Yearly Archives

2013

May 07

Chinese Man Sentenced for Exporting Sensitive US Military Technology to China

By Customs IP Enforcement, Export, Intellectual Property, International IP

A former employee of a New Jersey-based defense contractor was sentenced Monday for exporting sensitive military technology to China, stealing trade secrets and lying to federal agents. The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), FBI and U.S. Customs and Border Protection.

Sixing Liu, aka Steve Liu, 49, a Chinese national, who had recently lived in Flanders, N.J., and Deerfield, Ill., was sentenced to 70 months in prison. Liu was also ordered to serve three years of supervised release and pay a $15,000 fine. Restitution is to be determined at a later date.

Liu was convicted by a federal grand jury in September 2012 and has remained in federal custody.

The jury convicted Liu of nine of the 11 counts in the second superseding indictment with which he was charged, including: six counts of violating the Arms Export Control Act and the International Traffic in Arms Regulations; one count of possessing stolen trade secrets in violation of the Economic Espionage Act of 1996; one count of transporting stolen property in interstate commerce; and one count of lying to federal agents.

“Today’s sentencing underscores the potential global consequences when sensitive military weapons and technical data come into the wrong hands,” said Andrew McLees, special agent in charge of HSI Newark. “HSI is determined to bring these criminals to justice and prevent criminal organizations from threatening our safety and security.”

According to court documents, in 2010, Liu stole thousands of electronic files from his employer, L-3 Communications, Space and Navigation Division, located in Budd Lake, N.J. The stolen files detailed the performance and design of guidance systems for missiles, rockets, target locators and unmanned aerial vehicles. Liu stole the files to position and prepare himself for future employment in China. As part of that plan, Liu delivered presentations about the technology at several Chinese universities, the Chinese Academy of Sciences and conferences organized by Chinese government entities. However, Liu was not charged with any crimes related to those presentations.

Liu boarded a flight from Newark Liberty International Airport to China Nov. 12, 2010. Upon his return to the United States Nov. 29, 2010, HSI special agents found Liu in possession of a non-work-issued computer found to contain the stolen material. The following day, Liu lied to HSI special agents about the extent of his work on U.S. defense technology, which the jury found to be a criminal false statement.

The U.S. Department of State later verified that several of the stolen files on Liu’s computer contained export-controlled technical data that relates to defense items listed on the United States Munitions List.

Under federal regulations, items and data covered by the USML may not be exported without a license, which Liu did not obtain. The regulations also provide that it is the policy of the United States to deny licenses to export items and data covered by the USML to countries with which the United States maintains an arms embargo, which includes China.

SOURCE: ICE

May 07

Customs Seizes Thousands of Toasters with Counterfeit Safety Markings

By Import

U.S. Customs and Border Protection (CBP) officers and import specialists assigned to the Los Angeles/Long Beach seaport complex seized 14,904 toasters bearing counterfeit Underwriters Laboratories (UL) safety markings.

“This is yet another example of CBP officers’ vigilance in preventing potentially dangerous counterfeit appliances from reaching American consumers,” said Todd C. Owen, CBP director of field operations in Los Angeles. “CBP takes an aggressive stand against counterfeiters attempting to introduce unsafe products that disregard quality, safety and the law.”

One of the toasters seized by Customs

Example of the UL certification mark

 

 

 

 

 

 

 

 

The uncertified toasters that arrived from China in two shipments were seized on March 28 and 8, after UL confirmed to CBP officials that the safety markings on the toasters are counterfeit. The combined estimated manufacturer’s suggested retail value is $297,931. The combined domestic value of the shipments is $72,597.

An independent product safety certification organization, UL rigorously tests and
evaluates products for potential risk of fire, shock, and/or personal injury. Products are not certified until they meet established UL standards.

Products bearing counterfeit UL certification marks have not undergone such a testing and certification process, and can present potential safety hazards to the consumer.

In fiscal year 2012, consumer electronics/parts presenting potential safety or security risks, with an estimated domestic value of $33.5 million, represented 23 percent of all commodities seized by CBP nationwide.

SOURCE: CPB

 

 

May 07

Customs Seize Counterfeit Credit Cards

By Import

Customs seized counterfeit credit cards from a man on a tourist bus

A male Mexican national was arrested last month for attempting to smuggle a number of fraudulent credit cards through the Dennis DeConcini port.

