Customs IP Enforcement – Page 2

Dec 07

US and Mexico Gear Up for Christmas with Operation Holiday Hoax

By Jim Chester Customs IP Enforcement, Export, Import, Intellectual Property, International Business, International IP

The National Intellectual Property Rights Coordination Center (IPR Center) announced the kickoff of Operation Holiday Hoax, an effort to track down those who are selling counterfeit and pirated products this holiday season.

The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI)–led IPR Center is working with partners U.S. Customs and Border Protection (CBP), the U.S. Postal Inspection Service, the Consumer Product Safety Commission, and the government of Mexico to target stores, flea markets and swap meets involved in the importation, distribution and selling of counterfeit and pirated products in cities across the United States and in Mexico. Additionally, CBP officers will be conducting inspections and seize counterfeit merchandise at various U.S. ports of entry.

“The counterfeiting and piracy epidemic continues to spread around the world,” said IPR Center Director Lev Kubiak. “Our partnership with the government of Mexico and the rest of our partners at the IPR Center show that this is a problem that affects everyone in the world, not just the United States. Together, we will continue to deliver blow after blow to criminals worldwide making a positive impact on American jobs here at home.”

This is the third year that the IPR Center has conducted Operation Holiday Hoax. Last year’s operation led to the seizure of more than 327,000 counterfeit and pirated items with a manufacturer’s suggested retail price worth an estimated $76.8 million. In 2009 the operation netted more than $26 million worth seized goods.

“The protection of intellectual property rights is one of CBP’s top priority trade issues,” said Assistant Commissioner for International Trade Al Gina. “Operations like this protect American businesses and consumers. CBP works daily to keep counterfeit goods out of the U.S. and to bring producers and distributors of these goods to justice.”

Last year, Mexico’s Tax Administration Service conducted 845 inspections in the main ports of entry, executed 160 search warrants nationwide and seized 23.8 million counterfeit and pirated items including 10 tons of used clothing, cigarettes, electronics, tools and DVD’s. The estimated value of the seized goods was 96.7 million pesos, or $7.1 million.

Holiday Hoax began Nov. 26 and is scheduled to run until Dec. 26. During that time federal and local law enforcement officers will seize products such as perfume, holiday lights, electronics, clothing and DVD’s. As in years past, most of these items are ordered online as part of the holiday shopping season.

Source: ICE

Nov 26

Customs Targets Websites Selling Counterfeits for Cyber Monday

By Jim Chester Customs IP Enforcement, Intellectual Property

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), law enforcement agencies from Belgium, Denmark, France, Romania and the United Kingdom, and the European Police Office (Europol) seized 132 domain names today that were illegally selling counterfeit merchandise online to unsuspecting consumers.

The 132 domain names seized are part of Project Cyber Monday 3 and Project Transatlantic. These websites were set up to dupe consumers into unknowingly buying counterfeit goods as part of the holiday shopping season. The operation was coordinated by the ICE HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington, D.C.

This is the third year that the IPR Center has targeted websites selling counterfeit products online in conjunction with Cyber Monday. An iteration of Operation In Our Sites (IOS), Cyber Monday 3 seized 101 websites and yielded one arrest. Additionally, recognizing the global nature of Internet crime, this year the IPR Center partnered with Europol, who, through its member countries, executed coordinated seizures of foreign-based top-level domains such as .eu, .be, .dk, .fr, .ro and .uk. This effort is titled Project Transatlantic and resulted in 31 domain name seizures.

“This operation is a great example of the tremendous cooperation between ICE and our international partners at the IPR Center,” said ICE Director John Morton. “Our partnerships enable us to go after criminals who are duping unsuspecting shoppers all over the world. This is not an American problem, it is a global one and it is a fight we must win.”

The IPR Center and Europol received leads from various trademark holders regarding the infringing websites. Those leads were disseminated to eight investigating HSI field offices in Baltimore, Buffalo, Denver, El Paso, Newark, San Antonio, San Diego, and Ventura (Calif.) and to the investigating Europol member countries including Belgium, Denmark, France, Romania and the United Kingdom.

“Europol became a member of the IPR Center this year and I am glad to be able to announce these operational successes,” said Rob Wainwright, Director of Europol. “IPR theft is not a harmless and victimless crime. It can cause serious health and safety risks and it undermines our economy.”

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.

