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`Exhibit 5
`
`

`

`Case: 1:25-cv-06214 Document #: 1-5 Filed: 06/04/25 Page 2 of 45 PageID #:72
`
`Fiscal Year
`2021
`
`Intellectual
`Property Rights
`Seizure Statistics
`
`Fiscal Year
`2021
`
`

`

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`FY 2021
`
`2
`
`

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`Contents
`
`Executive Summary ..........................................................................................................................5
`IPR Seizure Totals ..............................................................................................................................5
`Counterfeit Commodity Spotlight – Cell Phones and Accessories ................................................6-7
`COVID-19 Spotlight ..........................................................................................................................9
`Operational and Enforcement Highlights ........................................................................................11
`CBP Partnerships ........................................................................................................................12-15
`Help CBP Protect American Ingenuity .............................................................................................17
`Exclusion Orders and Outreach .......................................................................................................19
`Outreach: CBP/U.S. Chamber of Commerce Memorandum of Understanding ..............................20
`Outreach: The Year of the Small and Medium Sized Enterprises Webinar Series............................21
`IPR and E-Commerce ..................................................................................................................23-24
`Centers of Excellence and Expertise Spotlight ................................................................................25
`Mode of Transportation and Top Product Commodities .................................................................27
`Seizure World Map .....................................................................................................................28-29
`Number of Seizures ...................................................................................................................30-31
`Products Seized by MSRP ...........................................................................................................32-33
`Total Seizure Lines and MSRP Seized by Economy ....................................................................34-35
`Seizures by Mode of Transportation ..........................................................................................36-37
`Health, Safety, and Security by Product ......................................................................................38-39
`MSRP by Centers of Excellence and Expertise ...........................................................................40-41
`CBP IPR Points of Contact ..........................................................................................................42-43
`
`FY 2021
`FY 2021
`
`
`
`33
`
`Disclaimer: The information contained in this report does not constitute the official trade statistics of the United
`States. The statistics, and the projections based upon those statistics, are not intended to be used for economic
`analysis, and are provided for the purpose of establishing U.S. Department of Homeland Security workload.
`
`

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`FY 2021
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`4
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`

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`
`Executive Summary
`
`U.S. Customs and Border Protection focuses its
`trade enforcement efforts on seven Priority Trade
`Issues (PTI). PTIs represent high-risk areas that
`can cause significant revenue loss, harm the U.S.
`economy, or threaten the health and safety of the
`American people. Current PTIs include Intellectual
`Property Rights (IPR), which protect American
`Intellectual Property by interdicting violative goods
`and leveraging enhanced enforcement authorities.
`Trade in illegitimate goods is associated with
`smuggling and other criminal activities, and often
`funds criminal enterprises. CBP protects the
`intellectual property rights of American businesses,
`safeguarding them from unfair competition and
`
`use for malicious intent while upholding American
`innovation and ingenuity. CBP works with many
`partner government agencies and the trade
`community to mitigate the risks posed by imports of
`such illicit goods.
`FY 2021 was another successful year for IPR
`enforcement. CBP made over 27,000 seizures
`(i.e., 102,490 seizure lines) with an estimated
`manufacturer’s suggested retail price (MSRP) of over
`$3.3 billion, which represents an increase of 152%
`over the previous Fiscal Year, when goods valued at
`$1.3 billion MSRP were seized for IPR violations. CBP
`also received and responded to 711 inquiries from
`the field concerning IPR enforcement in FY 2021.
`
`IPR Seizures 10 Year Totals
`
`FY 2021
`
`5
`
`$3,500,000,000
`
`$3,000,000,000
`
`$2,500,000,000
`
`$2,000,000,000
`
`$1,500,000,000
`
`$1,000,000,000
`
`$500,000,000
`$-
`
`40,000
`35,000
`30,000
`
`25,000
`
`20,000
`
`15,000
`
`10,000
`
`5,000
`0
`
`2012
`
`2013
`
`2014
`
`2015
`
`2016
`Seizure
`
`2017
`
`2018
`MSRP
`
`2019
`
`2020
`
`2021
`
`

