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CUSTOMS IP ENFORCEMENT NEWS

CUSTOMS IP ENFORCEMENT NEWS


The CBP strategic approach to intellectual property rights enforcement is multi-layered and includes seizing counterfeit goods at the border, pushing the border outward through audits of infringing importers and cooperation with our international trading partners, and partnering with industry and other government agencies to enhance these efforts.  CBP officers and import specialists are aggressively working together to intercept shipments containing counterfeit and pirated items.

Recent CBP IP counterfeit seizures at the US border include:
 
- Chicago CBP Seize Counterfeit Drivers Licenses
Since the beginning of this year, Chicago Customs and Border Protection (CBP), Office of Field Operations officers working at the International Mail Facility at O'Hare Airport have seized more than 1,700 counterfeit state drivers licenses coming in to this country from China.
 
The seized licenses are high quality counterfeits of identification for the states of Illinois, Ohio, South Dakota, New Jersery, Florida, Georgia and Pennsylvania. The majority of the fake license shipments were addressed to college students throughout the United States. Federal, state and local law enforcement agencies are conducting investigations regarding some of the intended recipients.
 
"Our greatest concern is the ease at which these high quality fakes can be ordered over the internet," said David Murphy, CBP director of Field Operations in Chicago. "CBP will continue to work closely with our federal, state and local law enforcement partners to ensure the security of our nation and assist in ongoing investigations or prosecutions.
 
This year, CBP officers seized shipments ranging from two drivers licenses to 48 in various concealment methods. In some cases, the counterfeit licenses were shipped in envelopes, in others they were hidden inside shipments of various electronic and gift items.
 
Source: CBP

IP Infringement in China Costs US Companies


Despite broad success in the China market, many U.S. companies have reported that the infringement of their intellectual property rights (IPR) in China and China's indigenous innovation policies have undermined their competitive positions, reports the U.S. International Trade Commission (USITC).

In response to a USITC survey, many U.S. firms reported lost sales, profits, and license and royalty fees, as well as damaged brand names and product reputation, as a result of IPR infringement in China, according to the report. U.S. firms reported losses associated with China's indigenous innovation policies as well but noted greater concern about the future implications of these evolving policies.

The report, the second of two reports on IPR infringement and indigenous innovation policies in China and their effects on the U.S. economy and employment, was released today. The USITC, an independent, nonpartisan, factfinding federal agency, conducted the studies at the request of the U.S. Senate Committee on Finance.

As requested, the Commission report estimates the size and scope of reported Chinese IPR infringement; provides a quantitative analysis of the effect of IPR infringement in China on the U.S. economy and its sectors; and assesses the effects of China's indigenous innovation policies on the U.S. economy and employment. Highlights of the report follow.

·              Based on survey information, the USITC estimates that U.S. IP-intensive firms' losses from IPR infringement in China were approximately $48 billion in 2009. The survey was sent to over 5,000 U.S. firms in the IP-intensive part of the U.S. economy, which is the sector most likely to be affected by IPR infringement in China. Firms in this segment of the U.S. economy also spent approximately $4.8 billion in 2009 to address possible Chinese IPR infringement in 2009. These figures may be understated because they do not reflect losses incurred by firms in the rest of the economy.
 
·              Firms reported that among the losses they incurred as a result of IPR infringement in China, those associated with copyright infringement were the largest monetarily, and those associated with trademark infringement were the most widespread. The "information and other services sector" represented the segment within the U.S. IP- intensive sector with the highest amount of reported losses associated with IPR infringement in China.
 
·              U.S. firms in the IP-intensive economy reported that an improvement in China's IPR protection and enforcement to levels comparable to the United States' would likely increase employment in their U.S. operations by approximately 923,000 jobs.
 
·              To complement the survey results, the USITC used a statistical and simulation analysis to estimate the U.S. economic effects of an improvement in China's IPR protection to levels comparable to the United States'. This analysis found the following effects: (1) a $21.4 billion increase in U.S. exports of goods and services, (2) a $87.8 billion increase in sales to U.S. majority-owned affiliates in China, (3) a potential 2.1 million increase in net U.S. employment under conditions of prolonged and high unemployment, and (4) some reallocations within the U.S. workforce towards more IP-intensive services sector jobs.
 
·              Respondents to the USITC survey also expressed concerns about China's indigenous innovation policies, especially: (1) preferential support for Chinese firms in the form of tax incentives, subsidies, and preferential lending; and (2) China-specific technical standards. The USITC's case studies in the wind energy, telecommunications equipment, software, automotive, and aircraft sectors provide a fuller picture of the effects of China's indigenous innovation policies on these selected sectors.
 
China: Effects of Intellectual Property Infringement and Indigenous Innovation Policies on the U.S. Economy (Investigation No. 332-519, USITC Publication 4226, May 2011) will be available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4226.pdf.

SOURCE: USITC
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