The Facts of IP Crimes
Kris Buckner, Investigative Consultants
The facts about Intellectual Property Crimes (IP Crimes) are really simple. IP Crimes, including trademark counterfeiting and piracy are an ever growing problem that endanger the foundation of our world and local economies. Not to mention that these crimes provide an easy source of revenue for gang members, organized crime groups, and even terrorist organizations. All of us and our communities are the victims in these types of crimes.
There is nothing positive that comes from the sales of counterfeit or pirated merchandise. In fact, everything about these crimes is negative. The people involved in the manufacturing, distribution, and sales of counterfeit trademarked merchandise are stealing. There is no difference than going into a store and taking merchandise without paying for it. The taking of someone’s intellectual property is theft, plain and simple.
The owners and creators of Intellectual Property are creative and innovative people who have worked hard to develop and create a product to share with the world. These creative minds spend years and thousands of their hard earned dollars to create and make their dreams come true. Why should a counterfeiter be allowed to come along and steal what someone else worked so hard on to create? Trademark counterfeiting is theft!
Too many people look at counterfeiting as a victimless crime and have the mentality that it is ok because “no one is getting hurt.” People are getting hurt and people are dying from counterfeit goods every year. There are numerous cases involving counterfeit goods that have resulted in hundreds of deaths. During the investigations that Investigative Consultants has conducted over the past 15 years, we have seen some very serious cases.
Counterfeiters have been known to use child labor in their production of the counterfeit goods. There have been cases where the workers making the counterfeit goods have been locked inside of factories. If there were a fire, the workers would have no way of escaping. The disregard that counterfeiters and pirates have for human life is amazing. The only thing the counterfeiters care about is the money and nothing else.
Our economy suffers in many ways. We are losing billions of dollars a year in lost tax revenue. Most counterfeiters are not paying their fair share of taxes, if any at all. There have been numerous cases where counterfeiters claim they make $ 12,000 a year, however have millions of dollars a year going through their bank accounts. The math never adds up.
During an investigation of a “street vendor” in Los Angeles, who sold pirated music, law enforcement obtained a search warrant for the vendor’s home. Law enforcement located over $ 40,000 in cash and $ 700,000 in bank accounts, along with several thousand pirated music CDs. Law enforcement also learned that the subject owned the home, valued at $ 330,000 outright. The problem is the subject was also collecting public assistance and did not pay taxes.
There have been numerous cases, where hundreds of thousands of dollars in cash have been recovered from the subjects of a counterfeiting investigation, who claim that they were “barely surviving” or they were just trying to “feed their kids.” Do not believe the tall tales that counterfeiters tell of poverty and “just getting by.” The counterfeiters are not legitimately contributing to our economy or to our communities.
In many cases, counterfeiters and pirates are paying their employees “under the table” and do not provide benefits or pay into Social Security or Workers Compensation. Counterfeiters will argue that they are creating jobs. However, aren’t all employees entitled to the protections that the law provides? When these workers are working for counterfeiters, they are often subjected to poor and dangerous working conditions. Most of these criminal organizations care nothing for the well being of the people working for them and are only concerned with their employees making them money.
How can legitimate small business owners compete with the businesses in their area selling counterfeit goods?
Friday, December 4, 2009
Tuesday, November 3, 2009
Trademark Counterfeiting
By Kris Buckner, Investigative Consultants
Trademark Counterfeiting has been in existence for hundreds of years. A trademark is a “mark” that is used in commerce to differentiate one persons goods from another’s. That is a very simple definition. A trademark creates a sense of uniqueness that consumers identify with a particular brand or company.
Companies can spend years and millions of dollars in developing and building their brand and their trademarks. Branding and developing consumer confidence & demand are key components to success for any company that wants to succeed in the marketplace.
The intellectual property of a company is one of the most valued assets that drive the success of a company. With that being said, it is important to protect what has driven the success of a brand. Trademark counterfeiters can’t be allowed to profit from the fruits of someone else’s hard work and commitment.
