Countries involved in counterfeiting of US goods

One of the biggest reasons behind the US-China trade war is due to China’s involvement in the practice of unfair trading practices and IP theft to make counterfeit and cheap goods. The biggest hints of counterfeit items are that their prices are too good to be true. The total value of counterfeit items had a value of $1.2 billion.

The enforcement of IP laws is done by US Customs and Border Protection and US Immigration and Customs Enforcement. Homeland Security’s investigations branch is involved in bringing down the financial and welfare risks caused due to imports of such illicit products. Let’s have a look at the product seizures that violated US trademarks and copyrights across the world.

  • China: 48%
  • Hong Kong: 39%
  • Turkey: 2%
  • Canada: 2%
  • Taiwan: 2%
  • All others: 8%

Positive move

In the 1980s, China became a member of the World Intellectual Property Organization and began to strengthen its intellectual property framework and enact related laws. China stated in recent trade talks that its intellectual property royalties paid to the U.S. surged from $3.46 billion in 2011 to $7.2 billion in 2018.

What’s getting counterfeited?

The seizures of ripped-off intellectual property in the U.S. is only a fraction of all that is sold worldwide. The total seizures of counterfeit goods in the fiscal year 2017, with a retail value of $1.2 billion, down from the fiscal year 2016 seizures that totalled $1.38 billion.

International Patents

According to the World Intellectual Property Organization, the U.S. and China file the most international patents under the Patent Cooperation Treaty.

Source: ocregister.com

US President signs memorandum to curb counterfeit goods

US President Donald Trump recently signed a presidential memorandum to tackle the menace of online trafficking of fake goods. The memorandum is meant to stop the sale of fake products on sites like Amazon, eBay and Alibaba.

Peter Navarro Director of White House National Trade Council says, “This president has decided that it’s time to clean up this Wild West of counterfeiting and trafficking. The central core of the problem is that right now, third-party online marketplaces … have zero liability when it comes to trafficking in these counterfeit goods. That simply has to stop. We are going to attack that on numerous fronts.”

Meanwhile, e-commerce companies are also taking effective measures to stop the trade of counterfeits. Amazon spent a whopping $400 million on fighting fakes and has started brad registry and transparency program by the name of ‘Project Zero’.

However, Navarro also cleared that any possible actions by the administration to prevent online trafficking in counterfeit merchandise is premature. The directive orders the Department of Homeland security to work with other agencies on identifying the root of the problem.

The Organization for Economic Cooperation and Development estimates that the value of trade in counterfeit and pirated goods is about a half trillion dollars a year, with roughly 20% infringing on U.S. intellectual property, according to the directive.

Source: sfchronicle.com