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Chapter 4
the Civil Remedies chapter of this White Paper, which is broad enough to encompass the term of art
in each bill discussed below.
B. Government Agencies and Their Role
1. U.S. Customs and Border Patrol (“CBP”)
CBP is an agency in the Department of Homeland Security (“DHS”). It is primarily responsible for
securing U.S. borders and facilitating lawful international trade and travel, as well as enforcing
immigration and drug laws. Its responsibilities include preventing the importation of counterfeit
and pirated goods, and enforcing exclusion orders issued by the International Trade Commission
(“ITC”) pursuant to Section 337 of the Tariff Act of 1930 (19 U.S.C. §1337), which provides relief
to U.S. industries from unfair trade practices in importing. 3
a) Involvement in Online Counterfeiting and Piracy
CBP is generally not involved in policing piracy and counterfeiting on the Internet. 4 CBP may play
a role in seizing counterfeit and pirated goods purchased online from Predatory Foreign Websites,
but the agency’s actions against counterfeiting and piracy in the online world are typically
undertaken only in collaboration with other government agencies. For example, as will be explained
in more detail below, CBP collaborates with other federal government agencies through the
National Intellectual Property Rights Coordination Center (IPR Center).
b) Agency Limitations
Historically, distribution of counterfeit and pirated goods was confined to low-level operators
lacking organization and infrastructure, such as street-corner vendors. 5 This primitive distribution
model limited the market penetration of counterfeit goods. 6 Today, however, the Internet permits
pirates and counterfeiters to reach consumers around the world, 24 hours a day. 7 Counterfeiters,
including organized crime syndicates drawn to substantial profit margins from selling pirated and
counterfeit goods, are creating websites that appear legitimate in order to deceive consumers into
purchasing their illicit wares.
As a consequence of this new e-commerce paradigm, CBP and ICE have reported a great increase in
mail and express courier shipments of infringing and counterfeit goods. 8 CBP Commissioner David
V. Aguilar has stated that, “The growth of websites selling counterfeit goods directly to consumers
is one reason why CBP and ICE have seen a significant increase in the number of seizures at mail
and express courier facilities.” 9 But the shift from lower volume, heavy shipments of counterfeit
and pirated goods, to higher volume, smaller shipments, has strained the CBP’s ability to effectively
identify and seize illicit goods. The current Director of ICE, John Morton, has suggested that
ICE and CBP, “will need to increase surge operations at foreign mail and courier facilities,” in order
to more effectively police infringement in a world dominated by e-commerce. 10
2. U.S. Immigration and Customs Enforcement (“ICE”)
ICE, like CBP, is an agency of the Department of Homeland Security. ICE was created by the
Homeland Security Act of 2002 to serve as the principal investigative arm of DHS. 11 Today ICE is
the second largest investigative agency in the federal government. Among other responsibilities,
ICE plays an important role in policing the production, smuggling and distribution of counterfeit
and pirated products, as well as money laundering associated with criminal IP infringement. 12 ICE’s
stated goal is to step beyond post hoc enforcement, toward disruption of manufacturing, distribution
and financing segments of the criminal organizations that supply infringing goods and
content. 13
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