IPR Protection for Everyone: Information and Resources For Automotive Aftermarket Suppliers

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1 Information and Resources For Automotive Aftermarket Suppliers Automotive Aftermarket Suppliers Association December 2012

2 Information and Resources For Automotive Aftermarket Suppliers Disclaimer: This AASA Special Report is intended solely as an introduction to intellectual property rights protection terminology and as a guide to some of the resources available to assist automotive aftermarket suppliers in IPR protection. The law is continuously evolving in this area and this report is not intended as legal advice. Suppliers are strongly urged to consult with their corporate attorney and / or attorneys specializing in IPR for advice and protection. INTRODUCTION An aftermarket supplier s most valuable asset can be its intellectual property the processes the supplier uses to create, manufacture and market its products. Violations of these intellectual property rights (IPR) can come in many forms, including counterfeiting, trademark infringement, gray market, diversion, country of origin or non-compliant parts. In today s global marketplace, a company may never know its rights are being violated. Aftermarket suppliers need to have an understanding of the scope of IPR violations and counterfeit parts in order to protect their valuable business assets. AASA has produced many documents addressing counterfeiting and IPR protection. This Special Report gathers key information from these various reports into a single resource for aftermarket professionals at all levels. Its contents include An introduction to IPR, summarizing the scope of counterfeiting and IPR violations; the flow of counterfeit goods through the U.S. market; and a glossary of key terms Key protections against IPR violations and key information about direct importing and reseller liability to share with supply chain partners Resources and guidelines for reporting IPR violations and counterfeiting to authorities As noted in the disclaimer above, this report is not intended as legal advice on IPR protection or anti-counterfeiting actions. AASA encourages all aftermarket suppliers to consult with their corporate attorneys or attorneys specializing in IPR protection for legal advice. Members also can learn more about IPR and the latest legislative and regulatory actions to protect U.S. manufacturers through the Brand Protection Committee, managed by MEMA. BPC membership is open to AASA supplier members. For more information about the BPC, contact Dan Houton of MEMA, dhouton@mema.org. 2

3 Information and Resources for Automotive Aftermarket Suppliers TABLE OF CONTENTS SECTION I: Introduction to Intellectual Property Rights Scope of the Counterfeiting Problem... 4 Consequences of Counterfeit Parts... 4 The Flow of Counterfeit Goods into the Marketplace... 5 Glossary of Terms... 7 SECTION II: Protecting Intellectual Property Rights Guidelines to Protect Intellectual Property... 8 Trademarking Part Numbers and Electronic Catalogs... 9 Talking to Supply Chain Partners about Reseller Risks SECTION III: Reporting Counterfeiting and IPR Violations Reporting Counterfeiting or IPR Violations Protecting IPR at AAPEX Other Resources from AASA Get Involved!

4 Introduction to Intellectual Property Rights The Scope of the Problem Counterfeiting: Crime of the 21 st Century Counterfeit products are at the forefront of these IPR issues. Any recognizable brand is at risk of being counterfeited from clothing and handbags, music and movies, pharmaceuticals and parts for automobiles, heavy duty trucks and equipment. The global counterfeit problem is estimated at $600 billion per year, according to the Federal Trade Commission (FTC) and the World Customs Organization in Interpol. As a result, the FBI has labeled counterfeiting as the Crime of the 21st Century. Counterfeiting is not a victimless crime. Consider that: Counterfeiting steals desirable manufacturing jobs. Counterfeiting destroys brand reputation of legitimate companies and poses product liability claims. The sale of counterfeit goods has been linked to organized crime and terrorist organizations. The motor vehicle parts industry those manufacturers who produce the parts and components used to repair everything from passenger cars to over-the-road trucks have been hit hard by counterfeiting. It is estimated that counterfeiting costs the global motor vehicle parts industry $12 billion a year and $3 billion in the United States alone, according to the Federal Trade Commission (FTC) and the World Customs Organization in Interpol. And the problem grows larger every year. In addition to the other considerations listed above, counterfeit motor vehicle parts pose serious safety risks to unsuspecting consumers. Counterfeit motor vehicle parts may not meet safety standards and the criminals who produce these parts frequently use dangerous, inferior materials in production. When counterfeit parts are used (as noted by vehicle testing experts): Counterfeit oil filters can cause sudden engine failure Counterfeit suspension parts and wheels break when made of substandard material Vehicle hoods without crumple zones penetrate the passenger compartment Counterfeit brake pads, made of grass clippings and saw dust, have caused fatal accidents Counterfeit windshields without safety shatterproof glass can cause injury or death As a result, these counterfeit parts which may look identical to quality, brand name parts can endanger the repair professional installing the part, the car or heavy duty truck driver operating the vehicle and all motorists traveling the same roads with these vehicles. 4

