A second Customs IP seizure has occurred in Indonesia. It is thought to be the first for a foreign company. Only a couple of foreign IP owners have secured Customs recordals under the new recordal system so far. The seizure was at Tanjung Emas, Semarang, on the north coast of Java. Customs Officers seized 185 cartons containing 390,000 GILLETTE branded razors and 521,280 razor heads imported by PT. LBA from China on Wednesday October 7th.
This led to an application to the Semarang Commercial Court for a request for a temporary suspension of the goods. This was then followed by a full physical examination at Tanjung Emas Customs. Witnesses from the IP Office appeared and P&G which owns GILLETTE and who filed the case. This is a significant quantity so probably justifies a civil action.
One of the challenges of the Indonesian customs detention system is the Legal step requirement following seizure. Not every IP owner can bring civil court proceedings, as they are expensive and time consuming. Even filing a civil case can take time. There are technical legal deficiencies that will exist, given cases would be filed by the local subsidiary not the IP owner.
It is unclear what kind of case is needed and what cost are justified. A significant unknown is what happens if an IP owner does not file a case. Customs may be put in a difficult position if there are dangerous counterfeits in the shipment. Conversely IP Owners will have paid a bond and this will then be at risk if they take no action. Unfortunately the rules are not clear.
Two seizures have occurred and in the best solution will likely be to settle a case as fast as possible.
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