Current News:

April 2008-

Famous Trademark Domain Acquisition
» Acting anonymously, Vaudra Ltd. successfully negotiated the purchase of a  globally recognized top level domain. A registered trademark in many countries, the domain name was and remains registered in the United Kingdom. As in all third-party domain purchases,  our client remains anonymous as we negotiate a favorable selling price while working within the guidelines of the law.  

March 2008-

Overseas Supplier of Counterfeit Auto Parts Identified
» An investigation into a Latin American retailer led back to the Asian supplier.  Using a bi-lingual investigator from our office, and using a "cut-out" company established in the U.S., we were able to establish  a trust and an undercover business rapport with the subject of investigation. During the normal course of the business process and undercover investigative questioning, the subject of investigation provided the full contact information of his Asian supplier. Once that information was received, we were able to confirm this information. This investigation was conducted without using local resources in Latin America. The investigation continues into the Asian supplier. 

February 2008-

International Grey Market Investigation Leads Back to Licensee
» Based upon a suspicion that a client's licensee was shipping authentic product out of its normal distribution channel, we were asked to investigate and confirm this information, which could imply a breach of contract. Using a "cut-out" company that we established in the U.S., we approached one of the parties in Asia and eventually established a trust and undercover business relationship. We contacted the company via e-mail, fax and telephone calls, without needing the help of Asian investigators. During the course of the investigation, we obtained documentary evidence to further implicate that the licensee and an employee were involved with this product "diversion".  Consequent follow up telephone calls provided additional details that solidified the identity of the insider contact.    

December 2007-

Want Your Product Off the Internet?
» What are you doing to prevent sellers on auction sites and trade boards from tarnishing your brand’s reputation? What are you doing to impede the wave of counterfeit product sweeping the Internet? In 2007, Vaudra Ltd. requested and confirmed the removal of over 7.1 million units bearing our clients’ trademarks from auction sites and trade boards. Vaudra Ltd. monitors a growing list of sites for clients, identifying and addressing copyright & trademark infringements. If you aren’t actively monitoring the Internet for your brand and infringements on your trademarks, you should be. Make it a resolution for 2008. We can help you achieve it. Working within any budget, Vaudra Ltd. can provide effective Internet monitor solutions for your brand. Please contact us if you are interested in learning more.

October 2007-

Customs Seizures Lead to Major Raid in New York
» What began as three seizures at US and Chinese ports and an in-depth investigation by Vaudra Ltd., ended as a major action by NYPD with a raid on an embroidery warehouse in Queens. After the initial seizure in 2005 and subsequent seizures in 2006, Vaudra Ltd. investigated all related details for leads to those running the operation. Investigative efforts led to the identification of US-based targets and their complex network of businesses and international connections. In this case, the counterfeiters were concealing trademarks with sewn-on patches and adding other trademarks to product after it arrived from overseas and cleared Customs. Based on Vaudra Ltd.’s investigation, NYPD raided the warehouse with the assistance of local investigators, seizing over 60,000 counterfeit items and arresting eleven individuals on felony trademark counterfeiting charges. The two owners were arrested at their residence and charged with felony trademark counterfeiting and possession of forgery devices. Their assets were seized, including bank accounts and property. The owners are awaiting trail. Updates on the eventual conviction and sentencing will be included in future news.

July 2007-

Noteworthy Number of Counterfeits Removed from Chinese Internet Marketplace
» As part of our Internet monitoring activities on behalf of several brand owners, we regularly review a number of internationally-based auction houses and trade boards for counterfeit product. By having established relationships with these online entities, we request and confirm the removals of counterfeit items from these sites. Through this process, buyers lose access to the counterfeits and sellers lose the profits. As China is a major source of counterfeits, the Chinese online marketplace is full of individuals and businesses offering counterfeit product for purchase. In July 2007 alone, we requested and confirmed the removal of over 295,000 pieces of counterfeit product from the online Chinese market.

With the Internet connecting buyers and sellers from all over the world, no brand owner is safe from online sales of counterfeit product. If you are interested in learning more about addressing counterfeit issues in online marketplaces, whether targeting a specific country or globally, please contact us.