If counterfeiters are allowed to sell counterfeit goods, they will eventually “tarnish” the brand so badly that consumers will no longer have faith and confidence in the brand and will no longer be loyal customers. Trademark counterfeiting diminishes the value of a brand greatly.
Counterfeiters are thieves, who do not care who they hurt or possibly even kill from their criminal activity. There have been cases of trademark counterfeiting involving aircraft parts, brake pads, medicines, food items, batteries, and Christmas tree lights.
You name it and counterfeiters will fake it. They do not care who they harm as long as they are making money. There are numerous cases of counterfeiting that have actually resulted in the deaths of innocent people.
There is no brand owner that is immune from counterfeiters. The counterfeiters not only target the large and famous brands, they will also target the small upcoming brands that are just starting to make their mark in the marketplace. Counterfeiters can “kill” a brand before that brand ever truly takes off.
In order for a trademark to be protected, the mark must be registered. In the United States of America, the mark can be registered with the United States Patent and Trademark Office (USPTO) or in each individual state.
Most brand owners register their trademarks with the USPTO. The USPTO’s website is USPTO.GOV. The site can be searched to determine if a mark is actually registered. It is important for law enforcement to confirm that a mark is actually registered prior to taking any enforcement action. It is also important that the mark is registered in the appropriate class of goods.
For brand owners, it is important to register every mark that they will want to protect. Without a mark being registered, the options for protecting the mark are extremely limited and may not be able to be handled in the criminal arena.
Counterfeiters have been known to check the USPTO’s website to see what marks are and are not registered. When they find a mark that is not registered, they will immediately start counterfeiting that mark because they know law enforcement won’t take any action against them.
Counterfeiters are not dumb uneducated people, to the opposite, they are very smart ingenious people who see trademark counterfeiting as an easy way to make large sums of money and face little risk.
The Violation
The violation of trademark counterfeiting occurs when someone uses someone else’s registered trademark without their permission. There are both federal and state criminal statutes that apply to trademark counterfeiting and allow for criminal prosecution of counterfeiters.
It is important to review and learn the correct statute that applies and ensure that the “elements of the crime” are present to take any criminal enforcement action. The following things should be present when pursuing a trademark counterfeiting criminal enforcement action:
• The mark in question is a registered trademark
• The subject did not have authorization to use the trademark
• An Expert witness confirms the items are counterfeit
• The subject knew or should have known the items were counterfeit
The above factors are key elements to any successful criminal enforcement action. Remember, Intellectual Property Crimes are generally looked at as “victimless” crimes and most people do not see it as a big deal. That is why it is important to do a thorough job in any investigation that is conducted. The key factor in counterfeiting cases is usually proving knowledge on part of the subject.
If you are a law enforcement officer and would like a free copy of “Law Enforcement Guide to Working Trademark Counterfeiting Case,” please email Investigative Consultants at info@investigativeconsultants.com.
To learn more about trademark counterfeiting and protecting intellectual property rights, contact Investigative Consultants;
Investigative Consultants
http://www.investigativeconsultants.com/
310-978-4554
Trademark Counterfeiting has been in existence for hundreds of years. A trademark is a “mark” that is used in commerce to differentiate one persons goods from another’s. That is a very simple definition. A trademark creates a sense of uniqueness that consumers identify with a particular brand or company.
Companies can spend years and millions of dollars in developing and building their brand and their trademarks. Branding and developing consumer confidence & demand are key components to success for any company that wants to succeed in the marketplace.
The intellectual property of a company is one of the most valued assets that drive the success of a company. With that being said, it is important to protect what has driven the success of a brand. Trademark counterfeiters can’t be allowed to profit from the fruits of someone else’s hard work and commitment.
If counterfeiters are allowed to sell counterfeit goods, they will eventually “tarnish” the brand so badly that consumers will no longer have faith and confidence in the brand and will no longer be loyal customers. Trademark counterfeiting diminishes the value of a brand greatly.
Counterfeiters are thieves, who do not care who they hurt or possibly even kill from their criminal activity. There have been cases of trademark counterfeiting involving aircraft parts, brake pads, medicines, food items, batteries, and Christmas tree lights.
