1. Shanghai – 23/25 February 2011 ESIA ACTF Activities update

2. Europe update (1)
FRENCH CUSTOMS AND ONE OF THE ESIA-ACTF MEMBER COMPANY COLLABORATE ON SUCCESSFUL RAID ON COUNTERFEITERS
Following a complaint received from one of the ESIA-ACTF member companies and following the issue of a court order, on 26th May, officials from the National Judicial Customs Department (SNDJ) in France raided a semiconductor importer and retailer based in France, who had been identified as being involved in several cases of distributing counterfeited semiconductors to customers in Europe.
French Customs officials were accompanied and assisted by two corporate security officers from the ESIA-ACTF member company, who performed the technical work during the raid, including organizing and identifying all of the products that were seized during the operation.
Almost 800,000 suspected counterfeit integrated circuits marked as being from that ESIA-ACTF member company. In addition, significant quantities of suspected counterfeit ICs marked with logos and part numbers of several other major semiconductor manufacturers were identified but not seized as no prior complaint had been received and no court order had been issued allowing their seizure.
This is the first raid of its kind in France against distributers dealing with counterfeited ICs and a clear demonstration of how Customs departments and industry are able to work together to help combat this serious and growing problem.

3. Europe update (2)
ESIA ACTF is effectively leading, with its members commitment, the fight against the proliferation of counterfeit chips all over the world
The effects of the commitment of our members brought to new and outstanding results in this fight
Moving further into deeper cooperation with National Authorities, once again, one of the ESIA member companies was able, to strike another blow to an organization of counterfeiters operating from Hong Kong

4. Europe update (3)
During January, 2011, the Hong Kong Customs Authorities, successfully performed a raid against a distributor involved in the distribution of counterfeited ICs abroad.
Large amount of counterfeited ICs was sized on site
The raiding agents were accompanied and supported by a corporate security officer of the ESIA member company, who verified the authenticity of the ICs, proving them to be counterfeited

5. Europe update (4)
Being this the first time a raid is performed in Hong Kong against ICs counterfeiters, this is a milestone that opens new operational opportunities
With this success, ESIA-ACTF extends, via one of its member companies, the capability to operate in new countries, listing the successful cooperation of the Hong Kong Customs Authorities together with those, already established since long time, with the Authorities of China, USA and France
ACTF ESIA member companies are looking, now, to further improve their capability to operate in other countries, that have already shown interest in this way of cooperation among private industries and national authorities to eradicate this criminal activity

6. Proposed Multi-Lateral Actions / ESIA actions
1. Encourage companies to file trademarks in the various countries so customs agencies can take action when infringements are found
While trademark filing is done irrespectively of anti-counterfeiting measures, the custom’s recordation is proving a major challenge, as companies need to follow some EU procedures to allow for a full customs cooperation. Only companies working via the EU procedures can expect cooperation on seizures etc. The May seizure in France shows that seized counterfeit goods have to be given back to counterfeiters if companies in question have not recorded trademarks or reacted.
S/c companies risk becoming part of the counterfeit supply chain by not working with authorities and as one industry and in the medium term risk being singled out.
Urge all companies operating in Europe to record trademarks with customs/authorities.
2. Work with the six governments to identify semiconductors and electronic products as key items sought by customs officers
In the EU, cooperation and results continue both at ESIA and individual company level despite some limitations. ESIA is active in EU awareness and government groups and at national level.  Furthermore, ESIA is promoting the use of authorized supply & distribution chains.
Outside EU, ESIA open to providing training material or presentations if required. Working at company level on specific investigations
3. Work with the six gov. to develop information that will help them develop joint operations such as those previously conducted
In EU, as well as in other regions and countries, ESIA member companies are very active in setting up connections with judicial and custom authorities in order to build up jointed operations among companies and authorities
Authorities of China, USA, in the EU [France] and Hong Kong have already benefited of this level of information exchange and cooperation; further more are expected in the near future
4. Encourage semiconductor companies to provide improved materials and training for government customs agencies to enhance their ability to identify trademark infringing semiconductors
ESIA ACTF members support with high interest the availability of SIA in the US to reply TSIA request in organizing a training for the Chinese Taipei Customs Authority officers in identifying counterfeited ICs
5. Develop better communications about the effects of counterfeit products with more extensive examples of the potential health and safety impacts as well as the threats to critical infrastructure
ESIA ACTF members already expressed several times, in different opportunities, their concerns regarding this risks
Actions promoted, by the individual company members, continue to repropose these messages within the perimeter of the cooperation already in place with the National Authorities engaged in the fight against the counterfeiting and the piracy
IPTF, Barcelona 24/02/10

7. Expectations for WSC & GAMS
Presentation:
Showing the progress made and difficulties faced in each region along the lines of the 5 points but maybe changing format somewhat
Conclusions of each region. Estimate of damage and effects
Presentation reminding gov. of their commitments…
Next steps
WSC statement:
Reiterating wording from WSC/GAMS
WSC sees progress being made in many WSC regions along the agreed 5 points, and urges further efforts in all regions. It sees that results can be achieved through an effective cooperation between industry and customs officials, among industry and across regions. Full customs recordation remains an issue industry needs to address. It also recognizes the benefits of an integrated approach to figthing counterfeiting both at borders and within borders, as seen in the numersous seizures over the past months.
WSC recommends that the GAMS reports on the efforts made at government level and that GAMS outlines plans to further enhance cooperation to contain the proliferation of counterfeiting. In order to do this, WSC encourages the participation of customs representatives to deal with this issue.

8. Conclusions of Custom Expert’s Workshop, Sep. 09
…the proliferation of counterfeit semiconductor products coupled with the increased semiconductor content in today’s market creates risks to the safety and health of the consumer, to critical infrastructure and has significant economic consequences. The participants reaffirmed their commitment to protect and enforce intellectual property rights.
The participants recognized that protection of intellectual property rights is crucial to the growth and advancement of the global semiconductor industry.
The impact of counterfeiting semiconductors goes beyond IP or trademark infringement of semiconductor companies. Together with an increase in the number of semiconductors being used in semi-manufactured or end-products, proliferation of counterfeit semiconductor products in today's market can potentially have an impact going beyond the industry itself in the global supply chain of numerous industries, international trade, investment and on critical infrastructure.
All participants confirmed that enforcement procedures for trademark rights on import and export are available under their law so as to permit effective action at the border against acts of infringement of intellectual property rights.
The important role of Customs Mutual Assistance Agreements was underlined and any exchange of information between enforcement authorities must be based on existing agreements and national laws.
All participants underlined the importance of having access to information from the semiconductor industry on products and processes to facilitate customs' identification of suspected counterfeit products. Dissemination of this information should be based as much as possible on a common approach and in an electronic format for all members.
It was stressed that training material to be provided by rightholders should be disseminated to customs authorities of all members.
All participants agreed to undertake, as appropriate, enforcement measures (which can be national, bilateral or multilateral) against semiconductor counterfeiting, to keep other members informed and to report back on this to the 2011 GAMS meeting. It was agreed that when actions are taken members will communicate results with a reference to this workshop, in order to increase the visibility of the efforts of all GAMS members.
IPTF, Barcelona 24/02/10

9. Back up