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Jim Chester

EU Proposes New Law on Protection of Trade Secrets

By Innovation, Intellectual Property, International IP

On November 28, 2013, the European Commission adopted a proposal for a new directive on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use, and disclosure. Trade secrets, otherwise known as “confidential business information” or “undisclosed information,” are used by a large number of companies to safeguard a wide range of different information, including, for example, such things as the manufacturing process of Michelin tires, the technology and know-how used in Airbus aircraft, and Google’s search algorithm. (Press Release, European Commission, Commission Proposes Rules to Help Protect Against the Theft of Confidential Business Information (Nov. 28, 2013).)

According to a survey, one in five companies in the European Union has been beset by at least one attempt of trade secret theft during the last ten years. In general, trade secrets do not enjoy the same legal protection as inventions, because no exclusive right applies to the confidential information. At present, some EU members have no specific law on the protection of trade secrets while others have differing rules in place.

The proposed directive is designed to harmonize common rules on trade secrets across the EU by establishing a common definition of trade secrets and to facilitate access to national courts for victims of abuse of trade secrets, in order to allow them to seek redress. Among the remedial measures available, in addition to monetary compensation, will be the removal of trade secret infringing products from the market.

The proposal will be submitted to the Council of the EU and the Parliament for review and adoption.

SOURCE:  US Library of Congress, Global Legal Monitor

Black-Out Monday: 706 Web Sites Selling Counterfeit Merchandise Seized

By copyright, Customs IP Enforcement, Export, Import, Intellectual Property, International IP, Internet / eCommerce, News, Technology Transactions

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) teamed with 10 foreign law enforcement agencies to seize hundreds of domain names that were illegally selling counterfeit merchandise online to unsuspecting consumers. Seizures come as US consumers flock to the Web for Cyber Monday shopping deals.

The 706 domain names seized were set up to dupe consumers into unknowingly buying counterfeit goods as part of the holiday shopping season. The operations were coordinated by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington, D.C.

An iteration of “Operation In Our Sites,” Project Cyber Monday IV resulted in the seizure of 297 domain names from undercover operations conducted by HSI offices around the country. This is the fourth year that the IPR Center has targeted websites selling counterfeit products online in conjunction with Cyber Monday. Due to the global nature of Internet crime, the IPR Center partnered with Europol who, through its member countries, seized 393 foreign-based top-level domains as part of Project Transatlantic III. Additionally, Hong Kong Customs coordinated the seizure of 16 foreign-based top-level domains hosted in Hong Kong, enlisting the assistance of the web-hosting companies to suspend the service of related websites.

“Working with our international partners on operations like this shows the true global impact of IP crime,” said ICE Acting Director John Sandweg. “Counterfeiters take advantage of the holiday season and sell cheap fakes to unsuspecting consumers everywhere. Consumers need to protect themselves, their families, and their personal financial information from the criminal networks operating these bogus sites.”

During the weeks leading up to the end of the year, the market is flooded with counterfeit products being sold at stores, on street corners, and online, according to law enforcement officials, not only ripping off the consumer with shoddy products, but also putting their personal financial information at risk. The most popular counterfeit products seized each year include headphones, sports jerseys, personal care products, shoes, toys, luxury goods, cell phones and electronic accessories, according to the IPR Center.

“This operation is another good example of how transatlantic law enforcement cooperation works. It sends a signal to criminals that they should not feel safe anywhere,” said Rob Wainwright, director of Europol. “Unfortunately the economic downturn has meant that disposable income has gone down, which may tempt more people to buy products for prices that are too good to be true. Consumers should realize that, by buying these products, they risk supporting organized crime.”

During the last few weeks, the IPR Center and its international partners received leads from trademark holders regarding the infringing websites. Those leads were disseminated to HSI offices in Denver, Dallas, El Paso, Houston and Salt Lake City as well as the Belgium Economic Inspection, Belgium Customs, Denmark Police, Hungarian Customs, French Gendarmerie, French Customs, Romanian Police, Spanish Guardia Civil, City of London Police, and Hong Kong Customs and Excise Department.

