Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 MEMA Brand Protection Council November 13, 2008 Detroit, MI.

Similar presentations


Presentation on theme: "1 MEMA Brand Protection Council November 13, 2008 Detroit, MI."— Presentation transcript:

1 1 MEMA Brand Protection Council November 13, 2008 Detroit, MI

2 2 Agenda Welcome & Introductions – Cifranic & ORourke Review Antitrust Guidelines – Arent Fox Pending Litigations Update – Arent Fox AAPEX Update / IP Incidents – Arent Fox TechIdentity – Francois Augnet, TRW Lunch – 30 minutes Government Affairs Update- Catherine Boland Brand Protection Talking Points – Catherine Boland Work Session: Quantifying IP Protection in North America Vehicle Parts Industry – Andy Cifranic Break – 15 minutes Final Review: Special Report Draft on Flow of Counterfeit Parts Council Updates / Adjourn

3 3 AASA/MEMA Brand Protection Council To support members global efforts to prevent, detect and prosecute intellectual property offenses against their products and brands. Provide the means for collective industry action against counterfeiting, sharing market intelligence and best practices, media and education campaigns and gaining increased enforcement by all relevant law enforcement agencies.

4 4 Anti-Trust Guidelines

5 Counterfeiting at AAPEX Litigation Update Autozone v. Strict Enterprises Inc. Bosch v. Pylon U.S. v. Able Time Toyota Hybrid Lawsuit - Green Claim SIIA v. eBay Kingdom Auto Parts v. MEMA

6 Counterfeiting at AAPEX Summary of the Actions at 2008 AAPEX Number of Complainants: 9 Number of Companies Complained About: 21 Nature of Violations (The number exceeds the total number of complaints because there were multiple complaints about some companies) Non-compliant product: 12 Patent Violations: 4 Trademark and/or part number infringements: 4 Generalized IP allegations, including trade dress and copyright: 3 Resolution of Complaints (without follow-up to assure compliance in all cases) Insufficient evidence to pursue, or complaint withdrawn or deferred: 2 Products seized and/or catalogs removed or redacted: 7 Delivered Letter or Warning to Booth: 3

7 Mema Brand Protection Council Meeting TecIdentify Francois Augnet 13th November 08

8 © TRW Automotive Inc. 2008 8 Mema Brand Protection Council Meeting 2 Why a Branch Solution? Facts and Figures 1 What is TecIdentify? Fully integrated solution 2 Benefits & Value Added Usage of code in daily business 3 Status & Future First Movers & The next steps 4 8

9 © TRW Automotive Inc. 2008 9 Criminal Activities growing… Product piracy costs Global Automotive Parts Industry 5 – 10 billion per year Source: OECD

10 © TRW Automotive Inc. 2008 10 Spare parts – Threats! Counterfeit parts – including trademark-infringement Grey-market imports – including genuine parts diverted from one market to another without consent of brand owner Excess stock by authorised suppliers, including non-branded genuine parts sold directly from supplier to dealer without consent of brand owner Re-labelling – eg. Sales of used parts / reject parts ….and more! Source: OECD

11 © TRW Automotive Inc. 2008 11 Spare parts counterfeiting facts Targeted products Fast moving products Standard parts sold off-the-shelf & which can be fitted to different models Parts with low per-unit costs as less likely to carry any security device Consequences Illegal Brand Image affected – disastrous long term effects Liability in case of accidents Lost revenues Eg. manufacturers 5% - 7% p.a Source: OECD

12 © TRW Automotive Inc. 2008 12 Potential threats in Supply Chain ? ? Trusted supply chain Trusted supply chain Original manufacturer Distributor / Dealer Garage / End user Unknown source Distributor / Dealer Source: Vesdo

13 © TRW Automotive Inc. 2008 13 Consequences - dealing with counterfeited products Personal (Emotional) Dealer is cheated as he pays for an original product & gets junk goods Liability Low quality product create quality claims Reputation Low quality products ruin the dealers reputation Business The dealer is in breach of his contract with the original parts manufacturer Legal Selling counterfeit products is prohibited Source: Vesdo

14 © TRW Automotive Inc. 2008 14 Mema Brand Protection Council Meeting - TecIdentify 2 Why a Branch Solution? Facts and Figures 1 What is TecIdentify? Fully integrated solution 2 Benefits & Value Added Usage of code in daily business 3 Status & Future First Movers & The next steps 4 14

