U.S. IPR seizures down in 2014

China remained the primary source of fake and pirated goods, according to figures from the U.S. Department of Homeland Security.    The U.S. Department of Homeland Security said it seized 23,140 shipments of fake goods in fiscal year 2014, down 5 percent from the prior year, while the value of that merchandise, based on the manufacturer’s suggested retail price, fell 30 percent to $1.23 billion. DHS gave no particular reason for the decline.
   The reduced enforcement level was juxtaposed by higher overall levels of trade. Ocean import volume increased 6 percent in calendar year 2014, according to trade intelligence firm Zepol, while the value of imports grew 3.4 percent to $2.85 trillion, according to U.S. Census Bureau data.
   The largest number of seizures occurred in the express delivery environment, while the seizure value is highest in the cargo sector. The seizures were the third most since 2005.
   Customs and Border Protection and the Homeland Security Investigations division of Immigration and Customs Enforcement are the DHS components responsible for stopping the entry of counterfeit and pirated goods to the United States. DHS has made intellectual property rights protection a priority since 2007.
   IPR violations are a concern because criminals who produce fake goods or duplicate the real product without authorization (piracy) harm the economy by robbing those who created the product of their financial rewards, especially since much of the theft takes place overseas, where laws are often lax and enforcement more difficult. Business and government officials also worry that counterfeit goods may be inferior to the original product, which can pose a health or safety problem for consumers depending on the product.
   Wearing apparel/accessories was the top category for IPR infringement (28 percent of total), followed by consumer electronics and pharmaceutical/personal care products. Handbags, footwear, watches, computer accessories and toys were other product categories targeted by criminals, according to DHS. Watches and jewelry are the largest commodity classification by value with an estimated MSRP of $375 million, or 31 percent.
   Investigative successes last year included the interception of 32,000 counterfeit water filtration parts and an 83 percent increase in seizures of auto parts such as fuel injectors, valves, motor oil and tachometers.
   China remained the primary source for counterfeit and pirated goods seized with total value of $772 million, representing 63 percent of all IPR seizures in 2014. Hong Kong ranks second with 25 percent of the seizures.
   Homeland Security Investigations’ work, in collaboration with the National Intellectual Property Rights Coordination Center, resulted in 683 arrests, 454 indictments and 461 convictions in fiscal year 2014.
   The National IPR Center works with the Department of Justice Task Force on Intellectual Property and 23 member agencies to coordinate the sharing of information, develop initiatives and coordinate enforcement actions.