The definition of product piracy includes plagiarism, counterfeiting, and pirated copies of products and works for which the manufacturers hold invention rights, design rights, process rights, or copyrights. The rights holder suffers not only damage to its image but also exploitation of its development work, which required considerable financial investment, and losses in sales and profits. The global annual damage to original manufacturers caused by such pirated goods is estimated to be in the double-digit billions.
However, it is not only the original manufacturers who are affected by the effects of product piracy, but also third parties. The high level of damage suffered by the companies concerned results in the loss of numerous jobs. In addition, plagiarism and counterfeiting can pose significant health risks to consumers (as in the case of medicines or electronic devices).
Brand piracy refers to the specific case of imitation of products protected by trademark law. Brand and product piracy are by no means trivial offenses; both are classified as economic crimes. In Germany, brand and product piracy are subject to severe penalties; for example, in cases of commercial trademark piracy, prison sentences of up to five years can be imposed.
The first line of defense against product piracy is a comprehensive portfolio of intellectual property rights that covers the most important products with various intellectual property rights. Close cooperation between the original manufacturers and the customs authorities makes it easier for the latter to identify counterfeit products and report them to the intellectual property rights holder.
Our in-house lawyer and patent attorney, who are licensed professionals, advise companies affected by trademark and product piracy on their legal options. We actively take action against product pirates on their behalf with warnings and preliminary injunctions, as well as with the help of customs authorities by carrying out (border) seizures and destructions.
You were given a written warning claiming that you imported or offered counterfeited products?
Such a warning, which is very often supported by trademark or design rights, should be considered serious. We are more than happy to advise you of legal possibilities in order to fend off the claims and to keep the costs as low as possible for you.
Customs
An effective instrument to combat trademark and product piracy is to engage customs and, thus, prevent counterfeited products from being imported into and offered in the European Union.
Exceptions might be made by customs if the counterfeited products were found in the travelling bag of a passenger and were only intended for private use. The value of those goods, however, should not exceed the customs-exemption limit. There is only a very fine line between acting for private purposes only and the assumption that somebody has an intention to use imported goods for business. Once that line is crossed, it is hard to prove wrong the assumption of acting commercially.
Border control
Products from foreign exhibitors at trade fairs can be seized by customs if an application for border seizure has been submitted to the competent customs office in advance. The border seizure procedure is particularly useful if intellectual property rights holders become aware at an early stage that a foreign company intends to import counterfeit goods into Germany. The products in question can then be seized by customs upon import into the European Union and will not even make it to the exhibition.
Complaint against seizures at trade fairs
Since customs officers or police officers have comparatively little time to decide whether to take action against certain goods or not, it can also happen that products are removed from the trade fair stand that do not actually fall within the scope of protection of the intellectual property right put forward. A thorough examination of this property right by the stand owner is often not possible due to the time pressure and lack of translations of German-language property rights.
If you feel that products have been wrongly removed from your stand, please feel free to contact us. We check the scope of protection of the respective property right and whether the confiscated products really fall within the scope of protection of this property right. If necessary, we will assist you with the complaint against the seizure.
Confiscation At the Fair
Alternatively, goods infringing intellectual property rights from non-EU countries can also be removed from the exhibition stand by the customs authorities. In the event of such a seizure, mobile customs inspection teams act as investigators on behalf of the public prosecutor’s office, and the suspected pirated goods are seized as evidence for subsequent criminal proceedings. For the owner of a patent, trademark, or other intellectual property right, these customs measures provide an effective means of combating product piracy. In addition to the customs authorities, or if they are not responsible in individual cases, for example because the product potentially infringing intellectual property rights comes from another EU member state, the corresponding criminal complaint can also be filed with the police.
Messe Frankfurt is a very active example of the fight against product piracy. Particularly at exhibitions where a large number of counterfeit products are to be expected, such as the consumer goods fairs Ambiente and Tendence or the leading international trade fair for paper, office supplies, and stationery Paperworld, the customs authorities, in cooperation with Messe Frankfurt, organize tours in which rights holders can participate and where exhibitors’ stands are inspected for goods that infringe intellectual property rights. If, after consulting with the rights holders, customs authorities conclude that infringing goods are present, these goods will be removed if necessary.
Appeal Against Seizure
Since customs officers or police officers have relatively little time to decide whether or not to take action against certain goods, it is not uncommon for products to be removed from the exhibition stand that do not actually fall within the scope of the intellectual property right in question. Due to time constraints and the lack of translations of German-language intellectual property rights, it is often not possible for the stand owner to thoroughly check this intellectual property right.
If you feel that products have been wrongfully removed from your exhibition stand, please feel free to contact us. We will review the scope of protection of the respective property right and whether the confiscated products actually fall within the scope of protection of this property right. If necessary, we will assist you in appealing against the confiscation.