The domain names seized are now in the custody of the governments involved in these operations. Visitors typing those domain names into their Web browsers will now find a banner that notifies them of the seizure and educates them about the federal crime of willful copyright infringement.

During this operation, federal law enforcement officers made undercover purchases of a host of products including professional sports jerseys and equipment, DVD sets and a variety of clothing, jewelry and luxury goods from online retailers who were suspected of selling counterfeit products. Upon confirmation by the trademark or copyright holders that the purchased products were counterfeit or otherwise illegal, law enforcement officers obtained seizure orders for the domain names of the websites that sold these goods.

Operation In Our Sites is a sustained law enforcement initiative that began more than three years ago to protect consumers by targeting the sale of counterfeit merchandise on the Internet. The 297 domain names seized under Project Cyber Monday IV bring the total number of In Our Sites domain names seized to 2,550 since the operation began in June 2010. In that time, the seizure banner has received more than 122 million individual views.

U.S. Attorney’s Offices in the District of Utah, Western District of Texas, Southern District of Texas, Northern District of Texas, and the District of Colorado issued the warrants for U.S. seizures. Significant assistance was provided by the Department of Justice’s Computer Crime and Intellectual Property Section.

The HSI-led IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. Working in close coordination with the Department of Justice Task Force on Intellectual Property, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety and the U.S. economy.

SOURCE:  U.S. ICE (www.iprcenter.gov)

 

USPTO Publishes Regulations to Sync with PLT

By Blog, copyright, Intellectual Property

The United States Patent and Trademark Office (USPTO) recently published its Final rules to adjust its protocols and policies in light of the Patent Law Treaties Implementation Act of 2012 (PLTIA).   The rule goes into effect December 18, 2013.

PLTIA amends the patent laws to implement the provisions of the Hague  Agreement Concerning International Registration of Industrial Designs  (Hague Agreement) in title I, and the Patent Law Treaty (PLT) in title  II. The PLT harmonizes and streamlines formal procedures pertaining to  the filing and processing of patent applications.

This final rule revises the rules of practice for consistency with the changes in the PLT and title II of the PLTIA. The United States Patent and Trademark  Office (Office) is implementing the Hague Agreement and title I of the  PLTIA in a separate rulemaking.

The notable changes in the PLT and  title II of the PLTIA pertain to: The filing date requirements for a  patent application; the restoration of patent rights via the revival of  abandoned applications and acceptance of delayed maintenance fee  payments; and the restoration of the right of priority to a foreign  application or the benefit of a provisional application in a subsequent  application filed within two months of the expiration of the twelve- month period (six-month period for design applications) for filing such  a subsequent application.

This final rule also revises the patent term  adjustment provisions to provide for a reduction of any patent term  adjustment if an application is not in condition for examination within  eight months of its filing date or date of commencement of national  stage in an international application, and contains miscellaneous  changes pertaining to the supplemental examination, inventor’s oath or  declaration, and first inventor to file provisions of the Leahy-Smith  America Invents Act (AIA).

 

SOURCE:  USPTO

New for 2013 Holidays: “Holly the HAZMAT Doll” ??

By Blog

U.S. Customs and Border Protection (CBP) officers and Consumer Product Safety Commission (CPSC) investigators recently seized more than 200,000 toy dolls arriving from China due to high levels of phthalates, a group of banned chemical compounds. Officials seized a total of 10 shipments valued at nearly $500,000 at the ports of Chicago, Dallas, Los Angeles, Norfolk, Va., Memphis, Tenn., Newark, N.J., Portland, Ore., and Savannah, Ga.

The Commercial Targeting and Analysis Center targeted the shipments beginning in April because of the potential that the products presented a safety threat to the American public, particularly children, and contained items prohibited in the U.S. Although dispersed across the county, officials flagged the shipments as high risk after CTAC identified key commonalities in the hazardous products.

“Using advanced technology to track certain shipments before they reach our shores is helping CPSC better protect America’s consumers,” said CPSC Chairman Inez Tenenbaum. “CPSC and CBP are working in partnership to detect and detain violative imports. Through the use of a risk management system, we are targeting those shipments most likely to contain dangerous goods, while also allowing for faster processing of compliant products. Expanding our port surveillance program is key to preventing injuries and achieving our long-term vision.”

