Summary: Highlights of a Discussion on Data Analysis Strategies to Prevent Fake Merchandise in Online Commerce
The National Intellectual Property Rights (IPR) Coordination Center has endorsed a multi-pronged, preventive approach to reduce counterfeit goods in e-commerce. This strategy encompasses several best practices aimed at strengthening the data-sharing ecosystem, empowering rightsholders, and collaborating with law enforcement.
One of the key recommendations is registering key trademarks and copyrights with the U.S. Patent and Trademark Office (USPTO) and the U.S. Copyright Office, and ensuring these are also recorded with U.S. Customs and Border Protection (CBP). This registration empowers customs to identify and intercept counterfeit products at borders, limiting their circulation.
Another important aspect is enhancing seller transparency by ensuring online marketplaces collect and make available reliable seller information, such as name, tax ID, government-issued IDs, and contact details. This transparency can help combat counterfeit sellers more effectively, although enforcement tools for marketplaces are limited.
The Center also emphasizes the importance of strengthening collaboration and information sharing among CBP, IP rights holders, e-commerce platforms, and transportation carriers to detect and halt counterfeit goods. Recent bipartisan legislative efforts aim to legally authorize such data sharing for better enforcement.
Leveraging customs enforcement mechanisms is also crucial. Customs officers work to detain, seize, and destroy counterfeit goods bearing registered trademarks, protecting consumers and brands from fraudulent items.
Public awareness campaigns, such as the IPR Center’s “Put the Brakes on Fakes,” educate consumers and retailers on identifying and avoiding counterfeit goods, particularly those posing safety risks.
Legal actions, including injunctions and damages claims, are also necessary to enforce IP rights and deter counterfeiters.
Counterfeiters are often associated with larger criminal networks and "follow the money." In the United States, seizures of counterfeit goods by the Department of Homeland Security have increased tenfold from 2000 to 2018. Counterfeiting is considered a "high-revenue, low-risk crime."
The COVID-19 pandemic has led to an increase in counterfeit goods, such as fake medicines, personal protective equipment, and healthcare products. E-commerce platforms like Amazon and Walmart prioritize maintaining customer trust and the trust of their brand partners.
No single solution will solve the issue of counterfeiting and IP infringement. Raising consumer awareness, empowering rightsholders, and collaborating with law enforcement are key parts of the solution.
The National IPR Center has produced a report highlighting best practices for both government agencies and industry actors regarding information sharing. Panelists stressed that solutions like digitizing information currently only on paper can be critical to strengthening the data-sharing ecosystem.
Global counterfeit goods account for approximately $460 billion, a sum comparable to the GDP of some countries. No nation has a ministry or department specifically dedicated to intellectual property rights. The process of counterfeit goods production and distribution is complex and involves many parties, making it difficult to trace the country of origin.
In conclusion, the National IPR Center's best practices provide a comprehensive approach to combating counterfeit goods in e-commerce. By registering trademarks, enhancing seller transparency, strengthening collaboration, leveraging customs enforcement, launching public awareness campaigns, pursuing legal actions, and digitizing information, the Center aims to create a safer and more trustworthy online marketplace for consumers and businesses alike.
- To further strengthen the data-sharing ecosystem, it's crucial to digitize information that is currently only available in paper format.
- The rise of data-and-cloud-computing technology can play a significant role in the prevention and detection of counterfeit goods by enabling more efficient data sharing.
- AI technology can potentially be used to analyze large volumes of data to identify patterns and trends indicative of counterfeit activities in the industry.
- IOT devices can provide critical data about the movement and origin of products, which can aid in the investigation and identification of counterfeit goods.
- The potential for AI and IOT in the fight against counterfeiting and IP infringement is a promising area for future innovation within the technology industry.
- In the general news and crime-and-justice sectors, the issue of counterfeiting extends beyond e-commerce, impacting various sectors including finance and business, as well as public health and safety.
