in New Orleans investigated vendors and confiscated more than 1,400 counterfeit hats, t-shirts and jerseys worth approximately $210,000. While most of the merchandise included faked NFL gear, counterfeit NBA, MLB and NASCAR products were also seized along with bogus Duracell batteries and John Deere products. Read more here.

Champagne And Cheese Could Bring Down Anti-Piracy Talks

(European Voice)

Karel De Gucht, the European trade commissioner, has declared his readiness to walk away from international talks on an anti-counterfeiting pact if it does not include the EU’s list of protected products such as champagne and Parma ham.

De Gucht told MEPs during a debate on Wednesday (8 September) on the Anti-Counterfeiting Trade Agreement (ACTA) that the EU had to have the so-called geographic indicators (GI) included in the final deal.

The United States is blocking the EU’s request to include GIs in the accord and De Gucht said negotiations on the issue during the last round of talks in Washington, DC, last month were “disappointing”. The issue is threatening to become the main stumbling-block to completing a deal. Read more here.

Related: Talks On Anti-Counterfeiting Agreement Must Be More Transparent, Say Meps (European Parliament)

EU Parliamentarians Criticize Anti-Counterfeiting Deal

(Networkworld.com)

The proposed multilateral Anti-Counterfeiting Trade Agreement (ACTA) has hit a stumbling block over the liability of ISPs in allowing customers access to peer-to-peer file-sharing sites and the inclusion of geographic indicators.

European Commissioner for Trade, Karel De Gucht, gave a statement to the European Parliament on Tuesday and attempted to downplay fears that the agreement could infringe individual civil liberties and result in increased border searches for counterfeit and pirated goods. Personal laptops and MP3 players will not be searched, the commissioner said, adding that only piracy and counterfeiting on a commercial scale are of interest.

However, he said that he would walk away from any deal if it did not include so-called geographic indicators, which aim to protect E.U. products such as champagne or Parma ham. De Gucht described the latest round of negotiations in Washington, D.C., last month as “disappointing”. Read more here.

Update on Anti-Counterfeiting Trade Agreement Negotiations

(World Trade Interactive)

The Office of the U.S. Trade Representative released Aug. 20 a joint statement from the countries negotiating the Anti-Counterfeiting Trade Agreement following the most recent round of talks last week in Washington, D.C. According to the statement, participants during this round “advanced their discussions in all sections of the agreement,” including general obligations, civil enforcement, border measures, criminal enforcement, enforcement measures in the digital environment, international cooperation, enforcement practices, institutional arrangements and final provisions. Read more here.

U.S.-EU Food Fight Dogs Anti-Counterfeiting Talks

(Reuters – Doug Palmer)

A long-running battle over the right to use European place names, like Parma or Roquefort, for some of the world’s most popular foods and beverages looks to be the toughest remaining issue in international trade talks aimed at reducing copyright and trademark theft.

The 27-nations of the European Union want the proposed Anti-Counterfeiting Trade Agreement (ACTA) to cover “geographical indicators”, which are names for food and alcoholic products drawn from a particular location, such Champagne or Cognac, both in France.

But U.S. business groups worry that the EU demand would mean American products as commonplace as Kraft parmesan cheese could potentially be treated as illegal items under the pact and subject to seizure by customs officials. Read more here.

U.S. Unveils Broad Crackdown on Piracy, Counterfeit Goods

(Jennifer Martinez — LA Times)

The government-wide effort includes adding 50 FBI agents to focus on intellectual property infringement

The Obama administration unveiled a government-wide strategy Tuesday to crack down on piracy and counterfeit goods, adding more than 50 FBI agents this year to tackle intellectual property abuses.

With the ubiquity of the Internet, online piracy and the sale of counterfeit goods on the Web are growing rapidly across a range of industries, including entertainment, software and pharmaceutical markets.

Vice President Joe Biden, who announced the new program, said that the problem costs Americans jobs and that counterfeit goods threaten lives.

“Whether we’re talking about fake drugs that hurt ... or knock-off car tires that fall apart at 65 miles per hour causing injury and death, counterfeits kill,” Biden said at a White House meeting that included Atty. Gen. Eric H. Holder Jr., Homeland Security Secretary Janet Napolitano and Food and Drug Administration Commissioner Margaret Hamburg. Read more here.