In addition to the domain name seizures, officials identified PayPal accounts utilized by the infringing websites. Proceeds received through the identified PayPal accounts, in excess of $175,000, are currently being targeted for seizure by the investigating HSI field offices.

“We couldn’t be more pleased with the opportunity to work closely with HSI to shut down criminals targeting our customers and our brand just as the holiday season takes off,” said Tod Cohen, Vice President and Deputy General Counsel of Government Relations for eBay Inc. “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 we hope that this is fair warning to criminals that the Internet is not a safe place to try and sell fake goods.”

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

IOS is a sustained law enforcement initiative that began more than two years ago to protect consumers by targeting the sale of counterfeit merchandise on the Internet. The 101 domain names seized under Project Cyber Monday 3 bring the total number of IOS domain names seized to 1,630 since the operation began in June 2010. Since that time, the seizure banner has received more than 110 million individual views.

Of the 1,529 previous domain names seized, 684 have now been forfeited to the U.S. government. The federal forfeiture process affords individuals who have an interest in seized domain names a period of time after a “Notice of Seizure” to file a petition with a federal court and additional time after a “Notice of Forfeiture” to contest the forfeiture. If no petitions or claims are filed, the domain names become the property of the U.S. government. Additionally, a public service announcement, launched in April 2011, is linked from the seizure banner on each of the 684 forfeited websites.

The banner and video educate the public about the criminal consequences of trafficking in counterfeit goods and the economic impact that crime has on the U.S. and global economies.

U.S. Attorney’s Offices in the Districts of Maryland, Colorado, New Jersey, Southern District of California, Central District of California, Western District of New York, and the Western District of Texas issued the warrants for the seizures. Significant assistance was provided by the Department of Justice’s Computer Crime and Intellectual Property Section.

The IPR Center is one of the U.S. government’s key weapons in the fight against 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 IP theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters.

To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.

SOURCE: ICE

Nov 26

Homeland Security’s Operation Fashion Faux Pas

By Jim Chester Customs IP Enforcement, Intellectual Property

Photo by ICE

Special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed state search warrants this week against five local vendors and seized more than $200,000 worth of goods, capping a six month crackdown on Orange County retailers suspected of selling counterfeit merchandise called Operation Fashion Faux Pas.

This week’s enforcement actions are the culmination of investigative activities initiated by Orange County HSI special agents in May to identify retailers involved in the theft of intellectual property. Over the course of Operation Fashion Faux Pas, investigators conducted a total of 18 warranted and consensual searches resulting in the seizure of more than $820,000 worth of counterfeit goods. That figure is based on the estimated retail value of the merchandise had it been genuine. The seized goods, including purses, jewelry, sunglasses, cosmetics and perfume, bear the counterfeit trademarks of more than two dozen well-known brands, such as Louis Vuitton, Gucci, Rolex, Hermes and Chanel.

Among the vendors targeted in this week’s enforcement actions were a Tustin hair salon, a Garden Grove shoe store and several retail kiosks near the Huntington Beach pier. HSI special agents also executed warrants at private residences in Newport Beach and Westminster linked to individuals suspected of selling counterfeit items.

“As we remind consumers, buying knockoffs doesn’t pay off,” said Claude Arnold, special agent in charge for HSI Los Angeles. “The vendors who sell counterfeit merchandise are robbing from the legitimate companies, many of them U.S.-based, that make these products. And perhaps most important, they’re hurting the men and women who depend on those companies for their livelihood.”

HSI received assistance with the execution of this week’s search warrants from the Huntington Beach, Newport Beach, Westminster, Tustin and Garden Grove police departments. HSI also worked closely on the cases with Investigative Consultants, a private brand protection firm that provides expertise on the identification of counterfeit merchandise. The evidence is being turned over to the Orange County District Attorney’s Office for review to determine if criminal charges are warranted.

So far, four Orange County vendors have been indicted on state criminal charges as a result of Operation Fashion Faux Pas. Those charged include the suppliers and proprietors of a Laguna Beach shop, Cobbler’s Corner, and a Westminster beauty salon and retail outlet, Spa by Mode. Searches of both businesses turned up significant quantities of counterfeit designer accessories, including leather goods, hats and sunglasses. The August enforcement action involving Cobbler’s Corner was worked jointly by HSI and the Laguna Beach Police Department.

