ICEP Anniversary Report

8/3/2019 ICEP Anniversary Report

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Table o Contents

Introduction 1Law Enorcement Increased Signicantly 3

FBI, ICE, and CBP Seized More Goods, Opened More Cases, and Arrested More Suspects 3

ICE and DOJ Launched Innovative Internet Enorcement Program 3

Federal Law Enorcement Operations Led to Historic Seizures 3

DOJ Won Major Convictions on Trade Secret Cases 3

United States Worked with International Authorities to Stop Illegal Pharmaceuticals 4

IPR Center Added Partners 4

More State and Local IPR Enorcement Achieved Activity Through DOJ Funding 4

Online Enorcement Broke New Ground 5ICE and DOJ Launched Innovative Operations to Seize Rogue Websites 5

Voluntary Cooperation by Private Sector to Reduce Online Piracy and Countereiting 5

Consumer Education Eorts on IPR Inringement Spread to the Internet 5

International Eorts Supported Online IPR Enorcement 6

US Trade Representative Published Inuential Out-O-Cycle Notorious Markets List 6

Comprehensive Domestic Legislative Review; 20 Legislative Recommendations

Issued to Congress 7Administration White Paper 7

Punishing Economic Espionage 7

Fighting Countereit Drugs 7

Clariying Streaming as a Felony 7

Providing Disclosure Authority to DHS 7

Stopping Rogue Websites 8

Approaches to Stop Illegal Pharmaceuticals Went Further 9IPEC Released Broad Strategy to Fight Countereit Drugs 9

IPEC Recommended Strengthened IPR Laws to Congress on Illegal Pharmaceuticals 9

Major Internet Companies Committed to Taking Action Against Illegal On-line Pharmaceuticals 9


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United States Linked with International Partners Against Illegal Pharmaceuticals 9

State Boosted Training Funds or International IPR Training 9

Data-Driven Government Eorts Moved Forward 11IPEC Requested Data on US Government Agency IPR Resources 11

USG Economists Conducting First Ever Analysis o IP Value to US Economy 11

International Cooperation Increased 13Strong Statement on Intellectual Property Enorcement rom G8 Leaders 13

President Obama and President Hu Jintao Joint Statement 13

China Conducts Special Campaign Against IP Thet 13

US Embassies Increased Coordination 13

Anti-Countereiting Trade Agreement Negotiations Concluded 14

Attorney General and ICE Director Press Chinese Law Enorcement to Do More 14

USTrade Representative Published Out-O-Cycle Notorious Markets List 14

USTrade Representative Calls or Action Plans rom Trading Partners 14

ICE and FBI IP-Dedicated Personnel in China 15

United States Worked with International Authorities to Stop Illegal Pharmaceuticals 15

US Patent and Trademark Ofce Launched a Training and Capacity Building Database 15

United States Continued Global Eorts on IPR Trainings 15

International Trade Administration Continued Helping US Companies Overcome Countereiting

and Piracy 15

Domestic Coordination Further Improved 17Executive Order Establishing Intellectual Property Advisory Committees 17

FBI Intellectual Property Task Forces Coordinated with Local and Foreign Law Enorcement 17

ICE IP Thet Enorcement Teams Coordinated with Local Law Enorcement 17

CBP and ICE Coordinated to Stop Countereit Network Hardware 17

Countereits in USG Procurment 19USG Inter-Agency Anti-Countereiting Working Group Established to Provide Recommendations

to President Obama 19

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1

Introduction

As the Joint Strategic Plan described last year, the US Government is committed to improving intel

lectual property enorcement to strengthen the US economy; create jobs or American workers and

support or US exports; promote innovation and the security o Americas comparative advantage in

the global economy; protect consumer trust and saety; protect national and economic security; and

validate rights protected under our Constitution The Administration wants to re-emphasize its com

mitment to protect the intellectual property that underpins the products and services that lead to more

jobs, increased exports, saer goods, and better lives

One year ago our ofce released the rst ever Joint Strategic Plan on Intellectual Property Enorcement

(Strategy) which uses six general principles, covering 33 action items In ormulating the Strategy,

we drew on the input o over 1,600 public comments, as well as the coordinated eorts o the US