U.S. Customs and Border Protection officers conducting an inspection of a tourist bus selected Leonardo Daniel Robles Castro, 23, of Hermosillo, Sonora, Mexico, for further inspection. During the search, officers found and seized two packages of counterfeit credit cards (79 total) along with a fraudulent driver’s license. Robles was arrested and referred to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

CBP officers working at Arizona’s ports are assigned to the Office of Field Operations, the primary organization within Customs and Border Protection tasked with an anti-terrorism mission. CBP officers screen all people, vehicles and goods entering the United States while facilitating the flow of legitimate trade and travel. Their mission also includes carrying out border-related duties, including narcotics interdiction, enforcing immigration and trade laws, and protecting the nation’s food supply and agriculture industry from pests and diseases.

SOURCE: CBP

Mar 20

Mexico Joins the International Trademark System

By Intellectual Property, International IP

Mexico's Secretary of Economy Bruno Ferrari and Director General Francis Gurry (Photo: WIPO/Berrod)

On November 19, 2012, Mexico’s Secretary of Economy, Bruno Ferrari, deposited Mexico’s instrument of accession to the Madrid Protocol for the International Registration of Marks (Madrid Protocol). The treaty entered into force with respect to Mexico on February 19, 2013. This brings the total number of members in the Madrid Protocol to 89.

The Madrid Protocol offers trademark owners a cost effective, user friendly, and streamlined way to protect their trademarks internationally. In 2012, the Philippines, Colombia, New Zealand and Mexico acceded to the Madrid system, which results in geographical expansion of the system.

The Madrid Protocol is administered by the World Intellectual Property Organization (WIPO). It allows a trademark owner to protect a mark in up to 88 countries in addition to the European Union with its Community Trade Mark (CTM) by filing one application in one language (English, Spanish, or French), with one set of fees, in one currency (Swiss Francs), which significantly simplifies the process of protecting a trademark internationally. Applicants that want to utilize the Madrid Protocol  must apply for trademark protection in a relevant national or regional trademark office before seeking international protection. An international registration under the Madrid Protocol has the same effect as an application for registration of the mark in each of the contracting parties designated by the applicant.

If the protection is not refused by the trademark office of a designated contracting party, the status of the mark is the same as if it had been registered by that office. Later, the international registration can be maintained and renewed through a single procedure.

SOURCE: WIPO

Mar 05

Jim Chester Speaks to Dallas Association of Young Lawyers About M&A Due Diligence

By News

J. F. (Jim) Chester, founding partner in the Dallas-based global business & technology law firm of CHESTER pllc, recently presented on due diligence issues and strategies to an audience of young attorneys at an event sponsored by the Dallas Association of Young Lawyers (DAYL).

Chester co-presented with Stephanie Gause of Bell Nunnally & Martin LLP, who will discuss general M&A due diligence and then focus on specific problems and considerations for IP due diligence in mergers and acquisitions. The title of the presentation, which was held at the Belo Mansion, the Dallas Bar Association’s headquarters in Dallas, Texas, was: “What Every Young Lawyer Should Know About M&A Due Diligence.”

Jim Chester, founder and managing partner in CHESTER pllc, also teaches courses on International Trade Law and International Business Transactions at Baylor University Law School.

Of the event, Chester reports, “I was honored to participate in this DAYL program.  Understanding IP due diligence in M&A transactions is very important, especially for young attorneys. It’s great that the DAYL provides programs such as this one to allow young attorneys to learn from a range of more experienced practitioners.”

CHESTER pllc is a Dallas, Texas law firm providing comprehensive legal services to innovation-based companies doing business in the US, around the world, and on the web.  Its mission (and passion) is helping entrepreneurs and emerging companies solve problems and protect their interests. CHESTER pllc delivers value by providing business-savvy, cost-effective solutions to legal challenges.  The firm offers a wide array of business legal solutions, such as business entity formation (LLCs, corporations, etc.), trademarks and other intellectual property, technology transactions, contracts, ecommerce and dispute resolution.  Additional information about the firm and its attorneys may be found at www.chester-law.com

Mar 05

Jim Chester and Sophilia Hsu Publish Article in Currents: International Trade Law Journal

By News

CHESTER pllc is pleased to announce that founding partner J. F. (Jim) Chester and associate Sophilia Hsu have authored an article that is being published in the upcoming Summer 2013 edition of Currents: International Trade Law Journal. The article is called Going Global: A Legal Primer for Innovation and Knowledge Based Companies.

The article is written for companies that are considering expanding operations outside the United States and discusses several common meanings of “going global.” Additionally, the articles addresses some special issues and concerns that arise with businesses that are based on innovation or knowledge.

