Tag: intellectual property

CBP Seizes $430k of Counterfeit/Smuggled Perfume in Champlain

Posted by Jason P. Wapiennik on

Here is an interesting counterfeit seizure story out of Champlain, New York, from CBP. The officers there intercepted a truckload of perfume with “suspicious labeling.”

From the picture produced with the news release it appears the importer attempted to disguise the counterfeit perfume bottles with labels that can easily be peeled off. In the picture, it appears the Beauty Woman” label was once on top of and concealing the label that says “Miss Dior Cherie.” This is likely going to result in not only a seizure and penalty for violations of the trademark laws, but also for smuggling; because by mislabeling the perfume the importer concealed the counterfeit nature of the product.

This importer, if he did this intentionally, is too clever by half. I can see an argument that it was not known the perfume bore a counterfeit label underneath the upper label, but in the absence of proof of active measures to prove that steps were taken by the importer to ensure that counterfeits were not being imported, that’s going to be a tough sell to Customs.

CHAMPLAIN, N.Y. – On March 19, U.S. Customs and Border Protection officers working at the Champlain port of entry seized over $430,000 in counterfeit perfume.

On February 21, CBP officers encountered a tractor trailer hauling a commodity listed as perfume. Initial review of the shipment revealed suspicious labeling and packaging consistent with counterfeit goods. Further review by CBP import specialists confirmed the goods were counterfeit and violated trademarks from the following manufacturers: GUCCI, Calvin Klein, Miss Dior, Juicy Couture, Ralph Lauren, and Carolina Herrera.

The shipment was seized for bearing marks identical with or substantially indistinguishable from trademarks.

The seizure was a result of a joint effort with Immigration and Customs Enforcement HSI Special Agents.

Like we have explained previously, this importer stands to face a hefty penalty — around $500,000 — for this customs counterfeit seizure. Importing counterfeit items into the United States is a very serious matter. Once forfeiture is perfected, the person who caused the importation will probably receive a notice of penalty from U.S. Custom & Border Protection for a monetary penalty equivalent of the value of the products if they were real (MSRP).

The importer will have a chance to respond to customs’ notice of penalty with the Fines, Penalties, and Forfeitures office by filing a petition for mitigation and ask customs to reduce the penalty based on the presence of certain mitigating factors that customs particularly looks for. Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely.

If the person fails to pay the penalty, the government can bring a lawsuit in federal district court to recover the penalty in the form of a judgment, after which point the government can lien property, garnish bank accounts, and seize property. We can help you if you are facing penalties from customs for importing counterfeit trademarked merchandise. Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely (some history of our success is HERE).

Call our office at (734) 855-4999 to speak to a customs lawyer, or CONTACT US HERE. We are able to assist petitions for customs penalties and seizures around the country, including Champlain, Detroit, Chicago, Atlanta, New York, Los Angeles, Orlando and many other places. Consult a customs lawyer who is well acquainted with the laws enforced by the customs service and who can judge the legality of the transaction, by even getting a prospective ruling from customs in advance.

Please read these customs counterfeit seizure articles:

CBP Seizes Counterfeit Kids’ Bracelets

Posted by Jason P. Wapiennik on

Below is a Customs seizure story about fake monster tail bracelets recently seized as counterfeits. In the story, Customs states that fake products, often toys, can contain harmful substances like “lead or phthalates”. While that may be true, Customs only states that generally and does say if these products contain harmful substances. It seems unlikely, but stranger things have happened. In my opinon, by explaining that counterfeits can contain harmful substances Customs obscures the real reason for seizure. Counterfeit products are subject to seizure even if they are totally safe. Period. 

We previously explained the serious dangers of importing counterfeit trademark merchandise into the United States; how it results in seizure, monetary customs penalties, and some strategies as to how the importer can defend it. This story underscores the importance of everything we discussed in those articles, which you should read here: Importing Counterfeit Trademarks – Customs Seizures & Penalties; Part 1 and Part 2.

DALLAS – U.S. Customs and Border Protection officers working at the Dallas/Fort Worth International airport seized 200 Rainbow Loom ® Monster Tail ™ kits, Nov. 16.

“This seizure is indicative of the level of attention CBP officers are paying to protect consumers from harmful counterfeit products,” said CBP Area Port Director Cleatus Hunt. “Genuine products pass rigorous safety testing while cheap imitations, though packaged to look authentic, are an inferior product containing harmful substances.”Customs Seizure of Counterfeits

Common harmful substances found in counterfeit toys include lead or phthalates.

The counterfeit craft item was made in China and enroute to La Paz, Bolivia. CBP officers examined the shipment of 15 cartons which was manifested as necklaces when it arrived in Dallas. Upon examination, officers discovered the popular children’s kits among the cartons and after verifying the kits were counterfeit, seized the cartons containing the kits.

Protecting intellectual property rights is a priority CBP trade issue because counterfeit and pirated goods not only hurt American businesses, these products are often associated with criminal activities and fund other criminal enterprises.

For this particular seizure, a primary concern was the risk the counterfeit kits posed to the consumer. Rainbow Loom ® cautions against purchasing counterfeit kits with illustrations of the dangers fake kits pose to consumers.

Shoppers who suspect they purchased a counterfeit item should discontinue using the product and contact the National IPR coordination center. Consumers can learn about getting their money back by visiting the Federal Trade Commission.

As the holiday shopping season begins, shoppers can protect themselves by learning how to spot a fake at Stopfakes.gov.

Importing counterfeit items into the United States is a very serious matter. First, it is very likely that after seizure the property will be forfeited and destroyed by the U.S. government if, in fact, they are violative of the trademark laws.

Once forfeiture is perfected, the person who caused the importation will probably get a notice of penalty from U.S. Custom & Border Protection in the mail for the equivalent of the value of the products if they were real. The importer will have a chance to respond to customs’ notice of penalty with the Fines, Penalties, and Forfeitures office by filing a petition for mitigation and ask customs to reduce the penalty based on the presence of certain mitigating factors that customs particularly looks for. Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely. If the person fails to pay the penalty, the government can bring a lawsuit in federal district court to recover the penalty in the form of a judgment, after which point the government can lien property, garnish bank accounts, and seize property.

If you have had money or merchandise seized by customs because they allege it is counterfeit and contains trademark violations, call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist petitions for customs seizures nationwide.

CBP Seizes $1.3M Worth of Counterfeit Toys

Posted by Jason P. Wapiennik on

This is an odd story about a counterfeit seizure case because it’s unclear how customs determined the value of the seizure. Typically, the value of counterfeit seized merchandise is based on it’s MSRP; in other words, what the cost of the goods would be if they were genuine. In this case, the reason the product is counterfeit is an alleged “UL” logo — on what would otherwise be allowed imports, apparently.  Is customs valuing the added value of the UL mark? It is a point I would raise in any petition filed for mitigation of the penalty. The importers should expect to receive a notice of penalty from customs in the next few months.

Laredo, Texas – The Import Specialist Enforcement Team (ISET) at U.S. Customs and Border Protection’s (CBP) Laredo Port of Entry seized a total of 18 commercial shipments of counterfeit rechargeable toys over the summer, for allegedly infringing on the Underwriters’ Laboratories (UL) registered and recorded U.S. trademark. The total value of the shipments is nearly $1.3 million.

In the 18 enforcement actions, recently finalized, CBP import specialists from World Trade Bridge selected shipments of rechargeable toys for examination. During the examinations, CBP import specialists noticed that the Customs Penalty for Counterfeit UL Logobattery chargers accompanying each rechargeable toy all bore the UL trademark, which is a U.S. registered trademark recorded with CBP. ISET conducted a review and discovered that the shipments lacked legal authorization documentation to use the recorded trademark   A lead enforcement manager for UL confirmed that the use of their trademark was unauthorized and infringing on their recorded trademark. Given the foregoing, CBP’s ISET determined that the rechargeable toys in the shipments seized bore counterfeit trademarks and were subject to seizure. In these 18 enforcement actions, from late June to early September 2014, CBP subsequently seized a total of 4,671 rechargeable toys, which, had the trademark been genuine, is valued based on the manufacturer’s suggested retail price, in the amount of $1,292,953.00.

“Our ISET has done it again and through their diligence and attention to detail they prevented toys with chargers baring a counterfeit trademark from entering U.S. commerce and potentially causing harm to children,” said Joseph Misenhelter, CBP port director, Laredo Port of Entry. “Preserving Intellectual Property Rights and import safety are priority trade issues for CBP and our enforcement of these laws helps create a level playing field for all and strengthens the U.S. economy.”

