CBP Proposes to Expand Info Sharing on Suspected Trademark Infringement With IPR Holders
CBP is proposing to amend its regulations to allow for the disclosure of information to trademark holders on shipments that have been voluntarily abandoned. The proposed rule would align information sharing procedures for voluntarily abandoned merchandise with procedures for seized merchandise, allowing CBP to better address trademark infringement by way of e-commerce shipments. Comments are due Oct. 28.
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According to CBP, the value of e-commerce shipments is often so low that such shipments are voluntarily abandoned if CBP detains them on suspicion of an intellectual property rights violation. “The cost of demonstrating to CBP that a shipment is legitimate may outweigh the importation’s value, and importers frequently fail to respond to CBP inquiries,” CBP said. Currently, while information sharing with rights holders is allowed for seized merchandise under the Trade Facilitation and Trade Enforcement Act of 2015, that law is silent on voluntarily abandoned merchandise.
A March 2017 Executive Order directed CBP to “ensure that it can share information regarding voluntarily abandoned merchandise with right owners ‘to ensure the timely and efficient enforcement of laws protecting [IPR] holders from the importation of counterfeit goods,’” CBP said (see 1704030033).
As a result, “CBP is proposing to disclose the same comprehensive importation information provided to trademark owners when merchandise has been seized in cases where merchandise has been voluntarily abandoned, if CBP suspects the successful importation of the merchandise would have violated United States trade laws prohibiting importation of merchandise bearing counterfeit marks, and that disclosure would assist CBP in its IPR enforcement mission” the agency said.
Under the proposal, CBP would be able to disclose the following information to the trademark owner: the date of importation, the port of entry, the description of the merchandise, the quantity of the merchandise, the country of origin of the merchandise, the name and address of the manufacturer, the name and address of the exporter, and the name and address of the importer, the agency said. “As in the seizure context, trademark owners may use this importation information to help CBP prevent IPR violations by identifying sources or channels of violative shipments.”
(Federal Register 08/27/19)