Government agencies that have a stake in intellectual property, including the US Departments o

Agriculture (USDA), Commerce (DOC), Health and Human Services (HHS), Homeland Security (DHS),

Justice (DOJ), and State, the Ofce o the US Trade Representative (USTR), and the US Copyright Ofce

In the last year, the Administration has made signicant progress on intellectual property enorce

ment Investigations, seizures and arrests have all increased DOJ and US Immigration and Customs

Enorcement (ICE) have seized and oreited domain names o websites oering countereit goods or

pirated content DOJ has also won signicant convictions against persons who sought to steal trade

secrets or products and services vital to American prosperity, saety, and inrastructure In addition,

we are working with a broad range o companies that acilitate or benet rom e-commerce to take

voluntary actions to reduce inringement

The Administration recently issued a White Paper with 20 recommendations or legislative changes,

and we look orward to working closely with the Congress on these recommendations to improveintellectual property enorcement

US Government agencies have done more to coordinate their eorts on IPR enorcement On February

8, President Obama signed an Executive Order establishing a Cabinet-level intellectual property advi

sory committee chaired by the IPEC to urther ocus Administration eorts Both the ICE Intellectual

Property Thet Enorcement Teams and the Federal Bureau o Investigation (FBI) Intellectual Property

Task Forces have worked with other non-Federal law enorcement to protect intellectual property rights,

ensuring that Federal resources are efciently combined with other law enorcement bodies In addi

tion, the ollowing now have representatives at the National Intellectual Property Rights Coordination

Center (IPR Center): our previously unrepresented Federal agencies, a oreign government, and or

the rst time, an international law enorcement body Embassies in priority countries have established

senior-level working groups to better coordinate their eorts, and the US Patent and Trademark Ofce

(USPTO) established a database that will help Federal agencies better coordinate trainings across the

Government, increase transparency o US Government training programs, and help ensure that our

resources are used as eectively as possible


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2 0 1 1 U.S . INT E L L E CT UAL PROPE RT Y E NFORCE ME NT COORD INAT OR J OINT S T RAT E G IC PL AN

We have been working closely with oreign governments to press or increased enorcement USTR

concluded negotiations on Anti-Countereiting Trade Agreement, which will be the rst international

trade agreement ocused on intellectual property enorcement DOJ and DHS are organizing cross-

border enorcement actions and urging their counterparts to do more

In addition, DOJ, DHS, and Commerce are leading eorts to better inorm the public o the negativeconsequences o countereiting and piracy

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3

Law Enorcement Increased Signicantly

FBI, ICE, and CBP Seized More Goods, Opened More Cases, and Arrested More Suspects

Consistent with the commitment set orth in our Strategy to increase criminal enorcement, law enorcement agencies across the US Government have improved their eorts to combat intellectual property

inringement From scal year 2009 to 2010, ICEs opened intellectual property investigations were up

more than 41 percent and arrests were up more than 37 percent, DHS intellectual property seizures

were up more than 34 percent, and FBI intellectual property investigations opened were up more than

44 percent In scal year 2010, CBP and ICE intellectual property seizures o consumer saety and criti

cal technology increased by 97 percent The domestic value o the goods was $145,605,100 CBP and

ICE also enhanced the reporting o seizure statistics by including manuacturers suggested retail price

(MSRP) and Modes o Transportation

ICE and DOJ Launched Innovative Internet Enorcement ProgramIn the Strategy, we committed to increase criminal intellectual property enorcement Last June, under

Operation In Our Sites, DOJ and ICE launched the rst ever US Government program or the seizure o

websites that either provide pirated content or sell countereited products ICE has had ve major opera

tions, resulting in the seizure o 125 domain names, over hal (84) o which have been administratively

oreited to the US Government

Federal Law Enorcement Operations Led to Historic Seizures

In June and July o 2010, ICE and DOJ had two o the largest countereit good cases in US history,

each involving $100 million o countereit goods imported over several years Also, rom January 1

through Super Bowl weekend February 6, 2011 ICE , CBP, local police departments, and the NationalFootball League coordinated to target various physical venues selling 36,273 countereit game-related

sportswear items nationwide resulting in a record-breaking $356 million based on the manuacturers

