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Case study |
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Surveillance and investigation Anti-counterfeiting |
Investigation of ink-cartridge
counterfeiters (IP investigation) |
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Our client, an American manufacturer of inkjet and laser
printers, was growing increasingly concerned at the number of counterfeit
versions of its inkjet cartridges which were available worldwide. It believed that many of these counterfeits
were being manufactured in China. It also wanted to more information about manufacturers of
compatible cartridges (those which work in our client’s printers, but do not
carry our client’s brand name): it needed to know who was making the
cartridges; who was making vital high-tech components; how big the leading
manufacturers were; what their key markets were; and to what extent they were
infringing on the client’s patents. Posing as a potential customer, Sinogie initially conducted an
extensive survey of manufacturers of remanufactured (recycled) cartridges;
compatible cartridges; and counterfeit cartridges. We made initial contacts with target
manufacturers by e-mail or phone, and then visited the target companies’
offices and factories. We identified which companies we suspected were counterfeiting,
and which might be infringing our client’s patents. We also identified the sources of key
components for compatible and counterfeit cartridges, and identified the
largest cartridge manufacturers in Hong Kong, Mainland China and Taiwan. We provided the client with a wide range of
information on specific manufacturers, including information on their
manufacturing facilities, manufacturing processes, sales and marketing
practices, target markets, possible patent and trademark infringements, and
other relevant issues, and provided the client with samples. In the course of our investigation, we identified a number of
companies which were involved in the manufacture of counterfeit
cartridges. Our experiences with one
of these companies are set out below. The local authorities are generally unable to take action against
a counterfeiter unless proof of the counterfeiting can be found. Typically, the easiest way to ensure this
is to ensure that counterfeit products are on the premises before the
authorities conduct a raid. Posing as a potential customer, a Sinogie representative arranged
to purchase several hundred counterfeit cartridges from the target
company. Working with Chinese lawyers,
we then informed the local Administration of Industry and Commerce (“AIC”) of
the situation. We worked with the AIC
to arrange for AIC officials to conduct a raid and seize the products. When Sinogie’s representative went to collect the cartridges, AIC
officials followed him to a warehouse where the counterfeit products were
being stored. AIC officials then
raided the warehouse, seized the counterfeit products, and took the
counterfeiters into custody. |
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