In fiscal year 2011, intellectual property rights enforcement by HSI and U.S. Customs and Border Protection led to more than 24,000 seizures, a 24 percent increase compared to the previous year. The seized goods had a total value of more than $1.1 billion, based upon the manufacturer’s suggested retail price had the products been legitimate.

According to the International Anti-Counterfeiting Coalition, product counterfeiting costs U.S. businesses $200 to $250 billion a year in lost revenue.

SOURCE: ICE

Oct 29

Homeland Security Seizes Nearly 800 Counterfeit Sports Team Hats and Jerseys

By Jim Chester Customs IP Enforcement, Intellectual Property, International Business

Photo by ICE

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) seized 795 counterfeit items in New Orleans Tuesday with a manufacturer’s suggested retail price (MSRP) of $29,630. The seized items include counterfeit National Football League jerseys, hats bearing the logos of National Football League, Major League Baseball, National Basketball Association and National Hockey League teams, and several counterfeit designer bags.

Last year HSI New Orleans led the nation in counterfeit NFL seizures with more than 7,100 items at an MSRP of more than $1 million. As the host city of the upcoming Super Bowl, Raymond R. Parmer Jr., special agent in charge of HSI New Orleans, said HSI special agents are particularly focused on the identification and seizure of counterfeit sports memorabilia ahead of the game.

“The bottom line is counterfeit goods steal revenue from legitimate businesses and shortchange buyers who think they’re getting the real deal,” said Parmer. “Criminals should take note that we are actively looking for contraband on a daily basis and counterfeit goods will be seized and violators prosecuted to the fullest extent of the law.”

During a routine operation HSI learned the counterfeit goods seized Tuesday were being shipped from an overseas location into New Orleans. HSI then intercepted the shipment and seized the contraband items. Although there were no arrests, the HSI investigation is ongoing.

HSI and partner National Intellectual Property Rights Coordination Center (IPR Center) continually work to keep counterfeit goods off the streets and bring those responsible for producing and distributing them to justice.

The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting, piracy and commercial fraud. As a task force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft and commercial fraud. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and our war fighters.

SOURCE: ICE

Oct 29

Paraguayan Authorities and Homeland Security Seize More Than $34 Million in Counterfeit Goods

By Jim Chester Blog, Customs IP Enforcement, Intellectual Property, International Business, International IP

Over the past 15 months, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) has provided extensive training and capacity building to Paraguay’s customs office and other Paraguayan law enforcement partners. This training has been very successful, as Paraguayan authorities, working closely with the HSI Buenos Aires attaché, are making extensive seizures of counterfeit goods.

“Partnerships with international customs agencies and border security agents are essential to combating intellectual property theft,” said Raul O. Aguilar, HSI Buenos Aires attaché. Aguilar oversees HSI throughout the southern cone of South America. “HSI is proud to support our Paraguayan colleagues with our expertise in disrupting criminal organizations that import counterfeit products and goods. Fighting these organizations demands a response that is transnational and well-coordinated. I am truly proud of the collaboration we have built with our counterparts.”

Two major recent seizures include:

On Oct. 16, Paraguayan authorities, working collaboratively with HSI, seized counterfeit merchandise with a manufacturer’s suggested retail price (MSRP) of $34 million. On Oct. 11, Paraguayan authorities received information about counterfeit products being smuggled out of Silvio Pettirossi International Airport in Asunción. A criminal organization was attempting to smuggle these goods out of the country — possibly destined for the United States. Law enforcement discovered multiple high-quality counterfeit brand name watches of Swiss origin. Among the various brands were watches from Patek Philippe, Tissot, Tag Heuer, Bulgari and Hublot. In addition, approximately 12,500 counterfeit Samsung cellular phones were discovered. The products were ultimately seized by law enforcement.

On Sept. 26, Paraguayan Customs, working with HSI, identified and searched a shipment of containers sent to Ciudad del Este, Paraguay, from Uruguay. The three containers and their contents included counterfeit Xbox, PlayStation and Nintendo gaming systems. The shipment, with an MSRP of $741,041, was subsequently seized by Paraguayan authorities. This specific case has been presented to the Paraguayan Public Ministry for prosecution.

“HSI will continue to provide training exercises and build strong partnerships with our Paraguayan counterparts in order to assist in the targeting and interception of shipments containing smuggled and illicit cargo,” added Aguilar. “Such training has been instrumental in increasing the abilities of the various agencies within the Republic of Paraguay, and has contributed to an increase in seizures.”