15 © TRW Automotive Inc. 2008 15 TRW supports Industry Solution TecIdentify New CLEPA coding standard for authentication TRW Response to Counterfeiting Source: Vesdo

16 © TRW Automotive Inc. 2008 16 Future 16 246248 438 686 Every item gets its own identity Anonymous mass of items (21)……. = 14 digits (01) 9 - 20 digits …....free space GTIN Serialisation Source: Vesdo Ltd Today CLEPA Code – Basic Principles of Logical Security and Barcode Structure

17 © TRW Automotive Inc. 2008 17 Product Folding boxBundle/ Display Shipping case Objective for pilot project Objective for pilot project For Track & Trace Extended security 17 combination with other security systems combination with other security systems Application of Clepa Code Source: Vesdo Ltd & Teccom

18 © TRW Automotive Inc. 2008 18 TRW Label with CLEPA Code

19 © TRW Automotive Inc. 2008 19 TecIdentify Version 1.2 Authentication Process 19 Clepa Code 19 TecIdentify Database Single Scans Online Mobile Multiple Scans Online Local

20 © TRW Automotive Inc. 2008 20 TecIdentify Version 1.2 Scan, show results 20 TecCom Mobile TecIdentify Congratulations! This part is a genuine part from TecCom GmbH. [9] Impress Authentication: OK TecCom Mobile TecIdentify Warning! Unknown Code. This part part might not be an original part from TecCom GmbH. [1] Yes, I want to report this! [9] Impressum Authentication: Warning 20

21 © TRW Automotive Inc. 2008 21 Feedback form TecCom Mobile TecIdentify Contact Form: Name: Phone: E-mail: TecCom Mobile TecIdentify E-mail: Yes, send the form! Barcode: (01)14399901959689(10)24576 89145(21)ABC123DEF45 [9] Impress 21 TecIdentify Version 1.2 Feedback possible

22 © TRW Automotive Inc. 2008 22 TecIdentify Version 1.2 Website 22 1. scan 2. check 22

23 © TRW Automotive Inc. 2008 23 TecIdentify Version 1.2 Response 23

24 © TRW Automotive Inc. 2008 24 1.Open solution based on global standards (GS1,ISO..) Customs, importers, distributors, garages, car driver..... 2.Worldwide 24/7 3.Answer within seconds 4.Low requirements Internet PC with scanner Mobile phone with camera and free to download reader software 5.Direct contact in case of a problem possible 6.Sophisticated algorithms on a secure database TecIdentify Features & Benefits 24

25 © TRW Automotive Inc. 2008 25 Mema Brand Protection Council Meeting - Tecidentify 2 Why a Branch Solution? Facts and Figures 1 What is TecIdentify? Fully integrated solution 2 Benefits & Value Added Usage of code in daily business 3 Status & Future First Movers & The next steps 4 25

26 © TRW Automotive Inc. 2008 26 Manufacturer Requirements & Benefits Requirements Pre-requisite for TRW to implement branch solution = Achieve Global Standard Label, Design & Printing Move from local sites doing local labeling to streamlined standards and processes for all aspects of product labels Benefits of Global Standard Label, Design & Printing Project Synergy – Standard processes & data integrity More efficient & effective Flexible – additions/deletions & immediate changes to labels worldwide Can implement branch solution using CLEPA code and Tecidentify!

27 © TRW Automotive Inc. 2008 27 Possible Approach - Challenges & Benefits How to start ? By ProductNationalGlobal RequirementsLowMediumHigh Benefits of CLEPA code on label Protection of specific products Marketing messages etc. Security for a certain region or country Marketing messages etc. Global solution protecting all products & territories Synergy & Economies of scale Targetted marketing activities by using the code for messaging, promotions, part of loyalty program ChallengesIf product produced across multiple sites – adapt site processes or review need to standardise? Or cost to outsource the work but then lose some control Creating one process across the sites within one region Or cost to outsource the work but then lose some control Large workload to standardise processes, role definitions & resource allocation To find / create a global, user friendly software solution