Currents is the official international trade law journal of South Texas College of Law. It is published bi-annually by the law student members and editors of the Journal and is received by a wide range of subscribers, which include law schools, practitioners, private companies and universities in the U.S. and abroad. Currents focuses on international trade law in its broadest sense. It addresses issues concerning the effects of international trade agreements as well as aspects of international business transactions, including the sale of goods and services, licensing, investment, and dispute settlement.

CHESTER pllc is a Dallas, Texas law firm providing comprehensive legal services to innovation-based companies doing business in the US, around the world, and on the web.  Its mission (and passion) is helping entrepreneurs and emerging companies solve problems and protect their interests. CHESTER pllc delivers value by providing business-savvy, cost-effective solutions to legal challenges.  The firm offers a wide array of business legal solutions, such as business entity formation (LLCs, corporations, etc.), trademarks and other intellectual property, technology transactions, domestic and international contracts, and e-commerce matters.  Additional information about the firm and its attorneys may be found at www.chester-law.com.

 

Mar 01

Project Honeygate: One of the Largest Anti-Dumping Cases in US History

By Import


Five individuals and two domestic honey-processing companies have been charged with federal crimes in connection with a U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI)-led investigation surrounding illegal importations of honey from China.

The charges assert that the Chinese-origin honey was misdeclared as other commodities upon importation into the United States and transshipped through other countries to evade anti-dumping duties. Altogether, the seven defendants allegedly evaded anti-dumping duties totaling more than $180 million.

According to industry experts, anti-dumping circumvention schemes like the one announced today create a divergent market which negatively affects legitimate business. To combat this, HSI and U.S. Customs and Border Protection (CBP) have stepped up efforts regarding commercial fraud investigations that focus on U.S. economic and health and safety interests.

The charges represent the second phase of an investigation led by HSI. In June 2011, an HSI undercover special agent assumed the role of the director of procurement at Honey Holding I Ltd., which by then was cooperating with the investigation.

Honey Holding, doing business as Honey Solutions, of Baytown, Texas, and Groeb Farms Inc., of Onsted, Mich. – two of the nation’s largest honey suppliers – have both entered into deferred prosecution agreements with the government. Honey Holding has agreed to pay $1 million and Groeb Farms has agreed to pay $2 million in fines. Both companies have also agreed to implement corporate compliance programs as part of their respective agreements.

“These businesses intentionally deprived the U.S. government of millions of dollars in unpaid duties,” said ICE Deputy Director Daniel Ragsdale. “Schemes like this result in legitimate importers and the domestic honey-producing industry enduring years of unprofitable operations, with some even being put out of business. We will continue to enforce criminal violations of anti-dumping laws in all industries so American and foreign businesses all play by the same rules.”

The individual defendants include three honey brokers, the former director of sales for Honey Holding, and the president of Premium Food Sales Inc., a broker and distributor of raw and processed honey in Bradford, Ontario.

In December 2001, the Commerce Department determined that Chinese-origin honey was being sold in the United States at less than fair market value, and imposed anti-dumping duties. The duties were as high as 221 percent of the declared value, and later were assessed against the entered net weight, currently at $2.63 per net kilogram, in addition to a honey assessment fee of one cent per pound of all honey.

In 2008, federal authorities began investigating allegations involving circumventing anti-dumping duties through illegal imports, including transshipment and mislabeling on the supply side of the honey industry. The investigation resulted in charges against 14 individuals, including executives of Alfred L. Wolff GmbH and several affiliated companies of the German food conglomerate. The defendants were charged with allegedly evading approximately $80 million in anti-dumping duties on Chinese-origin honey. Authorities seized and forfeited more than 3,000 drums of honey that illegally entered the United States.

The second phase of the investigation, announced on February 20, 2013, involves allegations of illegal buying, processing and trading of honey that illegally entered the United States on the demand side of the industry. Some of that honey was adulterated with antibiotics not approved by the Food and Drug Administration (FDA) for use in honey. None of the charges allege any instances of illness or other public health consequences attributed to consumption of the honey. The investigation is continuing.

“Trade fraud can have significant implications for the U.S. economy and consumers,” said CBP Chief Operating Officer Thomas S. Winkowski. “These products take jobs away from American workers and frequently violate U.S. health and safety standards, potentially endangering the public. CBP is committed to fighting these fraudulent actors alongside our government partners.”

