3 Questions For A Counterfeit Crimes Crusader (Half II)

intellectual property law

(Picture by way of Getty)

This week, I proceed my written interview with the Director of Amazon’s Counterfeit Crimes Unit, Kebharu Smith. Final week, he shared how impactful the work of the CCU may be in helping manufacturers seeking to defend themselves on Amazon’s retailer and past. The mixture of Amazon’s sources — together with its anti-counterfeiting experience — and a prepared model invested in policing counterfeit exercise is a strong one. It’s heartening to see such a serious firm so prepared to do what it will probably to cease counterfeiters, even when the tide of counterfeits can seem to be it is going to by no means abate.

Now to the rest of my interview with Kebharu. As normal, I’ve added some transient commentary to the solutions under however have in any other case offered his solutions to my questions as he supplied them.

Gaston Kroub: How can the IP neighborhood — attorneys, model house owners, and others — assist combat counterfeiting on the supply?

Kebharu Smith: Sadly, counterfeiting stays a persistent menace world wide. The Group for Financial Cooperation and Improvement (OECD) estimates that pirated and counterfeit merchandise make up 2.5% of world commerce — that’s $464 billion a 12 months — equal to the gross home product of the nation of Belgium. Counterfeiters deprive model house owners of the worth of their mental property and compete unfairly with sincere entrepreneurs. Furthermore, counterfeiting could be a predicate crime to much more nefarious exercise, together with drug trafficking, baby exploitation, and terrorism. Counterfeiting is a criminal offense in most international locations, however for too lengthy, counterfeiters haven’t been held accountable. In consequence, they’ve continued to hunt out any alternative — together with preying on customers throughout a pandemic — to attempt to trick folks into shopping for their faux items.

Collectively, we are able to extra successfully detect and cease counterfeiters, which permits us to raised defend prospects and rights house owners. A number of areas we are able to do that are:

  • Holding counterfeiters accountable: Amazon continues to innovate on its sturdy proactive controls and instruments for manufacturers, and gained’t relaxation till there are zero counterfeits within the Amazon  retailer. Nevertheless, that is an escalating battle with criminals that proceed to search for methods to promote counterfeits, and the one option to completely cease these counterfeiters is to carry them accountable via the courtroom system and legal prosecution. Final 12 months, we supplied in-depth referrals and proof of over 250 counterfeiters for legal investigation within the U.S., U.Okay., the EU, and China. We additionally filed civil litigation towards 64 counterfeiters in U.S. courts.

In November 2020, we filed a lawsuit towards social media influencers who ran a social media counterfeiting scheme to advertise and facilitate the sale of counterfeit luxurious vogue items in Amazon’s retailer. We reached a settlement final 12 months and as a part of the settlement, the influencers, Kelly Fitzpatrick and Sabrina Kelly-Krejci, will make settlement funds to Amazon, which shall be donated to charities together with the Worldwide Trademark Affiliation’s (INTA) Unreal Marketing campaign, a client consciousness initiative to coach 14- to 23-year-olds concerning the significance of mental property rights.

  • Use Amazon’s model safety instruments: Model house owners can’t be everywhere always. Our model safety instruments give model house owners the flexibility to guard their manufacturers and IP across the globe. Model house owners know their merchandise finest. They know their logos, patterns, and mental property inside and outside. They’ll accomplice with us via instruments like:
    • Model Registry — a free service that offers a model proprietor, no matter whether or not they promote in our retailer, extra management over the textual content, photographs, and content material on element pages for his or her merchandise. We will extra successfully defend the model via automated protections that leverage machine studying and the information manufacturers present in Model Registry. Manufacturers can even discover and report suspected infringement faster. Manufacturers are, on common, reporting 99% fewer suspected infringements than earlier than the launch of Model Registry.
    • Transparency — a serialization service that protects every particular person product unit. Manufacturers apply a singular 2D code, much like a QR code, to their merchandise, and we scan the code to confirm authenticity earlier than delivery it to a buyer. If a product fails this authenticity examine, it’s instantly put aside for additional investigation. Transparency enabled the safety of greater than 500 million product items.
    • Venture Zero — combines Amazon’s superior know-how with the delicate information manufacturers have of their very own mental property and the way finest to detect counterfeits of their manufacturers. In 2020, there have been greater than 18,000 manufacturers enrolled in Venture Zero. For each one itemizing eliminated by a model via our self-service counterfeit elimination software, our automated protections eliminated greater than 600 listings via scaled know-how and machine studying that proactively addresses potential counterfeits and stops these listings from showing in our retailer.

