September 15, 2010

Volume 1, Issue 4

Quarterly Publication GGEETT RREEAALL

Inside this Issue:

Presidents Message... 1-2

IACC Task Force Updates …………………… 3-4

Member Spotlights ……. 5

2010 Spring Conference Recap …….…………………… 6

Welcome New Members... 7 Register for IACC’s Fall Conference ……...……………. 7 Contact Info ………………….. 8

BY

THE INTERNATIONAL ANTICOUNTERFEITING COALITION

Dear Members, In early march, I had the opportunity to visit Japan, Hong Kong and China. It was both a pleasurable and very informative trip. First and foremost, I would like to thank all of the members who helped make this a very meaningful and productive visit. While visiting Japan, the law firm of Momo-O, Matsuo & Namba, eLady, Louis Vuitton Japan and Union des Fabricants Tokyo were extremely helpful in setting up high-level meetings with government officials. In China and Hong Kong, the assistance of True Religion Brand Jeans, Cisco, Baker & McKenzie, Panoramic Consulting LTD and QBPC was invaluable. My first stop on this two week journey was Japan. While in Japan, I met with numerous IACC members, Japanese and US government officials and gave presentations before the Union des Fabricants Tokyo, the Council for Intellectual Property Protection on Internet (CIPP), and at the US Embassy/Tokyo to the OSAC Group. In addition, I met with Mr. Kenji Ohmi-Secretariat of Intellectual Property Strategy Headquarters, Mr. Hirotaka Mizutani- Clearance Division, Customs and Tariff Bureau, Ministry of Finance, Mr. Yasuyoshi Tanaka- Consumer and Environmental Protection Division, Community Bureau, National Police Agency, Mr. Toshihiro Mitsuhashi- Office for Intellectual Property Right Infringement, Manufacturing Industries Bureau, Ministry of Economy, Trade and Industry, Mr. Shinpei Yamamoto- Multilateral Trade System Department, Trade Policy Bureau, Ministry of Economy, Trade and Industry. It was very encouraging to see the level of commitment by Japanese officials regarding the protection of intellectual property. They have a substantial commitment and a robust IP regime that provides considerable protection to both the online and physical IP environments. My next stop was Hong Kong where I visited several markets passing through tight, narrow lanes of hawkers and merchants, peddling hordes of counterfeit goods, where anything and everything counterfeit was offered for sale. My experience was similar in China, where I visited the Silk Market in Beijing as well as other markets in and around Guangzhou. In addition, I accompanied the Technical Supervision Bureau] (TSB) on a raid of an illicit jeans factory that was producing counterfeit jeans.

Along the journey, I had the pleasure of meeting with the Conrad Wong, the US Government’s IP attaché in Guangzhou, along with his staff and US law enforcement officials stationed in China. I also stopped at the US embassy in Beijing. The last leg of my trip ended with a spectacular event hosted by QBPC celebrating their 10

th

anniversary. Scores of government officials were honored by Jack Chang, and the event was well attended by US government officials. The trip was very enlightening for me and brought home the message that the IACC needs to (Continued on page 2)

Message from the President A Letter from Bob Barchiesi regarding his trip to China & Japan

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raise our profile in countries like China by working closely with other associations that are well grounded like QBPC. We must also continue our strong lobbying efforts here in the United States and continue to encourage the Chinese Government and other countries to improve their existing laws and regulations related to IP, and to raise the priority for enforcement of those rights through our 301 submission. Warm regards, Bob Below: Pictures from Bob’s China Trip, including: A factory where counterfeit products are produced, A picture of Bob & Deborah Greaves from True Religion Brand Jeans inside the warehouse, counterfeit materials, counterfeit jeans, and Bob speaking at the QBPC 10

th Anniversary.

