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KIPO booked 2 sellers who sold counterfeits of famous trademark sunglasses and confiscated 517 items.(News Letter No. 533)

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KH

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2024-08-01

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1. KIPO booked 2 sellers who sold counterfeits of famous trademark sunglasses and confiscated 517 items.

- As a result of analysis conducted by a specialized analysis agency, the weak durability of those counterfeits is a threat to consumer safety.

On July 23, 2024, KIPO published that its trademark special judicial police (hereinafter, referred to as a ¡®trademark police¡¯) arrested 2 people including ¡°A¡± (age: 43) online distributing counterfeits of famous trademark sunglasses and fashion glasses in areas of Paju, Geonggi-do, the Republic of Korea, without detention on charges of violating the Korean Trademark Act.
According to the trademark police, these distributors are suspected of selling the counterfeits of famous trademark sunglasses, such as ¡°G¡± trademark (brand), etc., (genuine market price: 56,000,000 Korea Won) at a 30~50% of the normal price at an online shopping mall from October 2022 to Janu 2024, by pretending they were genuine.
The trademark police cracked down on people¡¯s homes in the areas of Paju, Geonggi-do (June 2024), confiscating 517 counterfeit famous brand sunglasses kept by ¡°A¡± who distributed counterfeit sunglasses and fashion glasses.
As the circumstances of trading counterfeit products over a long period of time were also confirmed in the sales ledgers confiscated on the spot, the trademark police has been investigating the remaining charges, including the exact size of the distribution.


For the performance comparison analysis with genuine products, the trademark police requested Korea Optical Industry Agency to evaluate the functionality of the confiscated counterfeit products. As a result of testing the counterfeit products, 3 of 4 were remarkably less durable than genuine products since the glasses frames were damaged during inspection, making measurement impossible. The counterfeit products were analyzed as easily bending or breaking, and when consumers wear glasses, they were found to be damaged even by a light impact, posing a thret to health and safety.


From June 2023, the trademark police conducted four times crackdowns over optical stores, traditional markets, homes, etc., arresting a total of 7 people without detention and confiscating a total of about 1,300 counterfeits of famous brand sunglasses and fashion glasses, etc. (corresponding to genuine market value: 300,000,000 Korea Won).
In most cases, distribution of fake sunglasses was often done secretly though online platforms. However, counterfeit products have been confirmed to be distributed in various ways in offline markets, optical stores, etc.
The trademark police requested consumers to be especially careful since the quality of the counterfeit products is low to result in a threat to consumers¡¯ safety.


2. KIPO starts on-site communication to support communication standard patents.

KIPO visited the network management center of SK Telecom and had an intellectual property (IP)-related on-site communication meeting.
This meeting was arranged to increase the understanding of examiners on the latest network equipment and communication technology and to listen to voices from the industrial field on IP-related issues, etc., providing high quality patent examination services.

In the meeting, KIPO introduced the updated trends of communication standard patents and the importance of standard patents, and SK Telecom introduced the current status of network equipment and the latest technology thereof, etc.
The head of the Electricity & Communications Examination Bureau of KIPO said, ¡°through this meeting, examiners could expand the understanding of the latest technologies in the communication field and the examination quality in the relevant field is expected to better improve by listening to various voices of research developers.¡± The head also added, ¡°KIPO has a plan to expand the communication and cooperation with the research and development spot of 6G technology which is a national core strategical technology.¡±


3. KIPO will open an expanded IP center in Europe.

- KIPO will closely support a Korea company entering Europe in protecting its IP.
- A ceremony to open the European IP center and an IP meeting with a Korean company entering Europe were held (July 12, 2024).

Korean government¡¯s services to protect IP rights of Korean companies entering Europe is strengthened.
On July 12, 2024 KIPO held an opening ceremony of the European IP center and a meeting with local Korean companies in Frankfurt, Germany.
This event was arranged to celebrate the launch of the wide-area European IP center to which the support functions and ranges of an existing overseas IP center (IP-DESK) is reorganized to be expanded from this year.
To provide rapid support for Korean companies located in many countries from this year, KIPO reorganized the overseas IP centers such that ¡ã one center is converted into a wide-area type to comprehensively support neighboring countries and ¡ã on-site support for small and medium companies and mid-sized companies is strengthened by deploying professional manpower, such as lawyers and patent attorneys, etc., to a center. Through this reorganization, Korean companies entering 40 countries are able to get ongoing IP right-related consultation and legal advice by the professional manpower of these centers and the local law offices.

The overseas IP centers (IP-DESK) are located (in 10 places): US (LA, Washington), China (Beijing, Guangzhou), Japan (Tokyo), Europe (Frankfurt), Vietnam (Ho Chi Minh), Thailand (Bangkok), India (New Delhi), Mexico (Mexico City).
EU, the European Economic Community, is South Korea¡¯s third largest trading partner after the United States and China and it is a huge market with over about 2,000 Korean companies operating in it. The EU Unitary Patent system was operated in June 2023. As the number of patent disputes against Korea companies was 45 over the last 5 years, following US and China, a demand for IP protection of Korean export companies is high. Therefore, German IP-DESK located in Frankfurt has been also expanded and reorganized to a wide-area European IP center to support Korean companies entering 10 countries in Europe. Taking an opportunity of launching the European IP center, it is expected to contribute to solving IP difficulties of Korean companies entering Europe.
KIPO had a meeting with local Korean companies entering Europe after the event of the opening ceremony, to listen to difficulties and suggestions in the IP field and discuss the government¡¯s support plan.

