PROMOTIONAL PRODUCTS ASSOCIATION INTERNATIONAL

SUBJECT LAST UPDATE

Counterfeit Goods, Patent, Copyright and Trademark Infringement July 2018 APPLIES TO FOCUS ON • Suppliers • Third-party What constitutes counterfeit goods and patent, copyright and • Distributors Decorators trademark infringement, and how to comply with U.S. regulations.

QUICK LINKS Intended for

Product intermediate • PPAI Corporate Responsibility: www.ppai.org/corporate-responsibility compliance

Responsibility industries.ul.com/premiums-promotional-and-licensed-goods programs Best Practices • UL: • Consumer Product Safety Commission: www.cpsc.gov Italic grey text indicates a hyperlink listed in the Online Resources section of this document. Counterfeit Goods Copyright Infringement Counterfeit goods are manufactured goods of lesser quality that Copyrights typically provide protection to the authors of mimic or otherwise duplicate a brand-name good in appearance, original work inclusive of photos, graphic designs, songs, brand name and/or trademark details without the approval of works of art, movies, books, publications and much more. the brand owner. Many goods that are imported into the United Copyright infringement is considered to take place when States are counterfeit. a copyrighted work is reproduced, then publicly displayed or distributed without the copyright owner’s permission. Counterfeit goods are generally indistinguishable from Copyrighted materials are typically noted with a “©” mark patented, copyrighted and/or trademarked goods in on the protected work or product. that they are sold under the brand name of the product being counterfeited. Many genuine and branded products Trademark Infringement may have patent, copyright and trademark protections, A trademark is an easily recognizable sign, symbol, name and counterfeit goods may be in violation of all of these or logo identifying a product or service from a specific intellectual property rights. organization, brand or individual. Trademarks typically protect phrases, words, slogans, names, logos or titles. Patent Infringement Trademark infringement occurs when the trademark is Patent infringement occurs when a product or service used without the authorization of the trademark owner or has violated the rights of the patent owner for a patent licensee. An owner of a trademark may proceed with legal covering all or part of a product or service. Design patents action based on the intent to counterfeit their product or may be issued for the ornamental design of a product and service. Trademarks are usually indicated, adjacent to the are intended to protect the way a product looks. A utility trademarked property, such as a logo or name, with either a patent is another type of patent that is typically granted “™” or “®” mark. to inventors for a new and useful process or way an item is made and used. Manufacturing, selling or importing a Effect On The Promotional Products product in whole or in part which is covered by a patent, Industry without the patent owner’s permission, is considered theft. In the promotional products industry the issues of In short, patent infringement is the unauthorized use of counterfeiting, patent infringement, copyright and property. Patented products usually have a patent number trademark infringement are a real concern for many due printed on or molded into the product or component. to the custom nature of the many products. When an Design patents are denoted with the letter “D” (e.g., organization receives a sample from one supplier, then “Pat. #D12345678”) to represent the patent’s registration sends it to another to duplicate it, they risk infringing on number, while utility patents are typically identified by a a patent, copyright or trademark as they are making a series of numbers without a letter designation (e.g., “Pat. counterfeit product. Thus, the offending party may be #12345678”). Products that are pending patent approval subject to criminal penalties as well as civil liabilities. are usually noted by “Pat. Pending.”

© 2018 Promotional Products Association International (PPAI). This information is furnished by PPAI for educational and informational purposes only. PPAI makes no and expressly disclaims any and all representations and warranties, express or implied, including any warranty of fitness for a particular purpose and/or statements about specific dates, coverage, application or otherwise. Users are advised to consult with appropriate legal counsel or other professional about the specific application of the law or this information to the user’s business and products. PROMOTIONAL PRODUCTS ASSOCIATION INTERNATIONAL

Promotional products professionals often assist in the How To Avoid Counterfeiting Goods And development of products, slogans, artwork and campaigns. Infringing On Patents, Copyrights And Therefore, understanding the difference between copyrights, Trademarks patents and trademarks is critical in order to avoid counterfeiting • Make patent, copyright and trademark reviews a or infringing on another’s rights. standard protocol for custom designed products, as well as trendy items. • Trademarks usually apply to the brand logo itself, for • Conduct business only with established, well-known both hard and soft goods. In order for a slogan, logo,word, industry suppliers. Be extremely cautious when working or phrase to be trademarked it must used as part of the through unknown brokers and importers. brand. • For licensed or branded products, work with authorized suppliers and licensees and request documentation • The application of industry decorations is typically regarding their licenses. considered artwork, which would be covered by • Be mindful that if it sounds too good to be true, it often is. copyright laws with regard to the configuration or • Register your designs, processes, trademarks and design of the artwork only (images and graphic other protectable works in the countries where you designs). Copyright laws typically would not apply to manufacture and sell. the words and phrases in this instance. • Record your patents, copyrights and trademarks with customs offices where your products are imported Consequences so they can be searchable by others seeking to avoid In addition to the legal ramifications of counterfeiting infringement. and patent/copyright/trademark infringement, there are • Monitor websites for your patents, copyrights, often unintended consequences in the form of product trademarks, licenses, etc. responsibility issues. Rarely are counterfeit goods made • Duplicate another’s product only with great caution and to the same specifications and quality standards of the after determining you are not violating any intellectual original product. This poses a legitimate risk for all who use the property laws. product. Additionally, everyone involved in the supply chain will • Search the U.S. Patent and Trademark Office (PTO) be liable should an incident occur. grants when creating custom products. • Check federal and state registers for actual and pending trademark applications. • Do not copy another’s written work without giving proper reference to the source. Online Resources The United States Patent and Trademark Office:www.uspto.gov/page/about-trademark-infringement StopFakes.gov: www.stopfakes.gov/consumer-tools/report-fake-goods United States Department of Commerce: www.commerce.gov/ United States Consumer Product Safety Commission: www.cpsc.gov/ United State Copyright Office: www.copyright.gov/

-2- © 2018 Promotional Products Association International (PPAI). This information is furnished by PPAI for educational and informational purposes only. PPAI makes no and expressly disclaims any and all representations and warranties, express or implied, including any warranty of fitness for a particular purpose and/or statements about specific dates, coverage, application or otherwise. Users are advised to consult with appropriate legal counsel or other professional about the specific application of the law or this information to the user’s business and products.