Creative  Solutions  for  Combating  Online  Counterfeiting      Elizabeth  Lai  Featherman  Mandelbaum  Salsburg  P.C.  

Counterfeit  Goods  

Counterfeit  Goods  

Traditional  Path  for  Counterfeit  Goods  to  Reach  the  Consumer  

New  Path  for  Counterfeit  Goods  to  Reach  the  Consumer  

Case  Study:  Beachbody  

•  Product  –  Focus  T25  Fitness  Kit  •  MSRP  –  $119.95  +  $19.95  S/H  •  Available  at  •  Beachbody.com  website  •  Beachbody  Coaches    •  Beachbody  Amazon.com  web  store  •  800#  from  TV  Infomercial    

Case  Study:  Beachbody  

Fake  Site  –  http://www.FocusT25torrent.com/    

https://www.facebook.com/InsanityWorkoutSale  

https://www.facebook.com/InsanityWorkoutSale  

Combat  Tool  #1  –  Register  Your  Intellectual  Property  

•  Register  your  trademark,  copyright  and/or  file  your  patent  applicaVon.  

Combat  Tool  #2  –  Record  IPR  with  Customs  

•  U.S.  Trademark  RegistraVons  and  Copyright  RegistraVons  can  be  recorded  at  U.S.  Customs  and  Border  ProtecVon  (“CBP”)  

Combat  Tool  #2  –  Record  IPR  with  Customs  

•  Chinese  Trademark  RegistraVons  and  Copyright  RegistraVons  can  be  recorded  with  the  General  AdministraVon  of  Customs  in  China  (GACC).  

Combat  Tool  #2  –  Record  IPR  with  Customs  

GACC  Enforcement  of  Rights  (2  Channels):  1.  If  rights  holder  knows  an  infringing  shipment  is  passing  

through  a  Chinese  port,  he  can  noVfy  GACC  to  seize  the  goods;  or  

2.  Without  noVficaVon  by  the  rights  holder,  GACC  may  recognize  the  recorded  mark  and  seize  a  suspicious  shipment.  

Combat  Tool  #2  –  Record  IPR  with  Customs  

Procedural  Treatment  once  the  goods  are  detained:  1.  GACC  noVfies  the  rights  holder  of  the  detainment  and  asks  

for  posVng  of  a  bond  (no  less  than  value  of  the  goods  or  no  more  than  100,000  RMB).  

2.  GACC  will  conduct  an  invesVgaVon,  and  a.  If  no  infringement  is  found,  goods  will  be  released  and  bond  

will  be  refunded.  b.  If  infringement  is  found,  rights  holder  is  asked  to  pay  a  storage  

fee  and  disposal  fee.  c.  If  infringement  cannot  be  determined,  rights  holder  has  an  

opVon  to  file  a  suit  to  have  the  court  to  decide,  and  the  rights  holder  must  pay  a  storage  fee.  

Customs  Recordation  of  FOCUS  T25    http://iprs.cbp.gov/    

Combat  Tool  #2  –  Record  IPR  with  Customs  

•  Work  with  Customs  officials  •  Review  seizure  noVces  and/or  samples  of  goods  quickly  •  Provide  one-­‐page  informaVonal  sheet  for  Customs’  records  •  Bring  awareness  of  the  commonly  spoded  features  in  the  counterfeit  products  

 Beachbody:  •  We  rouVnely  visit  the  customs  officers  at  major  airports  and  seaports    

•  Provide  color  copies  of  informaVonal  sheets  and  show  comparison  of  the  genuine  and  counterfeit  products.  

Combat  Tool  #3  –  Monitor  Your  Brand  Online  •  New  domain  registraVons  •  New  websites,  aucVon  sites  and  e-­‐commerce  sites  •  Social  media  sites  •  Online  adverVsement,  sponsored  links  and  online  contents  

Combat  Tool  #4  –  Enforce  Your  Brand  

•  Cease  and  Desist  Leder  to  Site  Operator  

•  Take-­‐down  NoVficaVon  to  ISP,  Social  Media  Sites  and/or  

Marketplace  Sites  

•  Leder  to  Payment  Processors  

•  UDRP  to  recover  domain  names  

Many  popular  online-­‐retailers  and  marketplace  sites  have  online  tools  for  reporting  infringement.    

•  Alibaba's  AliProtect  hdp://legal.alibaba.com/index.htm?site_type=internaVonal&language_id=english&tracelog=newschp_help_ipr      

Amazon  only  offers  remedies  for  copyright  holders  only.  

eBay’s  VeriWied  Rights  Owner  (VeRO)  

TaoBao’s  Small  and  Medium-­‐Sized  Enterprises  Site  –  Portal  in  English  

Fake  Site  –  http://www.FocusT25torrent.com/    

https://www.facebook.com/InsanityWorkoutSale  

Combat  Tool  #5  –  Other  Preventive  Measures  

•  Secure  the  supply  chain  –  Screen  vendors!  

•  Change  product  design  regularly  

•  Incorporate  anV-­‐copying  mechanism/tags  in  the  product  

Questions?      

Contact  InformaVon    

Elizabeth  Lai  Featherman  Mandelbaum  Salsburg,  P.C.  

155  Prospect  Ave.  West  Orange,  NJ  07052  

efeatherman@msgld.com