June 2007-

Investigation of eBayer Leads to Criminal Raids in Canada

» After locating the seller on eBay during Internet monitor activities, we initiated an investigation into his business operations and product offerings. Based on the size and scope of the seller’s business which involved the sale and distribution of counterfeit product of several famous brands, we obtained the evidence necessary for a criminal action and further pursued the matter with the assistance of local RCMP. Ultimately, the investigation resulted in enforcement action with the issuance of three criminal search warrants, which were executed simultaneously on those involved at two retail stores and a warehouse. Canadian Immigration also participated in the action as it appeared the subject was suspected of employing illegal immigrants. From our investigation on behalf of one brand, it resulted in the involvement and seizure of product of 20 different brands. Criminal proceedings are ongoing against this subject.   

Counterfeiter Receives Unprecedented Sentence in Wisconsin

» As a follow up to the February 2007, article on this subject (Drop-Shipping Counterfeiter Pleads Guilty to Wire Fraud), Steve Weber was sentenced on June 8, 2007, in U.S. District Court to three years in prison. Although the sentence exceeded sentencing guidelines and the prosecutor’s recommendations, U.S. District Judge Charles Clevert believed Weber deserved an even longer sentence but did not give it due to Weber’s age (21) and the fact that he owes $178,000.00 in restitution that can not really begin repaying until out of prison. Weber was also ordered to serve five years of community supervision after prison and to perform 40 hours of community service by “talking with youths concerning the misuse of computers and the Internet.” According to the defense attorney, Weber began Internet sales of counterfeit product when in high school and continued when he realized the money that could be made in reselling designer brand product online. Even when he learned that the majority of the product he sold was counterfeit, Weber continued with his business anyway. Such a sentence should send a strong message to eBayers and other online sellers who profit from drop-shipping branded product to sellers, obtained from overseas suppliers.

April 2007-

Attendance at INTA Annual Conference in Chicago

» As in previous years, Vaudra Ltd. will attend and participate in the annual INTA conference, held in Chicago, IL.  The annual conference draws intellectual property experts, including attorneys, investigators and brand owners from around the world.

March 2007-

Persistent Counterfeiter Raided AGAIN as Result of Vaudra Ltd. Investigation

» After an intensive undercover investigation, leading to the identification of the subject’s warehouse location, Vaudra Ltd. investigators provided the evidence needed to serve a well-known counterfeiter and repeat offender with a civil seizure order.  In serving the TRO at the subject’s New York office and New Jersey warehouse, we seized shipping documents and over 20,000 pieces of counterfeit product.  The subject’s assets were frozen until a settlement can be reached or judgment granted. During the action, the subject also voluntarily submitted counterfeit branded products that proved they were in violation of a previous court order (see December 2005 news and follow-up in March 2006). After the seal was lifted, the action was covered by local media including the New York Post (3/2/07), multiple online fashion blogs, and industry publications, such as the national periodical, WWD (3/1/07).

Training with FedEx USCBP Officers

» Vaudra Ltd. assisted with an anti-counterfeiting training in Memphis, TN, to educate and inform the local USCBP officers, who review FedEx shipments, on identifying counterfeit merchandise.  Regular participation in similar trainings on behalf of our clients helps raise awareness for the brands, ensuring shipments and packages containing suspicious products are identified and detained until the related brand owner can be notified.

February 2007-

Drop-Shipping Counterfeiter Pleads Guilty to Wire Fraud

» An investigation that began in 2005 ended with the subject, Steve Weber, being charged with wire fraud (Title 18, US Code Section 1343) and trafficking in counterfeit goods (Title 18, US Code Section 2320). Weber pled guilty to wire fraud this month, and will be sentenced on June 8, 2007.  The subject’s website offered a variety of counterfeit products.  Consumers could order via the web and the product was drop-shipped from Weber’s overseas suppliers.  Weber’s customer’s shipments were frequently seized by USCBP and consumer complaints reached the FBI’s online fraud department.

