Meaning
National enforcement frameworks administered by the General Administration of Customs prevent the import and export of goods that violate intellectual property rights. This customs protection of ip rights covers patents, trademarks, and copyrights that have been registered with the customs authorities. It allows officers to actively intercept infringing shipments at the border without waiting for a court order.
Registration System
Rights holders must submit detailed information about their intellectual property, including registration certificates, product photos, and lists of authorized manufacturers, to the central database. This registry is accessed by customs officers at all ports of entry and departure to verify the legitimacy of shipments. The customs protection of ip rights is most effective when the database is kept current with the names of authorized distributors and shipping routes.
This proactive registration allows the authorities to spot suspicious shipments during routine scans of export manifests.
Customs Seizure
When officers detect a suspected shipment, they suspend clearance and notify the rights holder, who has a short window to confirm the infringement and provide a bond. This phase of customs protection of ip rights requires the applicant to act quickly to prevent the goods from being released. If the rights holder fails to provide the required security deposit, the shipment must be allowed to proceed.
When the deposit is paid, customs conducts an investigation to determine if the goods are indeed infringing.
Administrative Power
Customs has the authority to confiscate infringing goods, impose fines on the exporter, and destroy the seized products or donate them to charity. This customs protection of ip rights represents a swift and cost-effective alternative to full-scale court litigation for rights holders. For manufacturing companies, maintaining compliance with these rules is necessary to avoid having their shipments detained at the port.
It ensures that legitimate traders are not penalized by the actions of non-compliant competitors.