Collaboration to Crack Down on Counterfeit Goods in Overseas Direct Purchases

The Korean Intellectual Property Office (KIPO) and the Korea Customs Service (KCS) are intensifying their joint efforts to crack down on counterfeit goods purchased through overseas direct purchase channels. Previously, the two agencies piloted the ‘Overseas Direct Purchase Counterfeit Goods Crackdown System’ at the customs clearance stage for six months starting in April, during which they intercepted a total of 5,116 counterfeit items.

On the 15th, KIPO announced that it signed a memorandum of understanding (MOU) with KCS at the Incheon Main Customs Office Express Logistics Center to effectively crack down on counterfeit goods purchased through overseas direct purchase.

The MOU was established with the aim of continuously strengthening countermeasures against overseas direct purchase, which has emerged as a new distribution channel for counterfeit goods.

Counterfeit goods purchased through overseas direct purchase must go through customs clearance when crossing borders. This underscores the need for a cooperative relationship combining KIPO’s expertise in intellectual property rights and KCS’s expertise in customs clearance enforcement.

Cooperation system between the Korean Intellectual Property Office and the Korea Customs Service to block counterfeit goods at the customs clearance stage. Provided by the Korean Intellectual Property Office

Accordingly, KIPO will monitor overseas direct purchase platforms and provide information on counterfeit goods sales to KCS, while KCS plans to crack down on counterfeit goods by blocking (withholding customs clearance of) the importation of such items at the customs clearance stage.

This cooperative approach has proven effective through the pilot operation of the ‘Overseas Direct Purchase Counterfeit Goods Crackdown System.’ The agreement signifies that the two agencies will now fully activate their joint efforts based on the pilot results.

Separately, KIPO introduced AI monitoring on a trial basis in June targeting overseas direct purchase platforms (covering 11 brands) and plans to expand this significantly next year (covering 160 brands). This is expected to lay the foundation for providing more information related to counterfeit goods purchased through overseas direct purchase to KCS in the future.

In addition to operating the ‘Overseas Direct Purchase Counterfeit Goods Crackdown System,’ KIPO and KCS will share information on trademark infringement identification to protect K-brands, as well as trends in domestic and international counterfeit goods crackdowns, to inspect the importation and distribution status of counterfeit goods within the country.

In particular, they agreed to strengthen cooperation by conducting focused crackdowns on counterfeit goods that directly affect public health and safety and supporting harmfulness analyses.

Kim Wanki, Commissioner of KIPO, said, “The scale of damage caused by the import and distribution of counterfeit goods riding on the popularity of K-brands is increasing. Strengthening cooperation with KCS will be a turning point in preventing the import of counterfeit goods from the border stage and minimizing damage.”

Ko Gwanghyo, Commissioner of KCS, said, “The enforcement program piloted with KIPO is a successful example of inter-agency collaboration. KCS will continue to maintain and strengthen its cooperative relationship with KIPO to take the lead in protecting citizens and businesses from counterfeit goods.”