Since April 2010, CPSC has maintained permanent staffing at CTAC in Washington, D.C. In addition, CPSC compliance investigators are assigned to several major ports across the country and work side-by-side with CBP officers to examine shipments of potentially unsafe imported consumer products to help prevent them from reaching the hands of America’s consumers. In Fiscal Year 2012, CTAC targeting efforts resulted in the seizure of more than 1.1 million unsafe products.

In the last six months, CBP officers seized more than 200,000 toy dolls at eight ports of entry due to the presence of phthalates, a hazardous substance banned by the United States.


 

 

 

Announcing Chester & Jeter LLP

By Blog

Jeter photo

Dallas Business & Innovation Law Firm Joins Forces with Litigation Boutique to Form Chester & Jeter LLP.

The Dallas-based business & innovation law firm CHESTER pllc recently joined forces with litigation boutique Jeter PLLC to form Chester & Jeter LLP.  This new firm offers a broad range of business legal services to businesses and individuals, including business entity formation and governance, domestic and international transactions, ecommerce, technology transactions, intellectual property registration and enforcement, employment law, and business litigation.  Similarly, Chester & Jeter offers guidance and representation to individuals regarding employment issues, non-competition agreements, payday act violations, and wage and hour disputes.

“Our firm seeks to provide an alternative to larger firms by providing responsive, quality legal services for the core legal issues faced by technology and innovation-based clients at a reasonable cost,” notes Jim Chester, the firm’s managing partner.

The formation of this new firm marks a significant step toward achieving Chester’s dream of creating a boutique law firm that meets the comprehensive, mission-critical legal needs of a select type of client: start-ups, entrepreneurs, and small to mid-sized intellectual property-based companies.

“We seek to be the first phone call our clients make when they have legal questions or concerns,” adds partner Justin Jeter. “Although we will continue to need and use our extensive network of attorneys and other professional service providers, combining our resources and expertise allows us to deliver value across a broader range of services to our clients.”

 

 

About Chester & Jeter LLP

Chester & Jeter LLP 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 & Jeter LLP 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, employment law and dispute resolution.  Additional information about the firm and its attorneys may be found at www.chester-law.com

Operation Double Vision Underway to Seize Counterfeit Decorative Contact Lenses

By Grab Bag, Import

With Halloween rapidly approaching, federal officials are warning the public about the dangers associated with counterfeit decorative contact lenses. Decorative and colored lenses are becoming increasingly popular, especially around this time of year.

Currently, the Food and Drug Administration’s (FDA) Office of Criminal Investigations (OCI), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) are working to seize counterfeit contact lenses, illegally imported decorative lenses, and lenses unapproved by the FDA. This ongoing effort, which is being coordinated with the ICE-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington, is being called “Operation Double Vision.”

“Even though Halloween approaches, consumers shouldn’t let a good deal or great costume blind them to the dangers of counterfeit decorative contact lenses,” said HSI Executive Associate Director James Dinkins. “What’s truly scary is the damage these counterfeit lenses can do to your eyes for a lifetime.”

Officials are warning consumers not to buy contact lenses from such places as Halloween or novelty shops, salons, beauty supply stores, or online if the site doesn’t require a prescription. Although many places illegally sell decorative contact lenses to consumers without valid prescriptions for as little as $20, these vendors are not authorized distributors of contact lenses, which by law require a prescription.

Because of the inherent medical risks, it is illegal to purchase or sell contact lenses of any kind without a prescription from an ophthalmologist, optometrist or a specially licensed optician under the supervision of an eye doctor. Decorative contact lenses can typically be ordered from the office that conducts the eye exam and contact lens fitting. The Fairness to Contact Lens Consumers Act gives the consumers the right to obtain a copy of their contact lens prescription, allowing them to fill that prescription at the business of their choice, including online discount sites. Various legitimate stores and websites sell decorative lenses but consumers should avoid buying these lenses from anywhere that does not require a valid prescription.

“Our concern is that consumers who buy and use decorative contact lenses without a valid prescription can run significant risks of eye injuries, including blindness,” said John Roth, director of FDA’s Office of Criminal Investigations. “It is always better to involve a qualified eye care professional and protect your vision.”

