Intellectual Property Protection and Enforcement Manual - Ipr-policy.eu

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Kelly. “It’s not always easy to determine fake packaging
since counterfeiters are getting increasingly sophisticated.
As a result, we’ve invested considerable resources in
developing security features that help the company
and law enforcement distinguish the real from the
counterfeit.” PM USA’s secret security features stem
from a product intelligence strategy that leverages new
technology and allows the company to detect counterfeit
product packaging.
Market Monitoring
The company’s market monitoring programs gather
information about contraband (including counterfeit)
cigarette-related activity. For instance, third-party
buyers and investigators engaged by the Brand Integrity
department regularly purchase PM-branded cigarettes
from retail stores, online sellers, and “nontraditional”
outlets where tobacco products would typically not be
sold. Then they determine their authenticity and origin.
PM USA takes action under its contracts and trade
policies against wholesalers and retailers found
trading in contraband PM-branded products. “We
provide reports of such actions to the appropriate law
enforcement authorities,” says Kelly.
Monitoring efforts have identified important trends
that enable the Brand Integrity team to better focus its
resources. “We have identified geographic areas overseas
where we suspect that counterfeit PM-branded products
are manufactured, as well as the states in this country
where they are normally sold,” says Kelly. “This should
immediately raise red flags at ports and other entry
points because all brands produced by Altria companies
for domestic consumption are made here and shouldn’t
be coming in from abroad.”
Litigation
Civil litigation provides another avenue for brand
protection within the Altria family of companies. PM
USA has filed suit against retailers, illegal importers, and
Internet operators found to be trafficking in contraband
PM-branded cigarettes. Kelly says, “Civil litigation serves
the dual purpose of cracking down on those who violate
the law, while also helping us better understand the
counterfeit market.”
Illegal Trade Legislation
Altria Group and PM USA have supported federal and
state legislation to better protect the legitimate channels
of distribution, impose more stringent penalties for the
violation of laws related to contraband cigarette trafficking,
and provide additional tools for law enforcement.
According to Altria, the Prevent All Cigarette Trafficking
(PACT) Act is an important federal bill that, when
enacted, will close a number of gaps in current law
regulating “remote” or “delivery” sales (such as Internet
and mail-order purchases) of cigarettes and smokeless
tobacco products and makes these products undeliverable
through the U.S. Postal Service. At the state level,
PM USA supports legislation that requires licensing of
cigarette manufacturers, importers, wholesalers, and
retailers; serialized tax stamps in every state; seizure and
destruction of illegal cigarettes; and stricter regulations
governing the sale of cigarettes over the Internet
(including reliable age verification and tax collection).
Enforcement of Company
Trade Policies
PM USA works diligently to make its trade partners
(wholesalers and retailers) aware of threats posed by
counterfeit and contraband products and to require that
they adhere to company trade policies governing trade
in such products. According to Kelly, “We want all
wholesale and retail partners who participate in PM USA
trade programs to understand that PM USA vigorously
protects its brands and the legitimate trade channels
through which they are distributed and sold.”
Kelly and her Brand Integrity team are committed to
dealing with a range of evolving counterfeit product
issues. In protecting well-known premium brands, the
resources her team devotes to fight counterfeiting make
business and economic sense.