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Legislative Task Force Update

Federal As the 111

th Congress returns from its

Summer Recess, we are entering the final push for action on the IACC’s legislative priorities in the House and Senate. With mid-term elections looming, little bipartisan cooperation, and a targeted adjournment date less than a month away in the House of Representatives, the likelihood that much-needed legislation – including S. 1631, the pending Customs Reauthorization bill – will be passed before the end of the year, grows more distant. In spite of the efforts of the IACC and a number of other supporters, this legislation has failed to garner legislators’ attention, which has been focused on other issues deemed a higher priority, including healthcare and financial services industry reforms. Those extremely contentious (and time-consuming) issues effectively shortened the legislative calendar, leading to the current landscape. As the end of the year draws closer, Congress is expected to focus primarily on a few “must pass” bills. The passage of a number of other bills of potential interest to IACC members is similarly in question as a result of the current political and legislative climate. The Design Piracy Prohibition Act, versions of which have been introduced in each legislative session since 2006, saw some progress in recent weeks, as its main supporters at the Council of Fashion Designers of America, and its main opponents at the American Apparel and Footwear Association, agreed to support a compromise version of the bill. The legislation would provide limited copyright protections for original fashion designs for a period of three years. While the compromise between the CFDA and the AAFA removes a major obstacle to the bill, it remains to be seen whether Congress will take action on it prior its adjournment. Similarly, the Senate Judiciary Committee has been working to develop legislation which would seek to address the growing problem of rogue websites trafficking in counterfeit and pirated goods

However, due to the short window for action, and the fact that the legislative language has yet to be finalized or a bill introduced, we would expect the Committee to postpone action on the bill until the beginning of the 112

th

Congress in January. While activity at the federal level has been fairly limited in 2010, the same cannot be said in state legislatures around the country. In mid-July, Governor John Lynch of New Hampshire signed into law Senate Bill 394, based on the IACC/INTA Model Criminal Statute – a significant upgrade to the state’s existing trademark counterfeiting law which was passed a year earlier. IACC President Bob Barchiesi, and Travis Johnson, who helped draft the legislation were invited to attend the bill-signing ceremony. Also in attendance were IACC members Andrea Powers (Powers & Associates) and John Cassillo (RIAA) who were instrumental in the effort to pass the new law, and Kristine Scholtz of Timberland – an IACC member company headquartered in New Hampshire. The new law has already been put to good use; on August 28

th, Derry Police arrested three vendors

at the Grandview Flea Market on charges of dealing in counterfeit goods.

In California, Assembly Bill 819 passed the legislature shortly before the end of the session. That bill provides, among other things, for the doubling of fines available under Section 350 of the California Penal Code (dealing with trademark counterfeiting). AB 819 is currently awaiting Governor Schwarzenegger’s signature, which is expected to be forthcoming. Another bill in California, SB 1249 sought to encourage brand owners to authorize the donation of seized counterfeit goods to charitable organizations serving California’s homeless population, by excluding rights-holders from liability resulting from any harm caused to an individual as a result of that individual’s use of the donated counterfeit.

This “good Samaritan” legislation, though an improvement over the existing law enacted last year, failed to address a variety of concerns raised by the IACC in 2009 and again this year. As a result, the IACC withheld its support for the well-intentioned, but ultimately flawed legislation. The bill did not pass prior to the close of the legislative session, though we fully expect it to be introduced again next year. In Pennsylvania, the legislature will be returning later this month from an extended recess. There, the IACC is seeking the enactment of House Bill 727 – a bill based on the IACC’s Model State Criminal Counterfeiting Statute – to fill the gap in the statutory framework left by the PA Supreme Court’s ruling in the Omar case last year, which held the Commonwealth’s criminal trademark counterfeiting statute unconstitutionally vague and overbroad. HB 727 has been reported unanimously by the Senate Judiciary Committee, and is awaiting action by the Senate Appropriations Committee, before it can be brought to a vote before the entire Senate. We ask that all of our members with business operations in Pennsylvania to reach out to your legislators – particularly those in the Senate Leadership or on the Senate Appropriations Committee. If you have questions regarding any of these issues, please contact Travis Johnson at: tjohnson@iacc.org or 202.223.6667.