`

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`Counterfeit Commodity Spotlight –
`Cell Phones and Accessories
`
`Almost all of Americans now own a cell phone of
`some kind1. The percentage of Americans that own
`a smartphone is now 85%, up from just 35% in Pew
`Research Center’s survey of smartphone ownership
`first conducted in 20112. Production of goods such as
`smartphones, smartphone batteries, and chargers, is
`knowledge intensive and the industry relies heavily
`on technologies that are IPR-protected. Thus, the
`growing prevalence of such items not only intensifies
`IP dependence, but also makes it a lucrative target
`
`for counterfeiters. The Organisation for Economic
`Co-operation and Development’s report in 2017
`found that nearly one in five mobile phones shipped
`internationally is fake3. Mobile phones, their accessories
`and components are among the top categories of fake
`goods seized by customs authorities and sold in great
`numbers during sales events such as Black Friday and
`Cyber Monday4. In addition, such counterfeits have
`been recently exploiting the global supply shortage
`in semiconductor chips. It is worth noting that the
`global shortage of semiconductor chips is linked to the
`high demand for digital services and manufacturing
`problems emerged during the COVID-19 pandemic
`5.
`Counterfeiters can exploit this demand and shortage
`in supply by using counterfeit semiconductors such as
`diodes in the market. As semiconductors are integral
`in many areas, e.g., healthcare, transport, and defense,
`the risk of private electronics such as mobile phones and
`accessories being affected is also high .
`6
`In FY 2021, CBP seized over 1,895 shipments of
`counterfeit cell phones and accessories. The seized
`merchandise is estimated to have a Manufacturer’s
`Suggested Retail Price of over $64 million. A closer
`look at CBP statistics shows that most of the counterfeits
`originated from Hong Kong and China.
`Further, the number of seizures occurred in the express
`consignment and cargo environment combined
`accounted for more than 90 percent of the total IPR
`seizures of cell phones and accessories for FY 2021.
`In addition to the negative economic impacts that such
`counterfeit mobile phones and accessories pose to the
`public, there are also notable non-economic impacts
`that negatively impact society. First, counterfeit mobile
`phones pose significant health and safety risks. Such
`devices may contain levels of chemicals such as lead
`and cadmium that often exceed established safety
`standards. In some cases, the values were 35-40 times
`higher than the globally accepted limits for lead7. CBP,
`citing an investigation conducted by the Government
`Accountability Office, previously reported a 99 percent
`failure rate in 400 counterfeit adapters tested for safety,
`
`1 Pew Research Center, “Mobile Fact Sheet,” https://www.pewresearch.org/internet/fact-sheet/mobile/, April 7, 2021.
`Id.
`2
`3 “One in five mobile phones shipped abroad is fake,” Organization for Economic Co-operation and Development, March 28, 2017, One in five mobile phones shipped abroad is fake - OECD
`and accompanying Report (OECD 2017 Report).
`4 “Counterfeit and pirated goods get boost from pandemic, new report confirms,” European Union Agency for Law Enforcement and Cooperation (Europol), March 7, 2022, https://www.
`europol.europa.eu/media-press/newsroom/news/counterfeit-and-pirated-goods-get-boost-pandemic-new-report-confirms and accompanying report (EUROPOL 2022 IPR Threat Report).
`
`FY 2021
`
`6
`
`