How would you like to cough up $1.3 million for importing goods that bear a counterfeit logo into the United States? Like we have explained previously, this importer stands to face a hefty penalty for this customs counterfeit seizure.

You might be facing penalties from customs for importing counterfeit merchandise. We can help. Typically, we recommended preparing and filing a petition, with the assistance of legal counsel, which argues persuasively for the substantial mitigation, or when the facts and law warrant it, cancellation of the penalty in full.

Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely (some history of our success is HERE).If you have had merchandise seized by customs because they allege it is counterfeit and contains trademark violations and/or have a received a notice of penalty for importing alleged counterfeits or for making an importation contrary to law, call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist petitions for customs penalties and seizures around the country, including Detroit, Chicago, Atlanta, New York, Los Angeles, Orlando and many other places. Please read these other articles:

Customs Seizure of Fake Toys & Purses valued at $500k

Posted by Jason P. Wapiennik on

How would you like to cough up a half million dollars for importing counterfeit and infringing goods into the United States? Like we have explained previously, this importer stands to face a hefty penalty — around $500,000 – for this customs counterfeit seizure of fake toys and purses from China.

People fail to grasp the consequences of importing counterfeits. The reason might be a failure see the harm that it causes to the owner of the trademark, by confusing their purchasers and destroying a reputation for quality, or just not caring about the consequences in quest for making themselves some money. To those and others, I say: Consult a customs attorney who is well acquainted with the laws enforced by the customs service and who can judge the legality of the transaction, even getting advice from customs in advance.

The importers should expect to receive a notice of penalty from customs in the next few months. Here is the story:

U.S. Customs and Border Protection officers . . . seized over 200 counterfeit handbags and nearly 50 packages of plastic building blocks, Sept. 29, with an estimated counterfeit toy penaltyManufacturer Suggested Retail Price of more than $500,000.

“Intercepting counterfeit goods protects the trademark holder, the unsuspecting consumer, and strengthens the U.S. economy,” said Houston CBP Area Port Director Dave Fluty. “Import safety and protecting intellectual property rights are priority trade issues.  We will take every opportunity to intercept counterfeit goods entering through this port.”

The shipment, which originated from China, was manifested as bags, plastic toys and jewelry.  However, when CBP officers examined the shipment, cartons of women’s handbags bearing counterfeit Prada, Christian Dior, Michael Kors, and other name brands were discovered.  Also in the shipment were cartons of plastic building blocks bearing the Lego brand.

CBP officers provided images of the items to the different trademark holders who each confirmed that the imported handbags and building blocks were counterfeit and confusingly similar to the genuine brand. The import specialists determined the MSRP value of the goods. The seized items, which were enroute to a Houston store, will be destroyed.

customs penalty for counterfeitHomeland Security Investigations is investigating.

Last year, CBP seized more than $4.7 million in intellectual property rights violations nationwide. Handbags and wallets were the highest valued seized goods with an MSRP estimate of more than $700 million, up from more than $500 million in 2012.

To enforce intellectual property rights, CBP relies on trademark owners registering with the Patent and Trademark Office and by recording the trade name with CBP at e-Recordation.

The trademark holder confirmed they were both counterfeit and confusingly similar? That’s impossible. A counterfeit is something that is indistinguishable, and something that is confusingly similar is considered “infringing” and not a counterfeit. And again, that’s another reason why you need a lawyer to respond to this type of customs actions: oftentimes, customs doesn’t even fully understand what laws they are enforcing!

You might be facing penalties from customs for importing counterfeit merchandise. We can help. Typically, we recommended preparing and filing a petition, with the assistance of legal counsel, which argues persuasively for the substantial mitigation, or when the facts and law warrant it, cancellation of the penalty in full.

Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely (some history of our success is HERE).If you have had merchandise seized by customs because they allege it is counterfeit and contains trademark violations and/or have a received a notice of penalty for importing alleged counterfeits or for making an importation contrary to law, call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist petitions for customs penalties and seizures around the country, including Detroit, Chicago, Atlanta, New York, Los Angeles, Orlando and many other places. Please read these other articles: