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News 

 

Customs destroys fake exercise machines

Nanaia Mahuta

06.03.2008

Staff get helping hand from Customs Minister

Customs Minister Nanaia Mahuta today lent Customs officers a helping hand in sending 748 counterfeit Ab King Pro machines - a popular brand of exercise machine – off for destruction in Auckland.

Customs has detained 4,734 counterfeit machines across the country with an estimated value of around $1.41 million and 448 of those machines have been approved for destruction in Christchurch.

"The rights holders, Brand Developers, filed a border protection notice in October 2007 and because of this, Customs was able to intercept these fake goods at the border," says Nanaia Mahuta.

“There is also the added advantage to the consumer, who is protected against faulty workmanship from faulty goods. There’s nothing worse than paying out a lot of money only to find some defect.

“It’s also important for the rights holders to protect the integrity of their brand. I congratulate rights holders like Brand Developers for filing their border notice,” says Nanaia Mahuta.

"Today's destruction shows that Customs' border protection notice system is working to protect New Zealand businesses and the New Zealand public."

Nanaia Mahuta says the Labour-led government is committed to ensuring intellectual property rights (IPR) are safeguarded.

"The government takes IPR crime very seriously and Cabinet has agreed to amend the Copyright and Trademarks Acts to give Customs and the Ministry of Economic Development further powers to investigate and prosecute IPR crime," says Nanaia Mahuta.
Managing Director of Brand Developers Paul Meier applauds Customs’ response.

"I'm grateful for Customs' swift action; New Zealand faces an orchestrated counterfeit industry that is fuelled by easy access to Trade Me and similar websites. We are going to prosecute every importer of counterfeit Ab King Pros,” says Paul Meier.

Customs Acting Manager Investigations Dave Meredith says counterfeit goods like this are usually sold in New Zealand shops and over the internet.

The rights holder has issued civil proceedings against four importers. To date Customs has 1,196 machines where the importers have consented to forfeit the goods to the Crown. The fate of the other 3,538 machines detained by Customs will be decided after the civil proceedings.

"It's also important to note that these fake goods are poorly constructed and could harm unwitting users," says Dave Meredith. "Counterfeit products can pose a real danger to the New Zealand public, as well as damaging the reputations of legitimate businesses."

"We've seen a shift in IPR crime over the last ten years from being focused mainly on fashion goods to now finding fake pharmaceutical goods and electrical equipment, such as hair straightners, which put the New Zealand public at real risk. It's buyer beware: if you see a deal that's too good to be true, it probably is."

Nanaia Mahuta hopes today’s exercise will give legitimate rights holders confidence.

“Legitimate businesses deserve a level playing field. It’s encouraging to know that Customs are working with rights holders to achieve a positive outcome, and I congratulate all those involved in ensuring that legitimate businesses are protected against counterfeit goods,” says Nanaia Mahuta.

Background information

  • The border protection notice system was introduced in 1995, as a result of New Zealand signing the World Trade Organisation's Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. 
  • Lodging a border protection notice with Customs gives officers the right to detain suspected counterfeit goods crossing the border. 
  • 232 border protection notices have been filed with Customs since 1995. 
  • New Zealand Customs Service has removed 1.21 million counterfeit items from the New Zealand marketplace since 1995.
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