This bill expands the information U.S. Customs and Border Protection can share with intellectual property rights holders regarding suspected counterfeit or infringing goods.
Blake Moore
Representative
UT-1
This bill amends the Tariff Act of 1930 to enhance the sharing of information between U.S. Customs and Border Protection (CBP) and intellectual property rights holders regarding suspected counterfeit or infringing goods. It lowers the threshold for sharing information and expands the types of data CBP can provide, including images and certain nonpublic third-party data. The legislation also broadens the range of interested parties who can receive this crucial information.
Ever wonder how all those knock-off goods make it onto your favorite online marketplaces? A new legislative move is aiming to give intellectual property (IP) rights holders a bigger hammer to whack down on counterfeiters at the border. This bill is all about expanding what U.S. Customs and Border Protection (CBP) can share when they think something fishy is going on.
Right now, CBP can share information with brands when they suspect merchandise violates IP rights. This bill changes that threshold to a slightly lower bar: reasonable suspicion. Think of it like this: instead of needing to be pretty sure, they just need a good hunch. More importantly, it dramatically expands what they can share. We're talking images of the actual merchandise, its packaging, and even the shipping containers. But here's the kicker: they can also share "nonpublic information generated by online marketplaces, express consignment operators, freight forwarders, or other entities involved in the sale or importation of merchandise into the United States." That's a mouthful, but it means data from the platforms you use to shop, or the companies that ship your stuff, could be on the table. If CBP shares this kind of nonpublic data, they're also required to tell the rights holder where it came from.
Currently, only the IP rights holder gets this info. This bill adds "any other party with an interest in the merchandise, as determined appropriate by the Commissioner" to the list of recipients. This is where things get a bit interesting. While it's great for brands to get more tools to fight fakes, that phrase "any other party with an interest" is pretty broad. It gives the CBP Commissioner a lot of wiggle room to decide who else gets a peek at this potentially sensitive data. The idea is to make it easier to track down and stop counterfeit goods, but how that broad authority gets used in practice will be something to watch.
For you, the consumer, the hope is that this leads to fewer fake products making it into the country. If brands have more information earlier in the process, they can act faster to stop bad actors. This could mean a more reliable online shopping experience, especially for branded goods. For businesses, particularly those with valuable trademarks or patents, this is a significant win, giving them more ammunition to protect their creations. However, for the online marketplaces and shipping companies, it means their nonpublic data could be shared more frequently. While the goal is to combat illegal activity, the broadness of who can receive this information and the types of data that can be shared will be key to how this plays out in the real world.