suggested retail price (MSRP) in seizures

DOJ Won Major Convictions on Trade Secret Cases

In our Strategy, we cited the threat to national and economic security rom economic espionage involv

ing the thet o trade secrets In the last year, the investigation and prosecution o trade secret cases

has exposed and assisted in preventing thet o inormation that is critical to the success o American

businesses Trade secrets are extremely valuable intellectual property, or example $500 million, as in

the case oMr. Sergey Aleynikov, a ormer Goldman Sachs computer programmer who was sentenced

to 97 months last March Enorcement against thet o trade secrets saeguards critical industries For

example, DOJ last year prosecuted two cases involving automobile trade secrets, including one trade

secret regarding hybrid cars (estimated to be worth $40 million in the case oU.S. v. Qin et. al.)
http://www.cybercrime.gov/sergeySent.pdfhttp://www.cybercrime.gov/qinIndict.pdfhttp://www.cybercrime.gov/qinIndict.pdfhttp://www.cybercrime.gov/qinIndict.pdfhttp://www.cybercrime.gov/sergeySent.pdf


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United States Worked with International Authorities to Stop Illegal Pharmaceuticals

The US has continued to bring the ght against countereit drugs and online piracy to an international

level by leading and participating in three global law enorcement sweeps in conjunction with the World

Customs Organization (WCO), INTERPOL, and othersThese sweeps against dangerous pharmaceuticals

and unsae products have had a signicant eect; some involved as many as 45 countries We expect tobuild on these successes in uture operations

IPR Center Added Partners

The Strategy, as part o ensuring efciency and coordination or intellectual property enorcement

eorts, committed to coordinating national law enorcement eorts to avoid duplication and waste In

2010, the IPR Center added our Federal partners including the State Department, the Consumer Product

Saety Commission, the Army Criminal Investigation Command Major Procurement Fraud Unit, and

the Deense Logistics Agency Investigations Division The IPR Center also added its second oreign

government partner, the Royal Canadian Mounted Police (RCMP), who joined the rst oreign govern

ment partner, the Government o Mexicos Tax Administration Service, and added its rst internationallaw enorcement partner, INTERPOL

More State and Local IPR Enorcement Achieved Activity Through DOJ Funding

The DOJ Bureau o Justice Assistance (BJA) grant program has bolstered the eorts o State and local

authorities to enorce intellectual property rights Taken together, the program grantees have seized over

$195 million worth o inringing merchandise since October o 2009This value is 30 times the value o

the grants $65 million distributed to dateThese seizures are in addition to the increased training,

arrests, warrant executions, and other activities that the BJA grants und

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5

Online Enorcement Broke New Ground

ICE and DOJ Launched Innovative Operations to Seize Rogue Websites

Last June, ICE and the IPR Center, in coordination with DOJ, launched an ongoing law enorcementoperation Operation in Our Sites to seize domain names o websites oering countereit products or

pirated content, both o which are illegal actions which could be used to nance other criminal behavior

in addition to posing certain saety risks To date, there have been ve operations targeting 125 websites

Voluntary Cooperation by Private Sector to Reduce Online Piracy and Countereiting

The Administration is committed to acilitating practical and efcient voluntary actions by the private

sector that take into account protection o legitimate uses o the Internet, privacy rights, and the prin

ciples o air process Since the release o the Strategy, we have acilitated and encouraged dialogue

among the dierent private sector Internet intermediaries that contribute to the dynamic nature and

unctioning o the Internet, including payment processors, search engines, and domain name registrarsand registriesThese entities can support eorts by rightholders and law enorcement to reduce online

inringement in a manner consistent with our commitment to the principles o air process, reedom

o expression and other important public policy objectives We believe that most companies share the

view that providing services to inringing sites is inconsistent with good corporate business practice,

and we are beginning to see several companies take the lead in pursuing voluntary cooperative action

In December, eleven market leaders agreed to orm a nonprot organization to combat illegal online

pharmacies criminals masquerading as pharmacies by education and voluntary enorcement In

