Category

Import

Apr 14

Jim Chester Speaks at State Bar of Texas Annual “Advanced IP” CLE

By Blog, Customs IP Enforcement, Import, Intellectual Property, International Business, International IP, News, Technology Transactions

Dallas, Texas, 14 April 2014 – J. F. (Jim) Chester, founding partner in the Dallas-based business & innovation law firm of Chester & Jeter LLP recently presented a speech on the U.S. regulation of international technology transfers to a statewide audience of intellectual property attorneys at an event sponsored by the Intellectual Property Section of the State Bar of Texas (SBOT).

Chester’s presentation was part of the SBOT’s annual 2-day “Advanced IP” CLE program, which features many of the stats most notable IP attorneys.  This year’s event was held in Dallas, Texas.

The title of Chester’s presentation was: “International Technology Transfers”, and focused on the regulatory issues associated with the import and export of technology and IP-oriented goods and information.

Chester reports, “I was honored to be asked to participate in this program, which is one of the top IP law-oriented events in the State of Texas.  IP is an increasingly global asset, and although increased international trade creates opportunities for IP owners, there are also increased risks. I applaud the SBOT, and the IP Section in particular, for ensuring that emerging important subject like these are addressed in its programs. ”

 

 

 

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

 

Mar 31

Annual Report of Customs Seizures for IP Violations

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

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) recently announced the comprehensive results of counterfeit and pirated goods seized during fiscal year (FY) 2013. Under the Department of Homeland Security (DHS), HSI and CBP are the agencies charged with the enforcement of intellectual property rights (IPR) for goods entering the United States.

The number of IPR seizures increased nearly 7 percent from 22,848 in FY 2012 to 24,361 in FY 2013. The manufacturer’s suggested retail price (MSRP) of the seized goods also increased from $1.26 billion in FY 2012 to $1.74 billion in FY 2013. DHS averaged slightly over 66 seizures per day, with an average MSRP of each seizure being slightly more than $71,500.

“These numbers are the result of the hard work of the men and women of the Department of Homeland Security and the increased collaboration of our agencies through the IPR Center,” said ICE’s Principal Deputy Assistant Secretary Thomas S. Winkowski. “But a great deal more has to be done to protect the public from the health and safety threat that counterfeits pose to our society. We will continue to pursue these criminals and educate the public about the real threats that intellectual property crimes pose.”

“Together with our IPR partners, CBP continues to guard the nation’s borders against counterfeit products,” said CBP Commissioner R. Gil Kerlikowske. “These products are not only unsafe and dangerous to consumers, but they also pose a threat to the economic security of our country.”

The National Intellectual Property Rights Coordination Center (IPR Center) continued Operation In Our Sites (IOS), a long-term law enforcement initiative which targets counterfeiting and piracy on the Internet. In FY 2013, the IPR Center seized 1,413 domain names, and since the launch of IOS in June 2010, the center has seized more than 2,700 domain names. Collaboration through the IPR Center led to 692 arrests, 401 criminal indictments, and 451 criminal convictions for criminal IPR infringement activities in FY 2013.

The People’s Republic of China remained the primary source for counterfeit and pirated goods seized in FY 2013 with a total value of $1.1 billion. This represented 68 percent of all IPR seizures by MSRP. DHS also made seizures from 73 additional economies during FY 2013 including Hong Kong, India, Korea, Singapore and Vietnam.

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:  US CBP/ICE

Dec 02

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)

 

Oct 29

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

Aug 19

US Customs Collaborates with German Customs for Big Seizure

By Import

U.S. Customs and Border Protection announced recently that 20,000 Zolpidem pills, a schedule IV controlled substance, have been seized thanks to a collaborative enforcement effort with the German Customs Investigations Bureau Zollkriminalamt.

“Timely information from Zollkriminalamt and excellent targeting and coordination efforts by CBP’s Pharmaceuticals Center of Excellence and Expertise resulted in this significant interception, keeping these harmful pills off of our streets,” said Robert E. Perez, Director of Field Operations in New York. “We thank our partners in German Customs for their ongoing collaboration.”

“We are very happy that the joint collaboration between CBP and the Zollkriminalamt was successful,” said Dr. Ulrike Berg-Haas, German Customs liaison. “The Zollkriminalamt intends to pursue this excellent cooperation against growing global threats. We look forward to our continued work together and are confident, that this will not be the last joint operation.”

The seizure occurred at the San Francisco International Mail Facility. Acting on information provided by the Zollkriminalamt, CBP’s Pharmaceutical CEE targeted several shipments, and CBP officers at the International Mail Facility intercepted numerous parcels originating in India that had transited Germany. Upon closer examination of the suspect parcels, CBP personnel discovered that the 10 parcels contained a total of 20,000 Zolpidem pills, a Schedule IV controlled substance, and seized the pills.