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`Counterfeit Commodity Spotlight –
`Cell Phones and Accessories
`
`fire, and shock hazards, and found that 12 of such
`adapters posed a risk of lethal electrocution to the user8.
`In addition, counterfeit electronic devices may also
`include malware and other harmful software, adding the
`risk of data theft9.
`
`To avert such dangers, consumers should purchase from
`reputable sources and professional resellers should be
`aware that counterfeit parts may be part of the supply
`chain.
`
`FY 2021 IPR Seizures – Cell Phones and Accessories
`Source Country
`Seizure Lines
`Hong Kong
`1,118
`China
`606
`South Africa
`33
`Malaysia
`18
`United States
`17
`All Other Countries
`103
`Grand Total
`1,895
`
`% of Total
`59.0%
`32.0%
`1.7%
`0.9%
`0.9%
`5.4%
`100.0%
`
`FY 2021 MSRP of IPR Seizures – Cell Phones and Accessories
`Source Country
`MSRP
`% of Total
`$ 39,183,693
`60.7%
`$ 22,105,010
`34.2%
`$ 2,005,387
`3.1%
`$ 432,091
`0.7%
`$ 236,485
`0.4%
`$ 623,225
`1.0%
`$64,585,891
`100.0%
`
`China
`Hong Kong
`Malaysia
`United Arab Emirates
`Vietnam
`All Other Countries
`Grand Total
`
`FY 2021
`
`7
`
`5 See EUROPOL 2022 IPR Threat Report at 12.
`Id.
`6
`7 “International Telecommunication Union’s ITU-T Technical Report,” International Telecommunication Union, December 11, 2015, https://www.itu.int/dms_pub/itu-t/opb/tut/T-TUT-CCICT-
`2015-PDF-E.pdf, at 10.
`8 “Combatting Trafficking in Counterfeit and Pirated Goods,” CBP, January 24, 2020, https://www.dhs.gov/sites/default/files/publications/20_0124_plcy_counterfeit-pirated-goods-
`report_01.pdf, at 10.
`9 See EUROPOL 2022 IPR Threat Report at 12.
`
`

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`FY 2021
`FY 2021
`
`
`
`88
`
`

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`COVID-19 Spotlight
`
`In FY 2021, CBP continued to target and seize illegal imports of counterfeit, unapproved, or otherwise substandard
`COVID-19 related products that threatened the health and safety of American consumers. These seizures included
`38,154 Food and Drug Administration-prohibited COVID-19 test kits, just over 35 million counterfeit face masks
`and 8,677 Food and Drug Administration-prohibited hydroxychloroquine tablets. Fifty-three percent of the seizures
`occurred in the express consignment environment, 18 percent were discovered in incoming mail and roughly 31
`percent originated in China. CBP also collaborated with partner government agencies to expedite medical supplies
`and personal protective equipment through the customs clearance process, while working to identify and intercept
`fraudulent, unapproved, or otherwise substandard material
`
`Product
`Covid-19 Test Kits
`Antibody Test Kits
`Masks
`Chloroquine
`Hydroxychloroquine
`Azithromycin
`Lianhua Qingwen
`Respirator/Ventilator
`Hand Sanitizers
`Virus Shut-Out Lanyards
`Vaccination Cards
`
`FY 2021 Overall COVID- 19 Related Seizure Totals
`As of 10/1/2021
`Total Seizures
`53
`9
`670
`10
`59
`32
`17
`1
`2
`1
`734
`
`Quantity
`38,154
`1,063
`35,092,178
`1,810
`8,677
`2,141
`17,567
`27
`150,001
`30,000
`21,314
`
`FY 2021
`FY 2021
`
`
`
`99
`
`state, and local government agencies; facilitated inbound
`shipments through ports of entry; expedited importation
`of critical medical supplies; and responded directly to
`inquiries about the importation of personal protective
`equipment, COVID-19 test kits, ventilators, and other
`medical supplies.
`In FY 2021, the CCRT was responsible for expediting
`shipments of the COVID-19 vaccine and related vaccine
`materials. The CCRT worked closely with several
`importers and other government agencies to ensure the
`vaccine and vaccine materials were released with minimal
`delay. During the FY 2021, the CCRT also responded to
`939 questions from the trade community and facilitated
`the clearance of 788 Operation Warp Speed (OWS)
`shipments.
`To read more about CBP’s efforts during the pandemic,
`please visit https://www.cbp.gov/newsroom/coronavirus
`
`CBP’s COVID-19 Cargo Resolution Team (CCRT), is
`comprised of a network of subject matter experts from
`across the agency. The CCRT triaged incoming requests
`from importers and customers; coordinated with federal,
`
`