5 Introduction to Intellectual Property Rights The Flow of Counterfeit Goods into the Marketplace Different players enter the U.S. parts distribution supply chain with counterfeit or gray market products. As Figure 1 on page 6 demonstrates, the methods of entering the marketplace are diverse so diverse and convoluted at times that legitimate partners may unwittingly sell unsafe, counterfeit parts to the end user. Before examining how products enter the supply chain, it is vital to make the distinction between counterfeit products and gray market products: Counterfeit products are produced by unauthorized suppliers. These parts may appear identical to legitimate products in terms of packaging, branding and trademarks, but they have been produced without the original manufacturer s authorization and may disregard adherence to safety and quality standards. Gray market products may be produced by authorized or unauthorized manufacturers. These products were made to replace the original part but are being distributed in an unauthorized channel in violation of the original manufacturer s distribution agreement. These unauthorized suppliers and manufacturers may have links to international suppliers as subcontractors for production of legitimate parts. Parts produced by the unauthorized supplier or manufacturer may be sold directly to the warehouse distributor. They also may begin their journey into the U.S. market through one of three points: a Master Distributor or Importer of Record on the Internet through a Web site or Mail Order site, or a Broker. The Will-fit Supplier, which produces legitimate replacements parts which can be converted to counterfeit, also enters the supply chain through these three points. Parts from the Master Distributor/Importer may be sold to a warehouse distributor, or may be sold directly to the parts store/jobber/retail chain, the repair facility or the end user/vehicle owner. The broker and the Internet/Web site/mail Order sites may sell directly to the parts store/jobber/retain chain, the repair facility or the end user. 5

6 Figure 1: U.S. Automotive and Commercial Vehicle Parts Distribution Supply Chain Model - Simplified Counterfeit products are produced by unauthorized suppliers these parts may appear identical to legitimate products in terms of packaging, branding and trademarks, but they have been produced without the original manufacturer s authorization and may disregard adherence to safety and quality standards. Gray market products may be produced by authorized or unauthorized manufacturers they were made for the replacement of the original part but are being distributed in an unauthorized channel in violation of the original manufacturer s distribution agreement. These unauthorized suppliers and manufacturers may have links to international suppliers as subcontractors for production of legitimate parts. 6

7 Introduction to Intellectual Property Rights Glossary of Terms Aftermarket -- parts and accessories not supplied by the vehicle maker but added or replaced after the vehicle s purchase. Broker -- Generally not product experts but in the business of selling large quantities of overrun, overstock products which may or may not contain counterfeit goods Counterfeit Products -- parts and products bearing the appearance, branding, packaging and trademarks of legitimate manufacturers without authorization Customs Broker -- Completes necessary documentation for export of goods Distribution Center -- manufacturer s facility for packaging, warehousing and shipping of finished parts End User / Vehicle Owner -- The ultimate end-user or consumer of the part Free Trade Zone -- Within international borders Freight Consolidator -- Actual transporter of goods Gray Market Products -- legitimate products diverted for sale in an unauthorized market Internet / Web Sites / Mail Order -- Also may be distributors of illegitimate products; may or may not be located in the United States Manufacturer -- includes the actual manufacture, assembly and completion of a finished component or part Master Distributor / Importer of Record -- company that receives illegitimate products within the U.S. with the intent to distribute; also may convert legitimate replacement products to counterfeit through the use of markings, packaging, etc. Original Equipment Channel -- includes the OE vehicle manufacturer and the subsequent replacement parts sales and/or repair through OE dealerships Parts Store / Jobber / Retail Chain -- WDs may sell through independent or company owned parts stores; Jobbers are auto parts store owners/operators and may sell products to volume purchasers (repair facilities, fleet owners and industrial firms) and/or retail to walk-in customers (do-it-yourselfers) Purchaser -- May include all the parties in the Legitimate Supply Chain: Raw Material and Component Suppliers -- parts used in light duty vehicles or commercial vehicles; may be international or domestic Repair Facility -- where parts are installed professionally (as opposed to consumer / do-ityourselfers); may be independent or a car dealer Unauthorized Manufacturers -- producers of replacement products in violation of the original manufacturer s intellectual property Unauthorized Suppliers -- producers of raw materials or components not commissioned by the original manufacturer Warehouse Distributor -- wholesalers of vehicle parts Will-fit Supplier -- producer of legitimate replacement products not in violation of intellectual property which may later be converted to counterfeit by affixing trade marks or other trade dress violations by another party 7

8 Protecting Intellectual Property Rights Guidelines to Protect Intellectual Property Registration Register all copyrights and trademarks with the U.S. Patent and Trademark Office. Additionally, register with U.S. Customs and Border Protection. License Agreement Even when giving permission for customers to use IP on their own Web sites, it is important and helpful to have them sign a license agreement to avoid problems down the road. It also helps keep track of legitimate use versus infringement. Terms of Use Always add a terms of use clause to any cyber information (Web site, e- catalog, etc.) that must be accepted prior to any one having access to data, even if it is public. This helps defend and guard against possible misuse. Redirect When illegal or infringing sites are shut down, many companies having found it beneficial to redirect Internet surfers to the official site location. Settlement It is usually in companies best interest to reach a settlement especially with small infringers. Settling minimizes costs yet still gains publicity for the plaintiff company, and establishes it as a business which pursues infringers. Cease and Desist This action is still the first step in contacting an infringer. More often than not, cease and desist orders produce results and saves expense of a law suit. Evidence of Confusion In these cases, infringers use legitimate brand names and part numbers as cross reference, and confuse or mislead buyers into thinking they are buying the genuine part. Proof of this is important in any legal action and usually obtained from the infringer s Web site. Obtain Rights in Foreign Markets Companies which register trademarks and copyrights only filed in the United States put their IP at risk in global markets. Develop Product Identification Training - Recommended by the U.S. Customs and Border Protection including: o Company Information o Registration and Recordation Information o Product Information o Manufacturing and Distribution Information o Violation Information o Disclaimer 8

9 Protecting Intellectual Property Rights Trademarking Part Numbers and Electronic Catalogs One of the strongest protections available against counterfeiting and IPR violations is trademarking. Before delving into this very broad overview of trademarks and the level of protection afforded different types of marks, please note: the law is continuously evolving in this area. Legal counsel is the best source of assistance in developing a strategy appropriate for your company and specific jurisdiction. In general, a trademark, or mark, is a symbol (e.g., a word, name, symbol or device or any combination thereof) that performs four functions that are deserving of trademark protection: 1. to identify one seller s goods and distinguish them from goods sold by others; 2. to signify that all goods bearing the trademark come from or are controlled by a single, albeit anonymous, source; 3. to signify that all goods bearing the trademark are of an equal level of quality; and 4. as a prime instrument in advertising and selling the goods. In order to qualify for trademark protection, consumers must perceive the mark to be a source identifier. Often, the particular use of a mark on products will substantively dictate whether the mark is being perceived as a source identifier. For example, the placement of a large decal of a smiley face on the front of a shirt may not be perceived by the public as anything other than ornamental or decorative. However, a shrunken smiley face located on the left hand corner of a shirt may be perceived by consumers as an indication of the source of the shirt. The level of trademark protection available for a mark depends on the mark s degree of distinctiveness. Inherently distinctive marks and suggestive marks are automatically distinctive enough to be trademarks and qualify for the strongest level of trademark protection. Inherently distinctive marks are those which are fanciful, such as coined terms such as KODAK or EXXON, or arbitrary terms, which have actual dictionary meanings, but do not describe the products to which they are applied, such as APPLE for computers. Suggestive marks are those that suggest a feature or character of the product or service, but do not actually describe those features. For example, RENT-A-WRECK for automobile renting services has been found to be suggestive. On the other hand, descriptive marks, that is, those that directly describe a quality, characteristic, function, feature, purpose or use of the specified goods, can only be trademarks if they achieve secondary meaning. A descriptive mark can acquire secondary meaning by becoming better known through advertising and customer awareness. It is typically demonstrated through sales and advertising expenditures, amount of sales and other factors. No single factor is dispositive. Examples of merely descriptive marks include BED & BREAKFAST REGISTRY for lodging reservation services, and APPLE PIE for potpourri. 9

10 It is possible to trademark part numbers to prevent misuse by others. However, in order for the part numbers to qualify for trademark protection, they must not be descriptive and be able to function as a trademark. Specifically, part numbers must be used in a manner and advertised in such a way that consumers would likely identify them as being associated with a particular source (e.g. a specific company or manufacturer). While it is unlikely that part numbers may be protected under copyright law, electronic catalogs that feature a sufficiently original selection may qualify for copyright protection. However, both part numbers and electronic catalogs may be protected under contract law. Generally, a company may increase its likelihood of successfully protecting its part numbers and electronic catalogs by incorporating the following actions: Use part numbers in a manner that makes them function as a trademark or a source identifier. Consider distinguishing the appearance of part numbers on the package and in printed material by setting them apart in different fonts, capitalization, size, style, color and location. Attempt to obtain trademark registrations for all material or important part numbers that qualify as trademarks or source identifiers. Upon acquiring federal registration, use the symbol with the mark. Attempt to seek federal trademark protection on the supplemental register for important Parts Numbers that are descriptive and have not yet acquired secondary meaning. After five years of use, amend registration to the Principal Register. Educate distributors on proper use of part numbers. Police third party use of part numbers. When creating electronic catalogs, express the information in an original manner so as to qualify for copyright protection. Obtain copyright registrations for all materials that qualify for copyright protection, such as catalogs, artwork of parts, brochures, and inventory software. Ensure that contractual language is included in all agreements that (1) acknowledges the ownership of trademarks and copyrights, (2) imposes liability for the misuse of trademarks and copyrights and (3) restricts the other party s commercial exploitation of part numbers or electronic catalogs outside the scope of the agreement. 10

11 How to Protect Intellectual Property Rights Talking to Supply Chain Partners about Reseller Risks The automotive aftermarket is a very competitive marketplace. Many aftermarket resellers defined here as warehouse distributors, retail chains, retailers, chain stores, program groups, jobbers and any other company which imports automotive aftermarket parts for direct sales may be tempted by the lure of low cost direct importing of parts or too good to be true product deals that are in fact counterfeit goods. As noted at the beginning of this report, counterfeit parts and some direct imported products can pose a safety hazard on our nation s roads and highways and the reseller of those parts is viewed by federal and state courts as the responsible party. Full service aftermarket suppliers should communicate the risk of legal liabilities in dealing with suspicious parts or directly imported products with their valued supply chain partners. Resellers Beware The liability for counterfeiting, product safety issues and recalls could fall upon resellers in certain instances. Courts are finding resellers liable for: recalls or product safety issues resulting from private label (or will-fit ) products; actively participating in the counterfeiting scheme; being willfully blind to the counterfeit nature of the goods; and any harm resulting from the counterfeit goods under a product liability theory Resellers may be responsible for the recall of a private label or will-fit product even if they were not involved in the manufacturing process. Many resellers mistakenly believe that they will not be liable for any injuries resulting from a defective product because they are not involved in the manufacturing process of the product. Following public outcry regarding unsafe imported products including tires, toys, and pet food, National Highway Travel Safety Administration (NHTSA) and the Consumer Product Safety Commission (CPSC) have taken an aggressive role in protecting the public frequently leveling extensive fines. Resellers are liable if they actively participate in counterfeiting. While it s no surprise that a reseller may face liability for active participation in trademark counterfeiting, what legally constitutes active participation may be. Active participation can include actions ranging from a reseller actually applying labels on the counterfeit goods to a reseller that continues to sell product after receiving notice that it was counterfeit. Resellers are liable if they are willfully blind to the counterfeit nature of goods. Resellers are liable for the distribution of counterfeit products even if they did not have actual knowledge of the nature of the product. Courts have placed liability on distributors for counterfeiting if they should have known that that product was counterfeit meaning a reseller could be liable if it failed to inquire further because it was afraid of what the inquiry might reveal. Courts call this 11

12 failure to inquire willful blindness and have found it to constitute the requisite knowledge to be liable for counterfeiting. Resellers can be liable under products liability theories for harm resulting from counterfeit goods. Resellers may be liable under products liability law on theories of negligence and strict liability for personal injuries and property damage when counterfeit products fail and since counterfeiters are not concerned with product safety, counterfeit products present a substantially higher risk. For instance, counterfeiters will often include a label verifying the product safety specifications when the safety mechanism has, in fact, not been included in the counterfeit product. This obviously poses a threat to the safety of customers and can lead to expensive lawsuits and negative publicity for all who are involved. Under U.S. law, the liability for the product failure does not solely lie with the manufacturer resellers are vulnerable, too. First, most state laws prescribe that all the parties in the chain of distribution for a product, including distributors, may be strictly liable for personal injuries or property damage resulting from a defective product. A distributor who has sold a counterfeit good in one of these jurisdictions can be liable for merely selling the counterfeit product. The Hazards of Direct Importing It is no secret that many major brand name manufacturers have shifted manufacturing production from domestic plants to lower cost offshore facilities. Some have even migrated from company-owned facilities to outsourcing. So why shouldn t the reseller bypass the middleman by importing direct? From the resellers perspective, direct importing can be appealing lower costs, competitive advantage, the ease of doing business overseas, and so on. But, before taking the direct importing leap, resellers need to consider these hazards and pitfalls: Product Specification and Engineering: Popular automotive product categories which have been knocked off or reverse engineered may appear the same as branded parts on the outside, but there s no guarantee about what is on the inside. Off-shore manufacturing offers no assurance of adherence to original specifications on dimensions, materials or performance. Category Management: Many offshore manufacturers specialize in only one make or limited model range. Very few, if any, offer a complete, full range of products in any given category. Direct importers have to assume the responsibility of category management and deal with multiple manufacturers to have a complete range of make / model coverage. 12

13 Quality Control: Resellers who choose to directly import products also must assume responsibility for quality control. Once the product specifications are determined, the reseller must obtain preproduction samples for testing and adherence to specs. An incoming inspection process also should be established to ensure each and every shipment is inspected on an ongoing basis for adherence. Product Liability: As discussed in the previous section, resellers may be responsible for the recall of a private label or will-fit products even if they were not involved in the manufacturing process. Also, resellers can be liable for harm resulting from faulty products. Intellectual Property Protection: Because the offshore manufacturer may be beyond the reach of U.S. courts, the reseller faces greater exposure to claims that a product infringes on the patent rights, trademarks or other intellectual property rights which may be owned by the original manufacturer. In such cases the distributor or seller of the product may be ultimately responsible for damages caused by intellectual property rights infringement. Product Recall Responsibility: NHTSA considers resellers which import products as the statutory manufacturers. NHTSA regulates automotive and heavy duty aftermarket parts manufacturers and importing distributors of replacement parts. All importers, including resellers of imported parts, may be assessed monetary penalties if the products are improperly imported. Importer of Record: The importer of record is the actual buying entity in the United States receiving products from an offshore source -- in this instance, the reseller involved in direct importing. In this role, the burden of any taxes, duties, handling fees, tariffs or other charges may become the responsibility of the importer of record, even if the product first makes a stop in another country, and can be retroactive. Longer Lead Times: Unless smaller lot quantities of products are purchased through Internet sources, longer lead times should be expected when dealing with an offshore manufacturer. Not only are the lead times to manufacture the product from scratch a consideration but raw material lead times and shipping times are much longer. Lead times of 180 days are considered the norm and may be longer. Supply Chain Management: Longer lead times are not the only concern in managing a longdistance supply chain inflexibility in the supply chain makes unexpected fluctuations in market conditions difficult to manage. Shipments on the water usually cannot be cancelled due to market slowdowns. Likewise, spikes in demand are as difficult to manage. Increased Inventory Costs: Because of the longer lead times, higher inventory levels and carrying costs must be considered. Additionally, direct imports generally require substantial quantity buys of single part numbers to justify manufacturing runs. Offshore shipments are usually by the container load for optimum freight and space utilizations. Pallet-load quantities of single SKUs and subsequent rack storage must be taken into account. Offshore suppliers generally do not provide payment terms many may require a deposit or full payment in advance. Also, inventory balancing or annual stock adjustments usually are not offered. 13

14 Application Knowledge and Technical Support: When a service professional requires technical assistance in parts identification, proper installation techniques or replacement of a part that has failed, the call comes to the reseller that imported and sold the product not the off-shore manufacturer that reverse engineered the part. Defective Product and Labor Claims: When a reseller chooses direct imports, the buck stops with them. Considering the cost of shipping a boat load of products, a boat load of alleged defective products on its way back is more expensive and it s highly unlikely the offshore manufacturer will agree to returns. A reseller considering direct imports also must consider who will process and analyze labor claims probably not the off-shore manufacturer. 14