Already an open investigation, we assisted the FBI in gathering evidence to support the consumer’s complaints and obtained samples, which were deemed counterfeit.  Affidavits, undercover communications with Weber, and investigative reports were provided to the FBI to further their efforts.  Weber was arrested and arraigned in September 2006 and placed under house arrest while documents and complaints were reviewed.  According to the plea agreement, Weber was linked to at least 22 victims who were defrauded of at least $213,000.  The subject’s website was terminated.

January 2007-

Counterfeit Fragrance Kept Out of Market

» Working with local counsel of a brand owner in the perfume industry, we assisted with a civil action after gathering the necessary evidence during our investigation.  In speaking with the subject and making multiple buys, we were able to obtain the counterfeit product while investigating the network of companies involved in the importing and distribution of the perfume.  Serving of the orders occurred at two separate locations in different states simultaneously.  In addition to assisting with execution of the orders, we provided litigation support and testimony.  As a result of the action, documents on multiple containers were found and United States Customs & Border Police is assisting to identify the shipments.

December 2006-

400% Increase for 2006 Internet Monitor Efforts

» As a result of our Internet monitoring programs on behalf of several clients, Vaudra Ltd. requested and confirmed removal of close to one million units bearing our clients’ trademarks from auction sites and trade boards. This is a 400% increase compared to the number of units removed in 2005. These auctions or trade postings were removed for counterfeit or copyright related infringements. We cooperate with 46 websites globally to remove product and business postings, and locate subjects for further investigation.

November 2006-

Student Gets an Education on Counterfeiting

» During Internet monitor activities, a subject was found on an online auction site.  In establishing undercover contact with the subject, it was learned that he was a UNCC student selling products on eBay for extra money.  A business relationship was established and a meeting was arranged.  We contacted the North Carolina Secretary of State’s office and coordinated the undercover meeting, seizing the subject’s inventory and related documentation.  During these efforts, it was learned that the subject was related to the owner of a Chinese website, also under investigation by Vaudra Ltd.  The information obtained from the UNCC student helped to further investigative efforts into his relative in China.

September 2006-

Vaudra Ltd. travels to China

» In conjunction with our extensive work in combating counterfeits in China, one of our investigators traveled to Shanghai, Guangzhou and Beijing to experience the magnitude of counterfeiting in China first hand. Already deeply involved in enforcement activities in the country, he accompanied our local investigators to visit over 15 factories that were currently producing suspected counterfeit product, as well as over 15 markets well-known for selling counterfeit products of a variety of brands. Working with local AIC officials, he was also present for a raid action in a local market. Additionally, he had the opportunity to visit the infamous Silk Street Market, where counterfeit product was available at a number of booths despite the government’s efforts and market bans (although the brands protected under the ban were not found).

August 2006-

Another method for addressing diversion

» In addition to counterfeit goods, we also conduct investigations related to the authentic diverted product in the marketplace. Although diverted product is not considered illegal in the U.S., this product has moved into channels of distribution in ways not authorized by the brand owner. One method in which these goods may reach the market is by factories making authorized goods and selling quantities of the (authorized) production “out the back door” to other customers or jobbers for resale. We assist brand owners in holding factories accountable for their actions, collecting the necessary evidence by undercover means, to prove the factories’ indiscretion.

Vaudra Ltd. referenced in new book release on counterfeiting

» Knockoff The Deadly Trade in Counterfeit Goods, by Tim Phillips, explores counterfeiting and the consequences of this “illegal global industry undermining the world’s economies.” Tim Phillips traveled the world, interviewing victims, investigators and the people who sell counterfeits. Vaudra Ltd.’s co-founder, Randall Rabenold, was cited in the book, describing his experiences as an investigator in the counterfeit industry and working with brand owners to tackle the more difficult markets.

July 2006–

Civil Action Leads to Customs Intervention

» After locating an entity offering counterfeit product at an industry trade show, we investigated the subject and developed a business relationship. Our efforts led to a civil action against the subject, resulting in the seizure of product, and valuable sales and corporate documents. Among the documents were details on an inbound container of counterfeit product entering the U.S. In providing the container specifics to U.S. Customs & Border Protection, we enabled them to ultimately stop and seize the related container.