SOURCE: ICE

Mar 01

Jim Chester Speaks to Paralegal Division of the State Bar of Texas

By News

J. F. (Jim) Chester, founder and managing partner in the Dallas-based global business & technology law firm of CHESTER pllc, recently presented a webinar on protecting intellectual property in international markets to the Paralegal Division of the State Bar of Texas. Chester spoke from CHESTER pllc’s main office in Dallas to attendees in locations across Texas.

The Paralegal Division of the State Bar of Texas regularly hosts Continuing Legal Education (CLE) events such as the one Chester presented to its members to educate them on various legal topics as part of its mission to empower paralegals.

The title of the presentation was, “Protecting Intellectual Property in International Markets.” Chester addressed the key elements of intellectual property asset protection. Chester also teaches courses on International Trade Law and International Business Transactions at Baylor University Law School.

Of the event, Chester reports, “protecting intellectual property, especially in international markets, is key to a business’ success. This is an important topic and I am glad that the Paralegal Division of the State Bar of Texas is addressing this issue.”

About CHESTER pllc

CHESTER pllc is a Dallas, Texas law firm providing comprehensive legal services to innovation-based companies doing business in the US, around the world, and on the web.  Its mission (and passion) is helping entrepreneurs and emerging companies solve problems and protect their interests. CHESTER pllc delivers value by providing business-savvy, cost-effective solutions to legal challenges.  The firm offers a wide array of business legal solutions, such as business entity formation (LLCs, corporations, etc.), trademarks and other intellectual property, technology transactions, domestic and international contracts, and e-commerce matters.  Additional information about the firm and its attorneys may be found at www.chester-law.com.

Feb 02

CHESTER pllc Hosts Art Contest for High School Students

By News

CHESTER pllc will hold its inaugural Art of Innovation Contest, which encourages students to explore the theme of innovation. The local art contest is open to all high school students that live in the 75214 zipcode, which encompasses neighborhoods in Lakewood and East Dallas. Prizes include cash awards up to $250 in addition to donations to the art department of top winners’ high schools. The winning art will be displayed at the main office of CHESTER pllc in Dallas. For more details about the contest, click here.

The contest challenges students to think about what the word “innovation” means and how there is an “art to innovation.” This theme is particularly relevant to CHESTER pllc because it embodies both how the firm serves its own clients and what the firm strives to help its clients achieve.

“Consistent to our mission to help our clients think outside the box, we see this as a way to encourage students in our community to do the same,” says J.F. (Jim) Chester, founding principal of CHESTER pllc. “We value making a positive impact on our community, and this is one more opportunity to accomplish this goal.”

CHESTER pllc is a Dallas, Texas law firm providing comprehensive legal services to innovation-based companies doing business in the US, around the world, and on the web.  Its mission (and passion) is helping entrepreneurs and emerging companies solve problems and protect their interests. CHESTER pllc delivers value by providing business-savvy, cost-effective solutions to legal challenges.  The firm offers a wide array of business legal solutions, such as business entity formation (LLCs, corporations, etc.), trademarks and other intellectual property, technology transactions, domestic and international contracts, and e-commerce matters.  Additional information about the firm and its attorneys may be found at www.chester-law.com.

Feb 01

Jim Chester Speaks at DISD’s Career Day Event

By Blog, Community, Innovation, Intellectual Property, International Business, News

Jim Chester explains "intellectual property" to first graders using a "Star Wars" branded notepad as an example

J. F. (Jim) Chester,  founding partner in the Dallas-based business and intellectual property law firm of CHESTER pllc, recently spoke to students at Lakewood Elementary School as part of in Dallas Independent School District’s (DISD) career day event.

 Chester, whose law practice involves commercial IP, technology transactions and international business/trade matters, also teaches courses on International Trade Law and International Business Transactions at Baylor University Law School.   Chester spoke to a class of first graders and fifth graders about his practice, educational background and experience.

 “At CHESTER pllc, we believe in the power of innovation and creative thinking,” notes Chester.  “We strive to help our clients, our team members, and our community innovate. Participating in community service events such as DISD career day is a vital part of our firm’s mission.”

About CHESTER pllc

CHESTER pllc is a Dallas, Texas law firm providing comprehensive legal services to innovation-based companies doing business in the US, around the world, and on the web.  Its mission (and passion) is helping entrepreneurs and emerging companies solve problems and protect their interests. CHESTER pllc delivers value by providing business-savvy, cost-effective solutions to legal challenges.  The firm offers a wide array of business legal solutions, such as business entity formation (LLCs, corporations, etc.), trademarks and other intellectual property, technology transactions, domestic and international contracts, and e-commerce matters.  Additional information about the firm and its attorneys may be found at www.chester-law.com.