Posts Tagged: "counterfeit"

Counterfeiting is a far bigger story than loses to big companies and the associated loss of downstream economic activity. Those that support counterfeiters by buying knock-off goods are also increasingly supporting organized crime, including drug cartels, who are increasingly looking to the generous profits that can be earned and exceptionally low jail terms even if they do get caught. In fact, the largest Italian organized crime group is estimated to receive 10% of its annual $25 billion from counterfeited and pirated goods.

Criminals are finding that the penalties for intellectual property crimes pale in comparison to the penalties they would receive for trafficking drugs and engaging in other illicit activities. At the same time, the profit margin for counterfeit software is extremely high. So the combination of great riches, relatively low penalties and a low likelihood of being caught and you can see why criminal enterprises, including terrorist networks, are becoming major players in the counterfeit software black-market. In fact, one of the most vicious drug cartels in the world makes an estimated $2.4 million per day selling counterfeit software.

The China Road Show is a series of two-day China IP events that the USPTO is hosting across the country to help educate businesses about the realities of piracy and counterfeiting—which cost the American economy approximately $250 billion annually. Day 1 is largely devoted to understanding the patent, trademark and copyright laws in China, as well as enforcement of those rights. Day 2 of the seminar will address § 337 Infringement Investigations by the International Trade Commission (ITC), the challenges presented by counterfeiting and piracy on the Internet and the development of global IP strategies even for small businesses.

It is unfortunate for businesses, but China is becoming practically synonymous with intellectual property theft, piracy and counterfeiting. On top of that, many technology companies are learning that doing licensing deals with the Chinese means they turn over the technologies and as soon as the Chinese corporation is capable of employing the technology the sever the relationship and then compete against American companies with American technology, they just don’t have to recoup the research and development costs and they have a cheap labor force.

We shouldn’t fool ourselves and try and pretend that the lack of respect for intellectual property rights is limited to those who seek to share movies, music or make a buck selling knock-off products. Everyone who produces original content on the Internet is at risk of having that content stolen; simply cut and pasted onto some other website or blog. Even if it is not passed off as original content and you do get “credit” the copyist is using your work for their own benefit. They are stealing eyeballs, diverting traffic and likely costing you money. At the very least, they are free riding, which is a hard pill to swallow.

In this edition of News, Notes & Announcements, websites engaged in the sale of counterfeit merchandise were ordered seized as part of a joint investigation coordinated between the Department of Justice and ICE. Additionally, there will be an event celebrating the 30th Anniversary of passage of the Bayh-Dole Act in Washington, DC on Wednesday morning; the USPTO will hold a roundtable on Friday, December 3, 2010 to discuss trademark prosecution best practices; FIRST, the company founded by Dean Kamen, received a 5 year contract from NASA to provide support for hands-on robotics competitions aimed at inspiring our youth to pursue science and technology; ITT launches an innovative new graduate program that combines engineering, design and intellectual property; the mother of all patent trolls is back at it both in terms of licensing and in terms of acquiring more patents; and patented software that makes it possible to find plagiarized code is released.

On Friday, October 15, 2010 and again on Saturday, October 16, 2010, the United States Trademark and Patent Office (USTPO) played host to the National Trademark Expo. That is no typo or clerical error. Director Kappos, who was introduced by Lynne Beresford, the Commissioner for Trademarks, started the day with an address and began by welcoming everyone to the United…

As explained by the Organisation for Economic Co-Operation and Development in a draft report draft report: “The overall degree to which products are being counterfeited and pirated is unknown and there do not appear to be any methodologies which could be employed to develop an acceptable overall estimate.” The OECD draft report goes on to explain that based on best estimates that international trade in counterfeit and pirated goods could well have accounted for up to US$ 200 billion in 2005, but that figure does not tell the entire story. This $200 billion figure does not include counterfeit and pirated products that are produced and consumed domestically, nor does it include the significant volume of pirated digital products distributed via the Internet.

It is great to know that settlement has been achieved, and incredibly newsworthy to learn that the victorious party was “pleased with the outcome.” But really, sometimes I do stumble across rather interesting press releases that are newsworthy. Unfortunately, I just don’t have the time to write about everything I would like to. So I thought I might start a News & Notes column that collects some interesting news items that could be of interest, but which probably don’t warrant detailed treatment or analysis. With that in mind… here goes…

For 2010 the US Trade Representative reviewed 77 trading partners for this year’s Special 301 Report, and placed 41 countries on either the Priority Watch List, Watch List, or the Section 306 monitoring list. The Priority Watch List for 2010 names the following countries:China, Russia, Algeria, Argentina, Canada, Chile, India, Indonesia, Pakistan, Thailand and Venezuela.

On Friday, April 25, 2008, the Office of the United States Trade Representative (USTR) released its annual “Special 301” Report on the adequacy and effectiveness of intellectual property rights (IPR) protection by U.S. trading partners. This year’s Special 301 Report places forty-six (46) countries on the Priority Watch List, Watch List, or the Section 306 monitoring list.  There are nine…