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Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 [Submitted by CA. K. A. Asmath, November 7, 2007 The other day at M.G.Road, Bangalore, I was offered a new 'Ray Ban' Sunglasses at a very affordable price. I questioned him, where from you got this mall, it looks like an original one, he answered sirji, "yeh mall hum ko china se athahi original me aur isme koi farak nai rehta" . I was astonished with this answer. The companies are spending millions of dollars on research and development, and marketing their products ultimately the very next day there emerges a duplicate product of the same quality in the gray market. Who suffers the loss? Every body including you and me, Of course we are not direct loss sufferers. With the Globalization these kind of activities are increased substantially, to countervail this the Central Government of India has introduced new set of rules called "Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007". Under this rules "a right holder may give notice to the officer in charge at the port of import of goods infringing intellectual property rights in accordance with the procedures and conditions as set out in the rules, requesting for suspension of clearance of suspected goods." Notice shall be given in prescribed form accompanied by such documents as specified by the commissioner and application fees. The right holder shall also inform the customs authority when his intellectual property ceases to be valid. Within 30 days from the date of receipt of the notice, the commissioner notify the applicant whether the notice is registered or rejected. If the notice is registered the minimum period of validity of notice (i.e. during which assistance is provided for non clearance of infringement of intellectual property goods) is one year, during which the infringed goods are treated as "prohibited goods". Conditions for registering the notice is that the right holder shall execute a bond with the commissioner of customs with such amount of surety and security as may be prescribed. Upon this the AC or DC of Customs he shall suspend the clearance of goods. Then the AC or DC shall immediately inform the importer of the goods about the suspension of clearance and the reasons therefore. Within 10 working days from the date of suspension the right holder or his authorized representative shall join the proceedings otherwise goods will be released subject to compliance under the customs act. However in the appropriate cases the period of 10 workings days may be extended for another 10 workings. Where the AC or DC of customs has suspended the clearance of goods on his own initiative then the period of 10 workings days replaced with the word 5 working days. In the case of perishable goods the period of suspension of clearance of release shall be 3 working days which may be extended by another 4 days subjected to the satisfaction of the officer concerned in this behalf. The officer concerned may allow a right holder or his authorized representative to examine the goods, the clearance of which has been suspended and may provide representative samples for examination, testing and analysis to assist in determining whether the goods are pirated, counterfeit or otherwise infringe an intellectual property rights without prejudice to the protection of confidential information. The officer concerned may supply information about the importer to the right holder and vice versa, upon request by them. Where upon it is determined that the goods have infringed intellectual property rights and have been confiscated and no legal auctions are pending then the same shall be destroyed under the official supervision, provided that the cost towards destruction, demurrage and detention charges incurred till the time of disposal as the case may be born by the rights holder. There shall not be allowed the re-exportation of the goods infringing intellectual property rights in an unaltered state. Goods of a non-commercial nature contained in personal baggage or sent in small consignments intended for personal use of the importer are not subject to the above Rules. Customs officers when acting in good faith and having followed the procedures set out in these Rules shall not be liable for:
On coming into force of the said above Rules, it is expected that to some extent, we can stop infringement of intellectual property rights.
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