June 2006-

Criminal Raid Conducted Against Online Retailer

» In a joint criminal action, multiple brand owners and investigators worked with local law enforcement to raid a Norfolk online retailer, liquidfashions.net. We investigated Liquid Fashions on behalf of several brand owners, making evidentiary purchases in an undercover capacity with the owner of the business. The company initially operated out of the owner’s home and relocated to a warehouse, selling and distributing counterfeit product via the company’s website, iOffer, eBay and Liquidation.com. The criminal raid gained media attention as the “largest raid in Norfolk’s history,” with an estimated $500,000.00 in suspect product seized.

May 2006-

Annual INTA Conference held in Canada

» Members of Vaudra Ltd. attended the annual INTA conference in Toronto, Canada. Every year, this conference draws trademark and IP law professionals, investigators and brand owners from around the world. It provides an opportunity to share law & enforcement experiences, new practices, and see old friends and colleagues.

April 2006-

UPDATE - Federal Indictments Handed Down in Fraud Case

» A follow up to our August 2005 news mention, two businessmen in Dublin, GA, were sentenced in federal court after pleading guilty to seven counts of wire fraud. The two individuals now face a combined jail time of 32 months and owe over $78,000.00 in restitution. In this corporate fraud investigation, Vaudra Ltd. prepared and submitted the case to the federal authorities, performing financial analyses and in-depth research on the involved parties.

March 2006-

UPDATE – Large Counterfeiting Ring Exposed

» Due to judicial restraints, the details of the investigation and civil action against a major importer operating in New York City and New Jersey could not be publicized until recently. This is a follow up to our December 2005 news item, ‘Attendance at tradeshow leads to major bust’. The success of the action was reported in the national periodical, WWD (March 1, 2006), which also described Vaudra Ltd.’s investigation that obtained the evidence required to file a joint civil action on behalf of two brand owners. Over 35,000 counterfeit items were seized, as well as documents that attested to the magnitude of the operation and scope of their distribution.

February 2006-

Vaudra LLC/New York, New York

» A follow-up to our September 2005 news link, Vaudra LLC (located in lower Manhattan) now has staff registered with the Department of State. Having an extension in New York City will provide additional support to their already existing associate investigators in the City. This is another step in the progressive expansion plans for Vaudra LLC in the state of New York. Vaudra LLC (NY) will work closely with Vaudra Ltd. (NC) by providing logistical support when implementing a long arm approach to a distant subject of investigation. For the moment, please call (704) 895-3939 for more information on private investigations in New York.

January 2006-

Internet monitor results hit record high for 2005

» As a result of our Internet monitoring programs on behalf of several clients, we requested and confirmed removal of more than 200,000 units bearing our clients’ trademarks from auction sites and trade boards. These auctions or trade postings were removed for counterfeit or copyright related infringements. Our Internet monitoring activities are customized to our client’s global strategies and budgets. Internet sites and auction houses in the USA, Sweden, Poland, China, New Zealand, and other countries, cooperate with our activities.

Vaudra Ltd. cooperates with Royal Canadian Mounted Police

The Royal Canadian Mounted Police conducted a seizure action for counterfeit goods on January 11, 2006, coined as the “largest anti-counterfeiting raid in Atlantic Canada’s history, involving 3-4 arrests and the take down of several websites.” Vaudra Ltd. detected the individual selling counterfeit items in 2005, and initiated an investigation. Later, when it became clear the RCMP was conducting their own investigation into the ring, they contacted Vaudra Ltd. for authentication purposes. One of the defendants was operating out of an upscale condominium in Halifax, which was raided. Numerous assets belonging to the principal defendant were seized, in addition to the seizure of computers, records and inventory.

December 2005-

Attendance at tradeshow leads to major bust

» Vaudra Ltd. attends several apparel/footwear industry tradeshows each year on behalf of their clients as a proactive approach to finding new targets offering suspect product or product that is potentially infringing on owned trademarks. After visiting such a tradeshow in February 2005, Vaudra Ltd. located an entity offering suspected counterfeit product. Through the course of undercover investigations, we obtained samples, which were confirmed counterfeit, and identified the subject’s warehouse. Acting on behalf of several clients, Vaudra Ltd. assisted in an enforcement action, in which the entity’s office and warehouse were simultaneously raided. Over 31,500 pieces of counterfeit apparel were seized, along with documents, computers and other assets.

