The intellectual property (IP) an individual or business comes up with is unique and worth protecting. Safeguarding IP allows for an environment that fosters greater innovation because of the many advantages and enrichments that individuals and businesses can reap from their creativity. However, there are always copycats out there who also want to benefit from others’ ingenuity. Sometimes these freeloaders will try to reproduce or recreate another’s concepts, or the goods derived from their ideas. Counterfeiting and piracy pose real threats to the viability of entrepreneurship and business creation. As Chicago intellectual property lawyers, the team at Sullivan & Carter, LLP knows how serious and important it is to protect IP and litigate when imitators or distributors of protected materials pop up. For answers to questions about how to protect your IP or if you believe that fraudulent copies of your invention or creative work are circulating and you want more information on what to do, consider (929)724-7529 to schedule a consultation with our experienced IP lawyers.
According to the United States government’s web resource Stop Fakes, the term “counterfeit” is used to describe tangible goods that are fake. By contrast, the term “piracy” is used to describe the reproduction of creative works without permission from the owner. Examples of pirated material could include music or books or other copyrighted works that are copied and distributed without permission from the copyright holder.
Counterfeiting and piracy are major problems that are on the rise both domestically and globally. A 2020 joint research effort between the Library of Congress and the United States Patent and Trademark Office has reported that as far back as 2018, counterfeiting and piracy together cost the global economy up to $4.5 trillion annually. The United States Customs and Border Patrol (USCBP) indicates that the year 2022 saw 20,812 unique seizures related to intellectual property rights (IPR) violations, for a total of more than one hundred thousand “lines,” a term the agency considers similar to invoices as each line may represent many items of the same counterfeit branded product.
The theft and reproduction of intellectual property is not only expensive for large businesses and successful entrepreneurs, curtailing potential profits immediately and over the longer term. Intellectual property theft also impacts the average worker, as the financial setbacks suffered by innovative companies can cause job loss among their workforces.
Counterfeit products can also be a safety hazard. A counterfeit shampoo, for instance, may be made with inferior ingredients and without safety protocols during manufacturing. This can put the consumer at risk of severe physical bodily harm or the development of disease when using the product.
When these fake goods are circulated and sold, they put the population in harm's way. Counterfeit goods are, for obvious reasons, not subject to the same safety standards and product quality controls that apply under legitimate manufacturing and production scenarios. They also threaten the strength and stability of the economy. This is true for people here at home and abroad, for the domestic financial system and those that exist around the world. In other words, while it can be easy for purveyors of counterfeit goods or distributors of pirated materials to suggest that their activities –– or consumers’ participation in them –– harms no one, the reality is that counterfeiting products and pirating creative works are not so much victimless crimes as ones in which the criminals rarely have to face their victims.
Even when proactive measures to protect against IPR infringement have been implemented, intellectual property rights owners may still come upon issues with fakes. Here, speaking with an attorney can make the most sense and provide a means to figuring out what the most effective next steps might be in addressing the issue. Entrepreneurs and business teams may wish to consider scheduling a consultation with Sullivan & Carter, LLP to discuss the unfolding situation and seek professional perspective. When your IP has been taken and reproduced without your permission, you have legal rights and recourse. An attorney can discuss your options with you. In the best case scenario, an IP lawyer may also be able to help you identify and implement steps to protect your intellectual property rights against future infringement.
On some level, business owners and intellectual property attorneys alike rely to a degree on government enforcement of intellectual property law to quash counterfeiting and piracy. While most IP disputes are traditionally handled via direct negotiation and, when necessary, litigation, the proliferation of counterfeit goods and pirated copies of creative works in the marketplace demands a systemic approach organized by up-to-the-moment policies that make it possible for officials at agencies like Customs and Border Protection to recognize infringing materials and quickly remove them from circulation. Intellectual property attorneys work to stay abreast of the latest signed and pending legislative decisions and official policies in order to help their clients navigate the legal and bureaucratic frameworks that facilitate the protection of intellectual property rights.
The government plays a role in helping mitigate the problem of counterfeiting and piracy by strengthening both legal foundations and through stringent enforcement. To ensure that the laws are followed and the crimes are easily identified, law enforcement must be adequately trained.
Members of the general public need to understand the significant negative impacts of fraudulent products on the market and know what to look for and how to avoid purchasing fakes. Counterfeit products are a safety risk, and piracy is not a victimless crime.
Companies must not become a part of the distribution of fake goods. To minimize the chances of this happening, business owners –– especially those who include resale activities in their overall operations model –– have a duty to implement easy-to-follow but firm supply chain control standards. At each stage of the supply chain, there must be rigorous inspection of products to check for their authenticity.
Substantial supply chain regulations are vital to keeping reproductions out of public circulation and from consumption. However, similar to the public, company employees must also be educated on the laws and the penalties for allowing counterfeits to fall through the cracks and for partaking in these criminal acts in any way.
Technology is of course often used in the production of counterfeit products and the piracy of copyrighted materials. However, the latest technologies can also play a role in monitoring for and mitigating these same activities, and the economic and reputational risks they pose. By using advanced tracking systems and associated technological approaches, inauthentic products that are found can be traced to their source and to the exact point where there may have been a break or issue with the supply chain. As a result, immediate remedies can be applied.
By partnering with the right IP attorney, entrepreneurs put themselves in position to receive the guidance, support, and legal representation needed to combat piracy effectively, enforce their IP rights, and safeguard their business interests. A knowledgeable and experienced IP attorney can help navigate the complexities of IP law, develop strategic enforcement strategies, and pursue legal remedies to address piracy-related concerns. Entrepreneurs may wish to prioritize selecting an IP attorney with the requisite experience, expertise, industry knowledge, litigation skills, enforcement strategies, communication abilities, reputation, and ethical standards to effectively address piracy issues and protect their valuable intellectual property rights.
Business owners may wish to seek legal advice promptly in cases of suspected intellectual property infringement. Responding swiftly when suspicions arise can help protect their rights and maximize legal remedies available, and an intellectual property attorney will likely be in a position to advise an entrepreneur on the most appropriate course of action for their particular case. Cease and desist letters should be sent if unauthorized use or infringement is discovered, and negotiations or litigation may be necessary. Signs of counterfeiting activity include low-quality goods, unusual sales channels, complaints from customers, and difficulties in enforcing IP rights.
Preventing IP infringement in the first place is generally preferably to litigating a case of intellectual property theft after the harm has already been done. Entrepreneurs can take proactive measures to combat counterfeiting, including working with customs authorities, implementing brand protection measures, monitoring online marketplaces, tracking supply chains, educating stakeholders, and conducting investigations.
IP law firms can in many cases assist with trademark registration, anti-counterfeiting strategies, IP audits, supply chain management, customs enforcement, litigation, and more. When selecting an IP attorney to address piracy concerns, it is important to consider factors such as experience, industry knowledge, litigation skills, enforcement strategies, communication, reputation, and ethical standards.
Counterfeiting and piracy are not benign crimes or acceptable concepts. Serious repercussions can result here in the U.S. and around the world which is why it is so critical to execute decisive safety measures with the goal not just of reducing fakes, but stopping them altogether. Fraudulent goods and works undermine the intellectual property of owners and an owner’s ability to maximize on their one-of-a-kind creations and ideas. This illicit practice should be opposed at all levels and by the entire international community. If you would like to discuss your intellectual property needs, including legal options you have for IP theft, you call Sullivan & Carter, LLP at (929)724-7529 to speak with a knowledgeable IP attorney.
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