All Posts By

Jim Chester

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

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

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

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.

 

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

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.

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.

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.

Operation Red Zone: Keeping Super Bowl Merchandise Honest

By Customs IP Enforcement, Intellectual Property, Internet / eCommerce

Speaking at a National Football League (NFL) news conference Thursday, U.S. Immigration and Customs Enforcement (ICE) Director John Morton and NFL Vice President for Legal Affairs Anastasia Danias announced the record-breaking results of a nationwide enforcement operation. The initiative, dubbed ‘Operation Red Zone,’ commenced Sept. 1, 2012, and targeted international shipments of counterfeit merchandise as it entered the United States. Authorities targeted warehouses, stores, flea markets, online vendors and street vendors selling counterfeit game-related sportswear and tickets throughout the country.

Fake jerseys, ball caps, T-shirts, jackets and other souvenirs are among the counterfeit merchandise and clothing confiscated by teams of special agents and officers from ICE’s Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), U.S. Postal Inspection Service, and state and local police departments around the country — all in partnership with the NFL and other major sports leagues.

“The Super Bowl is one of the nation’s most exciting events. Organized criminals are preying on that excitement, ripping consumers off with counterfeit merchandise and stealing from the American businesses who have worked hard to build a trusted brand,” said Morton. “The sale of counterfeit jerseys and other sports items undermines the legitimate economy, takes jobs away from Americans and fuels crime overseas. No good comes of counterfeiting American products — whether NFL jerseys, airbags, or pharmaceuticals — and we must go after the criminals behind it.”

‘”Hard Goods” Seizures

Special agents from HSI and officers with CBP operated in multiple teams with the NFL and law enforcement agencies throughout the nation to identify illegal shipments imported into the U.S., as well as stores and vendors selling counterfeit trademarked items. With three days left before Super Bowl XLVII, these teams have already seized more than 160,000 items of phony Super Bowl-related memorabilia along with other counterfeit items for a total take of more than $13.6 million. Due to the increased activity of counterfeiting operations around the world, this year the operation began Sept. 1, 2012, and will continue through Feb. 6, 2013.

“We’re delighted to once again partner with federal law enforcement to help combat the influx of counterfeit merchandise,” said Danias. “We are grateful for their tireless efforts to keep counterfeiters from illegally profiting off of the fans’ enthusiasm for their team and the Super Bowl and from hurting the local businesses that play by the rules.”

“In collaboration with the NFL and our Department of Homeland Security partners, we are providing critical support in the effort to protect consumers from counterfeit goods,” said Robert C. Gomez, director of field operations in Atlanta and New Orleans for CBP. “The enforcement of iintellectual property rights is a national agency priority, and our CBP officers and import specialists are actively working to intercept these products. Counterfeit merchandise hurts our economy and, in many cases, presents safety issues. It is a potential source of funding illegal activities that present a threat to our national security.”

Arrests

In September 2012, HSI Boston — assisted by HSI Providence — executed a search warrant at a residence in Warwick, R.I. HSI seized 226 boxes of counterfeit goods containing 4,016 sports jerseys with a manufacturer’s suggested retail price (MSRP) of $724,340 and approximately $477,000 worth of additional counterfeit goods, as well as $130,057 in U.S. currency and checks. The owner of the home was subsequently arrested and is currently facing federal charges of trafficking in counterfeit goods and smuggling.

In November 2012, HSI Indianapolis special agents responded to a call from Indiana State Fairgrounds Security that an individual at the Indianapolis International Fest was selling items suspected to be counterfeit. Upon arriving at the festival, the special agents were able to verify the goods to be counterfeit and seized 1,319 counterfeit sports ball caps from the individual with an MSRP of $30,095 and approximately $7,600 worth of additional counterfeit goods. HSI arrested the man for illegally trafficking in counterfeit merchandise.

Twenty-one other individuals were arrested in partnership with state and local law enforcement agencies on state charges at locations around the country.

Website Seizures

Furthering HSI’s efforts to combat the international counterfeiting supply chain and piracy online, special agents seized a total of 313 websites identified to be selling counterfeit merchandise.

The website seizures during Operation Red Zone are the next iteration of Operation In Our Sites, a long term law enforcement initiative targeting counterfeiting and piracy on the Internet. The 313 websites have been seized by law enforcement, and are now in the custody of the federal government. Visitors to these websites will find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them that willful copyright infringement is a federal crime. Since the launch of Operation In Our Sites in June 2010, the HSI-led Intellectual Property Rights (IPR) Center has seized a total of 2,061 domain names.

HSI has continued to work closely with payment processor PayPal to identify bank accounts being used to facilitate the transfer of money to these illegal operations. To date, PayPal and HSI have identified and seized more than $66,000 in assets in these accounts.

“PayPal and eBay Inc. pride ourselves in going above and beyond in the fight against the illegal online trafficking of counterfeit goods by partnering with law enforcement and rights owners globally, and as part of providing safe and trusted payments and commerce platforms,” said Tod Cohen, eBay’s vice president and deputy general counsel of government relations.

Operation Red Zone Continues

Operation Red Zone will continue this weekend at the Super Bowl, throughout the New Orleans-area and around the nation.

The operation was spearheaded by the IPR Center in coordination with the Department of Justice’s Computer Crime and Intellectual Property Section and five U.S. Attorneys’ offices, including the District of Maryland, District of New Jersey, District of Colorado, Eastern District of Louisiana and the District of Utah.

SOURCE: ICE

CHESTER pllc 2012 Holiday Letter

By News

With one year almost at an end and a new year already visible on the horizon, it’s natural to look back over the past months to reflect a bit before diving head first into 2013. As such, and in keeping with the time-honored tradition of the “Holiday Letter,” I wanted to take this opportunity to revisit some of the key moments of 2012 for CHESTER pllc…

Click here to read more of the  CHESTER pllc 2012 Holiday Letter. (It might be slow to load, but its worth the wait!)