ENFORCEMENT
eop_ipec_jointstrategicplan_hi-res
eop_ipec_jointstrategicplan_hi-res
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Office of the Intellectual Property Enforcement Coordinator<br />
Automating the customs clearance process<br />
increases speed and predictability by simplifying and<br />
standardizing the information coming into the system<br />
and the steps involved in determinations. By elevating<br />
global enforcement through shared and best practices,<br />
and use of electronic information systems like online<br />
databases with robust IPR-based modules, international<br />
shipping channels can become more secure. 35<br />
ACTION NO. 3.25: Support modern recordation<br />
systems in developing countries to enhance global<br />
enforcement of IPR. DHS and the Department of<br />
State will engage with international counterparts<br />
to identify opportunities for improving recordation<br />
systems, including the international interoperability<br />
of such systems.<br />
4. Tackle the Growing Costs Associated with the<br />
Storage and Destruction of Counterfeit Goods.<br />
The storage and destruction of counterfeit goods<br />
have become a major issue in a substantial number<br />
of countries. 36 Governments (i.e., taxpayers) or right<br />
holders often bear the costs for the storage and<br />
destruction associated with seized counterfeit and<br />
pirated goods, while those entities that profit from illicit<br />
trade are generally subject to no disposal costs. Given<br />
the increase in illicit trade in counterfeit and pirated<br />
products, governments and rights holders are facing a<br />
growing and significant financial burden that needs to<br />
be solved without further delay.<br />
FIG. 54: Over 100,000 counterfeit ‘hover boards’<br />
(comprised of metals, plastics, rubber, electrical components,<br />
and lithium-ion batteries) and related parts are stored at CBP<br />
facilities, awaiting destruction.<br />
In some countries, such as the United States, the<br />
Federal Government incurs the costs to store and<br />
destroy counterfeit and pirated goods, while other<br />
countries require the infringed rights holder to pay<br />
the costs for counterfeit and pirated goods seized by<br />
customs authorities. 37<br />
From a policy standpoint, taxpayers should not<br />
carry the burden of paying for costs associated with<br />
the storage and destruction of fake goods that have<br />
been shipped in violation of law in instances where<br />
the importer, exporter, or carrier transporting the<br />
infringing goods is in a position to bear the costs.<br />
Similarly, inequities exist when the costs of storage and<br />
destruction are placed on the victim of the crime (i.e.,<br />
the infringed rights holder), as the victim has committed<br />
no wrong and the enforcement of a country’s laws<br />
represents a significant state interest (e.g., promoting<br />
economic development; ensuring public health and<br />
safety; curbing the flow of illicit proceeds; supporting<br />
labor and environmental standards, etc.). 38 Moreover,<br />
rights holders in the form of small and medium<br />
enterprises (SMEs), as well as larger entities, may not be<br />
prepared to pay storage and destruction costs the world<br />
over for illicit goods that they did not manufacture and<br />
do not control.<br />
“Transport operators provide critical services that<br />
are subject to abuse as part of the counterfeiting<br />
supply chain. Counterfeit goods depend on land,<br />
air and sea shipping and transportation services<br />
to cross borders and reach foreign markets. These<br />
intermediaries are critical players…in stopping the<br />
flow of fake goods.”<br />
Source: International Chamber of Commerce (ICC-<br />
BASCAP), “Roles and Responsibilities of Intermediaries:<br />
Fighting Counterfeiting and Piracy in the Supply Chain”<br />
(March 2015), p.16<br />
Source: CBP (2016), Port of Chicago<br />
To address this problem, the roles of the individual<br />
players in the supply chain must be fully understood<br />
and opportunities to reasonably shift costs explored.<br />
Specifically, the United States and foreign countries<br />
must explore opportunities to pass costs directly to<br />
infringers, and where that is not possible or practical,<br />
to assess the role of importers, exporters, carriers, and<br />
others along the supply chain that profit (knowingly or<br />
SECTION 3<br />
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