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Joint Strategic Plan on Intellectual Property Enforcement FIG. 28: Examples of Seized Counterfeit Automotive Parts. Engine and Drivetrain Spark plugs can overheat and may lead to fire; oil filters can cause sudden engine failure Glass Improper glass may not adequately protect passengers from projectiles during normal driving conditions Body and Structural Vehicle hoods designed without crumple zones may penetrate the passenger compartment in a crash Headlights and Taillights Low-quality materials and improper sealing may lead to moisture intrusion and damage causing failure or malfunction Suspension System These parts made of substandard materials have shown higher rates of failure Airbags Have been found to improperly deploy, or not deploy at all Brakes Have been found to be made of grass clippings and saw dust Wheels Compromised structural integrity by cracking after hitting a pothole at just over 30 mph Source: a2c2 SECTION 1 Recent enforcement operations suggest that the counterfeit auto part trade is large and growing. 108 During one inspection at Florida’s Port Everglades on May 8, 2015, CBP officers and import specialists seized more than 3,260 counterfeit automobile parts, comprised of a diverse collection of over 180 different types of vehicle parts ranging from small fuses to entire front ends. 109 As these industry examples illustrate, entities behind the manufacture, distribution, advertising, and sale of counterfeit products are not concerned about public health and safety. These entities share a devotion to generating illicit profits at all costs, while remaining recklessly indifferent to the actual injuries and potential risks to life that can come from their imitation of personal care products, pharmaceuticals, consumer electronics and electrical components, and automotive parts. 3. Threatens the Environment. Environmental offenses are often treated in isolation from other types of serious crimes, including trade in counterfeit goods. That may be due in part to separate agencies having responsibility for the protection and conservation of the environment, trade enforcement, and national security. A broader view and greater coordination would be beneficial to adapt to today’s more sophisticated environment of global illicit trade. The environmental costs of counterfeiting are often understated, but cannot be ignored. Counterfeit products are often accompanied by environmentally-damaging consequences, either at the time of manufacture, the time of use, or the time of disposal. With respect to counterfeit manufacturing practices, the United Nations Office on Drugs and Crime (UNODC) has reported that while responsible manufacturers try to improve their environmental impact standards, “counterfeiters enjoy the cost savings of dirty production. In short, anywhere that the international community attempts to establish good practice standards for industry, counterfeiters undercut them.” 110 Furthermore, the use of counterfeit agrochemical products appear to be significant and on the rise. 111 Unregulated fertilizers or pesticides have destroyed harvests and poisoned farmland. 112 These products pose serious environmental risks, including infecting food chains and harming ecosystems. For example, counterfeit fertilizers have been reported to have caused serious damage and destruction of harvests in large areas in China, Russia, Ukraine, and Italy. Counterfeit pesticides exported from China and India have been found to include toxic ingredients such as nicotine sulphate, which is deadly to humans, and has been distributed to unknowing buyers throughout 38
Office of the Intellectual Property Enforcement Coordinator FIG. 29: The Growing Global Threat of Counterfeit Pesticide Use. ILLEGAL AND COUNTERFEIT PESTICIDES AN EVER EXPANDING RISK PRIMARY DANGERS Environmental damage Safety of farmers Global food supply Farmer Poverty The global economy and national GNP Crop health and yield Rural Social instability ALL AGRICULTURAL STAKEHOLDERS ARE UNDER THREAT AUTHORITIES & GOVERNMENTS LEGITIMATE MANUFACTURERS TRANSPORTATION & SHIPPING PESTICIDE RETAILERS & DISTRIBUTORS GROWERS/ FARMERS FOOD COMPANIES THREATS TO THE VALUE CHAIN Illegal and counterfeit Illegal and counterfeit pesticides threaten pesticides may lead farmer health and to loss of innovation safety, hinder and inability to stay economic development, in business and erode government credibility A vast and complex global transportation system of vessels and aircraft is vulnerable to infiltration by dangerous illegal chemicals Unknowing sales of potentially dangerous illegal and counterfeit pesticides with unlisted or incorrect use instructions Loss of crops and income, deteriorating land health, and emotional distress Endangerment of the global food supply Source: Croplife International Europe. 113 It is estimated that more than 25 percent of the pesticides in circulation in parts of Europe may be illicit or counterfeit. 114 Additionally, illicit trade-based operations have been associated with the mishandling of toxic chemicals, including outlawed chemicals and toxic dyes. This contributes to the emission of greenhouse gases polluting the air, as well as polluting soil and water systems. 115 Lastly, the improper disposal of seized counterfeits containing unknown chemicals is also posing a growing risk and challenge. 116 Manufacturing waste, including electronic waste, may implicate more than 1,000 different substances, including toxic heavy metals. When disposed of improperly, this waste can cause significant pollution problems and create health hazards. 117 As the counterfeit trade continues to increase, so will logistical challenges for determining how best to dispose of its waste while ensuring no environmental harms. 118 FIG. 30: Customs x-ray of a truck involved in waste trafficking and transshipment fraud. The x-ray reveals the method of double layering to conceal cylinders containing ozone depleting substances behind declared cargo. 4. Exploits Labor. Undeclared ODS cylinders The behind-the-scenes production of counterfeit goods often involves human rights violations, including the use of child labor, forced labor, human trafficking, long hours and dangerous “sweatshop” working conditions, and payment of unlawfully low wages that do not cover living expenses. 120 Although they read as if taken from a horror novel, reports from the field are all too real, describing labor practices that are contrary to the most basic principles of respect for human rights. Put simply, the safety and security of the laborer are ignored. Declared cargo Source: INTERPOL 119 Illegal counterfeit enterprises often exploit the SECTION 1 39
Page 1: U.S. JOINT STRATEGIC PLAN ON INTELL
Page 6 and 7: B. In Furtherance of a Healthy Doma
Page 9: PREAMBLE A Reflection on Creativity
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Page 14 and 15: INTRODUCTION IP-intensive industrie
Page 16 and 17: EXECUTIVE SUMMARY Services, the Dep
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Page 23 and 24: 1 THE GLOBAL SCALE OF INTELLECTUAL
Page 25 and 26: INTRODUCTION The story of intellect
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Joint Strategic Plan on Intellectua
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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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