On Monday, the U.S. Justice Department secured court orders to seize 150 website domain names that bought, sold, and distributed counterfeit goods, a move applauded by the Sporting Goods Manufacturers Association. On last year’s “Cyber Monday,” 82 domain names were seized.
“Intellectual property crimes harm businesses and consumers, alike, threatening economic opportunity and financial stability, and today we have sent a clear message that the department will remain ever vigilant in protecting the public’s economic welfare and public safety through robust intellectual property enforcement,” said U.S. Attorney General Eric H. Holder, Jr.
The Obama Administration stated that it has been working on this matter — “Operation In Our Sites” — for roughly 90 days. Law enforcement agents have purchased counterfeit products – such as sports jerseys, shoes and handbags – and have been working with copyright owners. Most of the illegal sites were operated from foreign countries, according to a Justice Department spokesman.
Holder and other administration officials are also planning to announce a new public information initiative – Intellectual Property Theft Campaign – against online piracy today (Tuesday, Nov. 29). SGMA’s Vice President of Government Relations Bill Sells will be attending the event at the White House.
There is legislation in both the U.S. Senate (S 968) and in the U.S. House of Representatives (HR 3261) which would enable law enforcement officials and holders of copyrights to take ownership of the situation where websites are operating illegally. SGMA is actively supporting the legislation.
Besides the sporting goods industry, the movie and music industries are also negatively affected by sales of counterfeit merchandise. And, the U.S. Chamber of Commerce supports the federal legislation, too. But, some high tech companies and public policy groups feel the legislation is too strict. The bill in the U.S. Senate bill has passed through its Judiciary Committee, but there’s opposition from Sen. Ron Wyden (D-OR). The bill in the House has generated bipartisan support from its Judiciary Committee, but that committee includes legislators from both parties who remain undecided.
“SGMA is actively promoting legislation in Congress that gives U.S. law enforcement agencies greater powers to shut down foreign-based sites engaged in counterfeit sales,” said SGMA President Tom Cove.
Counterfeit sales have grown to new heights in the digital-age due to the easy access to fake products via the Internet and lax laws governing Internet content. What once was confined to a table on a street corner has now transformed into a multi-billion dollar industry. As a result, counterfeiters are now literally stealing money from legitimate businesses. The ‘trickle-down effect’ of on-line counterfeit sales is hurting the U.S. economy through lost jobs and reduced tax revenue.
“The fake products can create a health and safety hazard,” said Bill Sells, SGMA’s vice president of government relations. “And the reputations of brands can be harmed, as well.”
