A Tale of Two Countries - Preventing Transshipping of Counterfeit Goods

Posted on March 16, 2010 by Edward Joffe


As reported by John MacKenzie, an intellectual property attorney at the UK law firm, Pinsent Masons, a British court has held that UK authorities lack authority to seize counterfeit goods passing through the UK.

A haul of 400 fake Nokia phones was seized by Her Majesty's Revenue and Customs (HMRC) as they passed through Heathrow Airport. Nokia confirmed that they were fakes and asked HMRC to impound them under the Counterfeit Goods Regulations. The phones, though, were only in transit, travelling from Hong Kong to Colombia, both outside of the EU. HMRC refused to impound the phones because trade mark infringement could only have taken place if trading had taken place, and that was only possible if the goods had been put on the market.When Nokia sued, the High Court backed HMRC.
"Infringement of registered trade mark requires goods to be placed on the market and that goods in transit and subject to suspensive customs procedures do not, without more, satisfy this requirement," said Mr Justice Kitchin in the ruling. "A mere risk that the goods may be diverted is not sufficient to justify a conclusion that the goods have been or will be put on the market."
The High Court said that the Regulations did allow the impounding of goods if there was a risk that they would end up on the open market in the EU, but said that this was clearly not the case here.
The UK Regulations are derived from an EU regulation. Nokia has appealed the High Court ruling and the Court of Appeal has asked the EU's highest court, the Court of Justice, to decide whether or not fake goods in transit through the EU from one non-EU country to another can be seized by customs authorities.

This approach is in sharp contract with the practice of the US courts and the US Customs and Border Protection both of which consistently  have upheld the seizing of counterfeit goods even if only being transshipped through the US.
 

Surely the EU will correct this regulatory misstep. Until then Heathrow Airport will continue to be a funnel for the trafficking of counterfeit goods worldwide.
 

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Chinese Bulk Carriers Going Green

Posted on December 6, 2009 by Edward Joffe

Peter T. Leach of the Journal of Commerce reports that: British classification society Lloyd’s Register and Shenzhen-listed Shanghai Bestway Marine Engineering Design (Bestway) are to jointly develop a new fuel-efficient bulk carrier in response to increasing pressure from owners and regulators for shipbuilders to offer environmentally friendlier and more cost-effective vessels.
“Economic and legislative drivers are motivating designers to reconsider the environmental impact of their products. In the foreseeable future, the environmental impact of commercial ships will increasingly influence their designs, the way they’re operated and their eventual disposal,” said Nick Brown, Country and Marine Manager, China, LR. “As one of our Group mandates is to promote and support safe and sustainable shipping, we are bringing our expertise to the table to support the maritime industry as it searches for greener forms of trade transport.”

The project will be divided into two work packages: energy-efficiency research into the ship’s hull and systems; and technical approval and implementation of the proposed solutions.
Work will focus on finding energy-efficient alternatives for a 35,000-Dwt “Handysize” bulk carrier.
“We are investing in green-ship technology to develop innovative solutions and ensure that we are in a position to meet the demand for the green-ship designs that are increasingly sought-after by owners,” said Liu Nan, Bestway Board Chairman and General Manager. “We are therefore delighted to be able to work with Lloyd’s Register on this research project, which has the ultimate aim of developing a green design with maximum energy efficiency and minimum environmental impact.”

 

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