April, the group The Center or Sae Internet Pharmacies (CSIP) nalized corporate documents, elected

a Board o Directors, and is awaiting IRS approval In January, Vice President Biden hosted a meeting with

the CEOs o sotware, pharmaceutical, entertainment, credit card, and telecommunications companies

along with labor and consumer advocacy groups to encourage these voluntary eorts

Consumer Education Eorts on IPR Inringement Spread to the Internet

As a result o DOJ and ICEs trailblazing work against rogue websites, domain names seized pursuant to

court order display a banner announcing the seizure o the site by the Government and an explanation o

the ederal crime and punishment or copyright thet and distribution or trademark violations Since the

initial seizures in June 2010, there have been more than 50 million hits to the banner notiying viewers

a Federal court order has been issued or the domain name and educating them that willul copyright

inringement is a Federal crime Ater the seized domain names are oreited to the US Government,

a new banner is placed on the sites notiying the public that the sites have been oreited Also, the

Center or Sae Internet Pharmacies discussed above has consumer education as one o its our major

principles And DOJ is unding public awareness campaigns on the risks to the public o purchasing

countereit goods


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International Eorts Supported Online IPR Enorcement

In May, the Group o Eight (G8) released a nal declaration, in which they jointly announced their com

mitment to protect intellectual property rights on the Internet and to take eective action against

violations o intellectual property rights in the digital arena, including action that addresses present

and uture inringements

In June, in association with Operation In Our Sites, several US law enorcement agencies worked

cooperatively with Dutch law enorcement authorities to seize an image a server in the Netherlands

being used to acilitate the unauthorized reproduction and distribution o copyrighted material That

same month, the FBI worked with Latvian authorities to arrest and to extradite a trafcker o countereit

gaming machines, and in August, the trafcker and his partner were each sentenced to two years in

prison and ordered to pay $151,800 in restitution

In October 2010, Operation Pangea III targeted the online sale o countereit and illegal medicines

across 45 countries and resulted in world-wide arrests and seizures o thousands o potentially harmul

medications During this operation, the US coordinated with the WCO, INTERPOL, and others

U.S. Trade Representative Published Inuential Out-O-Cycle Notorious Markets List

In February, USTR released a special report on Notorious Marketsa list o over 30 Internet and

physical markets that exempliy key challenges in the global struggle against piracy and countereiting

The report has helped to encourage both voluntary action by business owners and enorcement by

Government authorities in China and elsewhere

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7

Comprehensive Domestic Legislative Review;20 Legislative Recommendations

Issued to CongressAdministration White Paper

Our Strategy committed to a comprehensive review o existing intellectual property laws to determine

i legislative changes would be needed to address developments in technology and the growing

sophistication o intellectual property violators On March 15, 2011, the Administration released its White

Paper on Intellectual Property Enorcement Legislative Recommendations, which set orth 20 legislative

recommendations to the Congress that were designed to improve intellectual property enorcement

The legislative recommendations are meant to help ensure that American workers and businesses are

protected and they exempliy the Administrations commitment to grow jobs and exports, as well as toprotecting the health and saety o the American people

Punishing Economic Espionage

Since the release o the legislative recommendations, we have been working with the Congress on

legislative proposals that reect those released in the White Paper and ultimately embody a robust intel

lectual property enorcement regime On March 30, 2011, Senator Kohl, along with Senators Whitehouse

and Coons, introduced the Economic Espionage Penalty Enhancement Act o 2011 As set orth in our

legislative recommendations, this legislation would increase penalties or trade secret thet oenses

Fighting Countereit DrugsOn April 12, 2011, Representative Dingell, along with Representatives Capps, Clarke, McGovern, Stark,

Slaughter, Waxman, Pallone and DeGette, introduced the Drug Saety Enhancement Act o 2011 that

incorporated several o the Administrations legislative recommendations to combat countereit drugs,

including provisions that provide civil and criminal oreiture, increased penalties or countereit drug

oenses, and countereit drug notication requirements

Clariying Streaming as a Felony

On May 12, 2011, Senator Klobuchar, along with Senators Cornyn and Coons, introduced legislation that

incorporated the Administrations recommendation to clariy that copyright inringement by streaming

is a elony in appropriate circumstances

Providing Disclosure Authority to DHS

On May 26, 2011, Senator Leahy introduced legislation as part o the Preventing Real Online Threats

to Economic Creativity and Thet o Intellectual Property Act (PROTECT IP Act) discussed below to

allow trade secret inormation disclosure to rightsholders when DHS needs the disclosure to make a

pre-seizure inringement determination


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Stopping Rogue Websites

In addition, we have been working closely with the Congress on eorts to improve enorcement against

websites engaged in substantial inringement activity On May 12, 2011, Senate Judiciary Committee