28 © TRW Automotive Inc. 2008 28 TRW Approach - Challenges & Benefits How to start ? By ProductNationalGlobal RequirementsStart with packed in house products Starting with 2 geographical regions in initial roll out Will roll out globally step by step Review current processes & resources for labeling activities Understand internal & external requirements Definition of future requirements & conceptual design with chosen software provider BenefitsGlobal web-based solution for TRW & suppliers / Controlled access for suppliers Protection of all products (Image, turnover etc.) Synergy, efficient streamlined processes for all labeling design & print activities (internal efficiencies), Single data source & storage for label information Marketing benefits - code can be used in daily business to eg. Send messages, announce promotions, link to a customer loyalty programme etc. ChallengesManaging IAM & VMS channels Large workload & rethinking of roles & resource allocation Large workload to standardise processes, complex to design & arrive at global user friendly software solution for TRW sites & suppliers

29 © TRW Automotive Inc. 2008 29 The Clearing Hub - Architecture of an authentication system If each manufacturer is operating his own system: Business processes at the POS will be very complicated. Using a hub as unique certification authority in a given industry: Business processes at the POS will be simple & easy.

30 © TRW Automotive Inc. 2008 30 Mema Brand Protection Council Meeting - Tecidentify 2 Why a Branch Solution? Facts and Figures 1 What is TecIdentify? Fully integrated solution 2 Benefits & Value Added Usage of code in daily business 3 Status & Future First Movers & The next steps 4 30

31 © TRW Automotive Inc. 2008 31 1Bosch 13 Contitech 2Continental Teves 14 ThyssenKrupp 3Federal Mogul 15 Knorr Bremse 4GKN 16 Osram 5Hella (2009) 6Mahle 7Mann + Hummel (2009) 8Schaeffler, LuK, INA Networking 9Tenneco ITG 10TRW Figiefa 11Wabco MEMA / JAPIA 12ZF-Trading Car Manufacturer First Movers project started project start open decision open 31

32 © TRW Automotive Inc. 2008 32 Automechanika 2008 First Movers activities - Invitation with 2DMatrix - Presentation on the booths - Promotion using Clepa Code Joint PR activities with CLEPA & Messe Frankfurt TecIdentify won the Innovation award at Automechanika in IT category Automechanika Sept.2008 Source:Teccom

33 © TRW Automotive Inc. 2008 33 Next steps 33 2. Anticounterfeiting - Platform - conceptual Projects Security Concepts Uncovered Fakes Links CompanyCaseCountryContact Schaeffler Gruppe 5 container of clutches Czech- German Border Mario Thümmler TRWNingboAutomecha nika Frankfurt 2006 Karen Landis Contitech195.000 drive belts MaltaChristoph Stegemann … 1. TecIdentify Version 1.3: Enhancement of user interface Add new algorithms Enhancement of reports....

34 © TRW Automotive Inc. 2008 34 Encouraging garages etc. across all territories to use the solution! Equipment available? Ensuring this great solution is embedded in an internal process eg. what happens in YOUR COMPANY when a garage gets a warning message? Challenges for ALL companies!

35 © TRW Automotive Inc. 2008 35 Q & A

36 36 Lunch 30 minutes

37 37 Government Affairs Update Brand Protection Council November 13, 2008 Catherine Boland Director, Government Relations Motor and Equipment Manufacturers Association

38 38 MEMA Washington, D.C. Office Seven person office that develops legislative and regulatory strategies on issues impacting automotive and heavy duty suppliers Resource for OESA, AASA, HDMA members Government Affairs Committee that sets legislative priorities based on input from market segments

39 39 Legislative Update PRO-IP Bill (S. 3325) signed into law on October 13, 2008 Contains language requested by MEMA that calls for a Government Accountability Office (GAO) study on how the federal government can best protect the IP of manufacturers Study is to be completed and submitted to Congress by October 2009 GAO has not begun work on this study, but they will reach out to MEMA when they begin work on it

40 40 Legislative Update PRO-IP Bill (S. 3325) Heavy focus on copyright and trademark protection Coordination of Federal Effort Against Counterfeiting and Piracy –This legislation takes domestic portions of the Bayh Voinovich bill and creates an advice-and-consent level position, the Intellectual Property Enforcement Coordinator (IPEC), to serve in the Executive Office of the President and chair an inter-agency committee, that will produce and implement a joint strategic plan to enforce intellectual property laws