You name it and counterfeiters will fake it. They do not care who they harm as long as they are making money. There are numerous cases of counterfeiting that have actually resulted in the deaths of innocent people.
There is no brand owner that is immune from counterfeiters. The counterfeiters not only target the large and famous brands, they will also target the small upcoming brands that are just starting to make their mark in the marketplace. Counterfeiters can “kill” a brand before that brand ever truly takes off.
In order for a trademark to be protected, the mark must be registered. In the United States of America, the mark can be registered with the United States Patent and Trademark Office (USPTO) or in each individual state.
Most brand owners register their trademarks with the USPTO. The USPTO’s website is USPTO.GOV. The site can be searched to determine if a mark is actually registered. It is important for law enforcement to confirm that a mark is actually registered prior to taking any enforcement action. It is also important that the mark is registered in the appropriate class of goods.
For brand owners, it is important to register every mark that they will want to protect. Without a mark being registered, the options for protecting the mark are extremely limited and may not be able to be handled in the criminal arena.
Counterfeiters have been known to check the USPTO’s website to see what marks are and are not registered. When they find a mark that is not registered, they will immediately start counterfeiting that mark because they know law enforcement won’t take any action against them.
Counterfeiters are not dumb uneducated people, to the opposite, they are very smart ingenious people who see trademark counterfeiting as an easy way to make large sums of money and face little risk.
The Violation
The violation of trademark counterfeiting occurs when someone uses someone else’s registered trademark without their permission. There are both federal and state criminal statutes that apply to trademark counterfeiting and allow for criminal prosecution of counterfeiters.
It is important to review and learn the correct statute that applies and ensure that the “elements of the crime” are present to take any criminal enforcement action. The following things should be present when pursuing a trademark counterfeiting criminal enforcement action:
• The mark in question is a registered trademark
• The subject did not have authorization to use the trademark
• An Expert witness confirms the items are counterfeit
• The subject knew or should have known the items were counterfeit
The above factors are key elements to any successful criminal enforcement action. Remember, Intellectual Property Crimes are generally looked at as “victimless” crimes and most people do not see it as a big deal. That is why it is important to do a thorough job in any investigation that is conducted. The key factor in counterfeiting cases is usually proving knowledge on part of the subject.
If you are a law enforcement officer and would like a free copy of “Law Enforcement Guide to Working Trademark Counterfeiting Case,” please email Investigative Consultants at info@investigativeconsultants.com.
To learn more about trademark counterfeiting and protecting intellectual property rights, contact Investigative Consultants;
Investigative Consultants
http://www.investigativeconsultants.com/
310-978-4554
Wednesday, October 21, 2009
Gangs and Intellectual Property Crimes
Gangs & Intellectual Property Crimes
By Kris Buckner, Investigative Consultants
Trademark Counterfeiting, Piracy, and other Intellectual Property Crimes are the perfect types of crimes for gang members and organized crime groups to be involved in.
The answer why is very simple. These criminals face very low risk, however the rewards are extremely great. These crimes are all about the money. Most people do not realize the money that can be made by engaging in the theft of someone’s intellectual property. Intellectual property theft is estimated to be a 500 billion dollar a year problem.
Gang members and other criminals can make more money selling counterfeit goods than by committing robberies, selling dope, or carrying out their other normal street hustling crimes. Counterfeiters can make tens of thousands of dollars a month hawking their counterfeit shoes, handbags, or other assorted products.
It is amazing how much demand exists for counterfeit goods, so this creates the “Perfect Storm” for the gangsters to make big money. If the demand is there, someone will supply what the consumer wants. Whether it is drugs, counterfeit goods, or whatever else.
The gangsters face little risk of going to prison for trademark counterfeiting or piracy; however they are making money hand over fist selling counterfeit goods. They are making the same amount of money as if they were selling kilos of Cocaine.
Remember, if you get caught selling kilos of Cocaine, you are going to prison for years. So why sell kilos of Cocaine, when you can sell counterfeit goods and make just as much money and not risk going to prison for years?