Chairman Leahy, with Senators Hatch, Grassley, Schumer, Feinstein, Whitehouse, Graham, Kohl, Coons

and Blumenthal, introduced the Preventing Real Online Threats to Economic Creativity and Theto Intellectual Property Act (PROTECT IP Act) The PROTECT IP Act would increase law enorcement

authority to combat websites that are used to distribute or provide access to inringing products The

introduction o the PROTECT IP Act is an important step towards addressing countereiting and piracy

online and the websites that steal the intellectual property o hard working AmericansWe look orward

to continuing to work closely with Chairman Leahy and other members o the Congress to ensure an

eective and appropriate approach that addresses the challenges and opportunities o the Internet

environment

We will continue to work with members o the Congress on these current legislative proposals and other

proposals contained in the White Paper

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Approaches to Stop Illegal Pharmaceuticals Went Further

IPEC Released Broad Strategy to Fight Countereit Drugs

In March, we sent to Vice President Biden and to the Congress a strategy that described in detail how

the US Government will work to ght countereit drugs sold on the Internet, smuggled into the US,

and sold in cities nationwide

IPEC Recommended Strengthened IPR Laws to Congress on Illegal Pharmaceuticals

As part o our White Paper and the Pharmaceutical Strategy discussed above, we provided the Congress

with six recommendations involving improvements in areas such as FDA notications, Federal Food,

Drug, and Cosmetic Act (FFDCA) clarications, track-and-trace systems, civil and criminal oreiture

authority, punishments, and sentencing

Major Internet Companies Committed to Taking Action Against Illegal On-line Pharmaceuticals

Together with law enorcement eorts, private sector voluntary actions can dramatically reduce online

inringement and change the enorcement paradigm Last April, as a start to this approach, eleven

market leaders took concrete steps towards their commitment to orm a nonprot now called the

Center or Sae Internet Pharmacies (CSIP) by nalizing corporate documents In addition, a Board o

Directors was elected, consisting o Co-Chairs: Google and GoDaddy, Treasurer: Neustar, and Secretary:

American Express CSIP incorporated in Delaware and is now awaiting 501(c)(3) approval by the IRS

United States Linked with International Partners Against Illegal Pharmaceuticals

Since June 2010, the United States has led and participated in several international law enorcement

sweeps in coordination with the WCO, INTERPOL, and other international bodies Included in those

operations is Operation Pangea III, reerenced above, which targeted online sale o countereit and illegal

medicines across 45 countries, resulting in world-wide arrests and seizures o thousands o potentially

harmul drugs Also, in Operation Mercury II last June, the United States worked with the WCO and

INTERPOL to seize over 1,300 parcels containing a wide variety o illegal pharmaceuticals, including

psychiatric and heart medications

State Boosted Training Funds or International IPR Training

The Department o State has renewed its ocus in combating countereit pharmaceuticals and is devot

ing one third o its international intellectual property training unds to help other countries build capacity

to combat countereit drugs


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Data-Driven GovernmentEforts Moved Forward

IPEC Requested Data on U.S. Government Agency IPR Resources

Last April, we requested data rom the Departments o Justice, Commerce, State, Homeland Security,

Treasury, Health and Human Services, Agriculture, and the US Trade Representative to learn the extent o

resources expended on intellectual property enorcement across the United States Federal Government

agencies

USG Economists Conducting First Ever Analysis o IP Value to U.S. Economy

The Department o Commerce, in consultation with the Presidents Council o Economic Advisors and

the chie economists o many o the Federal agencies, is conducting an economic analysis to identiy

the industries that most intensively produce intellectual property, and to measure the importance othose industries to the US economy This is the rst time that the US Government has conducted a

broad study o this sort across all sectors o our economy On June 15, IPEC and Commerce met with a

broad range o outside stakeholders to discuss the methodology o the report We hope to nalize and

release the report and the underlying data in the coming weeks


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International Cooperation Increased