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IACC US Investigators Activity Report: April – June 2010 By Powers & Associates

Note: A total of 6 IACC member investigative firms reported out of 33

Court Results: Amount

Amount $ of Restitution Awarded by the Court (but may not yet be collected) $40,858.28

Community Service Hours or Cases (please note HR or CS) 510 HR

Continued Without a Finding (CWOF) / Placed Matter on file 13

Court Fines $ or Cases (please note $ or CS) $10,120

Default Warrants 1

Dismissed Cases 1

Guilty 23

Incarcerated 1

Probation 31

Supervision 5

Pending Cases 0

Other: 1

Stay away order from venue 1

If you are interested in joining any of IACC’s Task Forces please email Meghan George at meghang@iacc.org Thank You!

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New Momentum is a SaaS-based solution that identifies counterfeit and gray market offenders who are offering goods for sale on the Internet. Our customers are enterprise brands, frequently within the high tech, pharmaceutical, and retail luxury goods arenas. Our end-to-end solution helps stop the revenue, profit, and brand erosion caused by sales of illicit goods or unauthorized distribution of legitimate goods. New Momentum’s solution includes proprietary search technology that scans the global open market on a 24X7 basis, filters out the noise, and compares the results to our customers’ authentic brand representation. A strong differentiator is our focus on the brand holder’s products, not just their logos. We present a prioritized ranking of suspects via an intuitive user dashboard and/or in reports, along with evidentiary support of the abuse. New Momentum offers several enforcement options against these offenders, including C&D and DMCA letters and auction shutdowns. Via our network of fully vetted partners, we provide test buy services and assistance with criminal and civil proceedings. Customers using our anti-counterfeiting solution report: *An 80% reduction in the cost of counterfeit test buys *Seizures of nearly $200 million of counterfeit products *Six large-scale syndicates identified within the first six weeks *Significantly increased brand protection department productivity *500 more suspects found in the first 30 days versus other brand protection solutions *98% reduction in pricing violations For more information on how New Momentum can help your company win the battle against counterfeits and gray market abuses contact sales at 415.524.8300 or see our website www.newmo.com.

Member Spotlights

Sam Watkins

Sam Watkins is a Senior Attorney in the Los Angeles Office of Theodora Oringher Miller & Richman PC. He has extensive experience designing and implementing cost-effective Brand Protection strategies targeting counterfeiters and gray marketers. Sam’s highly-effective approach to combating counterfeiters was developed in the course of representing one of the nation’s largest consumer products companies in a successful Brand Protection litigation effort. These lawsuits resulted in significant and novel rulings in the field of trademark enforcement law as well as multi-million dollar damages awards and settlements. Sam’s approach stems from his experience as a law enforcement boarding officer for the U.S. Coast Guard. In this capacity, Sam boarded hundreds of vessels headed for the U.S. and made several multi-ton seizures of illegal drugs. Seizing illegal cargos by the boat-load before they can enter the stream of commerce made sense to Sam then, and still does today. By focusing on importers’ most vulnerable chokepoints, Sam has developed an efficient and cost-effective strategy that has translated into demonstrable and sustained results for clients. Sam also has developed the ability to exploit information about import organizations’ past activities to, in essence, predict their future shipments in time to enable seizure by Customs and Border Protection. By having large quantities of counterfeit goods seized at the border, Sam saves his clients the expense of rounding them up piecemeal at retail. By increasing risk to counterfeit importers and lowering their profits, Sam effectively encourages them to leave his clients’ marks alone. For more information, please contact Sam Watkins at 310-788-3550, swatkins@tocounsel.com , or visit www.tocounsel.com.

