Trademark Infringement in Imported Goods
One of the main reasons for seizing imported goods and delaying their release from customs is suspicion that the goods are counterfeit and infringe upon an existing trademark. After the decision to detain the goods is made, whether initiated by customs officials or at the trademark owner’s request, the trademark owner must examine whether an infringement has indeed occurred.
Two Types of Procedures for Handling Goods Detained Under Suspicion of Trademark Infringement
Short Procedure
Under this procedure, the goods are detained at customs for 3-6 working days, during which the trademark owner is requested to verify whether their trademark has been infringed, based on photographs or samples of the goods. If the trademark owner believes that trademark infringement has occurred, they must submit a reasoned opinion to customs, which the goods importer is permitted to review.
Additionally, the trademark owner must commit that if the goods importer sues customs, they will join the customs department as an additional defendant. They must also commit that if the goods detention proves unjustified, they will compensate the customs department and/or the importer for damages caused by the delay. It is important to note that the opinion must be drafted persuasively while avoiding providing counterfeiters with excess information that could assist in future counterfeiting. Therefore, it is highly recommended to consult with an intellectual property attorney who specializes in trademark protection on this matter.
Long Procedure
Under this procedure, the goods are also initially detained for 3-6 days, but during the detention period, the trademark owner must notify customs of their intention to sue the importer within 10 days and attach a bank guarantee to cover expenses and damages that may be caused to customs and/or the importer due to the detention. After the guarantee is deposited, customs informs the trademark owner of the importer’s identity, and typically at this stage, negotiations will take place between the trademark owner and importer to reach a settlement preventing litigation.
The settlement agreement may include actions the importer must take, such as destroying the goods, committing not to import additional products that infringe the trademark, and other measures, and must be approved by customs authorities. If the parties do not reach a settlement, the trademark owner must file a lawsuit in court within a specified time frame, and if they fail to do so, the goods will be released from customs to the importer.
The content in this article and website should not be considered legal advice and should not be seen as a substitute for individual legal consultation but rather as a personal opinion and/or general explanation only. Of course, one should not rely on and/or act according to the above without individual legal consultation from an attorney.*
We would be happy to provide consultation and assistance regarding representation in all matters related to customs detention.
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