Hunton Retail Law Resource

Counterfeit goods continue to become increasingly ubiquitous, presenting a host of issues for both retailers and consumers. In addition to a variety of legal consequences and the sometimes massive effect on companies’ bottom lines, counterfeit and pirated goods are often accompanied by risks to public health and safety and even national security.

Your product development team spent years designing a product, working out every design detail until it is just right. Your company spent significant time and money marketing the product, shoring up a great reputation for the product and the company that stands behind it. Then, a copycat comes along with a knockoff and starts selling a product that looks eerily similar—or even identical—to yours. When your customers search online for your long-developed and lauded product, the knockoff appears, and at a fraction of the price. You are certainly surprised, and likely dismayed.

Earlier this month, a bipartisan group of senators introduced a bill—the Counterfeit Goods Seizure Act of 2019—to expand the authority of US Customs and Border Protection (CBP) to seize counterfeit goods that infringe intellectual property rights, specifically design patents, at the border. The senators expect the legislation, if passed, to help stem the tide of counterfeits (with a global trade value estimated at over $1 trillion) by preventing their importation into the US.