Mark Zolno Quoted on How to Battle Counterfeiting in China in Law360

Mark Zolno, Chair of the Customs and International Trade Practice, was quoted in the Law360 article "6 Ways to Fight Counterfeiting in China," which offers strategies for U.S. companies battling counterfeiting in China. Because counterfeiting violates the WTO agreement, U.S. copyright or trademark holders can take action against counterfeiting by lodging a complaint with the U.S. Trade Representative's office under Section 301 of the Trade Act, which aims to protect U.S. companies, including their IP rights, from trade discrimination. According to Mr. Zolno, "If there is any kind of discriminatory nontariff trade barrier against U.S. trade, the U.S. has a right to retaliate. There's always an implicit threat that the U.S. can impose sanctions in the form of quotas or duties." Later in the article, Mr. Zolno cites examples of U.S. businesses bringing suits and securing IP wins in Chinese courts. He states, "A Xiamen court in June determined that Xiamen Xinkun Industrial And Trading, Co., Ltd. copied Power Balance, LLC’s silicone wristbands, its packaging and logo design, ordering the defendant to stop using the California-based company’s logo and finding it liable for damages and reasonable expenses," and continues, "Last year, a Guangdong court held that Jinjiang Kunxin Shoes Manufacturing Co. infringed the trademark rights of California-based Disney Enterprises, Inc. by buying 5,100 pairs of shoes with fake Mickey Mouse graphics from a third party and selling them at a low price, and also found the activity constituted unfair competition." The article reports that, generally speaking, U.S. companies should not use the Chinese court system expecting to recover major damages given the low success rate.

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