The Customs is committed to suppressing the online sale of pirated and counterfeit products

Date: 20/02/2009

The Customs is committed to suppressing the online sale of pirated and counterfeit products.

Operation “Netstorm”
Since December 2008, enforcement actions codenamed “Netstorm” have been mounted with a view to curbing the sale of pirated and counterfeit products via auction websites. Up until today (February 20), a total of 12 cases have been detected.

Month　　　　　　　　　　　　　　　　Case (No.)
December 2008　　　　　　　　　　　　　4
January 2009　　　　　　　　　　　　　　 2
February 2009 (as at February 20)　　　　　6

Upon online investigation, two “Anti-Internet Piracy Teams” of C&ED successfully located the locations of computers involved and conducted speedy searches. During the operations, 272 counterfeit clothes, handbags, leather goods, electronic products (such as multi-media players), 125 pirated optical discs of computer games and Japanese TV dramas as well as 12 computers and 2 sets of game consoles in which circumvention devices were suspected of being installed (so-called “modification”), the total value of which amounted to about $190,000, were seized.

The 7 male and 6 female auctioneers involved in the case, aged between 19 and 40, including 6 unemployed persons, 1 student and 6 persons working in the fields of education, medicine, accounting, retailing, express service and in a hardware factory, were arrested by the Customs.

Penalties
Under the Trade Descriptions Ordinance, any person who sells or has in his possession for sale any goods to which a forged trademark is applied shall be liable on conviction to a maximum fine of $500,000 and imprisonment for 5 years.

Under the Copyright Ordinance, any person who has in his possession for sale any copyright infringing articles may be prosecuted. The maximum penalty on conviction is an imprisonment for 4 years and a fine of $50,000 per infringing article.

Under the Copyright (Amendment) Ordinance 2007, any person dealing in (including selling, letting for hire, exhibiting in public or distributing in the course of any trade or business) circumvention devices may be prosecuted. The maximum penalty on conviction is an imprisonment for 4 years and a fine of $500,000.

‘E-Auctioning with Integrity’ Scheme
C&ED will continue to maintain close liaison with the local auction websites. In November 2005, C&ED, joined by four local auction websites and intellectual property rights owners of a number of brand names, kicked off the ‘E-Auctioning with Integrity’ Scheme. Through mutual notification and close cooperation, the auction websites have detected and removed more than 31,000 suspected infringing items being auctioned.

C&ED’s Appeal
C&ED emphasizes that selling pirated, counterfeit goods or “modifying” game consoles are serious offences. Whether they are sold on the Internet or through any other means, C&ED is able to detect and crack down on these illegal activities and bring to justice any persons involved. Offenders are liable to imprisonment and will have a criminal record, which is a very serious consequence. We thus appeal to the young people not to risk their future by committing crimes.

Report of Crimes
In case member of the public detects any information about piracy or counterfeiting activities, please make instant report to the Customs 24-hour hotline 2545 6182.


Intellectual Property Investigation Bureau
Customs and Excise Department
20 February 2009

Back to list