GK: The sheer depth and breadth of sources that the CCU brings to the combat towards counterfeiters is astonishing. On the similar time, there’ll all the time be a job for model house owners and their counsel taking proactive steps of their very own to establish, isolate, and use authorized mechanisms to try to shut down counterfeiters. As IP attorneys, it behooves us to stay collectively vigilant about counterfeit exercise, even when it doesn’t straight have an effect on our shoppers in any given state of affairs. As attorneys skilled in IP, we are sometimes in an actual place to assist establish counterfeit exercise which will have till that time evaded detection. We should always every take that accountability to coronary heart.

GK: Inform us how your prior authorities expertise has helped you in your present position at CCU?

KS: Our complete group brings authorities expertise to their roles because the CCU is made up of former federal prosecutors, skilled investigators, knowledge analysts, and others with experience in catching and prosecuting criminals with the aim to make sure prospects by no means see a list with a counterfeit or infringing product.

Previous to becoming a member of Amazon’s Counterfeit Crimes Unit, I labored as a senior trial lawyer with the Division of Justice – Pc Crime and Mental Property Part (CCIPS). Whereas at CCIPS, I labored with rights house owners to assist them defend their mental property from trademark counterfeiters, copyright pirates, and trade-secret thieves, utilizing federal legal statutes. For instance, I partnered with Apple to pursue criminals who have been taking part in a ”return fraud scheme” by delivery counterfeit iPhones to the U.S. from China that have been being swapped for genuine iPhones from Apple shops. The unhealthy actors used a scheme that recognized IMEI numbers that have been tied to warrantied Apple iPhones. As soon as they acquired the reputable iPhone from Apple, they’d ship the telephones to China. Previous to my work with CCIPS, I labored as an assistant United States lawyer (AUSA) within the USAO – Southern District of Texas (Houston Division), the place I prosecuted a spread of federal legal offenses from violent, IP, and white collar crime. I started my authorized profession as a Texas state prosecutor.

Through the course of my profession as a prosecutor, I skilled judges, prosecutors, and regulation enforcement all around the world on case investigation methods, digital proof assortment, and efficient methods to accomplice with manufacturers in IP investigations. I’ve been in a position to present this similar coaching to our group at Amazon to assist manufacturers defend their IP.

GK: There is no such thing as a doubt that Kebharu has loads of extra colourful tales to share about his exploits each directing the CCU and in his prior authorities expertise. If something, the hassle described above the place he partnered with Apple gives much more validation for the concept public-private partnerships may be potent instruments within the combat towards counterfeiting. It’s no shock, subsequently, that Kebharu and his CCU colleagues are bringing that very same sensibility to their partnerships with model house owners huge and small towards counterfeiters. In my opinion, there isn’t any doubt he’s the correct man, in the correct position, on the proper time.

My because of Kebharu for the insights and cooperation, particularly for his willingness to do that interview proper at the start of the 12 months. I want him and his colleagues at Amazon’s CCU the perfect of luck in 2022 with their essential efforts. There is no such thing as a doubt that fixing the issues posed by counterfeiters requires the participation of execs throughout the IP spectrum, working along with model house owners and retailers like Amazon to try to enhance issues for purchasers. Right here is hoping that the CCU will proceed to seek out success in its efforts.

I’m all the time open to conducting interviews of this sort with different IP thought leaders, so be at liberty to achieve out in case you have a compelling perspective to supply.

Please be at liberty to ship feedback or inquiries to me at gkroub@kskiplaw.com or by way of Twitter: @gkroub. Any subject options or ideas are most welcome.


Gaston Kroub lives in Brooklyn and is a founding accomplice of Kroub, Silbersher & Kolmykov PLLC, an mental property litigation boutique, and Markman Advisors LLC, a number one consultancy on patent points for the funding neighborhood. Gaston’s follow focuses on mental property litigation and associated counseling, with a robust concentrate on patent issues. You may attain him at gkroub@kskiplaw.com or comply with him on Twitter: @gkroub.


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