Strong Statement on Intellectual Property Enorcement rom G8 Leaders

As part o our eort to strengthen intellectual property enorcement through international organizations, this years G8 declaration contained strong commitments on intellectual property The G8 renewed

its commitment to ensuring eective action against violations o intellectual property rights in the

digital arena, including action that addresses present and uture inringementsThe G8 declaration

specically highlights the importance o enorcement in order to incentivize innovation and protect

innovation once developed, and recognizes the need to have national laws and rameworks or

improved enorcement

President Obama and President Hu Jintao Joint Statement

In January, President Obama met with the President o China, Hu Jintao, and raised intellectual property

enorcement President Obama and President Hu issued a joint statement, agreeing that China willstrengthen its eorts to protect intellectual property rights, including not linking its innovation polices

to the provision o government procurement preerences and conducting audits to ensure that govern

ment agencies at all levels use legitimate sotware The two countries reafrmed and expanded upon

these commitments at the Third Round o the US-China Strategic and Economic Dialogue (S&ED), led

by Treasury Secretary Geithner in Washington, DC last May

China Conducts Special Campaign Against IP Thet

Last October, China launched a nation-wide Special Campaign on Combating IPR Inringement and

Manuacturing and Sales o Countereit and Shoddy Commodities (Special Campaign) This campaign

had high-level attention and was led by Chinas Vice Premier, who coordinated IP enorcement eortsacross China The Special Campaign has resulted in improved coordination between Chinas intellectual

property enorcement agencies and higher levels o enorcement activity in some areas But more is

needed, and we will continue to urge China to maintain a long-term, high-level ocus on intellectual

property enorcement

U.S. Embassies Increased Coordination

We established a new working group within the government to coordinate activities overseas As part o

that groups eorts, we identied 17 countries in which we should ocus particular eorts with respect to

intellectual property enorcement The US Embassy in each o those countries established an embassy

intellectual property working group Each o those groups is chaired by a senior embassy ofcial, and in

May, the groups completed drating concrete actions plans These plans identiy the actions that each

embassy will take to address the specic challenges in their respective host countries, and will guide

their actions on intellectual property enorcement over the coming year


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Anti-Countereiting Trade Agreement Negotiations Concluded

Last November, the US Trade Representative concluded negotiations on the Anti-Countereiting Trade

Agreement with 37 other countries, who together with the United States represent over 50 percent o

global trade That agreement will be the rst international agreement ocused exclusively on intellectual

property enorcement Among other benets, the agreement calls or stronger legal rameworks andbroader international cooperation to curb illicit trade in countereit and pirated goods

Attorney General and ICE Director Press Chinese Law Enorcement to Do More

Both US Attorney General Eric Holder and DHS ICE Director John Morton traveled to China within

the last year to press their counterparts or increased cooperation to ght intellectual property crime

This was the rst time an ICE director has traveled to mainland China, and Director Morton made intel

lectual property enorcement a major ocus o his trip During his trip, Director Morton signed a Letter

o Intent with the Chinese Ministry o Public Security to enhance cooperation on law enorcement,

including intellectual property He signed a subsequent Memorandum o Understanding with the

General Administration o Customs to enhance cooperation on law enorcement, including intellectualproperty, in May, 2011

U.S. Trade Representative Published Out-O-Cycle Notorious Markets List

In February, USTR released its annual Notorious Markets Lista list o more than 30 Internet and physi

cal markets that exempliy key challenges in the global struggle against piracy and countereiting This

year, or the rst time, USTR published the Notorious Markets List apart rom the annual Special 301

Report ollowing a separate, dedicated request or comments One positive development o this years

report is that Taobaocom, Chinas largest online retail site, announced in response to being listed that

it will launch a major campaign to stop online piracy and countereiting occurring on its site Notably,

the Government o Hong Kong took quick action against a market listed in the report, utilizing a newenorcement strategy, including increased patrols, arrests and prosecutions, and displaying an anti-piracy

banner, at the notorious Ladies Market

U.S. Trade Representative Calls or Action Plans rom Trading Partners

At the end o April, USTR released its annual Special 301 Report on the adequacy and eectiveness o