Gang members take advantage of every aspect of Intellectual Property Crimes. In areas that have high concentrations of stores and street vendors, gang members have been known to “tax” the local vendors to allow them to sell their counterfeit goods. In one case in Los Angeles, two 18th Street Gang Members were arrested after shooting and killing a three week old child.
It was reported that the 18th Street gang members approached a vendor that was selling pirated DVD movies on the street. The vendor had his new born son with him. The gang members demanded that he pay them “tax” for selling the DVDs in their area. When the vendor refused, they shot at him. The bullet that was fired struck and killed his young son.
In another case, gang members suspected that a “fellow” seller of counterfeit items had “ratted” them out to law enforcement and reveled where they were getting their counterfeit merchandise. The gangsters chased the subject down and stabbed him multiple times, then they set him on fire and left him in the street to die.
The Los Angeles County Sheriff’s Department investigated a trademark counterfeiting case involving sunglasses, perfumes, and shoes. One of the subjects arrested turned out to be a previously deported El Monte Flores Gang member with a history of violence towards law enforcement. The subject’s father turned out to be a high ranking member of Le Eme, The Mexican Mafia. During the investigation, law enforcement seized over 2 million dollars worth of counterfeit goods.
There are many stories of hard core gang members and their associates becoming involved in trademark counterfeiting and piracy. There are documented cases involving the following gangs:
• MS-13
• 18TH Street
• East Coast Crips
• Grape Street Crips
• El Monte Flores
• 36th Street Gang
• Rough Riders
• 4 Trey Crips
• 42nd Street Little Gangsters
• Slauson Boys
• Compton Crips
• Raymond Street Crips
• Southside Montebello
• 190 East Coast Crips
• Los Carnales
• Compton Varrio 155
• Rolling 60’s
• Watergate Crips
• Skyline Pirus
• Hells Angels
The trademark counterfeiting and piracy laws are in place, however it is not often when counterfeiters are ever sentenced to lengthy prison terms. Until these gang members feel that counterfeiting is no longer worth the risk, they will continue to become deeply involved in trademark counterfeiting and piracy and reap large financial benefits.
Gang members are not stupid people, in fact they are very resourceful and creative. They are clearly learning that engaging in intellectual property theft can be very lucrative. In the past few years, there has been a dramatic increase in gang related trademark counterfeiting cases.
It is important to realize that Intellectual Property Crimes create a huge opportunity for the gangsters to make money to fund their other criminal activities, such as drug trafficking, extortion, identity theft, murders, human trafficking, and other serious and violent crimes.
The easy opportunity that these crimes create must be taken away from these serious criminals. The gangsters must not be allowed to engage in Intellectual Property Theft to benefit their violent criminal organizations.
To learn more about protecting intellectual property, visit
http://www.investigativeconsultants.com/
To report Counterfeiting or for more information please contact:
310-978-4554
Info@Investigativeconsultants.com
By Kris Buckner, Investigative Consultants
Trademark Counterfeiting, Piracy, and other Intellectual Property Crimes are the perfect types of crimes for gang members and organized crime groups to be involved in.
The answer why is very simple. These criminals face very low risk, however the rewards are extremely great. These crimes are all about the money. Most people do not realize the money that can be made by engaging in the theft of someone’s intellectual property. Intellectual property theft is estimated to be a 500 billion dollar a year problem.
Gang members and other criminals can make more money selling counterfeit goods than by committing robberies, selling dope, or carrying out their other normal street hustling crimes. Counterfeiters can make tens of thousands of dollars a month hawking their counterfeit shoes, handbags, or other assorted products.
It is amazing how much demand exists for counterfeit goods, so this creates the “Perfect Storm” for the gangsters to make big money. If the demand is there, someone will supply what the consumer wants. Whether it is drugs, counterfeit goods, or whatever else.
The gangsters face little risk of going to prison for trademark counterfeiting or piracy; however they are making money hand over fist selling counterfeit goods. They are making the same amount of money as if they were selling kilos of Cocaine.
Remember, if you get caught selling kilos of Cocaine, you are going to prison for years. So why sell kilos of Cocaine, when you can sell counterfeit goods and make just as much money and not risk going to prison for years?
