Anti-Counterfeiting and IPR Issues

The Issue:
Congress and the Administration continue to be active on efforts to strengthen intellectual property rights (IPR) protection and enforcement. A law (PL 109-81, Stop Counterfeiting in Manufactured Goods) that was enacted in March 2006 to provide tougher penalties for the trafficking in counterfeit hangtags and labels has already had some results and will continue to help law enforcers prosecute counterfeiters. Efforts are now being made to encourage individual states to approve their own version of this bill. Senators Evan Bayh (D-IN) and George Voinovich (R-OH) recently reintroduced legislation (S. 522), to strengthen the management, coordination, and effectiveness of domestic and international intellectual property rights enforcement. This legislation is based on a similar bill that was introduced in the 109^th Congress. Congressmen Delahunt (D-MA) and Goodlatte (R-VA) and Senator Shumer (D-NY) recently reintroduced legislation from the 109^th Congress that would allow for a three year copyright on fashion design entitled the Design Piracy Act (H.R. 2003). A hearing held in late July 2006 highlighted some of the division within the fashion industry on the bill, in particular the potentially broad scope of what could be considered “substantially similar” to designs that get copyright protection. On the international front, the Administration continues to push a tough pro-IPR agenda in several ways. It recently initiated the first-ever WTO case on enforcement several months ago when it filed two IPR-related cases on China. More recently, the USTR identified a series of countries which remain deficient in their IPR practices through its annual special 301 report on April 30, 2007.

AAFA on the Issue:
AAFA supports the Bayh/Voinovich legislation. AAFA is actively working to craft legislation that will truly protect innovation without causing legal havoc and sever litigation issues for the industry.

The Coalition Against Counterfeiting and Piracy (CACP), of which AAFA is an active member, released recommendations Wednesday, January 24 on steps companies can take to protect their supply chains from counterfeiters and modern-day pirates. (Learn more about CACP)

The Latest News:

02.19.08

Last week, the House Subcommittee on Courts, the Internet and Intellectual Property heard testimony from witnesses on proposed legislation that seeks to give fashion designers copyright protection on original fashion designs for a period of three years. Witnesses included Congressman William Delahunt (D-MA) and designer Narciso Rodriguez, who spoke in favor of the legislation, and Steve Maiman from Stony Apparel, a Los Angeles-based clothing company, who spoke against the bill. AAFA’s comments highlighted the association’s opposition to the bill in its current form, while stressing that negotiations on a revised draft of the bill with the Council of Fashion Designers of America (CFDA) were still ongoing.

02.11.08

AAFA Executive Vice President Steve Lamar submitted the association’s annual comments to the Office of the U.S. Trade Representative on our WTO trading partners’ enforcement and protection of intellectual property rights (IPR). The comments highlighted concerns of member companies as they encounter IPR infringements and violations during the course of their business abroad over the last year.

11.27.07
Leveraging material controls, strengthening contracts with suppliers and factories, and aligning strong public/private collaboration are some of the keys to success in combating counterfeits echoed at "Knock If Off! Brands & the Counterfeiting Quandary", AAFA’s 3rd annual program presented by its Brand Protection Council.

Beginning with the first-ever privately held industry tour, apparel and footwear firms including Columbia Sportwear, Nike, New Balance, Levi-Strauss, VF Corporation and many more, toured the Container Examination Station in Carson, CA. Addressing the group, Kevin Weeks, director, field operations, Los Angeles told the group, “We can’t be successful at stemming the tide of goods without the help of industry.” Attendees were encouraged to develop on-going communication with the import specialists, especially in Long Beach where the majority of apparel and footwear counterfeits try to enter.

Throughout the conference speakers and executive panels stressed the importance of collaboration and teamwork. For instance, it’s critical to register trademarks in the countries brands plan to source in before commencing any discussions with contractors or there’s great risk of having it registered by a counterfeiter. While the majority of counterfeit items are coming from overseas, there are numerous domestic operations, too. Success has been achieved by going after the landlords of warehouses, etc., and this model initiated in New York will be applied to other cities, including Los Angeles.

Design piracy was discussed in detail, as well as how socially irresponsible factories are major violators of counterfeiting. Available speaker presentations will be posted on AAFA’s website in the near future.

10.15.07
AAFA President Kevin M. Burke sent a letter October 10 to the sponsors of the Design Piracy Prohibition Act (HR 2033, S 1957) expressing opposition to this legislation as it is currently drafted.

As the prevalence of fashion “knock-offs” continue to hit the streets, the industry as a whole is looking for innovative ways to thwart this practice. This bill seeks to do so by giving fashion designers a three-year copyright for their original designs. While AAFA wholeheartedly supports the goal of protecting the intellectual property rights of fashion designers, the letter explains that the current language of the bill is unacceptable because it would inadvertently do more harm to designers, as well as the industry as a whole, than good.

Design piracy is just one of the hot button topics that will be featured at AAFA’s Knock It Off! Brands & the Counterfeiting Quandary Conference, November 6-7 in Long Beach, CA.