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Monday, May 09, 2005

Managing Intellectual Property: "China jails two US counterfeiters
Managing Intellectual Property

Two Americans were sentenced to jail by a Shanghai court last week after they were convicted of selling fake DVDs worth more than $840,000 over the internet.

The guilty verdicts are the result of the first joint intellectual property rights investigation by agents from the US Immigration and Customs Enforcement (ICE) and Chinese authorities. Michael Garcia, the US Homeland Security official responsible for Customs investigation, said that the case was a 'landmark' that would serve as a roadmap for future IP rights investigations.

The Shanghai People's Court sentenced Randolph Hobson Guthrie to two-and-a-half years in jail, while Cody Abram Thrush, an accessory, was sent to jail for a year. Both men received fines and will be sent back to the US at the end of their prison terms. Two Chinese accomplices were ordered to pay fines, and one was sentenced to serve 15 months in jail.
The court also convicted two Chinese men for their role in the illegal counterfeiting operation.
Chinese prosecutors accused the two Americans of having sold 180,000 pirated DVDs through eBay.com and a Russian based-website, threedollardvd.com, since October 2002.

The case began when an undercover agent from the Customs authority bought a fake DVD at a flea market in Mississippi in September 2003. As the investigation grew, ICE officials began sharing information with the Chinese police's Economic Crime Investigation Department.
Ten months later, Chinese police arrested six people, including Guthrie and Thrush, and made a series of raids on warehouses. As part of their operation, the Chinese authorities seized more than 210,000 fake DVDs and cash in US dollars and Chinese renminbi worth more"
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