U.S. and EU Announce Results of First Joint IPR Enforcement Operation on Computer Counterfeits

"Operation Infrastructure" focused on counterfeit semiconductors and computer networking equipment.

Over 360,000 Counterfeit Computer Components Seized

The joint operation was carried out in November and December of 2007 and resulted in seizures of over 360,000 counterfeit integrated circuits and computer network components bearing over 40 different trademarks.

According to CBP, these products were selected for the joint operation because they present safety and security risks in addition to IPR infringement risk. CBP states that the counterfeiting of networking hardware and integrated circuits has critical infrastructure, national security, and health and safety implications. Integrated circuits are used in a wide range of applications, including automobiles, aircraft, computers, telecommunications, medical devices and consumer electronics.

CBP notes that counterfeit circuits can damage the brand reputation of the rights holders and of the manufacturer that utilizes them when the final product fails or does not perform to expectations. Counterfeit hardware also lacks the quality assurance and manufacturing standards of genuine hardware and therefore has higher failure rates. According to CBP, failures of such products can impose significant labor, equipment and lost productivity costs on individuals and organizations that depend on them.

EU and U.S. to Continue Building on Operation

The Director General for Taxation and Customs at the European Commission stated that the U.S. and the EU will continue to build upon Operation Infrastructure and the growing cooperation between the U.S and the EU to combat the global trade in fake goods, adding that the U.S. and the EU are fully committed to combating counterfeiting and piracy at home and abroad.

Operation Part of Larger Strategy on IPR Enforcement

Operation Infrastructure is a component of the "EU-U.S. Action Strategy for the Enforcement of IPR" agreed to in 2006, highlights of which are as follows (partial list):

Exchange IPR border enforcement practices and experiences: risk analysis and management, statistical seizure data, working with right holders and right holder use of customs resources to enforce their rights, enforcement techniques, and legislation.

Exchange of operational staff: jointly target and examine shipments to obtain additional insight into IPR enforcement practices and experiences;

Exchange of enforcement information: exchange enforcement information on IPR seizures and trends;

Joint IPR border enforcement action: joint action in areas of particular concern to be jointly agreed (for instance involving security/safety and public health issues);

Encourage third country enforcement: step up actions to encourage third countries to enforce IPR and to combat counterfeiting and piracy. Initial efforts will focus on China and Russia as well as other infringing and transshipment areas of key concern in Asia, Latin America and the Middle East.

Multilateral cooperation: enhance collaboration against counterfeiting and piracy in relevant multilateral venues, including the WTO (TRIPS-Council); and

Public-private partnerships: foster public-private partnerships in the U.S., EU, and third countries to protect intellectual property.

(See ITT's Online Archives or 09/22/06 news, 06092299 6, for BP summary of the EU-U.S. Action Strategy for the Enforcement of IPR.)

2006 EU-U.S. Action Strategy for the Enforcement of IPR, dated 06/20/06, available at http://useu.usmission.gov/Dossiers/IPR/Jun2006_IPR_Strategy.asp

U.S. Mission to the EU press release on Operation Infrastructure, dated 02/22/08, available at http://useu.usmission.gov/Dossiers/IPR/Feb2208_Operation_Infrastructure.asp

CBP press release on Operation Infrastructure, dated 02/22/08, available at http://www.cbp.gov/xp/cgov/newsroom/news_releases/02222008.xml