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CBP, ICE HSI Report $1.2 Billion in Counterfeit Seizures in 2014; China ‘Primary’ Offender

In 2014, effective targeting of high risk shipments and frontline interceptions of cargo at America’s ports of entry resulted in more than 23,000 seizures of fake products worth an estimated $1.2 billion “that could have cheated or threatened the health of American consumers,” Customs and Border Protection (CBP) Commissioner R. Gil Kerlikowske said in announcing today the Intellectual Property Rights Seizure Statistics Fiscal Year 2014.

“The People’s Republic of China remains the primary source economy for counterfeit and pirated goods seized with a total value of $772 million, representing 63 percent of all intellectual property rights (IPR) seizures by manufacturer’s suggested retail price (MSRP). Hong Kong ranks second with $310 million or 25 percent.”

“Protecting intellectual property rights is a critical part of CBP’s trade enforcement mission and critical to protecting American consumers,” Kerlikowske said.

CBP and Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) said the fiscal year 2014 results were the result “of an aggressive enforcement program to protect the United States from counterfeit and pirated goods. CBP and HSI are the Department of Homeland Security (DHS) entities responsible for the enforcement of IPR.

Tactical interagency collaboration with the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) resulted in 683 arrests, with 454 indictments and 461 convictions.

The National IPR Center is one of the US government’s key weapons in the fight against criminal counterfeiting and piracy. Working in close coordination with the Department of Justice Task Force on Intellectual Property, the IPR Center harnesses the tactical expertise of its 23 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property theft, CBP and ICE said. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety and the US economy.

CBP and HSI protect businesses and consumers every day through an aggressive IPR enforcement program. CBP targets and seizes imports of counterfeit and pirated goods, and enforces exclusion orders on patent-infringing and other IPR violative goods.

“These results are a testament to the efforts of the men and women of the Department of Homeland Security, and the increased collaboration fostered by the IPR Center,” said ICE Director Sarah Saldaña. “To be clear, intellectual property theft is not a victimless crime. The victims are American businesses, and the employees whose jobs are dependent on IP-intensive industries. Counterfeiting is a crime of global proportions, and when property rights are violated, American jobs are lost, business profits are stolen and ultimately, consumers are cheated.”

In fiscal year 2014, there were 23,140 intellectual property rights seizures with an estimated manufacturer’s suggested retail price of $1.2 billion — the value of the goods had they been genuine.

In addition, CBP said “144 shipments of circumvention devices were seized for violation of the Digital Millennium Copyright Act. CBP also enforced 44 exclusion orders in fiscal year 2014. Since 2007, CBP has identified intellectual property rights enforcement as a priority trade mission. Although IPR seizures declined slightly in 2014 from 2013, CBP recorded its third busiest year for seizures since 2005.”

The top ten counterfeit commodities seized were:

  • Wearing apparel/accessories;
  • Consumer electronics;
  • Pharmaceuticals/personal care;
  • Handbags/wallets;
  • Footwear;
  • Watches/jewelry;
  • Optical media;
  • Computers/accessories;
  • Labels/tags; and
  • Toys

CBP and ICE said, “Wearing apparel and accessories continue to be the number one commodity classification based on number of seizures with 7,922 seizures or 28 percent.  Watches and jewelry are the largest commodity classification by value with an estimated MSRP of $375 million or 31 percent.”

For more information, please visit the following CBP web pages:

Intellectual Property Rights Seizure Statistics Fiscal Year 2014 Report

Turning the Tide Video on CBP Intellectual Property Rights initiatives

Additional information on how CBP can help protect Intellectual Property Rights
 

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