Training sessions and sharing knowledge

» Vaudra Ltd. participated in an IP conference in Montreal, Canada, to discuss new and better enforcement tactics, as well as train local RCMP on identifying counterfeit product of a famous brand.

Shortly thereafter, Vaudra Ltd. attended a local event organized by the N.C. Secretary of State’s office to discuss enforcement in the Carolinas. Brand owners from around the country as well as IP attorneys and investigators participated in this “meeting of the minds” to discuss the challenges in IP enforcement and local laws, and shared success stories – not to mention a ride-along in a pace car around Concord’s Motor Speedway.

November 2005-

Third-party domain successes in 2005

» As part of Vaudra Ltd.’s comprehensive service offerings, we assist clients with third-party domain purchases. These are often situations where the registrant would demand a much higher price for a domain if he/she knew the true intended owner. In 2005, we successfully purchased 13 domains on behalf of various clients, ranging in price from under $1,000.00 to over $50,000.00.

October 2005-

Customs Cooperation

» As we strive to protect our clients’ IP rights on multiple levels, we liaison with United States Customs & Border Protection to provide them with pertinent details on known counterfeiters from our ongoing investigations. In that way, USCB has the opportunity to utilize this information to detain suspect shipments, resulting in seizures for our clients.

Removing Counterfeits and Counterfeiters from the Internet

» We have comprehensive Internet monitor programs for several of our clients. One aspect of these programs is reviewing auctions on several popular auction websites (i.e. eBay and iOffer) and requesting removal of postings violating the trademark owners’ rights. Auctions are removed for counterfeit product or trademark/copyright violations, and frequently, larger scale investigations are conducted into the bigger players to determine source information. In cooperation with the auction websites, we removed over 122,191 items on behalf of our clients between January-October 2005. In addition to individual consumer sales, we also address B2B offers by reviewing multiple B2B trade boards and removing postings of companies offering counterfeit product or known to distribute such product.

NYPD Training Session

» Vaudra Ltd. participated in a training session for the New York City Police Department. The training was held for the PBMS Special Operations unit. The session included hands-on training and instruction on guidelines to identify counterfeit merchandise of one brand owner’s product. In-house counsel, local private counsel and additional private investigators were also in attendance. Recordation of your trademarks is the first step in facilitating pro-active enforcement in New York City.  If you or your company is interested in learning more about this process, please telephone our office.

September 2005-

New Bill S. 1699 Offers Promise of Better Anticounterfeiting Legislation

» On September 14, 2005, the Stop Counterfeiting in Manufactured Goods Act was introduced into the U.S. Senate. If approved, S. 1699 will allow for the forfeiture and destruction of counterfeit goods, in addition to the forfeiture of property and assets obtained as a result of counterfeiting activities. It will also make the importing and/or distribution of counterfeit labels, hangtags, stickers, etc… illegal, and allow for seizure of equipment used to produce counterfeit product.

Vaudra LLC Arrives in New York

» Newly formed Vaudra LLC is officially licensed by the State of New York to conduct private investigations and we are in the process of registering staff. Our New York extension will provide local support, with the added benefits of improving logistics and response time. This will be particularly helpful during brand owner’s busy seasons, and further encourage the steady flow of intelligence from the New York streets in collaboration with local law enforcement.

August 2005-

Federal Indictments handed down in Fraud case

» A corporate fraud criminal investigation conducted by Vaudra Ltd. led to the federal indictment of two businessmen in Dublin, GA, both of whom were charged with one count of conspiracy, seven counts of wire fraud and 11 counts of money laundering. Vaudra Ltd. prepared and submitted the case to the federal authorities, performing financial analyses and comprehensive research on the involved parties. If convicted, the men face as many as 35 years in prison and/or fines as much as $750,000.00.

July 2005-

Alleged Counterfeit Ring Exposed

» Vaudra Ltd.’s investigation into a jobber offering large quantities of suspect product, led to raids in California, New Jersey and New York for one brand owner, seizing a total of 28,122 counterfeit items.