These seizures are the result of HSI’s Illicit Pathways Attack Strategy (IPAS). Over the last two decades, transnational organized crime (TOC) has transformed in size, scope and impact — posing a significant threat to national and international security. TOC networks are proliferating, striking new and powerful alliances, and engaging in a range of illicit activities as never before. The result is a convergence of threats that have evolved to become more complex, volatile and destabilizing. HSI’s response was the creation of the IPAS to break TOC strongholds.

HSI takes very seriously the threat to national security that TOC represents. HSI designed IPAS to focus its resources in a manner that best targets, disrupts and dismantles TOC while maximizing efficiency. IPAS provides a methodology and mechanism for HSI to prioritize threats and vulnerabilities within its mission and to coordinate its own efforts internally and among federal partners. IPAS enhances HSI’s and host country partners’ abilities to investigate and prosecute individuals involved in TOC organizations that threaten the stability and national security of the host countries and pose continuing threats to the homeland security of the United States. Prioritization allows HSI to strategically focus enforcement and capacity building efforts along the continuum of crime within and beyond U.S. borders. IPAS provides a structure for engagement with host country partners — including Paraguay — to increase joint investigations, enhance exchange of information, and support foreign and domestic prosecutions. The IPAS strategy is extremely important in the tri-border area of Paraguay, Brazil and Argentina, where the propensity for TOC organizations is immense.

Source: ICE

Oct 16

Homeland Security Seizes 686 Websites Selling Counterfeit Medicine

By Jim Chester Customs IP Enforcement, Intellectual Property, International IP, Internet / eCommerce

In the largest operation of its kind, 100 countries took part in an international week of action targeting the online sale of counterfeit and illegal medicines. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in coordination with the Department of Justice, seized 686 websites this week that were illegally selling counterfeit pharmaceuticals. The seizures were part of Project Bitter Pill, the current effort under of Operation In Our Sites (IOS). Bitter Pill was part of the INTERPOL-led Operation Pangea V.

A global enforcement effort, Pangea is an annual operation aimed at disrupting the organized crime networks behind the illicit online sale of fake drugs. Worldwide, preliminary results show Pangea has accounted for 79 arrests and the seizure of 3.7 million doses of potentially life-threatening counterfeit medicines worth an estimated value of $10.5 million. Additionally, approximately 18,000 websites engaged in illegal sale of counterfeit drugs were taken down.

During Pangea V, which ran from Sept. 25 to Oct. 2, operations were conducted in Europe and throughout the United States at websites linked to the illegal Internet supply of medicines. U.S. Customs and Border Protection (CBP) intercepted packages that were believed to contain fake or illicit drugs. Various payment processing companies supported the operation by identifying and blocking payments connected to illicit online pharmacies, identifying individuals responsible for sending spam emails and identifying abuse of electronic payment systems.

“These international partnerships are essential in the global fight against the trafficking of counterfeit drugs,” said ICE Director John Morton. “Instead of taking potentially life-saving medicines, customers are duped into purchasing drugs that are fake or untested and could ultimately do them more harm than good.”

Pangea is coordinated by INTERPOL, the World Customs Organization, the Permanent Forum of International Pharmaceutical Crime, the Heads of Medicines Agencies Working Group of Enforcement Officers, Pharmaceutical Security Institute, and Europol. For the first time, Pangea was also supported by the Center for Safe Internet Pharmacies which brings together 12 of the world’s leading Internet and e-commerce companies.

“When someone is sick, can’t afford to purchase expensive medicine or is just trying to save money, they are more likely to take a chance and buy medicines online, making themselves vulnerable to purchasing fake, illicit or spurious medical products and thus harming themselves,” said INTERPOL Secretary General Ronald K. Noble. “Organized, sophisticated criminals and rogue pharmacies are unfortunately using the Internet to defraud innocent consumers, to place them in harm’s way, to steal their identities and to engage in credit card fraud.”

The goals of this operation were to disrupt the illegal distribution of medicines and to raise public awareness about the significant health risks associated with buying medicines online and the increased risk of becoming a victim of identity and credit card fraud.

Bitter Pill, the U.S. operation, was managed by the National Intellectual Property Rights Coordination Center (IPR Center), including HSI Baltimore, CBP, the U.S. Attorney for the District of Maryland, and the Computer Crime Intellectual Property Section of the Department of Justice Criminal Division. The Food and Drug Administration, Office of Criminal Investigations and the Federal Bureau of Investigation also participated in Pangea and supported Bitter Pill.

