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Paul R. Paradise - Trademark Counterfeiting, Product Piracy, and the Billion Dollar Threat to the U.S. Economy

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Trademark Counterfeiting, Product Piracy, and the Billion Dollar Threat to the U.S. Economy: summary, description and annotation

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Called the business crime wave of the 21st century, trademark counterfeiting and product piracy are worldwide in scope and cost the U.S. economy billions of dollars every year. High technology and the globalization of business have made it possible to counterfeit and pirate a seemingly limitless number of products, from t-shirts, designer jeans, films and books to auto and airplane parts, and prescription drugs. The 1995-1996 trade dispute between the U.S. and China shows how serious the problem has become for American business and for U.S. diplomatic relations. Paradise explores the history of counterfeiting and piracy, shows how they are done, and the strategies that U.S. businesses are using to combat them. With interviews, commentary, and anecdotes by corporate attorneys, business leaders, and private investigators, this well-written book is essential for anyone interested in the damage that violations of intellectual property law are inflicting on world trade and what is being done to stop it.Paradise lays out the problem in Chapter 1 with a clear explanation of the differences between trademarks, copyrights, and patents, and the laws covering each. In Chapter 2 he looks at the role played by organized crime, gray market goods, the lack of intellectual property laws, and ultimately the threat to U.S. business. He discusses the recent investigations and disputes with China, and its aftermath throughout Southeast Asia. Chapter 4 focuses on the knockoff, chapter 5 on street peddlers and flea markets (and how merchants are retaliating), and chapter 6 on the tracking of counterfeiters. The entertainment industries and the pharmaceutical industries are then closely examined. He follows with equally comprehensive (and chilling) studies of automobile and aircraft parts counterfeiting and piracy in cyberspace. Paradise ends with a look at what is being done to counteract the inroads that piracy and counterfeiting have made into the global economy, and offers a provocative call for more and better efforts in the future.

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title Trademark Counterfeiting Product Piracy and the Billion Dollar - photo 1


title:Trademark Counterfeiting, Product Piracy, and the Billion Dollar Threat to the U.S. Economy
author:Paradise, Paul R.
publisher:Greenwood Publishing Group
isbn10 | asin:1567202500
print isbn13:9781567202502
ebook isbn13:9780313001772
language:English
subjectIntellectual property--United States, Trademark infringement--United States, Product counterfeiting--United States, Piracy (Copyright)--United States, Intellectual property--Economic aspects--United States.
publication date:1999
lcc:KF2980.P37 1999eb
ddc:346.7304/88
subject:Intellectual property--United States, Trademark infringement--United States, Product counterfeiting--United States, Piracy (Copyright)--United States, Intellectual property--Economic aspects--United States.

Page i

Trademark Counterfeiting, Product Piracy, and the Billion Dollar Threat to the U.S. Economy

Page ii

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Page iii

Trademark Counterfeiting, Product Piracy, and the Billion Dollar Threat to the U.S. Economy

Paul R. Paradise

Page iv Library of Congress Cataloging-in-Publication Data Paradise Paul R - photo 2

Page iv

Library of Congress Cataloging-in-Publication Data

Paradise, Paul R., 1950
Trademark counterfeiting, product piracy, and the billion dollar
threat to the U.S. economy / Paul R. Paradise.
p. cm.
Includes bibliographical references and index.
ISBN 1567202500 (alk. paper)
1. Intellectual propertyUnited States. 2. Trademark
infringementUnited States. 3. Product counterfeitingUnited
States. 4. Piracy (Copyright)United States. 5. Intellectual
propertyEconomic aspectsUnited States. I. Title.
KF2980.P37 1999
346.730488dc21 9910410

British Library Cataloguing in Publication Data is available.

Copyright 1999 by Paul R. Paradise

All rights reserved. No portion of this book may be reproduced, by any process or technique, without the express written consent of the publisher.

Library of Congress Catalog Card Number: 9910410
ISBN: 1567202500

First published in 1999

Quorum Books, 88 Post Road West, Westport, CT 06881
An imprint of Greenwood Publishing Group, Inc.
www.quorumbooks.com

Printed in the United States of America
Picture 3
The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z39.481984).

10 9 8 7 6 5 4 3 2

Every reasonable effort has been made to trace the owners of copyright materials in this book, but in some instances this has proven impossible. The author and publisher will be glad to receive information leading to more complete acknowledgments in subsequent printings of the book and in the meantime extend their apologies for any omissions.

Page v

Contents

Preface

ix

Acknowledgments

xi

Trademark Counterfeiting

The Importance of Intellectual Property

Trademark Act of 1946 (Lanham Act)

Copyright Act of 1976

The Patent Act

Common Law Background

The Worldwide Threat

Organized Crime

Technological Advances

Globalization of the Economy

Gray Market Goods

Lack of Intellectual Property Laws

The Threat to the U.S. Business Community

The Trade Dispute with the Peoples Republic of China

The 1991 Special 301 and Section 301 Investigations

Chinas Emergence as an International Pirate

Page vi

The 1994 Special 301

Special Enforcement

The 1996 Agreement (1996 Report on Implementation by the Chinese)

The AftermathSoutheast Asia

The Knockoff

The 1984 Trademark Counterfeiting Act

Trouble along the Border

Street Peddlers and Flea Markets

Street Peddlers

Flea Markets

Fighting Back

Pursuing the Counterfeiters

The Entertainment Industries

Book Piracy

Film and Video Piracy

Signal Theft

Pirated Video Games

Music Piracy

The Pill Pirates

The Food and Drug Administration (FDA)

The Drug Approval Process

Drug Counterfeiting in the Third World

Assistance for the Developing Countries

Nuts and Bolts

Counterfeit Automobile Parts

Counterfeit Aircraft Parts

Piracy in Cyberspace

Page vii

Public Education

Consumer Demand

Public Education

Selected Readings

Index

Page viii

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Page ix

Preface

During 1995 and 1996 the United States nearly imposed trade sanctions on the Peoples Republic of China for the piracy of U.S.-owned copyrights for music, computer software, and motion pictures by the Chinese. Only the signing of an agreement by the Chinese in both years regarding greater protection of intellectual property avoided an all-out trade war.

The trade dispute underscored how serious a problem the counterfeiting of trademarks and the piracy of copyrights and patents had become. Under the old English common law, the crime was called palming off. What the counterfeiter does is to steal the goodwill and brand name recognition inherent in a brand or trademark by attaching a counterfeit brand to his product and palming it off as the genuine article. Stealing the brand is as old as human commerce, but in modern times, the globalization of the economy and advances in technology have led to an explosion in counterfeit products. Prescription pills, automobile and airplane parts, heart pumps, garments, and a multitude of consumer products have been counterfeited and palmed off as the real product.

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