The value of seizures of counterfeit and other intellectual property rights (IPR)-infringing footwear, wearing apparel and handbags, wallets and backpacks declined sharply in fiscal year 2010 as U.S. officials shifted their enforcement efforts to intercepting more, but smaller shipments by online retailers, according to an annual report published jointly by U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement.
The report shows that the value of footwear siezed was $45.7 million, down 54% from $99.8 million seized in the fiscal year ended Sept. 30, 2009. The decline came despite a 46% increase in the number of siezures, reflecting more siezures of smaller shipments by online and mail-order retailers. Footwear's share of overall siezures declined from 38% to 24%. Likewise, siezures of counterfeit handbags, wallets and backpacks fell 28% to $15.4 million, while seizures of wearing apparel dropped 13% to $18.7 million despite an increase in the number of seizures.
Nevertheless, the three categories remained among the top five categories of products seized by the federal government in fiscal year 2010 for IPR infringment.
Footwear remained the top product seized for the fourth year in a row, accounting for more than 24% of the entire domestic value of seized counterfeit goods, compared to 38% in FY 2009. Wearing apparel's share of seizures by value rose to 10% for 8% in FY 2009, while handbags, wallets and backpacks share remained flat at 8%.
The report attributed declining footwear seizures to a decline in seizures of footwear from China, which saw its share of seizures of all IPR-infringing products decline to 66% from 79% in fiscal 2010. Despite the decline, China remained the top source country for IPR violations for the tenth year in a row.
The total number of seizures of IPR-infringing product increased by 34% to 19,959 in FY 2010 from 14,841 in FY 2009, even as the
domestic value of those seizures decreased 27% from $260.6 million (M) to $188.1M. For this reason the average value of an IPR siezure plunged to $9,425 in FY 2010 from $17,566 in FY 2009.
The big shifts reflect a 42% increase in the number of “high-volume/low-value express consignment/mail” seizures, the report said. The report attributed the shift to continued growth of websites that sell counterfeit and pirated merchandise, consumers seeking lower-priced goods due to the poor economy and IPR product identification training and education.
For example, the government made eight times as many siezures of exercise equipment, while the value of those siezures rose just 3.4 times.
