Washington, D.C. - The U.S. Department of Homeland Security (DHS) announced today an 83 percent increase in seizures of counterfeit goods during fiscal year (FY) 2006. This year's activities continue a significant upward trend in the number and value of seizures of counterfeit goods, making 2006 the most productive in the department's history.

"The team of CBP and ICE is a counterfeiter's worst nightmare. Together we are committed to stopping criminals who attempt to profit from the sale of illegal and potentially harmful merchandise," said W. Ralph Basham, Commissioner, U.S. Customs and Border Protection. "CBP is using new techniques to help target and intercept pirated goods from overseas at all of our 326 ports of entry and mail facilities in the United States to protect American jobs and American business. We are identifying practices that trample on intellectual property rights and we are using audits to deprive counterfeiters of their illicit profits."

DHS is countering the growing trade in counterfeit commodities that adversely impacts the American economy and may pose health and safety risks to consumers. One of the top commodities seized in FY 2006 was footwear, which accounted for 41 percent of the entire value of goods seized.

• In one of the largest seizures of counterfeit goods in DHS history, ICE and CBP agents in Arizona, Texas and California, seized 77 containers of counterfeit Nike Air Jordan athletic shoes and one container of Abercrombie & Fitch clothing, with an estimated value of $69.5 million. Six individuals, two of them U.S. citizens, were indicted by a federal grand jury for attempted bribery, trafficking in counterfeit goods and conspiracy.
  
  
• An organization based in the Detroit area was responsible for importing counterfeit Zig Zag cigarette papers with an estimated value of $16 million and selling them well below the cost of the registered brand. The organization also laundered approximately $1 million in proceeds derived from the sale of the counterfeit merchandise. Seven individuals were convicted of federal violations associated with the ongoing criminal enterprise, including trafficking in counterfeit goods, conspiracy, money laundering, false statements and perjury. Defendants were ordered to pay over $6 million in restitution to the trademark holder and three of them will be removed from the United States on completion of their prison sentences.
  
  
• In anticipation of Super Bowl XL, ICE agents, the Detroit Police Department and the National Football League Properties initiated Operation Grid Iron, which resulted in the seizure of more than 42,900 pieces of counterfeit merchandise valued at approximately $535,690, including National Football League jerseys, blankets, coats and other apparel and accessories. Similar initiatives during the Major League All-Star Game and the National Basketball Association Finals, also in the Detroit area, seized more than 2,100 items.
  
  
• Operation Spring, the first U.S.-Sino joint undercover law enforcement operation in the People's Republic of China (PRC) resulted in the arrest of a U.S. citizen in Shanghai and the forfeiture of 160,000 counterfeit DVDs. The U.S. citizen was initially convicted of violating PRC counterfeiting laws prior to being expelled to the United States, where he was sentenced to 60 months incarceration and three years supervised release and fined $15,000 for conspiracy to traffic in counterfeit DVDs and other related charges. The individual also forfeited criminal proceeds of $823,833 to the U.S. government.
  
  
• CBP Officers at the Port of Miami electronically targeted a container en route from China to Belize and flagged it for an examination upon arrival. CBP Officers quickly realized the cargo was counterfeit. The phonies included sneakers and sports apparel designed to look like Nike, Reebok, Puma, Umbro, Adidas, and Tommy Hilfiger merchandise. In the same container, bogus designer merchandise was packaged to look like Prada, Ferragamo, Louis Vuitton, Versace and Hugo Boss. The total estimated value of the seized merchandise is $1,013,309.
  
  
• CBP seized a total of 131,685 products in Puerto Rico with counterfeit Underwriters Laboratories (UL) labels during fiscal year 2006 with an estimated value of $345,823. Several CBP Ports worked closely with CBP headquarters to achieve this success. CBP Puerto Rico also seized more than 13,000 counterfeit light bulbs in October 2006 worth an estimated $45,000.
  
  

In recent years, counterfeiting, piracy and other intellectual property rights violations have grown in magnitude and complexity, costing U.S. businesses billions of dollars in lost revenue and often posing health and safety risks to U.S. consumers. The growth in IPR violations has been fueled in part by the spread of enabling technology allowing for simple and low-cost duplication of copyrighted products, as well as by the rise in organized crime groups that smuggle and distribute counterfeit merchandise for profit. In many cases, international organized crime groups use the profits from the sale of counterfeit goods to bankroll other criminal activities, such as the trafficking in illegal drugs, weapons, and other contraband.

As the primary agency responsible for U.S. border enforcement, CBP is a key player in IPR enforcement. To combat IPR theft, CBP has diversified its approach to IPR enforcement to include new approaches that complement traditional techniques focused on identifying and seizing counterfeit and pirated goods at U.S. borders. The agency has developed innovative methods such as risk modeling to identify high-risk shipments for border inspection, and expanded its efforts beyond border seizures by conducting IPR audits of importers. In addition, CBP works with trademark and copyright owners to protect IPR at the border, and with foreign governments to enhance customs cooperation internationally.

As the largest investigative arm of the Department of Homeland Security, ICE plays a leading role in targeting criminal organizations responsible for producing, smuggling, and distributing counterfeit products. ICE investigations focus not only on keeping counterfeit products off U.S. streets, but also on dismantling the criminal organizations behind this activity. ICE and the FBI manage the National Intellectual Property Rights Coordination Center, which coordinates the U.S. government's domestic and international law enforcement attack on IPR violations. ICE agents and CBP personnel throughout the country rely upon the IPR Coordination Center for guidance in their inspections and investigations.

ICE and CBP will continue to work vigorously to pursue IPR violations.

-- ICE --