As an accompaniment to our biweekly series on What Every Multinational Should Know About various international trade, enforcement, and compliance topics, below find an update to our "Five Compliance Best Practices" series, which provides quick-hit advice on compliance best practices to help multinational companies enhance their compliance programs and internal controls.
Importers can collaborate with customs authorities to combat intellectual property (IP) violations through various strategies and programs. Here are some effective ways importers can leverage customs to address IP infringements.
- Register Your Intellectual Property and Keep Your Point of Contact Current. Customs and Border Protection (CBP or "Customs") has the ability to help bar entries that violate trademarks and trade names that are registered with the CBP through the e-Recordation program, which allows imports to register their trademarks, copyrights, and other IP rights with Customs. Companies that register their IP rights should make certain that they have a current point of contact to respond to Customs inquiries regarding any potential infringing imports.
- Participate in Customs Training Opportunities.Importers can setup training sessions with Customs to educate personnel about identifying counterfeit goods and recognizing potential IP violations. These programs can enhance the ability of Customs to detect infringing goods during inspections.
- Share Information About Your IP With Customs.Importers can share information with customs regarding their authorized suppliers, legitimate distribution channels, and product characteristics. This helps customs officials distinguish between genuine and counterfeit goods during inspections and facilitates the targeting of high-risk shipments. It also is possible to engage broader IP stakeholders, such as industry associations, in such efforts.
- Set a Renewal Schedule for Your IP Registrations. IP registrations last for a lengthy period of time (twenty years) but do need to be renewed. In addition, as business lines and products change, so can the scope of IP that needs to be registered. If your organization has not done an IP inventory in the last two years, you should consider checking whether your registered IP is consistent with your current registration needs. Further, if your organization does not have automatic reminders to renew or re-evaluate IP registrations, then you should set one up.
- Review Your Imported Products to Determine if They Incorporate Licensed IP. Finally, significant importers should be aware that their own products might become targets of IP enforcement if they incorporate parts and components, or rely on technical standards, which are licensed from other companies. Even a single small component, such as an HDMI input, can lead to a product seizure if the IP is not properly licensed. Importers should review their products to ensure that they have properly licensed all outside IP used in the product and confirm that they are in a position to quickly produce such licensing information if their products are detailed for potential IP violations by Customs.
- Respond Promptly to Notices of Violation. If CBP detains or seizes goods suspected of infringing on your IP rights, act quickly to resolve the issue. Submit a proper notice of intent to enforce your rights and work with CBP to ensure the allegedly violative goods are appropriately handled. Timely responses help maintain your ability to import free of claims of infringement.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