`

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`////////////////////////////////////////////////////////////%
`
`FY 2021
`FY 2021
`
`10
`10
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`

`

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`Operational and
`Enforcement Highlights
`
`Components of CBP’s Integrated Trade Targeting Network conducted 4 national level IPR Trade Special Operations
`and 76 local IPR Trade Special Operations in FY 2021. These operations targeted high-risk shipments at seaports,
`airports, rail facilities, international mail facilities and express carrier hubs across the United States. The IPR Trade
`Special Operation is an important tactic used by CBP to gather intelligence on how counterfeiters are shipping
`product to the U.S. The operations also disrupt these nefarious supply chains and lead to criminal investigations by
`Homeland Security Investigations.
`
`FY 2021
`
`11
`
`from attorney-advisors in the Regulations and Rulings
`Directorate increased by 20% compared to FY 2019. In
`FY 2021 the number of pre-seizure requests rose even
`more steeply, increasing 57% from FY 2020, totaling over
`700 requests.
`
`In FY 2021, IPR Trade Special Operations resulted in
`seizures worth an estimated $21 million dollars in MSRP.
`Importantly, Trade Special Operations often result in
`seizures of products that may be both counterfeits
`and violations of other import safety laws. Examples
`are prohibited food products and unapproved
`pharmaceuticals.
`IPR Enforcement Training
`Part of the Office of Trade’s responsibilities include
`training CBP field personnel in identifying suspect
`imports, making infringement determinations, and
`following proper IP border enforcement procedures. In
`FY 2021, despite the travel restrictions caused by the
`COVID-19 pandemic, the Office of Trade conducted
`more advanced IP enforcement training sessions than in
`FY 2020, reaching 8 out of the 10 Centers of Excellence
`and Expertise, including the Pharmaceutical, Health
`and Chemical CEE, to which Regulations and Rulings
`provided instruction on IP enforcement relating to
`COVID-19 specific products, and to CBP officers (CBPO)
`s stationed at the ports of entry with the highest
`volume of trade. The training continues to raise the
`profile of IPR issues: from FY 2019 to FY 2020 the
`number of requests from CBP Officers and Importer
`Specialists for pre-seizure IPR enforcement advice
`
`

