Intellectual property crimes growing,
lawyers react

Billions of dollars are lost each year because of intellectual property crimes.  In the worldwide film industry alone, there were $18.2 billion in losses in 2005, said John G. Malcolm of the Motion Picture Association of America, including $11.2 billion lost in hard goods piracy and $7.1 billion in Internet piracy. Movie pirates aren't just crooks, continued Malcolm, "They are our competitors."    

What does content protection in the digital age mean in terms of jobs? Are there guidelines or tips by experts as to when an intellectual property crime should be treated as a criminal versus civil case? And how can a lawyer work with the FBI or other federal investigative bodies in prosecuting intellectual property crimes?

These were some of the questions addressed during a recent continuing legal education program held in Washington, D.C. The session, "Investigation and Prosecution of Intellectual Property Crimes," was part of the Inaugural National Institute on Criminal Enforcement of Intellectual Property Rights. 
           
Malcolm compared the profitability and risks of piracy with drug dealing. Drug trafficking often leads to major jail time and even the possibility of execution, outlined Malcolm, while intellectual property crimes often carry a minimal fine and no jail time.
           
Shane P. Berry, with Abercrombie and Fitch and formerly of the Federal Bureau of Investigation's Intellectual Property Rights Program, gave a brief overview of the brand owner's perspective of piracy, including talking about protecting trade secrets, supply chain security and dilution of goods. How Abercrombie handles an infringement depends on a number of factors, said Berry, including loss of goods, recidivism in the infringement and long-term organizational investment. 
           
The advantages and disadvantages of referring a case to law enforcement was addressed by Jeffrey C. Hallam, partner with Sideman and Bancroft LLP, who concentrates his practice on both business crimes defense and civil litigation. Melissa S. Morrow, with the FBI's Washington, D.C., field office, explained the process of working with the agency, including what to report, providing documentation and the prosecution phase.
           
Sherri L. Schornstein, assistant U.S. Attorney, moderated the session.

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