In clockwise order: Keynote Address by

Victoria Espinel, Attendees filing into the

main session room, IACC President Bob Barchiesi Presents Check to Children’s

Hospital Boston

Recap of IACC’s Annual Spring Conference in Boston, MA

The IACC’s annual spring conference was held at The Hyatt Regency Boston, in Boston, Massachusetts on May 19 – 21, 2010. The Conference was a HUGE success being one of our biggest conferences in IACC History with around 400 intellectual property professionals from around the world in attendance, including rights holders, attorneys, private investigators, government agencies and technology suppliers. During the opening reception on the evening of Wednesday, May 19

th, the IACC held a silent auction benefitting the Children’s Hospital

Boston. With the large turnout in Boston and the friendly but competitive (not to mention generous!) nature of the attendees, we were able to raise a grand total of $13,760 at the auction! Some highlights from the conference include an Internet Boot Camp held by IACC Member IP Cybercrime and a PR/Media Training Session Presented by Cone on Wednesday morning. On Thursday morning attendees got to listen in on speeches from our Keynote Speakers: US IP Enforcement Coordinator, Hon. Victoria Espinel, and Assistant Secretary of Immigration & Customs Enforcement, John Morton. Throughout the day on Thursday attendees were provided with the opportunity to gather together and discuss the latest trends and issues and share best practices related to counterfeiting while also attending the many insightful sessions held at the spring conference. The Conference co-chairs included Lisa Rogan from Acushnet Company, Vanessa Backman from Apple Inc., and John Cassillo from the Recording Industry Association of America (RIAA). Conference sponsors included IACC Members Baker & McKenzie, Gibney, Anthony & Flaherty LLP, Kilpatrick Stockton LLP, MarkMonitor, OpSec Security and Townsend and Townsend and Crew LLP. The IACC would like to thank everyone who attended the Spring Conference in Boston for their insight and support, and looks forward to seeing you at the upcoming Fall Conference in Scottsdale, Arizona this October!

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Welcome New IACC Members!

The IACC would like to welcome the following members to the IACC. The below list of new members have joined since the start of 2010.

Brand Owners Product Security Firms Johnson & Johnson New Momentum Merck & Co., Inc.

Law Firms Investigative Agencies Hughes Hubbard & Reed LLP Brand Protection Consultants, LLC Nath Law Group Brand Protection Consulting & Investigative Services (BPCIS) Miranda & Amado Abogados CIS Australasia Pty Ltd Theodora Oringher Miller & Richman PC Counter-Tech Investigations, Inc Twiggy MH Liu Law Office Executive Solutions Wan Hui Da Intellectual Property Agency Kessler International National Trademark Investigations SIC SPOTT-ON Consulting, LLC Sunfaith China, Ltd.

Associations/Government Agencies

DHS/ICE New York County District Attorney’s Office

REGISTER TODAY FOR IACC’S ANNUAL FALL CONFERENCE HELD IN SCOTTSDALE, ARIZONA!

Don't forget to register for the International AntiCounterfeiting Coalition’s Annual Fall Conference held in Scottsdale, Arizona to exchange best practices from the best in the AntiCounterfeiting industry! The conference will be held October 13 – 15, 2010 and is a must-attend! The Early Bird Special Registration Rate will end September 20, 2010, so register today! Register to attend the conference Here! View the Conference Agenda HERE! And don't forget to reserve your hotel room at the Westin Kierland Resort & Spa -- rooms are filling up quickly for this event! Reserve your room now ! If you have any questions or concerns, Please contact Meghan George at meghang@iacc.org or by calling 202-223-6667. We look forward to seeing you in Scottsdale!

Disclaimers: The information provided in this newsletter is to be used only to update and educate readers on current IP issues. All the information contained in this newsletter is published in good faith and for general information purposes only. The IACC does not make any warranties about the completeness, reliability and accuracy of this information. The information contained in this newsletter is provided by the authors of the information and constitutes their opinions and ideas. The IACC does not endorse or guarantee any information, products, services or merchandise discussed in this newsletter. Copyright IACC 2010 all rights reserved. www.iacc.org

The International

AntiCounterfeiting Coalition

1730 M ST NW Suite 1020

Washington, DC 20036

P: 202-223-6667

F: 202-223-6668

meghang@iacc.org

www.iacc.org

Thank you

for your

Support!