`

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`CBP Partnerships
`
`Annual Arrests, Indictments, and Convictions Related to
`Intellectual Property Rights Crimes
`
`500
`
`400
`
`300
`
`200
`
`100
`
`0
`
`457
`
`391
`
`288
`
`240
`
`286
`
`260
`
`256
`
`388
`
`203
`
`197
`
`157
`
`125
`
`98
`
`155
`
`100
`
`FY17
`
`FY18
`
`FY19
`
`FY20
`
`FY21
`
`Individuals Arrested
`
`Indictments Obtained
`
`Convictions
`
`31 Convictions, and a total of $54.7 million USD of illicit
`proceeds seized. The operation has also led to 110
`seizures of counterfeit vaccines, with 49 cases initiated
`and 15 criminal arrests made.
`As the public demand for access to vaccines and
`treatments grow, so do illegal attempts to introduce
`counterfeit versions of these items into U.S. marketplace.
`As such, Operation Stolen Promise 2.0 has been
`launched to expand the focus of OSP to address the
`emerging public health threat of counterfeit versions
`of COVID-19 vaccines and treatments entering the
`marketplace. OSP 2.0 will focus on tackling new and
`evolving public health threats posed by the sale and
`distribution of counterfeit and/or unauthorized vaccines
`and treatments.
`HSI will continue to partner with CBP to seize mislabeled,
`fraudulent, unauthorized, and prohibited COVID-19 test
`kits, treatment kits, homeopathic remedies, and personal
`protective equipment (PPE).
`
`CBP works with partner government agencies to
`facilitate legitimate trade that supports economic growth
`and shields the American public and businesses from
`unsafe products, intellectual property theft, and unfair
`trade practices.
`Immigration and Customs Enforcement (ICE) –
`Homeland Security Investigations (HSI)
`CBP and ICE-HSI identify cases in which third-party
`intermediaries have demonstrably directed, assisted
`financially, or aided and abetted the importation of
`counterfeit merchandise. In coordination with the
`Department of Justice, CBP and ICE-HSI seek all
`available statutory authorities to pursue civil fines and
`other penalties against these entities, including remedies
`under 19 U.S.C. § 1526(f), as appropriate.
`CBP and ICE-HSI mitigate the welfare and financial risks
`posed by imports of illicit products. In FY 2021, ICE-HSI
`arrested 388 individuals, obtained 155 indictments, and
`received 100 convictions related to intellectual property
`crimes.
`Collaboration Spotlight: In partnership with CBP,
`HSI launched Operation Stolen Promise (OSP) in April
`2020 to protect the Homeland from the increasing and
`evolving threat posed by COVID-19- related fraud and
`criminal activity. As part of OSP, CBP Officers and HSI
`special agents have opened investigations nationwide,
`seized millions of dollars in illicit proceeds; made
`multiple arrests; and shut down thousands of fraudulent
`websites. Specifically, OSP during its year aimed to
`focus on three areas: combating the illegal import and
`sale of counterfeit and substandard products; detecting
`and deterring financial fraud scams; and preventing the
`exploitation of relief and stimulus programs.
`One year after its inception in April 2020, OSP has
`yielded significant results, both statistically and in terms
`of the impact the initiative has on protecting the health
`and safety of the American public. This work has kept
`counterfeit and substandard goods out of the medical
`and consumer supply chains while ensuring violators are
`held accountable for their criminal efforts to exploit the
`pandemic for profit.
`In total, this operation has yielded 3,131 COVID-19
`related seizures that included prohibited COVID-19 Test
`Kits, Prohibited Pharmaceuticals, Counterfeit Masks
`and more. OSP has resulted in 362 Criminal Arrests,
`
`FY 2021
`
`12
`
`

`

`FY 2021
`
`13
`
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`CBP Partnerships
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`

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`CBP Partnerships
`
`The United States Postal Service (USPS)
`USPS is responsible for presenting mail and providing
`electronic data (AED) to CBP for arriving international
`mail parcels. USPS and CBP have worked to target and
`identify 31 violations imported through international
`mail. Both agencies are implementing new strategies
`for leveraging the AED already available to identify
`offending merchandise.
`Collaboration Spotlight: Operation Mega Flex is a
`CBP-led, interagency effort that was initiated in July
`2019 to ensure compliance and assess illicit networks
`in the international mail environment through periodic
`enhanced inspections. CBP conducts Mega Flex
`operations in close coordination with ICE, the U.S.
`Postal Inspection Service, and the U.S. Food and Drug
`Administration (FDA) to detect, intercept, and seize illicit
`goods arriving in small parcels from China.
`For example, most seizures out of Memphis were
`counterfeit drivers’ licenses. These shipments originated
`from China and were shipped to various locations
`throughout the United States. CBP learned that many
`of the shipments were smuggled in the bottom of
`boxes containing tassels, clothing, and even bundles
`of synthetic hair10. Further, in just one day in October
`2020, CBPOs in LAX International Mail Facility (IMF)
`intercepted 812 shipments containing counterfeit
`footwear, handbags, wearing apparel, prohibited plant
`and animal products, and other items that threaten the
`health and safety of American consumers and undermine
`the competitiveness of U.S. businesses11. Similarly,
`CBP’s New York Field Office, home to two IMF’s, John
`F. Kennedy International Airport (the largest IMF in the
`United States), and the Port of New York/Newark, and its
`partners also inspected more than 4,000 shipments and
`seized 127 shipments for IPR violations12.
`On average, CBP processes more than 420,000 parcels
`of mail from China each day. Throughout Operation
`Mega Flex, CBP found that more than 13 percent
`of targeted shipments contain counterfeit goods or
`contraband items.
`
`10 See https://www.cbp.gov/newsroom/local-media-release/cbp-memphis-seizes-nearly-200-shipments-through-operation-mega-flex.
`11 See https://www.cbp.gov/newsroom/local-media-release/operation-mega-flex-stops-hundreds-illicit-made-china-shipments-lax.
`12 See https://www.cbp.gov/newsroom/local-media-release/cbp-new-york-field-office-seizes-127-ipr-violations-during-operation.
`
`FY 2021
`
`14
`
`