CACN Marks World Anti-Counterfeiting Day

(CACN)

The Canadian Anti-Counterfeiting Network (CACN) today marks World Anti Counterfeiting Day by congratulating the RCMP and the Royal Ontario Museum (ROM) for receiving a prestigious award from the Global Anti-Counterfeiting Group (GACG) in Paris today. The RCMP received one of six awards for “Public Body”, marking its enforcement efforts against counterfeiting in Canada.

“The RCMP really deserves to be commended for their creativity in addressing counterfeiting and piracy in Canada given its outdated laws and insufficient criminal provisions,” said Brian Isaac, Chair of CACN.

“The RCMP has also been extremely active in public awareness campaigns, educational initiatives – including CACN’s Reality Tour – and internationally with the Interpol Intellectual Property Crime ActionGroup,” he added.

The ROM received a “Highly Commended Honour” from the GACG for developing and presenting the Fakes & Forgeries: Yesterday and Today exhibition, which highlights counterfeiting in artwork, artefacts and in every day consumer products. The exhibition was on display at the ROM from January 9 to April 4, 2010 and is currently touring museums across Canada.

CACN also marks World Anti-Counterfeiting Day by officially launching a new online video entitled Buy the Real Thing! aimed at youth and shot during CACN’s 2009 Reality Tour. The video can be accessed on CACN’s Web site.

Canadian Anti-Counterfeiting Network Applauds New Copyright Bill

(CAFN)

The Canadian Anti-Counterfeiting Network (CACN) congratulated the federal Government on the release of its new copyright bill today. With the speed of evolution of digital technologies, arriving at the correct balance between the rights of creators, users, producers and distributors of copyright works is a challenging task and CACN applauds the Government of Canada’s efforts to do so in consultation with Canadians through the extensive consultation process that occurred last summer.

“The introduction of new copyright legislation is long overdue and our members look forward to reviewing the bill in more detail,” said Brian Isaac, Chair of CACN. “We strongly urge Members of Parliament from all parties to act quickly and decisively in passing legislation that will fully implement Canada’s commitments under the WIPO Internet Treaties and protect Canada’s knowledge-based industries.” Read more here.

Canadian Regulator Publishes Counterfeit Guidance

(SecuringPharma.com)

Health Canada has finalised a guidance document on counterfeiting of health products, laying out the principles of how the agency intends to identify, assess and manage health risks associated with fakes.

The primary objective of the response strategy is “to manage the risk to Canadians and to have the counterfeit product removed from market using the most appropriate level of intervention and notifying parties at risk,” according to Diana Dowthwaite, Health Canada’s Director General.

The document indicates that the presence of counterfeit health products in the regulated supply chain in Canada is “infrequent.” Nevertheless the purpose of the new guideline is to help Health Canada’s inspectorate and enforcement officials focus on potential vulnerabilities in health product “manufacturing, packaging/labelling, wholesaling, importation, distribution, sale and use.” Read more here.

Initiative Nets $143 Million in Cisco Goods

(DHS-ICE)

Operation Network Raider, a domestic and international enforcement initiative targeting the illegal distribution of counterfeit network hardware manufactured in China, has resulted in 30 felony convictions and more than 700 seizures of counterfeit Cisco network hardware and labels with an estimated retail value of more than $143 million.

The results of the operation were announced by U.S. Immigration and Customs Enforcement (ICE) Assistant Secretary John Morton, U.S. Customs and Border Protection (CBP) Commissioner Alan Bersin, Assistant Attorney General for the Criminal Division Lanny A. Breuer and Assistant FBI Cyber Division Director Gordon Snow.

In addition to the convictions and seizures, CBP reports a 75 percent decrease in seizures of counterfeit network hardware at U.S. borders from 2008 to 2009. Nine individuals are currently facing trial and another eight defendants are awaiting sentencing. Read more here.

