ISSN 2330-717X

Web Domains Selling Counterfeit Goods Seized In Cyber Monday Crackdown

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Seizure orders have been executed against 150 domain names of commercial websites engaged in the illegal sale and distribution of counterfeit goods and copyrighted works as part of Operation In Our Sites, the Department of Justice, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the ICE-led National Intellectual Property Rights Coordination Center (IPR Center), and the FBI Washington Field Office announced.

“Through this operation we are aggressively targeting those who are selling counterfeit goods for their own personal gain while costing our economy much needed revenue and jobs,” said Attorney General Eric Holder. “Intellectual property crimes harm businesses and consumers, alike, threatening economic opportunity and financial stability, and today we have sent a clear message that the Department will remain ever vigilant in protecting the public’s economic welfare and public safety through robust intellectual property enforcement.”

“For most, the holidays represent a season of good will and giving, but for these criminals, it’s the season to lure in unsuspecting holiday shoppers,” said ICE Director John Morton. “More and more Americans are doing their holiday shopping online, and they may not realize that purchasing counterfeit goods results in American jobs lost, American business profits stolen and American consumers receiving substandard products. And the ramifications can be even greater because the illicit profits made from these types of illegal ventures often fuel other kinds of organized crime.”

“The sale of counterfeit goods cheats consumers and robs legitimate businesses—both large and small—of the fruits of their hard-earned work,” said Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. “We will not tolerate those who seek to profit by abusing the Internet and stealing intellectual property at the expense of authors, artists and inventors. The Department of Justice will continue to work aggressively to combat intellectual property crime.”

“The theft of intellectual property, to include the trafficking of counterfeit goods, creates significant financial losses,” said FBI Section Chief Zack Miller of the Cyber Division. “The FBI aggressively pursues intellectual property enforcement through traditional investigative methods, intelligence initiatives and coordinated efforts with private industry and domestic and foreign law enforcement partners.”

The 150 seized domains are in the custody of the federal government. Visitors to the sites will now find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them that willful copyright infringement is a federal crime.

During this operation, federal law enforcement agents made undercover purchases of a host of products, including professional sports jerseys, golf equipment, DVD sets, footwear, handbags and sunglasses, representing a variety of trademarks from online retailers who were suspected of selling counterfeit products. In most cases, the goods were shipped directly into the United States from suppliers in other countries. If the trademark holders confirmed that the purchased products were counterfeit or otherwise illegal, seizure orders for the domain names of the websites that sold the goods and associated websites were obtained from federal magistrate judges.

This operation is the eighth phase of Operation In Our Sites, a sustained law enforcement initiative to protect consumers by targeting counterfeit and piracy on the Internet. This is the second year that a phase of Operation In Our Sites has coincided with Cyber Monday. In November 2010, 82 websites were seized during the Cyber Monday-related operation.

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Since the operation’s June 2010 launch, the IPR Center has seized a total of 350 domain names, and the seizure banner has received more than 77 million individual views.

Of the 350 domain names seized, 116 have now been forfeited to the U.S. government. The federal forfeiture process affords individuals who have an interest in the seized domain names a period of time after the “Notice of Seizure” to file a petition with a federal court and additional time after the “Notice of Forfeiture” to contest the forfeiture. If no petitions or claims are filed, the domain names become property of the U.S. government.

Additionally, a public service announcement (PSA), launched in April 2011, appears on each of the 116 forfeited domain names. This video educates the public about the economic impact of trademark counterfeiting and copyright infringement.

The operation was spearheaded by the IPR Center in coordination with the FBI’s Washington Field Office, the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division and eight U.S. Attorneys’ Offices, including the District of Maryland, Southern District of Texas, Western District of Texas, District of Minnesota, Eastern District of Michigan, Eastern District of Louisiana and District of Colorado.

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