`

`FY 2021
`
`15
`
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`CBP Partnerships
`
`The National Intellectual Property Rights
`Coordination Center (IPR Center)
`The IPR Center, in collaboration with CBP, stands at the
`forefront of the United States government’s response
`to combatting global intellectual property (IP) theft and
`enforcement of its international trade laws.
`Collaboration Spotlight: Operation Team Player is
`an ongoing annual operation that begins after every
`Super Bowl and continues through the next one,
`targeting international shipments of counterfeit sports
`merchandise into the United States. This operation is run
`by the IPR Center in collaboration with CBP, the National
`Football League, and other major sports leagues to
`prevent the illegal importation and distribution of
`counterfeit sports merchandise.
`Super Bowl LV was played on February 7, 2021, at
`Raymond James Stadium in Tampa, Florida. CBP and
`ICE HSI announced the seizure of more than 267,511
`counterfeit sports-related items, worth an estimated
`$97.8 million manufacturer’s suggested retail price
`(MSRP), through a collaborative enforcement operation
`targeting international shipments of counterfeit
`merchandise into the United States. They seized
`items such as fake jerseys, hats, rings, t-shirts, jackets,
`tickets, souvenirs, and thousands of other sports related
`memorabilia prepared to be marked as legitimate and
`authentic items.
`Due to COVID-19, much of the illegal activity moved
`online, which refocused partner government agency
`efforts more towards commercial websites engaged in
`the illegal sale and distribution of counterfeit goods.
`Commercial Customs Operations Advisory Committee
`(COAC)
`The private sector plays an instrumental role in the
`global economy and has a unique opportunity to lend
`
`their considerable expertise to CBP. By partnering
`with industry leaders, CBP links our processes with
`modern business practices, which results in enhanced
`compliance with trade laws, improves our facilitation and
`enforcement efforts, and assists the U.S. economy. CBP’s
`engagement with its federal advisory committee, the
`COAC, is a key component in evaluating and adapting
`CBP policies and getting feedback about significant
`proposed changes.
`CBP has been able to adopt and implement
`recommendations presented by the COAC IPRWG. As
`of January 2021, CBP began concurrently issuing the
`notice of seizure (NOS) and initiating publication of the
`notice of intent to forfeit on all seized shipments with a
`domestic value less than $2,500. Although publication
`is advanced, all interested parties are afforded the
`same opportunity to respond to the NOS as they had
`under previously existing procedures. Additionally,
`CBP announced that effective June 7, 2021, NOS will
`be emailed to rights holders via the email addresses
`provided to CBP through the IPR e-Recordation
`program. Delivery of seizure notices via email allows for
`instantaneous notification to the rights holder. Issuing
`electronic NOS has increased the speed at which the
`trade community received the necessary information and
`allowed for instantaneous sharing of the information with
`the rights holder. It has also benefited CBP as it reduced
`the cost of mailing such notices. This paperless approach
`aligns with CBP’s continuous effort to improve resource
`efficiency. CBP looks forward to further engagement
`with the COAC.
`
`

