1
Managing Managing Intellectual Property InvestigationsIntellectual Property Investigations
Albert Ho Albert Ho Head of Intellectual Property Investigation BureauHead of Intellectual Property Investigation Bureau
Hong Kong CustomsHong Kong Customs1 September 20101 September 2010
2
Copyright piracy & trademark counterfeitingCopyright piracy & trademark counterfeiting
Boundary & Maritime Interception (3,300 officers)Boundary & Maritime Interception (3,300 officers)Station at airport, container terminals & boundary Station at airport, container terminals & boundary control pointscontrol points
Inland & Online Enforcement (400 officers)Inland & Online Enforcement (400 officers)Intellectual Property Investigation Bureau Intellectual Property Investigation Bureau Special Task Force Special Task Force
A dedicated Intelligence Bureau (220 officers)A dedicated Intelligence Bureau (220 officers)
IPR Crime Enforcement in Hong KongIPR Crime Enforcement in Hong Kong
3
Street Crime Era in the 1990’sStreet Crime Era in the 1990’sSudden rise of street-level sale of pirated copies of software, movie, music all over HK
Special Task Force (185 officers) (1999)
Enforcement strategy: focused & repeated raids
Major MilestonesMajor Milestones
4
0
100
200
300
400
500
600
700
800
900
1000
1100
1998 1999 2000 2002 2004 2006 2008 2010
No. of Retail Outlets
Year
1,000
Just a few
Sharp decrease in theSharp decrease in theno. of retail outlets selling pirated optical discsno. of retail outlets selling pirated optical discs
5
Internet Era in the 2000’sInternet Era in the 2000’sAnti-Internet Piracy Teams (AIPT) (2000)
Computer Analysis & Reponses Team and an ISO-certified Computer Forensic Laboratory to provide technical support (2000)
An automated Lineament Monitoring System - cyber patrol on peer to peer illegal file sharing (2007)
Major MilestonesMajor Milestones
6
Sharp increase in theSharp increase in theno. of complaints on Cyberspace Piracyno. of complaints on Cyberspace Piracy
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090
100
200
300
400
500
600
700 666
494507469
347
205
1155961
89
4
77
The “Big Crook” Case in 2005The “Big Crook” Case in 2005
World’s first-ever successful enforcement action againstillegal peer-to-peer file sharing through BitTorret
Arrested a Chinese man who named himself “Big Crook” on the Internet in Jan 2005.
Sentenced to 3 months’ imprisonment. His appeal wasdismissed in May 2007.Illegal P2P file-sharing
of copyright materials
Drop 80%
8
OrganizedOrganized CrimeCrime EraEra inin thethe EarlyEarly 20002000’s’sWider powers of investigation by invoking theOrganized & Serious Crimes Ordinance(OSCO)
Applied to 8 IPR cases, where some US$14million worth of crime proceeds were restrainedsince 2004
Major MilestonesMajor Milestones
9
Cost Analysis onCost Analysis onInvestigation of organized IP CrimesInvestigation of organized IP Crimes
Crime Proceeds / Investigation Costs (USD)Crime Proceeds / Investigation Costs (USD)
Operation
Total crime proceeds forfeited (USD 14M) > Total crime proceeds forfeited (USD 14M) > Total investigation costs (USD 0.5M)Total investigation costs (USD 0.5M)2,851,418
51,092
2,543,157
56,299
5,535,861
56,299
547,164
56,299290,279
56,299
764,231
56,299
1,177,815
56,299205,508
51,092
584,412
56,2990
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Sniper Spur Sting Glacier Polaris Explorer Touchdown Mildsteel Codebreaker
Crime Proceeds Frozen Investigation Costs
Remark : Investigation Costs factored in the no. of officers, daily wage per officer, no. of Remark : Investigation Costs factored in the no. of officers, daily wage per officer, no. of days spent & miscellaneous operation costs.days spent & miscellaneous operation costs.
Cost effectiveCost effective
10
Whatever the IP enforcement areas, eras etcco-operation with LEAs
& the IP industry is essential.
IP right holders are encouraged to come forward and provide support …….
TO MAKE CRIMINAL PROSECUTION HAPPEN !
1111
The “Top Site” Case in 2009The “Top Site” Case in 2009
Joint Operation with MPA & IFPI
Significant Support :
intelligence support – informer
Identification of pirated movies & music album
seizure examination
affidavits and prosecution witnessesNo more top site is found No more top site is found in Hong Kongin Hong Kong
Impact
Fruitful Results :
Asia’s first-ever successful enforcement action against distribution of infringing files through Top Site
Arrested 2 Chinese men and seized 4 computers with ultra-high speed Internet connections in Jun 2009
Seized 3,400 infringing copyright works (movies, songs, TV games, software) being stored on the computers.
12
Critical Success FactorsCritical Success FactorsNurture the respect of IPRNurture the respect of IPR
Swift response to Custom requestSwift response to Custom request
Provide support on copyright subsistence and infringementProvide support on copyright subsistence and infringement
Appoint a competent examinerAppoint a competent examiner
Seizure identificationSeizure identification
Give affidavit evidence and testify in courtGive affidavit evidence and testify in court
Training & experience sharingTraining & experience sharing
13
CustomsCustoms--Industry PartnershipIndustry Partnership
EE--auctioning with Integrity Scheme (2005)auctioning with Integrity Scheme (2005)
Jewellery Integrity Campaign (2005)Jewellery Integrity Campaign (2005)
Fast Action Scheme (2006)Fast Action Scheme (2006)
Youth Ambassador against Internet Piracy Youth Ambassador against Internet Piracy Scheme (2006)Scheme (2006)
Various reward SchemesVarious reward Schemes
IPR Protection Alliance (IPRPA) (2004)IPR Protection Alliance (IPRPA) (2004)
http://www.iprpa.org/eng/front.phphttp://www.iprpa.org/eng/front.php (IPRPA Website)(IPRPA Website)http://www.iprpa.org/download/Membership_Application_http://www.iprpa.org/download/Membership_Application_ChiChi--Eng.pdfEng.pdf (Membership Entry Form)(Membership Entry Form)
14
THANK YOUTHANK YOU