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CBP/ICE Increasingly Focused on Express Mode, as Indicated by IPR Seizure Statistics for FY 2016

January 17, 2017 by Tim Warren|Top News

CBP and ICE released statistics on their fiscal year 2016 intellectual property rights seizures (here). The statistics show that the number of seizures were up from FY 2015 (see 1604150030), as was the total manufacturer's suggested retail price (MSRP) of the seized goods, CBP said in a press release (here). The number of IPR seizures grew by 9 percent to 31,560 in FY 2016, from 28,865 in FY 2015. The MSRP of these seizures was up from $1.3 billion in FY 2015 to $1.4 billion in FY 2016.

The number of goods seized that come through the express mode of transport continues to grow. Both the number of seizures and the MSRP of goods seized from the express environment eclipsed the same numbers for cargo mode for the first time. During FY 2016, seized goods sent via express made up $614.5 million in MSRP, up from $436.6 million in FY 2015, CBP said. The seizures via express mode as a percentage of the total MSRP also increased, accounting for 44 percent in FY 2016, up from 32 percent the year before. The number of seizures increased by 55 percent to 17,363 during FY 2016, more than in all other modes combined. The increase in express seizures again coincides with a drop in seized cargo, CBP said. Cargo seizures fell 8 percent to $457.7 million in MSRP, from $495.6 million in FY 2015. Cargo seizures as a total of MSRP also fell, making up 33 percent, down from 37 percent a year earlier.

There was a notable increase in seizures in the transportation/parts category during the FY 2016 year, which was largely attributable to counterfeit hoverboards and related batteries, CBP said. The agency also highlighted major seizures of counterfeit "mid-century modern design home and office furniture." CBP seized 42 shipments "that would have had an estimated combined MSRP of $4.2 million if genuine" in response to "an e-allegation concerning persistent and widespread infringement."

China Remains Top Source of Counterfeits

China remains the primary source country for counterfeit and pirated goods, representing 45 percent of all IPR seizures by MSRP, down from FY 2015, when it made up 52 percent of the total MSRP of seized goods. The MSRP fell to $616 million in FY 2016, from $697 million the year before. The number of seized goods originating in Hong Kong increased, now representing 43 percent of the seized goods. The MSRP also increased to $600 million, from $472 million in FY 2015, CBP said. India moved up to third in FY 2016, CBP said. Goods seized from India were worth about $15 million, about 1 percent of the total goods seized, the agency said.

Exclusion Order Enforcement

During FY 2016, CBP completed 165 exclusion order enforcement actions, including 52 seized shipments and 113 excluded shipments, it said. The total number of IPR border enforcement actions was up 11 percent compared with FY 2015, the agency said. CBP also seized 70 shipments of circumvention devices for violations of the Digital Millennium Copyright Act, a 13 percent increase from 62 such seizures in FY 2015, it said.

Watches/Jewelry Continue to Top the List for MSRP

The following commodities were the top IPR seizures in terms of MSRP: