AAFA, FDRA Call on Trump to Curb Counterfeiting, Protect IP Rights in First 100Â Days
What President-elect Donald Trump has in store for the first 100 days of his administration remains unclear, but industry groups are bursting at the seams to put their priorities in front of him before he takes office.
The American Apparel & Footwear Association (AAFA) and the Footwear Distributors and Retailers of America (FDRA) signed a cross-industry trade group letter to Trump, urging him to prioritize intellectual property (IP) rights and anti-counterfeit measures during his upcoming term.
In the open letter, published in December, the trade groups note that more stringent enforcement of IP laws and initiatives stands to benefit both companies and consumers.
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“Protecting American businesses and their IP against such exploitation is vital for businesses of all sizes. A safe and fair marketplace—both online and offline—benefits manufacturers, consumers and our national security,” the letter read.
The benefit of cracking down on counterfeits and infringement will also impact consumers positively, the trade groups insist.
“Although the internet has offered convenience across the world to consumers and businesses, the rise of e-commerce also exposes U.S. consumers to an ever-growing network of counterfeiters seeking to profit at their expense. As a result, consumers who are simply looking for a good deal often unknowingly put their health and safety at risk,” the trade groups wrote.
While the letter does not overtly mention China-founded e-commerce apps like Shein and Temu, the companies have been at the center of complaints about counterfeits, privacy and national security (because of their purported links to the People’s Republic of China). The mention of low prices and national security could be a nod to such issues that lawmakers and industry alike have joined forces to complain about, investigate and call for action on.
The groups have called on Trump to, within his first 100 days back in the Oval Office, take a number of steps to support anti-counterfeiting initiatives and the bolstering of IP laws and practices. Other signatories to the letter include the Alliance for Automotive Innovation, the Anti-Counterfeiting Educational Foundation, The Toy Association, the Sports & Fitness Industry Association and more.
They ask the president-elect to quickly appoint an Intellectual Property Enforcement Coordinator (IPEC) and an Under Secretary of Commerce for Intellectual Property and Director of the U.S. Patent and Trade Office (USPTO). They also suggest that Trump works to quickly confirm his pick for the Commissioner of U.S. Customs and Border Protection (CBP), Rodney Scott. Scott previously served as chief of U.S. Border Patrol. By making and confirming such appointments, the trade groups note, Trump’s administration will be on the right path to protecting businesses and consumers from fake products.
The groups also urge Trump to bring together a working group on illicit trade, IP and counterfeits that meets at least quarterly with representatives from various agencies and industries. They later note that, should that group be convened, it could “review tactics and resume action” on the Combating Trafficking in Counterfeit and Pirated Goods implementation plan, which resulted from a Trump-era presidential memorandum but has not seen updated work since December 2020.
In addition to resuming talks on that memorandum, the group of trade organizations has suggested that the inbound Trump administration revitalize a “call for policies that address counterfeits from a holistic and strategic standpoint to keep our industries competitive and consumers safe from dangerous products.”
This, they note, would include policies to ensure counterfeits and IP-infringing products don’t cross U.S. borders.
To help facilitate the ideation process, the groups recommend, Trump could task the recommended working group with bringing forth policy suggestions; they ask that, should he choose to take that route, the president-elect make that mandate within the first 100 days, and that the working group’s report would be due within six months of his administration.
But it’s not all about bringing from-scratch legislation to the table, the groups note. They have asked that the incoming administration put its support behind the Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce Act (SHOP SAFE Act), which the groups authoring the letter have already endorsed.
That piece of legislation was reintroduced in June by Chair of the House Judiciary Committee Subcommittee on Courts, Intellectual Property and the Internet Darrell Issa (R-Calif.) and House Judiciary Committee Ranking Member Jerry Nadler (D-N.Y.). It aims to hold e-commerce platforms liable for infringing on IP rights if they don’t take adequate measures to curtail the sale of counterfeit goods.
Issa said the act would bolster U.S. industry and aid consumers’ ability to take confidence in their purchases.
“For far too long and for no acceptable reason, millions of American consumers have been ripped off by purchasing fake, illegal and unsafe counterfeit products sold on online marketplaces,” Issa said in a June 2024 statement. “The nationwide problem of third-party sellers peddling bogus products on platforms is made worse because these sham sellers are rarely—if ever—held accountable for the damage they inflict not only to individuals but to the entire structure of consumer confidence as well. Our bipartisan legislation promotes key incentives for online platforms to engage in best practices that will screen and vet both sellers and products to ensure that consumers have the information they need when they shop online.”