In addition to the product, large quantities of paper and electronic documents were seized implicating over 15 companies and individuals’ involvement in the importation of the counterfeit goods from China. This paper trail indicated that since 2002, an estimated 100,000 pieces of a single brand owner’ product had been distributed by the counterfeit ring, resulting in over $8.0 million in sales. Working closely with the brand owner and legal counsel, Vaudra Ltd. testified in court and to this point, the case has resulted in the freezing of over 20 bank accounts and preliminary injunctions against many of those involved.

June 2005-

Expanding Horizons

» Vaudra Ltd. is in the midst of the licensing process in New York State, which will broaden the scope of their service offerings and investigative capabilities in the area. Upon finalization of the license, Vaudra Ltd. will establish a New York office to achieve these goals.

Enforcement in the Philippines

» Vaudra Ltd. plays an active role in the planning and execution of enforcement actions for brand owners in many countries. During the first five months of 2005, raids in the Philippines for one brand owner resulted in the seizure of over 43,500 items, including apparel, manufacturing accessories and equipment. Additionally, Vaudra Ltd. is responsible for the removal of auctions that include counterfeit items and/or copyrighted material on the Philippines’ local eBay.ph, protecting the IP rights of brand owners on land as well as online.

May 2005-

Vaudra Ltd. undercover campaign nets $3.3 million retail value illegal garments

» It starts with a single telephone call from a “broker” offering a large quantity of goods “without paper”. The relationship is developed, the inspection site is located out of state, local authorities are notified. One month later Vaudra Ltd. removes $3.3 million in counterfeit product from the retail market. A large multi-national network is uncovered, the investigation continues.

IACC/INTA Convention held in San Diego

» Members of Vaudra Ltd. attended the IACC (International AntiCounterfeiting Coalition) and INTA (International Trademark Association) conventions held separately in San Diego, California. Various seminars, round table discussions and industry related speeches are a large part of the program. Vaudra Ltd. hosted a reception attended by business colleagues and clients to show appreciation for continued working relationships and new friendships. (If you or your company has an intellectual property portfolio these associations are a must to join)

April 2005-

Counterfeit investigation turns to parallel market goods

» Over the course of several months (using “long arm” tactics), we investigated an entity in the Middle East suspected of the distribution of counterfeit product. Because of the seriousness of the situation, we later met with the owner of the company at an industry-related trade show to solidify the relationship. The investigation uncovered an elaborate network finding the subject to be ordering authentic product from authorized distributors, then selling the goods outside approved distribution channels (parallel markets). Working closely with the brand owner and the subject we were able to identify two of the brand owner’s distributors.

March 2005-

» Parallel imports (grey market goods) can hamper the ability of a manufacturer trying to focus enforcement on counterfeit merchandise. Investigations into counterfeit merchandise can result in the discovery of low-priced, authentic merchandise found in the market place (outside the normal distribution chain), mistakenly assumed to be counterfeit. Parallel imports of authentic merchandise have another effect; when distribution of a product is not controlled the product can become diluted resulting in lost brand value and lost MSRP, which could take years to recover. In some countries parallel market goods are considered illegal and constitute trademark infringement resulting in large seizures and damages levied against the parallel importer. In the United States parallel market goods are usually not considered illegal unless the goods involved pose a serious threat to the consumer.

February 2005-

» Vaudra Ltd. attended the anti-counterfeiting forum hosted by INTA in Washington, DC. Representatives from over 35 countries were in attendance. Over two intensive days, attendees heard experts from around the world discuss IPR issues in their countries, including the problems of counterfeiting and parallel importation, enforcement options and implications of new/revised legal regulations. There were also multiple round table discussions allowing everyone the opportunity to share success stories and challenges.

January 2005-

Internet monitor results huge success for 2004

» Vaudra Ltd. is directly responsible for the removal of 22,190 units of counterfeit or copyright related items from the Internet in 2004. This activity is the result of our Internet monitoring programs customized to meet our client’s resources and individual needs.

Silk Alley market closes in Beijing, China

» On January 6, 2005, the infamous Silk Alley (Road) open-air market was officially closed in Beijing, China. The market is well known for the sale of counterfeit items to tourists and has been in operation since 1983. Approximately 500 stalls, which occupy an alley near the diplomatic area in Beijing, will be destroyed and the vendors will likely relocate to a new indoor covered mall. The open air market is reported to be a fire hazard, and the China Daily previously reported the market attracted up to 20,000 people on peak weekends.