“Interdiction of illegal pharmaceuticals is one of CBP’s top priorities,” said CBP Deputy Commissioner David V. Aguilar. “The rise of Internet pharmaceutical sale sites has resulted in increases of imported packages containing illegal medications, which is a risk to U.S. consumers. CBP is proud to be a part of this effort.”

IOS is a sustained law enforcement initiative that began two years ago to protect consumers by targeting the sale of counterfeit merchandise on the Internet. Those websites are now shut down and their domain names are in the custody of the federal government. Visitors to the websites will find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them about the federal crime of trafficking in counterfeit goods. The 686 domain names seized during Bitter Pill bring the total number of IOS domain names seized in the last two years to 1,525. The domain names are subject to forfeiture under federal laws that afford individuals who have an interest in the seized domain names a period of time after the “Notice of Seizure” to file a petition with a federal court and additional time after the “Notice of Forfeiture” to contest the forfeiture. If no petitions or claims are filed, the domain names become property of the U.S. government.

During this project, HSI special agents made undercover purchases of counterfeit drugs from multiple websites. The counterfeit drugs seized during Bitter Pill included anti-cancer medication, antibiotics and erectile dysfunction pills as well as weight loss and food supplements. Investigations are ongoing as special agents continue to connect shipments and websites with organized criminal networks.

SOURCE: ICE

Sep 14

Members of Counterfeit Nike Sneaker Ring Face Up to 5 Years in Prison and $250,000 Fine

By Jim Chester Customs IP Enforcement, Export, Import, Intellectual Property, International Business, International IP, News

Registered Trademark of Nike

Five individuals have pleaded guilty to conspiring to import misclassified merchandise. Each faces up to five years in federal prison and a $250,000 fine. This case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

“The trademark laws in the United States were created to protect the investment of American manufacturers such as Nike as well as consumers,” said U.S. Attorney William J. Hochul Jr., Western District of New York. “These laws are designed to create a level playing field for businesses and protect consumers who might unwittingly purchase inferior counterfeit goods. Our office will continue to aggressively enforce customs laws for the benefit of American businesses and those who purchase their products.”

“Selling counterfeit goods is stealing,” said James C. Spero, special agent in charge of HSI Buffalo. “HSI is committed to ensuring the legitimate copyright holders are protected from individuals who are only motivated by greed. People and organizations which produce and sell counterfeit products undermine the U.S. economy; create inferior and sometimes dangerous products; and jeopardize public safety.”

Xiao Cheng Lin, 50, and his wife, Ling Zhen Hu, 51, both of New York, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to import misclassified merchandise. Hu, a native of China, worked for an individual who imported thousands of pairs of sneakers from China that bore the Nike “swoosh” logo and Nike labeling, but were not genuine Nike sneakers. Hu then negotiated the sale of large quantities of the mislabeled sneakers to Malik Bazzi, 44, of Montreal, who then sold them to customers throughout the United States — including in Buffalo — via his warehouses in Manhattan and Brooklyn. Bazzi is currently scheduled to be sentenced Feb. 1, 2013. Hu admitted that she negotiated the sale of 7,500 pairs of sneakers to Bazzi.

Lin, also a native of China, worked with his wife, delivering the 7,500 pairs of sneakers to Bazzi. The HSI investigation revealed that Bazzi’s customers then sold the counterfeit Nike sneakers on the street and in retail stores to customers for about half the price of genuine Nike sneakers.

As part of their plea agreements, both Lin and Hu agreed to abandon any claim to more than $600,000 and dozens of pairs of counterfeit sneakers seized from their New York residence following their 2007 arrest.

The defendants were arrested along with 21 others. To date, 20 of the defendants have been convicted.

On Sept. 5, 2012, LaKeith Fowler, 32, of Dallas, pleaded guilty before Judge Arcara to conspiring to traffic in counterfeit sneakers. Fowler, one of Bazzi’s customers, purchased and sold approximately 12,000 pairs of counterfeit Nike sneakers he obtained from Bazzi from April to September 2007. Fowler sold the sneakers in a retail store he owned in the Dallas-area. As part of his plea agreement, Fowler agreed to forfeit two bank accounts to the government which contain over $44,000 in deposits. The accounts were used to conduct counterfeit sneaker transactions.