`

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`
`
`FY 2021
`FY 2021
`FY 2021
`
`16
`16
`16
`
`

`

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`
`Help CBP Protect
`American Ingenuity
`
`Violation Reporting System at https://eallegations.cbp.
`gov/s/ or by calling 1-800-BE-ALERT.
`The e-Allegation program provides an electronic portal
`through which the trade community and the public
`can report suspected trade violations to CBP. The
`e-Allegation process enables CBP, in collaboration with
`the partners, to protect our economy from the effects
`of unfair trade practices and guard against the entry of
`products that could pose a threat to health and safety.
`In addition to IPR violations, there are other types of
`trade violations, such as forced labor violations, duty
`evasion violations, and shipping violations. For more
`information on various types of trade violations, visit
`https://www.cbp.gov/trade/e-allegations.
`Intellectual Property Rights Search
`CBP works closely with rights holders in making IPR
`enforcement determinations. A public database of
`both active and inactive recordations is available using
`a search engine called the Intellectual Property Rights
`Search (IPRS) at http://iprs.cbp.gov/.
`
`Amount of Active Recordations
`
`20,756
`
`18,757
`
`18,745
`
`17,641
`
`FY 2021
`
`FY 2020
`
`FY 2019
`
`FY 2018
`
`Fiscal Year (FY)
`
`16,000
`
`17,000
`
`18,000
`
`19,000
`
`20,000
`
`21,000
`
`Donations Acceptance Program
`Pursuant to Section 308(d) of the Trade Facilitation
`and Trade Enforcement Act of 2015, P.L. 114-125, CBP
`enacted regulations at 19 C.F.R. §133.61, setting forth
`policies and procedures for accepting donations from
`private sector parties of hardware, software, equipment,
`and technologies for IPR enforcement purposes. These
`regulations are consistent with the CBP Commissioner’s
`FY 2021 priority to identify, detect, and interdict high-
`risk shipments through partnerships.
`Since 19 C.F.R. §133.61 went into effect in January 2018,
`DAP has fully executed five formal IPR enforcement
`partnerships with Procter & Gamble, Otter Products,
`Cisco Systems, Apple Inc., and Nike Inc. To date, 214
`product authentication tools have been deployed to
`70 locations. More importantly, these partnerships are
`demonstrably benefiting CBP’s frontline and yielding a
`positive return on investment for its partners.
`Intellectual Property Rights e-Recordation
`CBP concentrates its IPR border enforcement on
`federally registered trademarks and copyrights that
`have been recorded with CBP by their owners using the
`Intellectual Property Rights e-Recordation (IPRR) system,
`https://iprr.cbp.gov/. All trademark and copyright
`recordations are contained in a secure proprietary
`database accessible by CBP personnel at all 328 ports of
`entry. Product ID manuals provided by rights holders are
`also linked to the database and used by CBP in making
`IPR border enforcement determinations. In FY21, CBP
`added over 2,000 recordations to their enforcement
`database. As of September 30, 2021, CBP was enforcing
`20,758 active recorded copyrights and trademarks.
`Intellectual Property Rights e-Allegations
`Information on potential IPR infringements can be
`submitted to CBP using the e-Allegations Online Trade
`
`FY 2021
`
`17
`
`Total Number of e-Allegations
`received that FY
`
`1,162
`1,252
`1,290
`1,743
`
`Fiscal Year (FY)
`
`2018
`2019
`2020
`2021
`
`e-Allegations by Fiscal Year (FY)
`Amount of IPR (Counterfeit
`Trademark & Piratical Copyright)
`e-Allegations
`324
`264
`360
`407
`
`