December 2004-

Vaudra Ltd. recovers multiple top level Internet domains

» Three top level domains were recovered for clientele resulting in a significant cost savings and return of intellectual property rights.

Attends Training

» Vaudra Ltd. attends training designed for law enforcement, corporate security and private investigators. The training was provided to improve use of all information resources and technical capabilities of the Internet, newly advanced capabilities of search engines and email tracing.

New York City, largest seizure in recent history

» (Follow up news item, October, November 2004)  With the assistance of brand owners and private investigators, local officials conducted a seizure at a well-known, city wholesale house, resulting in the seizure of thousands of counterfeit items. The recovery and seizure took days to complete and should have an affect on the local and national retail market.

Counterfeit goods seized, China

» Vaudra Ltd. continues to assist brand owners with investigations, planning, seizures and brand protection solutions in Shanghai, Beijing and Guangzhou, China. The well known Xiang Yang market in Shanghai was recently raided and received extensive media coverage. (Next month: The well known Silk Road outdoor market, located near the Embassy, nears its final days of operation).

On-Line Fraud, bill becomes law

» (Follow up news item, October 2004)  President Bush signed the Fraudulent On-Line Identity Act, creating a rebuttable presumption a trademark/copyright infringement will be considered willful in where a domain registrant knowingly provides false contact information. The bill also provides for tougher sentencing for individuals who have committed a felony and knowingly used a falsely registered domain name in conjunction with a felony.

November 2004-

Enforcement in Pakistan?

» Over the past few months, Vaudra Ltd. has actively assisted in enforcement actions on a number of subjects in the Pakistani cities of Lahore, Karachi, Islamabad, and Rawalpindi. Even in view of current events and the civil unrest within the country, we have successfully pursued counterfeiters within the court systems, prohibiting future sale and distribution of product bearing unauthorized use of trademarks and arresting over 1,000 items. Additionally, we found evidence leading to the supplier of the product and have made strides to stop the markets’ supply at its source. Regional surveys located very few counterfeit items of concern as news of the court proceedings spread throughout the marketplaces and retailers recognized our diligence to protect the brand’s intellectual property.

New York

» As a result of anti-counterfeiting training held last month in New York city, over 5,000 counterfeit items were seized as a result of initiatives coordinated by the Mayor’s Office.

October 2004-

Fraudulent Online Identity Sanctions Act Passes House of Representatives

» On September 21, 2004 the House of Representatives passed a new bill titled Fraudulent Online Identity Sanctions Act, Bill Number HR 3754 (amending bill 18 U.S.C 2318-criminal copyright labeling statute.)

This legislation enhances criminal and civil penalties for felony offenses, trademark or copyright infringement committed in relation to domain names knowingly registered with materially false information. This bill amends the Lanham Act and Copyright Act and also creates penalties for those who submit materially false contact information in regards to a domain name used to commit a crime or engage in online infringement. Along with sentencing enhancements (doubles the maximum imprisonment or increases it by seven years, whichever is less) the bill specifically creates a rebuttable presumption that a copyright/trademark infringement violation will be considered willful (for the purpose of determining and awarding damages).

New York City Police Department Training

» Vaudra Ltd. participated in a training session specifically for the New York City Police Department. The training was held for the PBMS Special Operations unit at two locations in the city. Detectives and “beat cops” were trained on how to identify a particular brand of counterfeit merchandise. In-house counsel, local private counsel and additional private investigators were also in attendance. After the training, Vaudra Ltd. assisted NYPD in an undercover operation. The campaign was conducted in an area of known counterfeit activity in order to identify businesses involved in the counterfeit goods business.

September 2004-

» Vaudra Ltd. received a call regarding counterfeit goods being sold at retail in the USA. Although retail locations are not always primary targets, this shop was located near a facility of the brand owner. A brief investigation was conducted and two additional stores owned by the same individual were discovered in different jurisdictions. Local authorities were notified and the three locations were criminally raided simultaneously. Over 600 units were seized, arrests are pending and the supplier is being looked into.

