How to Manage a Successful Anti-Counterfeiting Program On A Budget

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					How to Manage a Successful
Anti-Counterfeiting Program
       On A Budget
       AAFA Brand Protection Council
                Knock It Off!
   Brands and the Counterfeiting Quandary
                 November 6-7 2007
                  Long Beach, CA



                  Featuring
        Barbara Kolsun, Esq.,
   Senior Vice President & General Counsel
    Seven For All Mankind, LLC
                                 Preparation
• Registration of Trademarks & Copyrights
• Recordation of Trademarks & Copyrights with U.S.
  Customs: http://www.uspto.gov
    - Wherever you sell, manufacture, license or distribute products and
      always China, record with instructions: http://www.cbp.gov/nafta/docs/us/133.html




                               Collaborate
• Join with Competitors: participating in group investigations and actions
• Join trade organizations: 1. International Anticounterfeiting Coalition-
http://www.iacc.org 2. International Trademark Association- http://www.inta.org 3.
U.S. Chamber of Commerce- http://www.uschamber.com
In-House Anticounterfeiting Enforcement
1) Strategize: In-house work is free
    - Budget spent on criminal enforcement
2) Know your competitors: Allies in counterfeiting
3) Send Cease & Desist letters to: Retailers, “Jeans
     Party” providers, Websites, Domain name pirates, Malls
     and kiosks, Landlords, Flea Markets

Public / Private Collaboration
 E.g. Mayor’s Task Force on Anti-Counterfeiting: Midtown Enforcement Project
• Private/Public partnership: address counterfeiting problem
• District Attorney’s Office
• Dept. of Finance: Taxes
• Dept. of Consumer Affairs: Permits for street vendors
• Police, Building Dept., Fire Dept., Other Agencies
Monitoring Online Auction Sites
 • Auction Sites
   – Virtual flea markets
   – eBay, Yahoo!, Sell.com, iOffer.com, Craig’s
     List, and Amazon
   – Labor intensive

 • Identifying counterfeit sites
   –   Unclear photos
   –   Have a “no return” or “as is” policy
   –   Items sold without tags
   –   Large number of similar items for sale
   –   Include a disclaimer
   –   Use photos or text from authentic retailers
    Monitor & Enforce: Training
• Investigators                 • Law Enforcement
  - Share investigator          - Be precise, brief and memorable
    resources with industry     - Give instruction about what you
                                  know they can seize
  - Fully train and update      - Updated product identification
  - Arm them with C&D letters     sheet
  - IACC is good source for     - Thank the officers for their time
    names

             Train to Detain
• Customs Agents
 - Not enough to record trademark: IACC conducts training
   sessions
 - Why? From 2002-2006, U.S. Customs seized 42,245
   shipments valued at over $580 million
 - Training materials
Example from Seven’s Training Card
           How to Spot Authentic Seven For All Mankind Jeanswear and Apparel
                                    Authentic Seven For All Mankind Products

 •   are sold at high-end retail stores like Bloomingdales, Neiman Marcus, Barney’s, and Saks Fifth Avenue.
 •   contain a small beige security label attached to the waistband above the left front pocket, which is under the
     care/content label. The back of this label is white and contains a subtle, micro-writing strip that appears to be
     a shiny thread. When viewed under magnification, the Seven For All Mankind logo depicted above is visible.
     All information is embroidered into the label except for the style and cut numbers, which are stamped.
 •   are only made in the USA. The beige care/content label attached to the waistband bears the wording “Made
     in USA of Imported Fabric.”
 •   contain a hang tag made of paper with a slightly waxy coating on the front. The tags are red/maroon on the
     front, white on the back with the writing printed directly onto the tag. They have a ridged feel that looks like a
     faint pinstripe pattern. Genuine tags are attached to the right side belt loop using twine.
 •   contain a vertical red/maroon label with gold detail containing the numeral “7” on the back right waistband.
     The gold stitching of the “7” on genuine jeans is tightly woven with matte thread.
 •   often have a white rectangular adhesive label on the interior waistband over the sewn-in labels, containing
     Style, Color, Cut, Lot Ref. and Size, along with a bar code. The number “0” on the authentic product always
     has a diagonal line through it [], distinguishing it from the letter “O”.
 •   generally retail from $121 to $187.

                                   Counterfeit Seven For All Mankind Products

 •   may contain one or more characteristics of authentic products. In such cases, it is necessary to rely on the
     security strip.
 •   may contain a copy of the security label with a shiny micro-writing strip, a blank or solid colored thread with
     no wording or small black dots. There also may be fake style and cut numbers sewn onto the label.
 •   may contain a care/content label with origin other than USA (i.e., China, Mexico, Hong Kong, etc.).
 •   may use smooth card stock and sometimes a sticker containing the wording attached to the back of the tag.
     Counterfeits may use smooth string to attach the hang tags rather than twine.
 •   may contain a gold “7” that is loosely stitched with shiny thread on a maroon tab.
 •   do not have the white rectangular adhesive label on the interior waistband over the sewn-in labels,
     containing Style, Color, Cut, Lot Ref. and Size, along with a bar code. The number “0” on counterfeit
     products often does not have a diagonal line through it [], distinguishing it from the letter “O”.
 •   generally retail from $20 to $60.
Example of Website Reporting
                              REPORTING COUNTERFEIT SEVEN FOR ALL MANKIND

1)   Date of report:
2)   Date of sighting:
     Where is the location? Please provide name, address and any contact information:


4)   Type of business:       a. Factory                    b. Distributor _______        c. Retail
                             d. Vendor                     e. Other

5)   What quantities and styles are being sold?

6)   Do the items bear any Seven For All Mankind trademarks? (check all that apply):
     a. Seven For All Mankind name ____       b. Seven For All Mankind name & Squiggle Wave Design______
     c. Seven For All Mankind name & A-Pocket Design _____      d. Seven For All Mankind name & Dojo Design ____
     e. other (describe)

     Or are they confusingly similar to Seven for All Mankind’s designs and/or trademarks (describe):


7)   Are counterfeits of any other companies present, and if so, which?

8)   May we contact you for further information? Yes ___ No __
     If Yes, please provide your name and telephone number:

                 All information provided to Seven For All Mankind and its representatives is kept confidential
                                       PLEASE FAX THIS FORM TO 212-786-7623
                  OR E-MAIL THE REQUIRED INFORMATION TO counterfeits@7forallmankind.com
                  Please be assured that every lead is a priority and investigated as soon as possible.
                           Your assistance is greatly appreciated and sends a strong message
                               to counterfeiters that their illegal activity will not be tolerated.
Outreach, Education, and the Press
• Respond to C&D letters and queries regarding closed
  auction sites - May be ignorant or confused

• Designate corporate executive or counsel to speak to the
  press

• Enable people to provide counterfeit tips via website -
  Defrauded consumers and legitimate retailers are good
  sources

Key Points to Spread
•   Counterfeiters do not pay taxes

•   Counterfeiting is a state and federal crime

•   Counterfeiting has funded organized crime and terrorism

•   Counterfeit products made overseas in sweatshop conditions