`

`Case: 1:25-cv-06214 Document #: 1-5 Filed: 06/04/25 Page 19 of 45 PageID #:89
`Case: 1:25-cv-06214 Document #: 1-5 Filed: 06/04/25 Page 19 of 45 PageID #:89
`
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`COUNT RFEITS.
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` The risks of shopping online
`
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`
`
`FY 2021
`FY 2021
`
`18
`18
`
`
`
`
`COUNTEREITS ARE
`UNSAFE. ONLY TRUST
`REPUTABLE SOURCES.
`
`aren't always obvious. Be
`informed about the dangers
`of counterfeit goods.
`
`

`

`FY 2021
`
`19
`
`Case: 1:25-cv-06214 Document #: 1-5 Filed: 06/04/25 Page 20 of 45 PageID #:90
`
`Exclusion Orders and Outreach
`
`Exclusion Orders
`CBP enforces exclusion orders issued by the International
`Trade Commission (ITC). Most ITC exclusion orders are
`patent based. The ITC issues both limited and general
`exclusion orders. Limited exclusion orders apply only
`to infringing articles of named respondents. General
`exclusion orders bar the entry of infringing articles by all.
`Exclusion orders prohibit the entry of all covered articles,
`even if they were not specifically accused and found
`to infringe by the ITC. Once excluded, subsequent
`importations of the same articles by the same importer
`are subject to seizure.
`❱❱ Exclusion Orders – for FY 2021:
` ■ Seizures correctly citing 19 USC 1337(i): 81 cases
` ■ Seizure Est. MSRP: $1,930,683.
` ■ Total Active Exclusion Orders: ”At the end of
`FY 2021, CBP was administering 128 active
`exclusion orders issued by the U.S. International
`Trade Commission following investigations of unfair
`import practices in the importation of articles into
`the United Sates in violation of 19 U.S.C. § 1337.”
`Public Awareness Campaign
`In FY 2021, CBP continued the Truth Behind Counterfeits
`IPR Public Awareness Campaign intended to educate
`the public of many harms associated with the purchase
`of counterfeit goods. The goal of the campaign is to
`increase consumer conscientiousness by making people
`aware that buying counterfeits is not a victimless crime
`
`and to encourage them to shop from legitimate and
`trustworthy sources. Due to COVID-19, CBP pivoted
`its consumer education campaign to leverage existing
`digital platforms and utilize relationships with trade
`associations to bring awareness to the dangers of
`counterfeit goods. This included the use of traditional
`media avenues as well as CBP’s social media presence
`(Twitter, Facebook, and Instagram) and updating CBP’s
`IPR website (https://www.cbp.gov/trade/priority-issues/
`ipr) and the Truth Behind Counterfeits standalone
`webpage (https://cbp.gov/trade/fakegoodsrealdangers).
`Asia Pacific Economic Cooperation
`In February 2021, at the Asia Pacific Economic
`Cooperation (APEC) Subcommittee on Customs
`Procedures (SCCP) meeting that was hosted virtually
`by New Zealand, CBP presented the results of the
`COVID-19 joint enforcement effort that took place from
`November 10 to December 10, 2020. This operation
`helped participating economies with the identification,
`interdiction, and deterrence of counterfeit COVID-19
`related items and had participation from eight APEC
`economies (Australia, Japan, Mexico, New Zealand,
`Papua New Guinea, Peru, Thailand, and the United
`States). Following on this effort, the United States and
`Peru conducted a joint enforcement COVID-19 focused
`operation in June 2021 to assess IPR trends since the
`previous operation. Both the U.S. and Peru presented
`their results to the APEC SCCP at the virtual meeting
`held in August 2021.
`
`

`

`Case: 1:25-cv-06214 Document #: 1-5 Filed: 06/04/25 Page 21 of 45 PageID #:91
`
`Outreach: CBP/U.S. Chamber of Commerce
`Memorandum of Understanding
`
`On May 26, 2021, CBP