“Contact lenses are a medical device and it is smart to purchase them from a medical professional who will fit them to your eye and provide you with instruction on the use and care of the lenses,” said Dr. Glenda Brown, president and a member of the Georgia Optometric Association. “Consumers who buy lenses that were manufactured and sold illegally can experience infections, corneal ulcers and even blindness. A lifetime of good vision is so much more important than a cheap Halloween accessory.”

Medical experts advise consumers interested in buying decorative lenses to get an eye exam from a licensed eye doctor, even if you think your vision is perfect; to get a valid prescription that includes the brand name, lens measurements and an expiration date; to buy the lenses from a seller that requires you to provide a prescription, regardless of whether you shop online or in person; and to follow directions for cleaning, disinfecting, and wearing the lenses. Also, consumers should not expect their eye doctor to prescribe anime, or circle lenses, which give the wearer a wide-eyed, doll-like look, as these have not been approved by the FDA. Finally, an eye doctor should be seen right away if there are signs of eye infection, including redness, lasting eye pain or decrease in vision.

SOURCE: ICE

Homeland Security Launches Smart Phone App to Locate Suspect Child Predators

By Grab Bag, Innovation

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is launching a new smartphone app – the first of its kind in U.S. federal law enforcement – designed to seek the public’s help with fugitive and unknown suspect child predators. All tips can be reported anonymously through the app, by phone or online, 24 hours a day, seven days a week.

The most urgent case involves an unidentified man wanted for producing child pornography involving the sexual abuse of a 10 to 12-year-old girl. This “John Doe” is an unknown suspect and is believed to be living somewhere in the United States or Canada, but he could be anywhere in the world. The first video file was discovered by Interpol and submitted to the National Center for Missing & Exploited Children in 2006. The full series was last seen by HSI special agents in Los Angeles in 2013 during execution of a search warrant. The four videos show the prepubescent girl being sexually abused by an adult male with short brown hair and blue eyes.  In the videos, the offender has a full beard and wears glasses. Both he and the child are seen in a room with wood paneled walls with framed photos, a black computer, desk with sewing machine and brown patterned curtains.

In addition to profiling John Doe cases like this, the new smartphone app contains photos and information about known fugitives in HSI criminal cases involving sexually abused and exploited children.

“When children are being sexually abused and exploited, it’s a race against the clock to rescue the child and bring the predator to justice,” said ICE Acting Director John Sandweg. “These investigations are one of our highest priorities, and in today’s world, we need to be technologically savvy and innovative in our approach.”

ICE’s Office of Public Affairs developed the app with special agents from HSI’s Cyber Crimes Center (C3)and field offices across the country in order to seek the public’s help with information about child predators wanted for criminal prosecution.

“The creation and launch of this application provides ICE another useful tool to reach the public,” said ICE Director of Public Affairs Brian Hale. “We recognize that people receive a great deal of information on their mobile devices and we are hopeful that this app will encourage them to submit tips about suspects and to learn more about our work investigating child exploitation crimes.”

The Operation Predator App enables those who download it to receive alerts about wanted predators, to share the information with friends via email and social media tools, and to provide information to HSI by calling or submitting an online tip. Additionally, the app enables users to view news about arrests and prosecutions of child predators and additional resources about ICE and its global partners in the fight against child exploitation.

Currently, the app can be downloaded from Apple’s App Store or iTunes. ICE is also planning to expand compatibility to other smartphones in the near future.

HSI is requesting that anyone with information about John Doe or the other fugitives profiled to contact the agency in one of two ways: Call the ICE Tip Line, which is staffed 24-hours a day: (866) 347-2423 from the U.S. & Canada or (802) 872-6199 from anywhere in the world, or complete an online tip form atwww.ice.gov/tips/.

Individuals should not attempt to apprehend the suspect personally.

HSI’s Victim Identification Program seeks to rescue child victims of sexual abuse and exploitation and bring the perpetrators to justice.

These investigations are part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators.

Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.

HSI is a founding member and current chair of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.