41 41 Legislative Update PRO-IP Bill (S. 3325) Increased Resources at Department of Justice –This legislation increases the resources available to federal and local law enforcement agencies to combat theft of intellectual property Creates grants for state and local law enforcement New operational unit within the FBI Training program on intellectual property offenses New funds for the FBI and DOJ for additional agents and prosecuters Sends five intellectual property law enforcement coordinators to the countries or regions where there presence and assistance can have the greatest positive effect on US intellectual property rights and interests

42 42 Legislative Update Issues not addressed in PRO-IP This bill does not address certain MEMA priorities –Increased protection for IP of goods not bearing a trademark –Increased protection of trade dress –International cooperation between like-minded countries

43 43 Legislative Update - International Rangel-Levin Trade Enforcement Bill – H.R. 6530 –Introduced as a legislative marker in July –Will not move this Congress –Title III of bill covers enforcement of IP laws at U.S. borders Enforces U.S. Intellectual Property Rights (IPR). The bill creates a Director of IPR Enforcement and an IPR Enforcement advisory committee to advise on IPR enforcement issues; promotes the use of new technology to better fight intellectual property rights (IPR) infringement; creates a watch list for suspected bad actors; and prevents Customs from excusing fines assessed for illegal imports. Increases Staffing, Resources, Training and Coordination. The bill authorizes the support, resources and training that Customs and Immigration and Customs Enforcement need and deserve to carry out their import safety and IPR enforcement responsibilities.

44 44 Legislative Update - International S. 3464 - International Intellectual Property Protection and Enforcement Act of 2008 (introduced by Senator Baucus and Senator Hatch) Action Plans. The bill requires the United States Trade Representative (USTR) to develop an action plan for each foreign country that has remained on USTRs Priority Watch List of intellectual property deficient countries for at least one year. Enforcement Actions. If a foreign country has not complied with its action plan within one year, the bill authorizes the President to take various enforcement actions against the country. Developing Country Assistance. The bill authorizes appropriations to USTR to assist developing countries in complying with their action plans. Congressional Report. The bill requires USTR to include, in its annual Special 301 report, a description of the action plan developed for each country and the actions taken by each country pursuant to that plan. Intellectual Property Officials. The bill requires the President to ensure that intellectual property officials are placed in the U.S. embassy of each foreign country that has a commercially significant relationship with the United States.

45 45 Anti-Counterfeiting Trade Agreement Late last year, USTR announced that they had begun discussions with our trading partners engaged in discussions to negotiate an anti-counterfeiting trade agreement Discussions include Canada, the European Union (with its 27 Member States), Japan, Korea, Mexico, New Zealand, and Switzerland The National Association of Manufacturers is working with USTR and Immigration and Customs Enforcement to put together a round table in the Detroit area to discuss the trade agreement – When this is scheduled, MEMA Washington will inform the BPC and provide information about attending

46 46 Discussion For more information contact Catherine Boland Director, Government Relations 202-312-9241 or cboland@mema.org

47 47 Working Session: Quantifying IP Protection in North American Vehicle Parts Industry Second in a series to engage council members and develop valuable industry information to support IP enforcement Today's topic requested by Department of Justice To be published by BPC and distributed to assist MEMA DC Office and IP enforcement

48 48 Break 15 minutes

49 49 Working Session: Flow of Counterfeit and Gray Market Goods Special Report: Understanding the Flow of Counterfeit and Gray Market Goods through the U.S. Automotive and Commercial Vehicle Parts Marketplace (handout) Developed at last BPC meeting Forwarded via e-mail for review Finalize before publishing and distribution

50 50 Legitimate U.S. Motor Vehicle Parts Supply Chain Raw material and component suppliers – These may include international or domestic. Manufacturing – This includes the actual manufacture, assembly and completion of a finished component or part. Distribution Center – Owned by the manufacturer and where finished parts are moved for packaging, warehousing and shipping. OE Production or Warehouse Distributor – The part is then sold by the manufacturer either for assembly onto a vehicle (OE Production) or into the aftermarket distribution channel (Warehouse Distributor). Parts Store / Jobber / Retail Chain – In the case of the aftermarket distribution channel, a warehouse distributor may elect to sell through a parts store either independent or company owned. Repair Facility – If the part is installed professionally, the part is sold directly or indirectly to a repair facility. This may be independent or a car dealer. End User / Vehicle Owner – The ultimate end-user or consumer of the part. U.S. Automotive and Commercial Vehicle Parts Distribution Supply Chain Model

