E-commerce has created an unprecedented level of foreign counterfeit good transactions resulting in many millions of dollars of economic damage to America. The United States International Trade Commission (“ITC”) and the Custom and Border Protection agency (“CBP”) are increasingly popular venues for American intellectual property holders to assert their legal rights. Actions by these agencies have the potential to shut foreign e-commerce competitors out of the U.S. market.
Authorized by 19 U.S.C. Section 1337, the Smoot-Hawley Tariff Act of 1930 allows certain entities to block importation of goods that infringe valid United States intellectual property. Under Section 337 of the act, the ITC conducts investigations into allegations of certain unfair practices in the import trade. Such unlawful practices include the infringement of intellectual property rights and other forms of unfair competition in the import trade. The investigations typically involve an allegation of patent or registered trademark infringement, misappropriation of trade secrets, passing off counterfeit goods or false advertising.
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