Anti-counterfeiting Law Will Help Protect Shows

Last month, President Bush signed into law a bill that gives owners of intellectual property rights, including those exhibiting at tradeshows, further protection from the theft of their creations.

Republican U.S. Rep. Joe Knollenberg of Michigan introduced the bill, H.R. 32, which does two things to strengthen existing anti-counterfeiting legislation.

First, it requires that counterfeited goods, and assets that can be traced, be seized and destroyed, whereas before punishment was up to the courts. It also permits the forfeiture of any equipment used to make the counterfeits.

Second, H.R. 32 clarifies existing laws on counterfeit labels, which before allowed the sale of patches or tags bearing copyrighted brand names as long as they weren't attached, at the time of purchase, to a knock-off.

The bill used the example of Donald Giles' Fabulous Fakes business, which produced fashion accessories meant to look like those of big-name designers. Alongside a purse, for instance, one could buy a tag with the Dooney & Bourke logo. When Dooney & Bourke sued Giles, a court found that Giles' practice was not illegal according to the existing statute.

Now, however, it would be.

That is the "real importance of the bill," in the opinion of Steven Hacker, president of the Intl. Assn. for Exhibition Management, which, on the same day the bill was signed, released to members its tool kit for protecting intellectual property at events.

"This makes it illegal to produce counterfeit labels, including identifiers of country of origin, which is important for customs inspections and brand labels," Hacker continued. "It's a material extension of the law, so these clever pirates have less room to maneuver."

He said this is particularly important for public shows, where consumers can buy goods, but also useful for tradeshows where intellectual property law covers products on display.

Stuart Gosswein agreed. As director of federal government affairs for the Specialty Equipment Market Assn., Gosswein has lobbied in support of the bill in conjunction with the Coalition Against Counterfeiting and Piracy, a multi-industry effort headed by the U.S. Chamber of Commerce.

"One of the things that's been happening the last few years is, industry has come to terms with the fact that counterfeiting is a problem," Gosswein said. Through the CACP, trade associations and individual companies are "working with Congress to educate them on the serious implications of counterfeiting. Now, there are many government initiatives to help companies address piracy."

SEMA has been more aggressive than most show management organizations in helping exhibiting companies protect themselves from IP violations at its SEMA Show, ranked No. 4 on the most recent Tradeshow Week 200.

But both Hacker and Gosswein are quick to point out that all the legislation in the world won't help companies who don't help themselves.

"There isn't any law that is going to be adequate to protect exhibitors who do not first exert their own right to protect their property," Hacker pointed out. "A surprising number don't take steps to copyright their goods. That's got to happen before they go to a show."

Gosswein added that, while it's good for show organizers to have IP policies in place, it's better for these to be part of a trade organization's comprehensive approach to informing members of their rights and advances in IP law year-round.

"We're not the judge and jury," he said. "We don't make determinations as to ownership rights. We enforce determinations that have been made by the authorities that have jurisdiction."