Gang members take advantage of every aspect of Intellectual Property Crimes. In areas that have high concentrations of stores and street vendors, gang members have been known to “tax” the local vendors to allow them to sell their counterfeit goods. In one case in Los Angeles, two 18th Street Gang Members were arrested after shooting and killing a three week old child.
It was reported that the 18th Street gang members approached a vendor that was selling pirated DVD movies on the street. The vendor had his new born son with him. The gang members demanded that he pay them “tax” for selling the DVDs in their area. When the vendor refused, they shot at him. The bullet that was fired struck and killed his young son.
In another case, gang members suspected that a “fellow” seller of counterfeit items had “ratted” them out to law enforcement and reveled where they were getting their counterfeit merchandise. The gangsters chased the subject down and stabbed him multiple times, then they set him on fire and left him in the street to die.
The Los Angeles County Sheriff’s Department investigated a trademark counterfeiting case involving sunglasses, perfumes, and shoes. One of the subjects arrested turned out to be a previously deported El Monte Flores Gang member with a history of violence towards law enforcement. The subject’s father turned out to be a high ranking member of Le Eme, The Mexican Mafia. During the investigation, law enforcement seized over 2 million dollars worth of counterfeit goods.
There are many stories of hard core gang members and their associates becoming involved in trademark counterfeiting and piracy. There are documented cases involving the following gangs:
• MS-13
• 18TH Street
• East Coast Crips
• Grape Street Crips
• El Monte Flores
• 36th Street Gang
• Rough Riders
• 4 Trey Crips
• 42nd Street Little Gangsters
• Slauson Boys
• Compton Crips
• Raymond Street Crips
• Southside Montebello
• 190 East Coast Crips
• Los Carnales
• Compton Varrio 155
• Rolling 60’s
• Watergate Crips
• Skyline Pirus
• Hells Angels
The trademark counterfeiting and piracy laws are in place, however it is not often when counterfeiters are ever sentenced to lengthy prison terms. Until these gang members feel that counterfeiting is no longer worth the risk, they will continue to become deeply involved in trademark counterfeiting and piracy and reap large financial benefits.
Gang members are not stupid people, in fact they are very resourceful and creative. They are clearly learning that engaging in intellectual property theft can be very lucrative. In the past few years, there has been a dramatic increase in gang related trademark counterfeiting cases.
It is important to realize that Intellectual Property Crimes create a huge opportunity for the gangsters to make money to fund their other criminal activities, such as drug trafficking, extortion, identity theft, murders, human trafficking, and other serious and violent crimes.
The easy opportunity that these crimes create must be taken away from these serious criminals. The gangsters must not be allowed to engage in Intellectual Property Theft to benefit their violent criminal organizations.
To learn more about protecting intellectual property, visit
http://www.investigativeconsultants.com/
To report Counterfeiting or for more information please contact:
310-978-4554
Info@Investigativeconsultants.com
Monday, February 16, 2009
LONG BEACH ANTI-COUNTERFEITING TASKFORCE
The Investigative Consultants team assisted The Long Beach Police Department’s Directed Enforcement Team in a anti-counterfeiting taskforce action recently. The Long Beach PD identified four locations where gang activity was occurring and that they believed may also be involved in the sales of counterfeit goods. Undercover investigators conducted multiple undercover buys from the locations. The owner’s of each of the locations admitted that they were selling counterfeit goods.
Long Beach PD officers obtained search warrants for all four locations. The warrants were served and a total of six arrests were made. Law enforcement recovered a large quantity of counterfeit shoes, jeans, and other clothing items. Officers also recovered drugs and several handguns. One of the handguns that was recovered had reportedly been stolen from a law enforcement officer. This was a great intellectual property enforcement action carried out by the Long Beach Police Department.
