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Joint Strategic Plan on Intellectual Property Enforcement Figure FIG. 1: 16: Map Example of a Rogue of International Internet Framework Pharmacy Utilized Operation by Rogue Internet Pharmacy Operators. SECTION 1 Source: GAO, “Internet Pharmacies: Federal Agencies and States Face Challenges Combating Rogue Sites, Particularly Those Abroad” (July 2013) Notes: This figure is based on a figure that was published in Kirill Levchenko et al., “Click Trajectories: End-to-End Analysis of the Spam Value Chain” (paper presented at the Institute of Sales Mechanisms and Tactics. Electrical and Electronics Engineers Similar Symposium to the piracy on Security business and Privacy, models Oakland, discussed CA, in May 22-25, 2011), accessed October 1, 2012, http://cseweb.ucsd.edu/~savage/papers/Oakland11.pdf. The study Counterfeiters are also adopting intricate was sales funded and in part by grants the from preceding the National section Science above, Foundation. traffickers of counterfeit distribution structures to infiltrate global supply chains. It tangible goods reportedly often engage in systematic is not uncommon to see complex international Identifying sales rogue and Internet misuse pharmacy of DNS by registering operators domain for investigation names for and possible prosecution can be challenging as they take steps to remain distribution frameworks (FIG. 16) where, for example, a commercial services behind false or otherwise misleading anonymous. According to officials from multiple federal agencies, rogue consumer accessing a website purporting contact information in order to perpetrate fraud as well Internet pharmacy operators generally provide inaccurate contact to be a “Canadian pharmacy” will in fact information access one to domain as name market registrars and sell counterfeit and often goods use on technological one or more and of numerous “mirror” counterfeiting sites other managed means to disguise websites, their including identities, by cybersquatting physical locations, and pretending and affiliations from Russia, with web servers in Brazil and China, to be a legitimate website (i.e., web page spoofing; with payment processing operations run out of a bank FIG. 17). 63 Additionally, commercial-scale counterfeiters in Azerbaijan, with bulk products shipped from India exploit social media platforms to generate web traffic or China, transiting through Hong Kong, Page then 20 sent and to direct consumers to rogue GAO-13-560 e-commerce Internet websites Pharmacies by air to the United Arab Emirates, passing through selling illicit goods. They do so in a variety of ways, London Heathrow airport, and with counterfeit inventory including by utilizing “buy-now”-type buttons that enable to be finished (packaged) in the Bahamas, before purchases directly from page posts and ads; and by being delivered to a customer in the United States posting pseudonymous product reviews, blog entries, or elsewhere. 62 and fabricated social media profiles to create an aura of legitimacy around their website. 64 30
Office of the Intellectual Property Enforcement Coordinator FIG. 17: Example of Website Spoofing Associated with Sale of Counterfeit Goods Online. REAL | beatsbydre.com FAKE | originalbeatsbydre.co FIG. 18: Example of Multidimensional Industry Enforcement Dilemma. ENFORCEMENT WITHIN THE DOMAIN NAME SYSTEM Need to address cybersquatting and other misuses of the DNS BRICK AND MORTAR ENFORCEMENT Need to address counterfeits found in retail supply chains, including big-box stores GLOBAL SCOPE Need to address counterfeits manufactured in China, shipped through multiple countries, and sold across multiple continents E-COMMERCE ENFORCEMENT Need to address counterfeits found across numerous e-commerce sites SOCIAL MEDIA CHANNELS Need to address the advertisements of counterfeits via social media sites The fronts on which the rights holder is fighting the illicit trade war are many and varied. A U.S. rights holder whose rights are infringed faces a complex, global enforcement scenario subject to a number of challenges (FIG.18). These challenges typically include the need to stem the manufacturing and flow of illicit products from provenance economies with inadequate enforcement mechanisms; to coordinate customs authorities across one or more continents to share information that may aid in the interdiction and seizure of counterfeit goods; Source: EUROPOL IP Crime Coordinated Coalition to curb cybersquatting and other fraudulent tactics employed to move illicit content via the Internet; and to safeguard legitimate supply chains from infiltration by counterfeits. Once illicit products have entered supply chains, the products are sold to consumers who think they are buying legitimate products, either through wellknown e-commerce sites or established brick-and-mortar businesses, compounding the economic loss to the rights holder with the potential for reputational loss through dissemination of defective and substandard products. 3. The Targeting and Theft of Trade Secrets. Today, with technology enabling convenient global access to and instantaneous transmission of information, a malicious actor need not rely on physical access to a document to steal it, copy it, or photograph it. 65 Trade secrets exist in multiple forms and there are a myriad of ways in which they can be stolen, including through cyber infiltration and employee misappropriation. 66 Critically, the targeting of U.S. trade secrets for commercial gain, when directed by nation-state actors, has emerged as an especially serious threat to the U.S. economy. 67 U.S.-based businesses, academic institutions, defense contractors, service providers such as law firms, and other entities are purposefully targeted for economic espionage and theft of trade secrets by statesponsored foreign entities for commercial gain because these entities are “leader[s] in the development of new SECTION 1 31
Page 1: U.S. JOINT STRATEGIC PLAN ON INTELL
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3 SECURE AND FACILITATE LEGITIMATE
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INTRODUCTION U.S. and international
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ENDNOTES Office of the Intellectual
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SECTION 4 CONTENTS PROMOTE FRAMEWOR
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ACKNOWLEDGEMENTS With thanks to, an
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