How to Manage a Successful Anti-Counterfeiting Program On A Budget AAFA Brand Protection Council Knock It Off! Brands and the Counterfeiting Quandary November Long Beach, CA Featuring Barbara Kolsun, Esq., Senior Vice President & General Counsel Seven For All Mankind, LLC

Preparation Registration of Trademarks & Copyrights Recordation of Trademarks & Copyrights with U.S. Customs: Wherever you sell, manufacture, license or distribute products and always China, record with instructions : Collaborate Join with Competitors: participating in group investigations and actions Join trade organizations: 1. International Anticounterfeiting Coalition International Trademark Association U.S. Chamber of Commerce-

In-House Anticounterfeiting Enforcement 1) Strategize: In-house work is free - Budget spent on criminal enforcement 2) Know your competitors: Allies in counterfeiting 3) Send Cease & Desist letters to: Retailers, “Jeans Party” providers, Websites, Domain name pirates, Malls and kiosks, Landlords, Flea Markets Public / Private Collaboration E.g. Mayor’s Task Force on Anti-Counterfeiting: Midtown Enforcement Project Private/Public partnership: address counterfeiting problem District Attorney’s Office Dept. of Finance: Taxes Dept. of Consumer Affairs: Permits for street vendors Police, Building Dept., Fire Dept., Other Agencies

Monitoring Online Auction Sites Auction Sites –Virtual flea markets –eBay, Yahoo!, Sell.com, iOffer.com, Craig’s List, and Amazon –Labor intensive Identifying counterfeit sites –Unclear photos –Have a “no return” or “as is” policy –Items sold without tags –Large number of similar items for sale –Include a disclaimer –Use photos or text from authentic retailers

Monitor & Enforce: Training Investigators - Share investigator resources with industry - Fully train and update - Arm them with C&D letters - IACC is good source for names Train to Detain Customs Agents - Not enough to record trademark: IACC conducts training sessions - Why? From , U.S. Customs seized 42,245 shipments valued at over $580 million - Training materials Law Enforcement - Be precise, brief and memorable - Give instruction about what you know they can seize - Updated product identification sheet - Thank the officers for their time

Example from Seven’s Training Card How to Spot Authentic Seven For All Mankind Jeanswear and Apparel Authentic Seven For All Mankind Products are sold at high-end retail stores like Bloomingdales, Neiman Marcus, Barney’s, and Saks Fifth Avenue. contain a small beige security label attached to the waistband above the left front pocket, which is under the care/content label. The back of this label is white and contains a subtle, micro-writing strip that appears to be a shiny thread. When viewed under magnification, the Seven For All Mankind logo depicted above is visible. All information is embroidered into the label except for the style and cut numbers, which are stamped. are only made in the USA. The beige care/content label attached to the waistband bears the wording “Made in USA of Imported Fabric.” contain a hang tag made of paper with a slightly waxy coating on the front. The tags are red/maroon on the front, white on the back with the writing printed directly onto the tag. They have a ridged feel that looks like a faint pinstripe pattern. Genuine tags are attached to the right side belt loop using twine. contain a vertical red/maroon label with gold detail containing the numeral “7” on the back right waistband. The gold stitching of the “7” on genuine jeans is tightly woven with matte thread. often have a white rectangular adhesive label on the interior waistband over the sewn-in labels, containing Style, Color, Cut, Lot Ref. and Size, along with a bar code. The number “0” on the authentic product always has a diagonal line through it [], distinguishing it from the letter “O”. generally retail from $121 to $187. Counterfeit Seven For All Mankind Products may contain one or more characteristics of authentic products. In such cases, it is necessary to rely on the security strip. may contain a copy of the security label with a shiny micro-writing strip, a blank or solid colored thread with no wording or small black dots. There also may be fake style and cut numbers sewn onto the label. may contain a care/content label with origin other than USA (i.e., China, Mexico, Hong Kong, etc.). may use smooth card stock and sometimes a sticker containing the wording attached to the back of the tag. Counterfeits may use smooth string to attach the hang tags rather than twine. may contain a gold “7” that is loosely stitched with shiny thread on a maroon tab. do not have the white rectangular adhesive label on the interior waistband over the sewn-in labels, containing Style, Color, Cut, Lot Ref. and Size, along with a bar code. The number “0” on counterfeit products often does not have a diagonal line through it [], distinguishing it from the letter “O”. generally retail from $20 to $60.

Example of Website Reporting REPORTING COUNTERFEIT SEVEN FOR ALL MANKIND 1)Date of report: 2)Date of sighting: Where is the location? Please provide name, address and any contact information: 4)Type of business:a. Factory b. Distributor _______ c. Retail d. Vendor e. Other 5)What quantities and styles are being sold? 6) Do the items bear any Seven For All Mankind trademarks? (check all that apply): a. Seven For All Mankind name ____ b. Seven For All Mankind name & Squiggle Wave Design______ c. Seven For All Mankind name & A-Pocket Design _____ d. Seven For All Mankind name & Dojo Design ____ e. other (describe) Or are they confusingly similar to Seven for All Mankind’s designs and/or trademarks (describe): 7)Are counterfeits of any other companies present, and if so, which? 8)May we contact you for further information? Yes ___ No __ If Yes, please provide your name and telephone number: All information provided to Seven For All Mankind and its representatives is kept confidential PLEASE FAX THIS FORM TO OR THE REQUIRED INFORMATION TO Please be assured that every lead is a priority and investigated as soon as possible. Your assistance is greatly appreciated and sends a strong message to counterfeiters that their illegal activity will not be tolerated.

Outreach, Education, and the Press Respond to C&D letters and queries regarding closed auction sites - May be ignorant or confused Designate corporate executive or counsel to speak to the press Enable people to provide counterfeit tips via website - Defrauded consumers and legitimate retailers are good sources Key Points to Spread Counterfeiters do not pay taxes Counterfeiting is a state and federal crime Counterfeiting has funded organized crime and terrorism Counterfeit products made overseas in sweatshop conditions