The companies participating in the meeting expressed difficulties, such as ¡ã necessity to review the IP-related provisions when creating business contracts with overseas companies, ¡ã lack of information of the government support program, and ¡ãsecuring overseas IP rights, etc., and requested support.
Local IP legal experts indicated the frequently occurring problems that the others (agent, etc.) earlier register without permission a trademark of a Korean company with potential for entering European market, or a Korean company has filed an application late after it already released a new product design to the market. They requested that Korean companies pay attention to securing IP rights, such as trademark, design, patent, etc., in advance before entering overseas markets.


4. International cooperation to support companies entering overseas markets is strengthened.

- KIPO held a bilateral meeting with 10 Patent Offices.
- KIPO concluded MOU for comprehensive cooperation in the IP field with Brazil and Denmark.
- A friendly business environment for Korea companies is created with cooperation with developing countries including India and Brazil, etc.
- Cooperation in examination in the high-tech industry, such as AI, semiconductor, etc., is strengthened to positively support the technological development.

KIPO participated a 65th WIPO general meeting, which was held in Geneva, Switzerland, from July 9~11, 2024, to have bilateral meeting with 10 Patent Offices.
¡ã KIPO concluded a memorandum of understanding (MOU) for comprehensive cooperation in the IP field with 2 Patent Office of Brazil and Denmark, agreeing to cooperation in various fields, such as IP protection and commercialization, exchange of IP data, cooperation in examination, climate change response, etc.
¡ã KIPO also agreed to conclude a comprehensive cooperative MOU with India, Germany and Argentina and to proceed with future relevant procedures.
¡ã In addition, KIPO agreed to strengthen cooperation in examination of the high-tech fields, such as AI, computer technology, semiconductors, etc., with Germany, Australia, Canada and France. KIPO and GB also decided to expand cooperation between the two Patent Offices to support small and medium companies in their IP activities. KIPO also decided to send a KIPO expert to the European Union Intellectual Property Office (EUIPO).

Major cooperative results are as follows:
¨ç (Brazil) The two Patent Offices concluded the comprehensive cooperative MOU and agreed to exchange IP data including patents, trademarks, etc., thereby preparing an environment that a Korean company can search Brazil patent information to prevent duplicate applications from being filed.
¨è (Denmark) The two Patent Offices concluded an IP comprehensive cooperative MOU and agreed to strengthen cooperation in raising awareness of IP, empowerment, IP examination, etc. Notably, the two agreed to share the carbon neutral technology-related experience and know-how.
¨é (Germany) The two Patent Offices agreed to conclude the comprehensive cooperative MOU and to proceed with future practical work discussion. The two also agreed to operate a project to exchange examiners and a collaborative search program to share practical examination work and know-how in the both countries¡¯ strong technological fields, such as cars, computer technology, semiconductors, etc. They agreed to decide on specific details through working-level discussions.
¨ê (India) After US, China, EU and Japan, India is the country where Korean companies filed a lot of patent applications (as of 2022). The two Patent Offices agreed in principle to conclude a future comprehensive cooperative MOU and work plan and to proceed with future practical work discussion.

¨ë (EUIPO) The two Patent Offices discussed an implementation plan, ¡°EU-Republic of Korea IP Action Plan (EU-RoK Action)¡±, such as ¡ã improvement of awareness of IP, ¡ã valuation of IP, ¡ã execution, ¡ã support policy for small and medium companies, etc. In addition, they agreed to dispatch a KIPO expert for cooperation support to EUIPO within this year. Specific time and methods will be discussed in practical terms in the future.


5. organizations including KIPO, Seoul City, among the others, concentrate investigative power on areas with frequently illegal activities.

- 102 counterfeits of famous trademark (brand) products were confiscated and 14 unlicensed yellow tents were demolished.

A ¡®Saebit Market Counterfeit Product Investigation Council¡¯ (hereinafter, referred to as ¡®investigation council¡¯) was formed of KIPO Seoul City, Seoul Jung-gu Office, Seoul Jungbu Police Station (February 2024). The investigation council conducted a 3rd simultaneous joint crackdown in ¡®Saebit Market¡¯ in Dongdamoon, Seoul on July 12, 2024, confiscating 102 counterfeits of famous trademark (brand) products in 5 yellow tents and arresting ¡°A¡± (male, age: 56) who sold counterfeit products, without detention on charges of violating the Korean Trademark Act.

This 3rd simultaneous joint crackdown was conducted when 35 people including investigators of the investigation council unexpectedly entered the market at the same time around 10pm. The investigation council arrested one person, seller of counterfeits, on charges of violating the Trademark Act, and confiscated a total of 102 counterfeits in 2 items, clothing and bags with 18 famous brands G~, C~, L~, etc. It also demolished 14 yellow tents absent the required permit where clothing, etc. were sold.
In the spot where the joint crackdown was conducted, a number of yellow tents absent the required ¡®permit to occupy road¡¯ sold counterfeit products. They are considered as having had business, without the required permit, since they concerned that the permit confirmation and permit cancellation procedures might be carried out when the on-site crackdown of counterfeit products.
In the future, the investigation council will connect an investigation agency¡¯s crackdown over counterfeit products and Jung-gu Office¡¯s demolition measures of a tent without the required permit. Regarding a seller unlawfully interfering with legitimate execution of public power, it will also respond resolutely in cooperation with Seoul Jungbu Police Station.
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