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Newsletter | Articles How Confiscation Can Be Used Strategically to Combat IP Piracy and Counterfeiting in the European Union Damage is being caused to the intellectual property (IP) of EU companies through piracy and counterfeiting by entities operating in non-EU member states. This is why manufacturers of branded goods must do everything they can to protect themselves, which could include a coordinated confiscation of infringing goods throughout the EU – including trade fairs. Companies, especially branded-goods manufacturers, have spent considerable time and money acquiring intellectual property (trademarks, patents and copyrights etc). When IP rights are violated companies could experience lost profits, damage to or dilution of their product reputation and loss of market share. Consumers are also affected by counterfeit goods and are misled about the origin and quality of the goods. Losses can be suffered, including damage to health because of counterfeit goods inferior or defective quality. When IP rights owners react to IP infringements the remedies are limited. Many EU manufacturers are using confiscation procedures to prevent the importation of counterfeit goods into the EU. Confiscation to combat IP privacy is effective. In 2006 German customs officials seized illegally copied goods valued at €1.2 billion, which is more than five times the 2005 figure of €213.4 million. A special target area for EU-wide seizures is international trade fair exhibitions, where numerous innovative products and trends are presented. Imitators use this as a source of information for piracy. An increasing number of forgeries are exhibited at trade fairs that are difficult to differentiate from the original. An EU confiscation application should be submitted to custom authorities in the event of an existing falsification risk. When the confiscation application is submitted to a national customs office, all EU customs authorities are alerted. If infringed goods are discovered on shipments the customs authority retains them for examination and informs the holder of the IP right. The holder can verify the suspicion. If goods that infringe IP rights appear in EU trade confiscation is possible. In most cases judicial proceedings follow to establish the IP right infringement. The customs authorities have only a holding function. The owner of the IP right has to document the protection of his rights either out-of-court, by obtaining a cease-and-desist declaration and formal obligation from the infringer (aims to destroy the goods), or through judicial action. Confiscation applications remain in force for 12 months, but may be renewed annually.