On Sept. 7, 2012, Davion Briant, 37, of Milwaukee, also pleaded guilty before Judge Arcara to conspiring to traffic in counterfeit sneakers. Briant, another of Bazzi’s customers, purchased and sold approximately 4,500 pairs of counterfeit Nike sneakers he obtained from Bazzi from April to September 2007. Briant owned a retail store in the Milwaukee-area where he sold the counterfeit sneakers.

On Sept. 10, 2012, Hussien Sara, 30, of New York, pleaded guilty before Judge Arcara to conspiring to traffic in counterfeit sneakers. Sara worked in Bazzi’s warehouses where, on behalf of Bazzi, he took delivery of over 13,000 pairs of counterfeit sneakers from several suppliers, including Hu and Lin. In addition, Sara assisted in packaging the sneakers for shipment to Bazzi’s customers located throughout the United States.

Lin and Hu will be sentenced Jan. 24, 2013; Fowler Dec. 14, 2012; Briant Jan. 7, 2013; and Sara Jan. 11, 2013. All will be sentenced by Judge Arcara in Buffalo.

SOURCE: ICE

Aug 24

Customs seizes $18 million in Counterfeit Contact Lenses and Merchandise

By Jim Chester Blog, Customs IP Enforcement, International IP

Special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and officers from the Federal Food and Drug Administration (FDA), the Puerto Rico Police Department (PRPD), the San Juan Police Department (SJPD) and the Puerto Rico Department of Health’s Office of Investigations seized more than $18 million in counterfeit contact lenses and merchandise during the execution of several search warrants in eight different municipalities of Puerto Rico.

On Aug. 21, HSI special agents and partner law enforcement officers worked in teams to execute 17 federal search warrants at stores in the municipalities of San Juan, Caguas, Añasco, Bayamon, Ponce, Moca, Isabela and Naranjito, Puerto Rico. They seized 4,000 counterfeit Fresh Look contact lenses by Novartis, with an estimated manufacturer’s retail price (MSRP) of $200,000, along with 200,000 pieces of counterfeit merchandise from companies like Coach, Gucci, Ray Ban, Michael Kors, Rolex, Bulgari, Hublot, Nautica, Tous, Tiffany & Co., and Nike, among others. HSI special agents seized 25,000 counterfeit watches with an approximate MSRP of more than $3 million and 200 pairs of sneakers with an approximate MSRP of $32,000. The total MSRP of seized merchandise was approximately $18 million.

“The illegal importation and sale of counterfeit goods is a significant problem that affects our economy, impacts American jobs and innovation, puts the public’s health and safety at risk and at times threatens our national security,” said Angel Melendez, acting special agent in charge for HSI San Juan. “Consumers should know that if they buy pirated and unlicensed products, they are hurting legitimate businesses and they may also be facilitating criminal activity.”

SOURCE: US ICE/HSI

Aug 04

PRACTICAL TIP: Top ROI for Your Legal Dollars

By Jim Chester Blog, Customs IP Enforcement, Export, FCPA, Foreign Trade Zones (FTZ), Grab Bag, Import, Intellectual Property, International Business, International IP, Internet / eCommerce, ITAR, News

Based on our experience, some of the best uses of resources on legal advice and assistance for businesses and entrepreneurs (from a “bang for your buck” perspective) are:

Forming an LLC, Corporation or other limited liability entity. This can protect personal assets from business debts, judgment, and lawsuits.

USPTO / Federal US Trademark Registration. This can grant you potentially permanent rights to your brands, logos, and other marks throughout the entire U.S.

Succession Planning. This includes buy-sell and similar provisions in company documents to deal with death, divorces, and other departures of co-owners, and also includes an updated estate plan such as a will and advance directives to ensure your legacy.

The benefits one can obtain from these legal mechanisms and protections, which generally cost less than $2,000, can pay for themselves many times over.

Jul 12

ICE seizes 70 Websites Offering Counterfeit Merchandise

By Jim Chester Customs IP Enforcement, Intellectual Property, Internet / eCommerce

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI)-led National Intellectual Property Rights Coordination Center (IPR Center) recently seized 70 websites that were illegally selling counterfeit merchandise.

The 70 websites seized are part of Project Copy Cat, an iteration of Operation In Our Sites (IOS), and closely mimicked legitimate websites selling authentic merchandise and duped consumers into unknowingly buying counterfeit goods. Many of the websites so closely resembled the legitimate websites that it would be difficult for even the most discerning consumer to tell the difference.