US trading partnersprotection o intellectual property rights This year, or the rst time, USTR issued

an open invitation to all trading partners listed in the report to cooperatively develop action plans

to resolve IPR issues o concern The 2010 Joint Strategic Plan on IPR Enorcement called or USTR, in

coordination with the IPEC, to initiate an interagency process ocused on improving the eectiveness

and implementation o Special 301 action plans As a result, USTR announced that it invites any countryappearing on the Special 301 Priority Watch List or Watch List to negotiate a mutually agreed action

plan designed to lead to that countrys removal rom the relevant list Agreement on such a plan will

not by itsel change a trading partners status However, in the past, successul completion o action

plans has led to the removal o trading partners such as Saudi Arabia, Taiwan, and many others rom

Special 301 lists

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INT E RNAT IONAL COOPE RAT ION INCRE AS E D

ICE and FBI IP-Dedicated Personnel in China

In September 2010, the ICE Assistant Attach in Guangzhou was designated as ICEs rst IP Attach in

China The FBI is also preparing to send an IP-dedicated attach to China later this year

CBP Enhanced Cooperative Eorts with Chinese Enorcement AgenciesIn May, CBP worked with the General Administration o China (GACC) to increase opportunities or

inormation-sharing or both sides CBP also signed a Memorandum o Understanding with the Ministry

o Public Saety (MPS), which will lay the groundwork or inormation-sharing and collaboration between

the two agencies

United States Worked with International Authorities to Stop Illegal Pharmaceuticals

The US has continued to bring the ght against countereit drugs and online piracy to an international

level by leading and participating in three global law enorcement sweeps together with the World

Customs Organization (WCO), INTERPOL, and othersThese sweeps against dangerous pharmaceuticals

and other unsae products have had wide eect some involving as many as 45 countries and wide

success which we expect to build upon or uture operations

U.S. Patent and Trademark Ofce Launched a Training and Capacity Building Database

In May, the USPTO launched a new searchable database wwwusiprgov with inormation regarding

intellectual property enorcement training programs that the US Government conducts around the

world To date, inormation regarding more than 100 training and technical assistance programs has

been entered into the database The database will increase transparency by allowing the public to

see how the US Government is allocating resources on intellectual property training; increase public

participation by identiying upcoming training events that are open to the public; help acilitate a more

efcient use o resources , by allowing US Government agencies to share materials and avoid provid

ing duplicative programs, and help to improve results, by making it easier or ofcials to build on past

programs, and to better identiy which places require which training

United States Continued Global Eorts on IPR Trainings

The State Department approved teen new oreign intellectual property rights training programs,

totaling $336 million, being conducted in 2011 to train oreign judges and law enorcement ofcials

in nations across the Pacic Rim, Latin America, Eastern Europe, Central Asia and Arica In the rst two

quarters o scal year 2011 alone, the USPTO conducted 62 IPR training programs, which reached over

2,000 trainees In addition, since June 2010, ICE has conducted nearly 100 IPR training programs, and

ITAs Ofce o Intellectual Property Rights has conducted nearly 40 such programs

International Trade Administration Continued Helping U.S. Companies Overcome Countereiting

and Piracy

Through its Trade Agreements and Compliance Program, ITAs Ofce o Intellectual Property Rights

(OIPR) continued to work with other US Government agencies to help US businesses by suggesting

strategies they can take to evaluate IPR problems encountered abroad Since June 2010, 60 cases were

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initiated on behal o US rights holders O those, 20 cases were on behal o US small and medium-

sized business Fiteen barriers in 14 countries were removed OIPR also launched a number o additional

tools and services to help US businesses protect and enorce their IPR abroad which are now available

through wwwstopakesgov, including a new Transatlantic Intellectual Property Rights Resource Portal

launched in December 2010 OIPR continues to educate businesses on how to protect and enorce their

IP overseas through outreach and capacity building targeting US and oreign industry, government

representatives, and consumers Since June 2010, OIPR conducted 38 o these events

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Domestic Coordination Further Improved