By Investigative Consultants
Friday, February 6, 2009
OPERATION "DESIGNED jUSTICE"
Law enforcement officials from around Northern California successfully wrapped up Operation “Designed Justice” with the arrests of multiple subjects and the seizure of millions of dollars worth of counterfeit goods. Operation Designed Justice involved the US Secret Service, Federal Bureau of Investigation, Internal Revenue Service, Immigration Customs Enforcement, US Attorney’s Office, State Parole, Sacramento County Sheriff’s Department, Placer County Sheriff’s Department, Sacramento Police Department, Galt Police Department, Lodi Police Department, Elk Grove Police Department and a team from Investigative Consultants. The operation was spearheaded by Detective Jim Hudson of the Placer County Sheriff’s Department and Special Agent Kelly Shintaku of the U.S. Secret Service.
The operation targeted major distributors of all types of counterfeit goods that were being distributed from the Galt Flea Market in Galt, California. During the investigation of the subjects, it was determined that several of the targets were actually importing the counterfeit goods directly from China and were also involved in other serious crimes.
At first glance, one would believe that the subjects at the flea market were “small time” swap meet type vendors. Law enforcement learned very quickly that this was not the case. The subjects of the investigation were selling all types of counterfeit goods, including counterfeit electrical items. Samples of the counterfeit electrical items were tested for safety. The tests revealed that the electrical items were actually very dangerous and posed a serious safety risk.
During the operation, law enforcement was able to identify numerous storage areas that were being used to store counterfeit goods, along with a residence that was being used to manufacture counterfeit handbags and wallets. Several of the subjects are being prosecuted federally, while others face state counterfeiting charges. This operation was a huge success and is a true example of how several law enforcement agencies can come together to destroy an ongoing criminal enterprise. Job well done.
The operation targeted major distributors of all types of counterfeit goods that were being distributed from the Galt Flea Market in Galt, California. During the investigation of the subjects, it was determined that several of the targets were actually importing the counterfeit goods directly from China and were also involved in other serious crimes.
At first glance, one would believe that the subjects at the flea market were “small time” swap meet type vendors. Law enforcement learned very quickly that this was not the case. The subjects of the investigation were selling all types of counterfeit goods, including counterfeit electrical items. Samples of the counterfeit electrical items were tested for safety. The tests revealed that the electrical items were actually very dangerous and posed a serious safety risk.
During the operation, law enforcement was able to identify numerous storage areas that were being used to store counterfeit goods, along with a residence that was being used to manufacture counterfeit handbags and wallets. Several of the subjects are being prosecuted federally, while others face state counterfeiting charges. This operation was a huge success and is a true example of how several law enforcement agencies can come together to destroy an ongoing criminal enterprise. Job well done.
Thursday, February 5, 2009
SHOES, SUNGLASSES, AND PERFUMES???
The Los Angeles County Sheriff’s Department, COPS Bureau has become very active in pursuing counterfeiting and piracy cases. Sergeant Sandecki and his team from COPS Bureau recently wrapped up a major investigation involving the sales, distribution, and manufacturing of counterfeit merchandise. Sandecki’s case involved a subject that was importing blank sunglasses into the United States from China. Once the subject received the sunglasses here, the subject would have the sunglasses printed with the counterfeit trademarks. The subject was operating from a warehouse in Santa Fe Springs, California and was having the sunglasses printed in a small apartment in Los Angeles.
Sergeant Sandecki obtained a search warrant for both locations. The warrants were served simultaneously and multiple subjects involved in the operation were arrested. Sandecki and his team recovered counterfeit shoes, sunglasses, and perfumes valued at over $ 3,000,000. One of the subjects was found to be a documented violent gang member, who had been previously deported from the United States. ICE was called to the scene to assist LASD. ICE took custody of the subject, who will now be spending some quiet time in a federal prison. Nice team effort.
By Investigative Consultants
Wednesday, February 4, 2009
TRAINING AND EDUCATION
On 1-22-09, The IACC Foundation, Investigative Consultants, and the Los Angeles County Sheriff’s Department hosted another successful training event. The training was attended by over 190 law enforcement officials from throughout California and numerous brand owners. A special thanks to Captain Berner, Lt. Stedman, Sergeant Munson, Sergeant Sandecki, Deputy DA Yabuno, Officer Siurek, James Hooper, and all the attendees, who made this event a huge success.By Investigative Consultants
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