The websites are now shut down and their domain names are 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 about the federal crime of willful copyright infringement.

“This operation targeted criminals making a buck by trying to trick consumers into believing they were buying name brand products from legitimate websites when in fact they were buying counterfeits from illegal but sophisticated imposter sites located overseas,” said ICE Director John Morton. “The imposter sites were simply a fraud from start to finish and served no purpose other than to defraud and dupe unwary shoppers.”

A new twist in the websites seized in Project Copy Cat involved the appearance of Secure Sockets Layer (SSL) certificates. SSL certificates provide authentication for financial information, meaning consumers should be able to trust that they are sending information to the intended server and not to a criminal’s server. Trusted SSL providers should only issue SSL certificates to verified companies that have gone through several identity checks. In addition to providing authentication, SSL certificates also provide encryption, enhancing the security of credit card numbers, usernames, passwords and other sensitive information. These websites, however, displayed SSL certificates, further duping the consumer into thinking they were shopping on a legitimate website, potentially putting customers’ financial information at risk.

During this operation, federal law enforcement officers made undercover purchases of a host of products, including baby carriers, professional sports jerseys, language and fitness DVD sets, and a variety of clothing, jewelry and luxury goods from online retailers who were suspected of selling counterfeit products. In most cases, the goods were shipped directly into the United States from suppliers in other countries. If the copyright holders confirmed that the purchased products were counterfeit or otherwise illegal, seizure orders for the domain names of the websites that sold the goods were obtained from federal magistrate judges.

“Every day the U.S. economy and American jobs are negatively impacted by criminal organizations engaged in the sale of counterfeit merchandise through rogue websites. Even more importantly, consumer’s health and safety can be threatened when they unknowingly purchase counterfeit products,” said IPR Center Director Lev Kubiak. “Our goal at the IPR Center is to protect the public’s safety and economic welfare through robust intellectual property enforcement and we hope that today’s enforcement actions raise the public’s awareness to this pervasive crime.”

This operation was the next phase of IOS, a sustained law enforcement initiative that began two years ago to protect consumers by targeting the sale of counterfeit merchandise on the Internet. These 70 domain name seizures bring the total number of IOS domain names seized in the last two years to 839. This enforcement action coincides with the two-year anniversary of the 2010 launch of IOS. Since then, the seizure banner has received more than 103 million individual views.

Of the 769 previous domain names seized, 229 have now been forfeited to the U.S. government. The federal forfeiture process affords individuals who have an interest in seized domain names a period of time after a “Notice of Seizure” to file a petition with a federal court and additional time after a “Notice of Forfeiture” to contest the forfeiture. If no petitions or claims are filed, the domain names become the property of the U.S. government. Additionally, a public service announcement, launched in April 2011, is linked from the seizure banner on each of the 229 forfeited websites. This video educates the public about the economic impact of counterfeiting.

The operation was spearheaded by the IPR Center in coordination with HSI field offices in Denver, El Paso, Houston, Newark and Salt Lake City. U.S. Attorney’s Offices in the Western District of Texas, Southern District of Texas, District of New Jersey, District of Colorado and the District of Utah issued the warrants for the seizures. The IPR Center is one of the U.S. government’s key weapons in the fight against counterfeiting and piracy. The IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters.

During the first phase of IOS in 2010, the IPR Center received information from the Motion Picture Association of America that a website, www.ninjavideo.net (Ninja Video), was illegally distributing pirated copies of motion pictures and other audiovisual works. Ninja Video provided its millions of visitors the ability to illegally download high quality copies of copyrighted movies including movies that were currently in theaters or not yet released.

Following the seizure of the website, search warrants were executed at the residences of the primary suspects in the United States and funds were seized from 15 separate financial accounts. To date, the Ninja Video investigation has resulted in the arrest and conviction of five of the six co-conspirators with sentences ranging from 22 months in federal prison to three years of probation with a combined restitution exceeding $470,000 to the victims. A sixth co-conspirator remains a fugitive. In addition to Ninja Video, IOS phase one also targeted eight other websites selling counterfeit merchandise in New York.

SOURCE: U.S CUSTOMS & BORDER PROTECTION / IMMIGRATION & CUSTOMS ENFORCEMENT