This enforcement action follows another collaborative enforcement effort in March between CBP and French Customs Fake Medicine Observatory when CBP personnel seized 400 Carisoprodol pills, another schedule IV controlled substance. ( CBP and French Customs Officials Seize Controlled Substance )

As these seizures illustrate, CBP collaborates with its international partners to intercept merchandise that infringes on registered trademarks, is made of substandard materials, or contains prohibited substances that may represent a threat to public safety.

The Pharmaceutical, Health and Chemicals CEE is one of 10 virtual centers that provide one-stop processing to lower the trade’s cost of business, provide greater consistency and predictability and enhance CBP enforcement efforts. The Centers represent CBP’s expanded focus on “Trade in the 21st Century,” transforming customs procedures to align with modern business. The CEEs will also serve as resources to the broader trade community and to CBP’s U.S. government partners.

Source: CBP

Aug 19

Destroyed: Illegally Imported and Unsafe Land Rover Defender

By Import
Destruction of illegally imported and unsafe Land Rover Defender.

Destruction of illegally imported and unsafe Land Rover Defender.

A Land Rover Defender, which U.S. Customs and Border Protection (CBP) officers seized at the Baltimore seaport April 16 as an illegal and unsafe import, was destroyed in spectacular fashion at an undisclosed Maryland salvage yard recently.

This Defender is one of dozens stopped in recent months at ports of entry in Philadelphia, Norfolk, Va., Charleston, S.C., Savannah, Ga., Jacksonville, Fla., Houston and Tacoma, Wa., that violated federal highway safety standards, including the standards requiring airbags.

A portion of these illegal shipments will require destruction, as their Vehicle Identification Number (VINs) was intentionally altered and/or manipulated.

All shipments were targeted for examination by CBP’s Commercial Targeting and Analysis Center (CTAC) in Washington, D.C. The CTAC combines resources and staff from several government agencies, including National Highway Traffic Safety Administration (NHTSA) and Environment Protection Agency (EPA), to protect the American public from harm caused by unsafe imported products.

These Land Rover Defenders were represented on import entry documents as being 25 years of age or older, but may actually be newer vehicles whose Vehicle Identification Numbers (VIN) have been fraudulently altered.

These fraudulent actions are intended to take advantage of the exemptions within the statutes and regulations administered by NHTSA and EPA that allow older, nonconforming vehicles to be imported without restriction (NHTSA – 25 years old and EPA – 21 years old).

The overseas value for this model of vehicle is approximately $25,000. However, the resale value in the U.S. can run as much as $150,000 per vehicle depending on its model year and condition. Because these vehicles cannot be lawfully imported into the U.S. unless they are at least 25 years old, their rarity also inflates the stateside purchase price.

“Ensuring the safety of imported products is a top priority for CBP,” said Allen Gina, CBP’s assistant commissioner for international trade. “The concerted targeting efforts of CTAC and the vigilance of CBP officers and import specialists at our ports of entry will help ensure that unsafe vehicles from overseas markets do not reach our roadways.”

Prospective buyers of imported vehicles can confirm the validity of the vehicle by checking the VIN in a vehicle history report.

Buyers who suspect that a vehicle is being illegally imported are encouraged to report suspected trade violations. All information submitted to CBP is voluntary and confidential. To report a possible trade violation, please visit eAllegations. ( eAllegations)

For additional information on the CTAC and import safety, please visit CBP.gov/Trade, and click on the “Priority Trade Issues” tab. ( Trade )

Source: CBP

May 17

CBP Intercepts Khapra Beetles at DFW Airport

By Import

U.S. Customs and Border Protection (CBP) agriculture specialists stationed at the Dallas/Fort Worth International Airport recently intercepted Khapra beetles in personal effects from passengers arriving from Sudan and India.

“CBP agriculture specialists remain vigilant in safeguarding our agriculture industry by preventing the introduction of invasive, harmful pests and plant diseases into the country,” said Houston CBP Director of Field Operations Judson W. Murdock II. “The introduction of harmful pests, such as this beetle, into the U.S. can have devastating effects on our agriculture production because it will demolish stored grains such as rice, wheat and oats.”

These are some of the intercepted Khapra beetles intercepted at DFW airport.

Khapra beetle is a serious pest of stored grain products in Africa, the Middle East, the Near East and pockets of Europe and eastern Asia. The U.S. Department of Agriculture considers the Khapra beetle one of the 100 worst invasive species worldwide. If the beetle is left undisturbed in stored grain it can cause significant grain loss, and in case of seeds, it may lead to significant reduction in seed viability. Once identified, the Khapra beetle may be killed through fumigation. The USDA will determine if fumigation is feasible. In many cases such as in these cases where Khapra beetle was found in passenger’s personal effects, the infested product is simply destroyed by incineration or steam sterilization.

The Khapra beetles were found in three separate passenger inspections arriving from countries known to host the beetle. Upon inspection of the passengers’ luggage, CBP agriculture specialists discovered the pests in containers of seeds and dried beans. The prohibited items were immediately safeguarded for further examination.

CBP agriculture specialists submitted sample specimens of the pests to a local U.S. Department of Agriculture entomologist for identification and learned May 8, that the pests were in fact Trogoderma granarium Everts, which is the scientific name for the Khapra beetle.

May 10

CBP Ensures Mother’s Day Bouquets Are Safe

By Import

With Mother’s Day celebrations this weekend, U.S. Customs and Border Protection officers and agriculture specialists working at U.S. ports of entry are busy making sure that flower imports are free from insects, pests and diseases that could harm the agricultural and floral industries of the United States.

“Travelers need to declare all items acquired in a foreign country to the CBP officer upon entry to the United States,” said San Diego Director of Field Operations for CBP, Pete Flores. “It is an important part of the CBP mission to identify and stop pests and diseases at the border before they can be spread elsewhere.”

Chrysanthemums, gladiolas, and orange jasmine from Mexico are prohibited through the passenger ports of entry. Travelers cannot bring arrangements with those flowers into the country through a passenger port of entry, like the San Ysidro border crossing.

With the current restrictions, CBP is trying to prevent funguses called “Chrysanthemum White Rust” and “Gladiolus Rust” from entering the U.S. Additionally, some cut greenery, which are the plants used to fill a bouquet, may have pests or diseases. For example, Murraya (common name “orange jasmine”) is a host for Asian citrus psyllid, a dangerous pest of citrus. If any portion of a bouquet has pests, the entire bouquet will be confiscated.

Roses, carnations, and most other flowers are allowed into the U.S. after they pass inspection. However, plants potted in soil cannot be brought from Mexico. Travelers must declare all flowers and plants to CBP officers.

If a traveler declares a bouquet with prohibited plants, it will be seized, but travelers can avoid possible penalties by ensuring that they declare the items. After a traveler declares a bouquet with no prohibited items, CBP agriculture specialists will inspect cut flowers and plants for any sign of insects, pests or diseases.

SOURCE: CBP

May 07

Customs Targets Illegally Imported Land Rover Defender Vehicles

By Import

U.S. Customs and Border Protection is on the lookout for illegal imports of Land Rover Defender vehicles that do not meet federal safety standards, including the standard that requires airbags. This year, CBP has identified dozens of illegal shipments at various ports of entry across the United States, including Baltimore, Charleston, S.C., Jacksonville, Fla., and Savannah, Ga.

Most recently on March 5, CBP officers at the port of Norfolk, working closely with the U.S. Department of Transportation’s National Highway Traffic Safety Administration, seized a shipment of two imported Land Rover Defender vehicles. CBP officers seized the shipment following the determination that the vehicle identification numbers on the vehicles were found to be fraudulently manipulated. The VINs were changed to make the vehicles appear older than they are to take advantage of an exemption that allows vehicles that are at least 25 years old to be imported without regard to whether they comply with federal motor vehicle safety standards. The shipment arriving from Great Britain had been targeted for examination by CBP’s Commercial Targeting and Analysis Center in Washington, D.C.

“Ensuring the safety of imported products is a top priority for CBP,” said Allen Gina, CBP’s assistant commissioner for international trade. “The concerted targeting efforts of CTAC and the vigilance of CBP officers and import specialists at our ports of entry will help ensure that unsafe vehicles from overseas markets do not reach our roadways.”

NHTSA regulates imported motor vehicles. Illegally imported vehicles can pose potential safety hazards to drivers and all road users.

“Safety is the Department of Transportation’s top priority,” said NHTSA Administrator David Strickland. “Those who illegally import Defenders and fraudulently offer the vehicles for sale are motivated by profit and do so at the expense of U.S. consumers and legitimate U.S. businesses that follow the law. We continue to work with our partners at CBP and the CTAC to prevent the importation of illegal vehicles and to inform consumers about the presence of and potential safety risks associated with these vehicles.”

Since October 2012, CBP has seized more than a dozen illegal Land Rover Defender vehicles for violating NHTSA and Environmental Protection Agency regulations, for a total value of approximately $250,000. The overseas value for this model of vehicle is approximately $25,000. However, the resale value in the U.S. can run as much as $150,000 per vehicle depending on its model year, condition, and because these vehicles cannot be lawfully imported into the U.S. unless they are at least 25 years old. A significant portion of those shipments arrived into the U.S. via sea cargo from Great Britain.

Prospective buyers of imported vehicles can confirm the validity of the vehicle by checking the VIN in a vehicle history report. Buyers who suspect a vehicle is being illegally imported are encouraged to report suspected trade violations. All information submitted to CBP is voluntary and confidential. To report a possible trade violation, please visit eAllegations. ( eAllegations )

The CTAC combines resources and staff from several government agencies, including NHTSA and EPA, to protect the American public from harm caused by unsafe imported products. For additional information on the CTAC and import safety, please visit CBP.gov/Trade, and click on the “Priority Trade Issues” tab.

May 07

Customs Seizes Thousands of Toasters with Counterfeit Safety Markings

By Import

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

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

One of the toasters seized by Customs

Example of the UL certification mark

 

 

 

 

 

 

 

 

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

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

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

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

SOURCE: CPB