» The services of Vaudra Ltd. were requested this month when a brand owner’s trademark use was brought into question by another brand owner. The client needed to know if there were any other products in the same class and in commerce, similar to the mark used by both brand owners. Within a few days, dozens of items with similar markings were located in commerce and samples were purchased, much to the client’s benefit.

» Vaudra Ltd. continues to receive telephone calls from companies wishing to have consumer goods authenticated for re-sale outside of the original brand owner's distribution channels. (See “Gray Market” in Glossary). Gray market goods, sometimes resulting in trademark infringement and seizure in the European Union, are not typically illegal in the USA. Vaudra Ltd. continues to investigate gray market and parallel market situations worldwide, and does not participate in the authentication of goods for re-sale.

August 2004-

» The sale of counterfeit items on the Internet continues to be a growing concern for many brand owners. Vaudra Ltd. continues to establish itself as a leader in Internet strategies: Detection, identification of sellers, development of supply routes and having the infringing goods removed. In a four week period their programs have resulted in over 600 listings/websites removed, in conjunction with foreign and domestic enforcement actions on select and large player suppliers.

July 2004-

» Vaudra Ltd. participated in the World Customs Organization (WCO) meeting held in Svetlogorsk, Russia. This meeting was attended by top customs Officials from Russia and other countries, in addition to global brand owners and attorneys concerned about illegal imports of counterfeit and original consumer goods into the Russian Federation. Vaudra Ltd. assisted in training Russian customs officials on how to identify various counterfeit products.

The seminar also included discussion of the fairly new Russian custom’s code, recordation of trademarks with customs, custom’s processing of detected (illegal) shipments, profiling shipments, criminal & civil remedies concerning illegal shipments and more.

Svetlogorsk is one of approximately 600 points of entry of commerce to the Russian Federation and is located on the shores of the Baltic Sea. Occupied by Germany before WWII, the rolling hills of farm land, cool summers and beaches of Svetlogorsk is now considered a tourist town.

May 2004-

» Associates from Vaudra Ltd. attended the International Trademark Association’s (INTA) 126th Annual Conference in Atlanta, Georgia May 1-5, 2004. Over 6,600 intellectual property practitioners from all over the world gathered to further their knowledge of current IPR practices. Topics also included the Madrid Protocol, Internet monitoring strategies, trademark licensing and IPR protection. In addition, we held meetings with foreign legal counsel to discuss our clients’ country specific matters, ensuring a clear understanding of the current situations and enforcement options. There were also opportunities to network with legal representatives and trademark owners in more relaxed environments. Vaudra Ltd. hosted a reception attended by business colleagues and clients to show appreciation for continued working relationships and new friendships.

April 2004 –

» From April 28-30, 2004, associates from Vaudra Ltd. attended the annual International Anti Counterfeiting Coalition (IACC) Spring Conference at the Ritz-Carlton Hotel in Atlanta, Georgia. Representatives from legal and investigation firms, and brand owners attended to learn of new developments and current trends in the world of counterfeiting and how certain situations had been addressed by the legal community.

» Vaudra Ltd. received an urgent email from a client. A seller registered with a popular Internet auction house is selling authentic, genuine footwear, and shipping outside the normal distribution channels of the client. Over a month's period of time this footwear was found to be shipped in large quantity and shipments contained a bogus return address on the packaging. Within a week's time, Vaudra Ltd. identified the true identity of the seller, and identified the location and retail source/supplier of the footwear. The matter was turned over to the client for civil action.

March 2004 –

» Vaudra Ltd. received a request from a client to start an investigation regarding counterfeit product in a South African marketplace. Given the nature of the situation, it demanded prompt action before the goods were moved to a different location. Vaudra Ltd. worked with local law enforcement and within 48-hours, raided the facility where a large quantity of counterfeit product was seized.

» A company in Russia was distributing counterfeit goods. It was determined that the manufacturer of the goods was located in China. Using this information and further investigation, Vaudra Ltd. coordinated a raid on a Chinese warehouse resulting in a seizure of over 8,000 counterfeit denim goods.