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ICE


their every move, oſten writing 20 or 30-page long reports before obtaining a court order from a magistrate judge.


Te government must prove that a website was engaged in criminal activity, or benefiting from its proceeds, and “that burden never shiſts to the website operator”. “I understand it when people want to be critical—but that doesn’t always recognise the way that we have chosen to undertake these operations with significant due process,” he adds. “I would welcome anyone who has a better solution for a US law enforcement agency dealing with criminal enterprises organised in China.”


For brand owners, one crucial question is: do ICE’s takedowns offer a permanent cure to the counterfeiting and piracy disease? Te answer is, probably, no. But, according to Barnett, website takedowns act as a strong deterrent to would-be criminals. Of the first nine websites seized in 2010, one of which had three million visitors per month, only two came back online. Even aſter reappearing, the sites’ traffic levels dropped by 99 percent, cutting 99 percent of the advertising revenue too.


Perhaps most interesting is the wider deterrent effect that ICE’s work has had: aſter officers seized the first nine websites, 81 other domains, considered to be heavily engaged in piracy, voluntarily shut down. “Twelve of those sites— and this is a statistic I find fascinating—started to link to legitimate vehicles offering online content,” Barnett notes. For a man who says he has never seen such a knock-on effect in 17 years working as a law enforcement officer, this is an interesting trend. “Usually, if you arrest a drug dealer in a neighbourhood, the other drug dealers don’t stop selling—actually, business tends to get better. Tat’s something that I think is a reflection of these domain name seizures,” he adds.


What’s more, brand owners can liaise with the IPR Center if they become aware of websites or markets selling counterfeit goods. Barnett welcomes this ‘public-private’ partnership, but he warns that referring evidence to the centre does not guarantee that it will investigate. He says that officers will take action only when there is sufficient evidence that meets a certain threshold.


“While I think brand owners should work with law enforcement, and I do believe most of them understand this, I think there has to be a recognition that it is not definitely an opportunity to have enforcement just because you have a referral.” Owing to the nature of sophisticated criminals, investigations can be complex, oſten requiring undercover operations. “Tat takes time and I think rights holders have to understand that there isn’t going to be a 30-day turnaround,” he says.


A tipping point


Another big question for brand owners is: can the IPR Center and its partners actually stop consumers buying counterfeit goods and using pirated material? Three years ago, law enforcement’s ability to deter such activity would have been minimal, Barnett says. But things are changing. After placing seizure notices on each of the 748 websites, he says that these warnings have been viewed more than 90 million times: a sign that a tipping point has been reached.


34 World Intellectual Property Review May/June 2012


www.worldipreview.com


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