Customs – Prohibited Import of goods infringing intellectual property rights

For the first time, Government has made new rules called as "Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007" to prohibit the goods infringing intellectual property rights. 

There is wide confusion in the field that import of IPR is generally subject to these rules; every importer has to fulfill the conditions / procedures prescribed in the rules. 

But, the goods notified under notification no. 49/2007 Cus (NT) dated 8-5-2007 are subject to the certain procedures and conditions prescribed in the "Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007". 

Procedures to be followed by the right holder: 

According to these rules, any person who is the right holder may give notice in writing to the Commissioner of Customs or any authorized officer, at the port of import of goods infringing intellectual property rights, requesting for suspension of clearance of goods suspected to be   infringing intellectual property right after paying application fees of Rs. 2000/- 

Right holder is to file a "Bond" and "Indemnity Bond" in the prescribed manner. 

Procedure to be followed by the Commissioner 

• On receipt of notice by the right holder, commissioner will accept or reject the notice. 

• On acceptance, he has to register that notice at least for one year (validity period) 

• Copy of such notice so registered shall be sent to all offices of the customs. 

Procedure to be followed by the DC / AC customs 

• After receiving the notice DC / AC shall suspend the clearance if he believes that infringing intellectual property rights.

• However, DC / AC may on his own discretion suspend the clearance of goods in respect of which he has prima-facie evidence or reasonable grounds to believe that the imported goods are goods infringing intellectual property rights.  If no reference is received from the right owner such suspension shall vacate with in 5 working days. 

For detailed conditions and procedures - Click here for "Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007". 

Further in exercise of power conferred by section 11 subject to the IPR rules as above, Central Government has notified the goods for which an importer has to follow certain conditions and procedures: - (Prohibited Goods) - Notification No. 49/2007 Cus dated 8-5-2007 

- goods having applied there to a false  trade mark. 

-  goods having applied there to a false trade description  

- goods made or produced beyond the limits of India and intended for sale, and having applied thereto a design in which copyright exists under the Designs Act, 2000 with any fraudulent or obvious imitation of such design  

- the product made or produced beyond the limits of India and intended for sale for which a patent is in force under the Patents Act,1970 without consent from the patentee  

- the product obtained directly by the process made or produced beyond the limits of India and intended for sale, where patent for such process is in force under the Patents Act 1970 without consent from the patentee.

- goods having applied thereto a false Geographical Indication within the  meaning of section 38 of Geographical Indications of Goods  

- goods which are  prohibited to be imported by issuance of  an order issued  by Registrar of Copyrights under section 53 of the  Copyright Act,1957 

For more details -  Click here for  notification no. 49/2007 Cus (NT) dated 8-5-2007