U.S. agents arrest 33 for fake goods imports

   A six-week U.S. government dragnet ended Dec. 16 resulted in the arrest of 33 people allegedly involved in importation, distribution and sale of more than 327,000 counterfeit products, according to U.S. Immigration and Customs Enforcement.
   ICE agents participating in Operation Holiday Hoax seized fake toys, cell phones and chargers, handbags, DVDs, perfume, integrated circuits, wallets, computer software and sports jerseys from stores, flea markets and special meetings for swapping merchandise. The operation, coordinated by ICE, was carried out with the cooperation of sister agency Customs and Border Protection, as well as the U.S. Postal Inspection Service, the Consumer Product Safety Commission and Mexican government, and state and local law enforcement in 66 U.S. cities, 55 cities in Mexico and in Seoul, South Korea.
   In each case, companies victimized by theft of their trademark were consulted to verify the seized products were counterfeit or produced and sold without authorization.
   The manufacturer’s suggested retail price of the corresponding legitimate products is estimated at $76.8 million, according to ICE.
   Mexico’s Tax Administration Service conducted 845 inspections at ports of entry and executed 160 search warrants in Mexico, seizing 23.8 million pieces of counterfeit items including cigarettes, tools, electronics and 10 tons of clothing. The Mexican seizures are valued at $7.1 million. No arrests were made in connection with Mexico’s portion of the operation, ICE said.
   Law enforcement officials said the enforcement activity helped legitimate producers from losing business and protected jobs by preventing criminals from selling fake goods at sharply discounted prices.
   The first iteration of Operation Holiday Hoax in 2009 netted $29 million worth of illegal merchandise.
   Another enforcement operation one month ago was also centered around the holiday shopping season. On Cyber Monday, when online retailers after Thanksgiving promote online sales with discounts, U.S. authorities seized 150 Website domain names that were illegally selling and distributing counterfeit merchandise, almost double the 82 domain names seized by a similar initiatve in November 2010.
   Visitors to these Websites now see a banner notifying them the site has been seized and that copyright infringement is a federal crime. 
   During the operation, undercover agents purchased golf equipment, footwear, sunglasses and other merchandise representing a variety of trademarks from online retailers who were suspected of selling counterfeit goods, most of them made in other countries. If the companies that own the trademark confirmed the purchased products were fake or pirated, seizure orders for the domain names of the websites that sold the goods were obtained from a federal magistrate.
   The Intellectual Property Rights Center, a joint-agency enforcement cell coordinated by ICE, has seized 350 domain names since the start of Operation In Our Sites in June 2010. Of those, 116 have been forfeited to the U.S. government after the seizures were not contested by anyone.
   The Obama administration has placed heightened emphasis on intellectual property rights enforcement. CBP conducted 24,800 seizures of counterfeit or pirated goods in fiscal year 2011, ended Sept. 30, compared to 20,000 seizures in fiscal year 2010.
   In late November, the Justice Department and ICE launched a campaign to educate the public about intellectual property theft, from consumer goods to pharmaceuticals and illegal downloads. The public education campaign highlights the health, safety and economic consequences of such crime.
   “As our country continues to recover from once-in-a-generation economic challenges, the need to safeguard intellectual property rights – and to protect Americans from intellectual property crimes – has never been more urgent,” Attorney General Eric Holder said in a statement. “Through this new public education campaign, we are encouraging the American people to become vigilant partners in identifying and disrupting intellectual property crimes. With their help, I am confident that we can build upon our recent successes in combating intellectual property theft, bringing criminals to justice and protecting consumers and innovators.”
   The campaign includes “Premonition,” a television public service announcement created in partnership with MTV Networks that illustrates how IP thefts link to gangs and other criminal activities and “It Hurts,” an online video that demonstrates how IP theft is stealing. The campaign also includes radio and print ads as well as campaign materials delivered via social media tools – videos, podcasts and Web banners. The public service announcements and other IP theft public education campaign materials can be found at www.ncpc.org/getreal.  – Eric Kulisch