Category

Intellectual Property

Aug 29

Customs Seizes $3.9 in Counterfeit Consumer Goods

By Customs IP Enforcement, Intellectual Property

U.S. Customs and Border Protection officers seized a shipment of 70,000 counterfeit consumer products July 22 at the port of Newark, N.J. Working closely with the Consumer Product Safety Commission, CBP officers intercepted an estimated $3.9 million worth of the illicit products, including razor blades, toys, sunglasses, markers and batteries, for violating intellectual property laws.

The shipment, which arrived from China, was targeted using CPSC-defined health and safety rules through the Commercial Targeting and Analysis Center in Washington, D.C. In conjunction with CPSC, CTAC identified the cargo for physical examination upon arrival in Newark.

Once identified at the port, CBP personnel examined the shipment, discovered intellectual property violations and seized the goods.

“The partnership between CBP, CPSC and other agencies at the CTAC enables greater sharing of information and targeting to ensure the safety of imported products,” said CBP Assistant Commissioner Allen Gina. “Interagency collaboration at the CTAC, combined with the vigilance of CBP officers at the ports truly exemplifies one U.S. Government working together at the border to protect American consumers.”

Counterfeit goods threaten American innovation, the competitiveness of its businesses, the livelihood of its workers and the health and safety of consumers who purchase inferior products that do not meet federal safety standards. CBP protects businesses and consumers from these risks every day through aggressive targeting and enforcement programs.

In fiscal year 2012, CBP and its investigative partner U.S. Immigration and Customs Enforcement seized 22,848 shipments for intellectual property rights violations, for a total retail value of $1.26 billion. ( IPR Seizure Statistics: FY 2012(pdf-1,629KB.) )

SOURCE: CBP

Aug 29

Customs Seizes $12M in Fake Designer Watches

By Customs IP Enforcement, Intellectual Property

U.S. Customs and Border Protection (CBP) officers and import specialists assigned to the Los Angeles International Airport (LAX) seized 215 watches bearing counterfeit Rolex, Louis Vuitton, Cartier and Omega registered trademarks.

The merchandise, which arrived from China via air cargo, was seized by CBP officials on August 8. If genuine, the seized watches estimated manufacturer’s suggested retail price, sold at retail to the consumer would be $1,250,500.

“This seizure of these trademarked watches is testament to our officers’ vigilance in protecting the intellectual property rights of manufacturers and retailers,” stated Todd C. Owen, director of the Los Angeles Field Operations office of U.S. Customs and Border Protection. “It is just another example of the caliber of the CBP officers in performing their day-to-day duties.”

CBP officers discovered the counterfeit merchandise after inspecting the shipment manifested as “watches” with a declared value of $173 and weighing 68 pounds.

Counterfeit and pirated goods pose a serious threat to our nation’s economic vitality, the health and safety of the American consumers, our critical infrastructure and national security.

Approximately $1.26 billion worth of counterfeit goods originating overseas were seized by CBP in 2012.

With an estimated manufacturer’s suggested retail price of $186 million, watches and jewelry ranked as a top-five commodity seized by CBP in fiscal year 2012. In the same period, watches and jewelry represented eight percent of the total number of seizures by CBP nationwide.

SOURCE: CBP

May 07

India’s Supreme Court Decides to Provide Generic Drugs to the Poor Instead of Enforcing Patent

By Intellectual Property, International IP

Earlier last month, the Supreme Court in India ruled on whether or not Novartis, a pharmaceutical company, should be given a patent for Glivec, a cancer drug. The Court decided a patent should not be given because the formula in question was too similar to Novartis’ earlier version of the drug.

The India Patents Act prevents pharmaceutical companies from gaining a monopoly on patent protection on updated drugs that are not demonstrably more effective than previous versions.  India’s laws prevent patent holders from extending the duration of a patent by making small changes to existing patented formulas, a concept known as “evergreening.”

Chapter II of The Patents Act states: “3. What are not inventions? The following are not inventions within the meaning of this Act” and lists several items.

Section 3(d) states: “the mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance or the mere discovery of any new property or new use for a known substance or of the mere use of a known process, machine or apparatus unless such known process results in a new product or employs at least one new reactant.”

Novartis argued that the new drug is more effective than its predecessor because it is 30% easier for the body to absorb the drug. However, the Supreme Court of India decided that Novartis did not prove that the new drug provided the “enhanced efficacy” required.

As a result of the Court ruling, India’s generic drug manufacturers can continue to make generic version of Glivec. The impact for the sick in India is huge: a year’s supply of Novartis’ Glivec can cost about $70,000 while a year’s supply of a generic version costs around $2,500 a year. This ruling has no impact on the price of Glivec in the United States.

May 07

Chinese Man Sentenced for Exporting Sensitive US Military Technology to China

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

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

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

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

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

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

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

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

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

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

SOURCE: ICE

Mar 20

Mexico Joins the International Trademark System

By Intellectual Property, International IP

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

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

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

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

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

SOURCE: WIPO

Feb 01

Jim Chester Speaks at DISD’s Career Day Event

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

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

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

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

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

About CHESTER pllc

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

Jan 31

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

Dec 07

US and Mexico Gear Up for Christmas with Operation Holiday Hoax

By 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 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 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