U.S. Says Protecting IP Rights a Top Trade Priority

(Reuters – Doug Palmer)

“Let’s be clear: IP (intellectual property) theft in overseas markets is a job killer, and it’s an export killer,” U.S. Trade Representative Ron Kirk said in a speech to mark World Intellectual Property Day. As the United States encourages companies to pour more money into the development of environmentally friendly green technologies, “we must remain vigilant that the investments that American inventors make are not undermined by lax enforcement of intellectual property rights,” Kirk said. Trade in counterfeit goods costs tens of billions of dollars to the United States alone.

A study done for the U.S. Chamber of Commerce estimated that industries including chemicals, petroleum, computer equipment, communications, semiconductors, autos, medical equipment and aerospace technologies which rely heavily on patents and other forms of intellectual property pay their workers about 60 percent more than non-IP-based industries. IP industries also account for about 60 percent of total U.S. exports, rising to $910 billion in 2007 from $665 billion in 2000, and about 65 percent of U.S. employment in sectors involved in trade, the NDP Consulting study found. Read more here.

Canada Releases Draft Text of Anti-Counterfeiting Trade Agreement

(Minister of International Trade)

The Honourable Peter Van Loan, Minister of International Trade, today [April 22] announced that Canada has joined 36 other negotiating countries in releasing the draft consolidated text of the Anti-Counterfeiting Trade Agreement, following the eighth round of negotiations that took place from April 12 to 16, 2010, in Wellington, New Zealand.

“Canada has been a leader in calling for greater transparency throughout this process. I am pleased to see that our partners have agreed to release the draft text,” said Minister Van Loan. “We will continue to consult with a broad range of stakeholders to ensure this agreement reflects the best interests of Canadians.”

The Anti-Counterfeiting Trade Agreement aims to combat the criminal trade in counterfeit and pirated goods. The countries negotiating the agreement are Australia, the European Union and its member countries, Japan, Mexico, Morocco, New Zealand, the Republic of Korea, Singapore, Switzerland and the United States. The next round of negotiations will take place in Switzerland in June 2010.

A draft copy of the text can be found online here.

U.S. Groups Slam Anti-Piracy Accord’s Draft Text

(Reuters/Washington Post)

U.S. digital rights advocates and a computer industry trade group on Wednesday criticized the newly released draft text of an international agreement to toughen penalties for copyright theft.

“Substantively, we remain concerned that this proposal lacks the balance that we find in U.S. copyright law, while attempting to export a regulatory regime that favors big media companies at the expense of consumers and innovators,” Gigi Sohn, president of Public Knowledge, a digital rights group, said in a statement.

The European Union’s executive branch and the U.S. Trade Representative’s office on Wednesday both posted texts of the proposed Anti-Counterfeiting Trade Agreement (ACTA) on their websites, years after groups first requested to view the language under negotiation. Read more here.

Countries to Release Anti-Piracy Text as Deal Nears

(Doug Palmer — Reuters via Washington Post)

Countries negotiating a deal to curb trade in fake and pirated goods are close to reaching an agreement in talks that have raised concerns among digital rights advocates, U.S. trade officials said on Friday.

“The agreement can be concluded soon if other participants make it a priority to achieve such progress now,” Nefeterius McPherson, a spokeswoman for the U.S. Trade Representative’s office, said in a statement.

Digital rights advocates have feared the proposed Anti-Counterfeiting Trade Agreement could allow customs agents to confiscate laptop and music devices if they contain illegal downloads, while other groups have worried it could restrict trade in low-price generic drugs. Read more here.

Counterfeit Goods Seizures Total Nearly 15,000 in 2009

(Industry Week – Jill Jusko)

China remains the top country of origin for counterfeit and pirated goods, according to U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement

Fiscal 2009 was a busy one for the U.S. government agencies charged with keeping counterfeit goods outside the country’s borders. U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement made 14,841 seizures of counterfeit and pirated goods for the fiscal year, according to the agencies’ annual report. The domestic value of the goods was $260.7 million. (Domestic value is the cost of making the illegal goods in a foreign country, plus the shipping and other costs required to bring the merchandise in to the U.S.)

Read more here. To view the full annual report, go to Fiscal 2008 Seizure Statistics.