15 Protecting Intellectual Property Rights Reporting Counterfeiting or IPR Violations What should you do if you suspect counterfeiting or other IPR violation? Report violations to local, state, or federal enforcement agency, giving as much details as possible: who, what, when, where and applicable product information: part numbers, trademarks, etc. Contact an attorney. Initiate and enforce cease and desist orders. Report IP issues to local customs and border protection officials again, giving as much detail as possible. Coordinate intelligence efforts with your trade association and authorized supplier. Note: Any state, local or government agency can only investigate the offenses they know about. Nobody knows their products and trade dress better than the intellectual property owner. Know your rights and report any suspected violations. To Get Help or Report a Crime State and Local Law Enforcement Privately Retained Legal Counsel U.S. Customs and Border Protection (CBP) o Web site o ipr.helpdesk@dhs.gov U.S. Immigrations and Customs Enforcement (ICE) o Web site Federal Bureau of Investigation (FBI) o Web site U.S. Department of Justice (DOJ) o Web site U.S. Department of Homeland Security o Web site U.S. Department of Chamber of Commerce Global Intellectual Property Center o Web site 15

16 Reporting Counterfeiting and IPR Violations Reporting Counterfeiting or IP Violations at AAPEX Through the cooperative efforts of event owner associations AASA and AAIA, and show management, the Automotive Aftermarket Products Expo (AAPEX) continues to make major efforts to protect the exhibitors investments in their products, technology and brands. Its guidelines also have been implemented in the heavy duty industry including the Heavy Duty Aftermarket Week (HDAW), Mid-America Trucking Show (MATS), the American Trucking Association (ATA) and its Technology and Maintenance Council (TMC). While AAPEX is confident that all of its exhibitors seek to maintain the highest standards of compliance with American law and industry standards, show management is prepared to investigate promptly and carefully all potential intellectual property violations that are brought to its attention. Here are steps for AASA members to take at AAPEX: Reporting a Violator During AAPEX, please direct any problems concerning possible intellectual property violations to Sarah Bruno of Arent Fox, AASA s legal counsel, who can be reached onsite at (cell). Sarah will advise AASA members on how to make a complaint. After hearing the complaint, an AAPEX attorney and show management will visit the exhibitor s booth. If the attorney agrees with the complaint, the exhibitor is advised that he must remove the product and all promotional material of that product from the booth. If the exhibitor does not, or if the product is seen in the booth at another time, the booth is closed immediately and all products removed. AAPEX has numerous security personnel walking the show floor wearing yellow windbreaker jackets and the words Camera/Counterfeiting Patrol on front and back. They are ready and willing to assist exhibitors. Remember: No Cameras Are Allowed Photography is not allowed at AAPEX, unless pre-approved by show management. Official show photographers and media will have a special wristband. Anyone who does not have credentials seen photographs should be reported to show management at the number above or to one of the AAPEX security personnel walking the show floor. 16

17 What Are the Penalties? Exhibitors that display products on the show floor or offer products in their catalogs displayed at AAPEX that are found to violate a patent or trademark will face sanctions by show management. Sanctions may include putting the infringer on notice or monitoring activity at the show; seeking a voluntary withdrawal of the product; redacting the catalog or covering the advertisement; seizing the product or removing the infringing catalog or advertisement; shutting down the booth; or prohibiting exhibitor/infringer from returning to AAPEX. Plan Ahead for Next Year If you are aware that a possible counterfeiter may be exhibiting at AAPEX, contact Sarah Bruno of Arent Fox, bruno.sarah@arentfox.com, before the event begins. 17

18 Reporting Counterfeiting and IPR Violations Other Resources from AASA AASA has produced many Special Reports addressing counterfeiting and IPR protection which are listed below. All are available for free download at the AASA Web site where noted with an asterisk (*), reports are restricted to members only and require a user name and password to download. For assistance with AASA Web site login, send a request to media@mema.org. Intellectual Property: Protecting Valuable Assets in a Global Market* Understanding the Flow of Counterfeit and Gray Market Goods though the U.S. Automotive and Commercial Vehicle Parts Marketplace* Protection of Part Numbers and Electronic Catalogs in the Automotive Industry* Reseller Liability on Will-Fit, Private Label and Counterfeit Products Direct Importing: Do the Risks Outweigh the Reward? Reporting Counterfeiting and IPR Violations Get Involved MEMA Brand Protection Committee The MEMA Brand Protection Committee (BPC) is a forum for suppliers to address counterfeiting, intellectual property rights, gray market or diversion, share best practices and recommend solutions to protect the North American supplier. The group meets each year in conjunction with the MEMA Government Affairs Committee and holds a regular IP and counterfeiting awareness conference. For more information about the BPC and its activities, contact Dan Houton in the MEMA office. 18