51 51 U.S. Automotive and Commercial Vehicle Parts Distribution Supply Chain Model Domestic Supplier Domestic Manufacturer International Supplier Distribution Center O.E. Production Warehouse Distributor Parts Store / Jobber / Retail Chain Repair Facility End User / Vehicle Owner MEMA Member Company US Manufacturer Legitimate Raw Material Or Component

52 52 Supply Chain – How Counterfeit and Gray Products get Introduced: Unauthorized Suppliers – Producers of raw materials or components that were not commissioned by the original manufacturer. Unauthorized Manufacturers – Producers products made for the replacement of the original but in violation of the original manufacturers intellectual property. Generic Supplier – May produce legitimate replacement products not in violation of intellectual property but may later be converted to counterfeit by affixing trade marks or other trade dress violations by another party. Master Distributor / Importer of Record – Generally the company that takes receipt of illegitimate products within the U.S. with the intent to distribute. They may also be the converters of legitimate replacement products to counterfeit through the use of markings, packaging, etc. Internet / Web Sites / Mail Order – May also be distributors of illegitimate products and may or may not be located in the U.S. Broker – In the commodities business. Generally not product experts but in the business of selling large quantities of over run, over stock products which may or may not contain counterfeit goods. U.S. Automotive and Commercial Vehicle Parts Distribution Supply Chain Model

53 53 Raw Material Or Component U.S. Automotive and Commercial Vehicle Parts Distribution Supply Chain Model Domestic Supplier Domestic Manufacturer International Supplier Distribution Center O.E. Production Warehouse Distributor Parts Store / Jobber / Retail Chain Repair Facility End User / Vehicle Owner Legitimate w/ Counterfeit and Gray Market Unauthorized International Supplier Unauthorized Manufacturer Internet / web site /mail order Master Dist / Importer of Record Generic Supplier Broker converted to counterfeit

54 54 A simplified flow chart illustrating the normal flow of products from international sources to U.S. buyers include: Free Trade Zone – Within international borders. Freight Consolidator – Actual transporter of goods. Customs Broker – Completes necessary documentation for export of goods. The process is then reversed upon receipt within U.S. borders. U.S. Automotive and Commercial Vehicle Parts Distribution Product Flow

55 55 O U.S. Automotive and Commercial Vehicle Parts Distribution Product Flow Free Trade Zone Freight Consolidator Customs Broker Customs Broker Freight Consolidator Purchaser Legitimate OriginDestination

56 56 In the case of counterfeit or gray market products, shipments are generally not direct to U.S. borders but may include many stops along the way. There are too many to name but some include: Dubai Paraguay Panama Mexico Canada Where import restrictions are less complicated and the entry of counterfeit goods more likely. The additional paper trail of many stops along the way make origin hard to detect. U.S. Automotive and Commercial Vehicle Parts Distribution Product Flow

57 57 O U.S. Automotive and Commercial Vehicle Parts Distribution Product Flow Free Trade Zone Freight Consolidator Customs Broker Customs Broker Freight Consolidator Purchaser International OriginU.S. Destination Illustrative of Potential Counterfeit and Gray Market Dubai ParaguayMexico Canada Panama

58 58 To address the serious issue of counterfeiting and other IPR violations within the automotive manufacturing community, the Motor & Equipment Manufacturers Association (MEMA) – in conjunction with its market segment associations to include the Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA), Original Equipment Suppliers Association (OESA) – created the Brand Protection Council to provide a forum for manufacturers to discuss counterfeiting and other IPR violations with a focus on North America. For more information on the Brand Protection Council or for assistance in contacting automotive brand owners, please contact Jack Cameron at 919-406- 8856 or e-mail jcameron@mema.org.jcameron@mema.org (http://www.aftermarketsuppliers.org/issues/counterfeiting.php)http://www.aftermarketsuppliers.org/issues/counterfeiting.php U.S. Automotive and Commercial Vehicle Parts Distribution

59 59 MEMA and BPC Updates CBP Product Identification Guidelines (handout) –Most effective ways to help enforcement agencies –Develop a database or CD of MEMA BPC member companies for distribution Brian ORourke – Thank you! Rick Kempski – Welcome, incoming Co-Chairman

60 60 Thank You! Travel Safe!


Download ppt "1 MEMA Brand Protection Council November 13, 2008 Detroit, MI."

Similar presentations


Ads by Google