Executive Order Establishing Intellectual Property Advisory Committees

On February 8, President Obama signed Executive Order 13565 establishing two intellectual property advisory committees chaired by the IPEC, a Cabinet-level committee comprised o the heads o

the departments responsible or intellectual property enorcement and a committee comprised o

Senate-conrmed Government ofcials rom those departments In addition, we have established our

interagency working groups concerning US Government procurement, US Government personnel

stationed overseas, international training eorts, and countereit pharmaceuticals

FBI Intellectual Property Task Forces Coordinated with Local and Foreign Law Enorcement

Our Strategy committed to ensure the efciency and coordination o Government resources in intel

lectual property rights enorcement, including the coordination o Federal, State, and local law enorce

ment In February 2010, US Attorney General Eric Holder announced the ormation o a Department oJustice Task Force on Intellectual Property, which is intended to strengthen eorts to ght intellectual

property crimes by coordinating with State and local law enorcement partners, and with international

counterparts

The FBI in Caliornia worked with the Placer County Sheris Ofce and Galt Police Departments to inves

tigate and arrest a trafcker o countereit items including some bearing the UL saety markthat, i

genuine, would have been worth over $7 million Last November, ater being ound guilty, the trafcker

was sentenced to 26 months in prison, and was ordered to pay a $25,000 ne and $9,575 in restitution

Also, The FBI has enhanced the coordination o intelligence o global intellectual property threats

through its Intelligence Fusion Group, as well as avoiding conicts o agencies working on intellectualproperty cases through its Intellectual Property Rights Unit stationed at the IPR Center

ICE IP Thet Enorcement Teams Coordinated with Local Law Enorcement

Since April 2010, ICE has established 26 Intellectual Property Thet Enorcement Teams (IPTETs)

throughout the US that consist o ICE HSI ofces, other Federal agencies, and State and local law enorce

ment Among the successes rom this program, the Houston IPTET had three signicant enorcement

actions over a our-month period In July, it seized nearly a hal million dollars worth o countereit goods

at a local boutique; in September, it seized more than $1 million o pirated DVDs at a local ea market;

and, in October, it seized $25 million o countereit goods at three local businesses

CBP and ICE Coordinated to Stop Countereit Network Hardware

By May 2010, Operation Network Raider had led to over 30 elony convictions, and over 700 seizures

o countereit Cisco hardware with an estimated retail value o $143 millionThis case began as routine

targeting by CBP Ater seizing Cisco branded countereit networking equipment, CBP sent intelligence

to ICE or criminal investigation and continued to work with ICE to nd numerous alse identities and

related countereit shipments As a result o this operation, last all, two deendants pled guilty to selling


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2011 U.S. INTELLEC TUAL P R O P ER TY ENFO R C EMENT C O O R DINATO R JO INT STR ATEG IC P LAN

over $1 million in countereit Cisco products And as o last May, the DOJ Computer Crime and Intellectual

Property Section and the US Attorneys Ofce successully prosecuted two deendants or their roles in

importing and selling countereit Cisco computer network equipment; the jury ound the deendants

should oreit bank accounts holding over $16 million in illegal proceeds, several luxury cars, and real

property worth over $26 million

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Countereits in USG Procurment

USG Inter-Agency Anti-Countereiting Working Group Established to Provide Recommendations

to President ObamaIn the IPEC Strategy under the general principle o leading by example, we committed to establishing

a US Government-wide Working Group to eliminate countereits in the US Government supply chain

This partnerships goal is to develop a consistent and eective Government-wide approach to reducing

the US Governments vulnerability to countereit products

We ormed the working group which comprises ourteen US Government components, including

IPEC, Ofce o Management and Budget (OMB), Department o Deense (DOD), National Aeronautics

and Space Administration (NASA), Department o Energy (DOE), and others The group has met several

times and has broken into subgroups to tackle specic action items, including the ollowing: legislative

and regulatory recommendations; legal remedies; training and outreach strategies; government and

industry countereit evaluation capabilities; the easibility o requiring suppliers and manuacturers to

authenticate products; and best practices to secure at-risk products rom being countereited

We plan to send recommendations on a US Government-wide approach to reducing the US

Governments vulnerability to countereit products to President Obama later this year


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Documents

ICEP Anniversary Report