SOURCE: ICE

Chester Named to “Texas Super Lawyers” List

By Blog, Community, Grab Bag, News, Portfolio, Testimonial

J. F. (Jim) Chester, founding principal in the Dallas-based business & innovation law firm of CHESTER pllc, was recently selected for inclusion on the 2013 Texas Super Lawyers® list. Chester will be listed in the intellectual property practice section, although his practice also covers a broad range of business, technology and international transactional matters.

Texas Super Lawyers®, a Thomson Reuters business, is a rating service of outstanding Texas lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual Texas Super Lawyers® selections are based on a rigorous, multiphase process, including peer nominations and review, and independent research. No more than 5% of the lawyers in Texas are selected to be a part of this list.

This is the first time Chester has been named to the Texas Super Lawyers® list, although he has been listed several times in “Rising Stars Under 40,” by the same issuing group.  Chester has also earned an “AV® Preeminent” Peer Review Rating by Martindale Hubbell®, a separate yet equally-prestigious honor.

Chester stated, “There are a number of lists and awards out there, but this is one of the big ones because it is based on recommendations from colleagues in the legal community, including those who were previously named Super Lawyers.  To be recognized by such an esteemed group of legal professionals is truly an honor.”

 

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 core legal solutions to entrepreneurial enterprises, such as business entity formation (LLCs, corporations, etc.), trademarks and other intellectual property, technology transactions, domestic and international contracts, and ecommerce matters.  Additional information about the firm and its attorneys may be found at www.chester-law.com

US Exports Reach $189.4B in July

By Export

The United States exported $189.4 billion in goods and services in July 2013, according to data released earlier by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department. July’s exports came in just shy of June’s all-time record high of $190.5 billion.

“These numbers demonstrate that President Obama’s National Export Initiative continues to help American businesses thrive in international markets,” said Export-Import Bank Chairman Fred P. Hochberg. “Exports are a critical component of our nation’s economic success, and I look forward to seeing more ‘Made in the USA’ labels on shelves around the world.”

 Exports of goods and services over the last twelve months totaled $2.2 trillion, which is 41.7 percent above the level of exports in 2009. Over the last twelve months, exports have been growing at an annualized rate of 10.2 percent when compared to 2009.

Over the last twelve months, among the major export markets, the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, occurred in Panama (28.6 percent), Russia (22.1 percent), United Arab Emirates (21.9 percent), Peru (21.3 percent), Chile (20.9 percent), Colombia (19.7 percent), Hong Kong (19.5 percent), Argentina (18.3 percent), Ecuador (18.0 percent), and South Africa (17.7 percent).

SOURCE: Export-Import Bank of the United States

Iranian Citizen Sentenced to 48 months for Illegal Export Conspiracy

By Export

An Iranian citizen has been sentenced to 48 months in prison for conspiracy to illegally export more than 3,000 electronic components from the United States to Iran through Hong Kong, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C.

Arsalan Shemirani, 30, was also sentenced to forfeiture in the amount of $187,305.

Shemirani pleaded guilty Jan. 25 in the U.S. District Court for the District of Columbia to conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States.

He was sentenced by Richard J. Leon Aug. 15 and the sentence was unsealed by the court and made public late Thursday.

According to court documents filed in the case, beginning as early as January 2010 and continuing through at least November 2011, Shemirani, with his brother in Iran and a coconspirator in Hong Kong, exported electronic parts from the United States to Iran, via Canada and Hong Kong, without first obtaining a license or authorization from the Office of Foreign Assets Control, Department of Treasury.

The defendant, who was residing in Canada during the time of the conspiracy, received purchase orders from his brother, who operated an electronics supply business in Tehran, Iran.

The items purchased by the defendant on behalf of the conspiracy included high performance electronic power equipment such as field programmable microchips, acceleration sensor semiconductors, analog converters, and other testing and power equipment. During the course of the conspiracy, the defendant purchased approximately 3,695 electronic components that were then illegally exported to his brother in Iran.

The prosecution was handled by Assistant U.S. Attorney Courtney Spivey Urschel and former Assistant U.S. Attorney Robert Bowman, from the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Brandon Van Grack from the Counterespionage Section of the Justice Department’s National Security Division.

SOURCE: ICE