Counterfeit DVDs and CDs—Operation “Kopy Kat”

Agents from Immigration and Customs Enforcement [hereinafter ICE] have raided a Brownsville, Texas, flea market, shutting down more than 20 shops and an underground lab used to produce counterfeit DVD movies and audio CDs.^[1] 24,153 DVDs and CDs that were being sold for less than $10 each were seized from various shops; while no one was arrested, ICE special agents are continuing the investigation.^[2]

The seized items have a retail value of more than US$120,000, and in addition to the discs that were seized, agents also confiscated CD duplicators, portable DVD players, computers, printers, a radio mixer with an amplifier, and other electronic equipment.^[3]

This is the latest raid on a flea market, and it is becoming clear that many piracy rings are using flea markets to distribute their goods. Earlier this month, Randolph Hobson Guthrie was returned to the United States from China for his role in a large international piracy ring.^[4] Mr. Guthrie was recently arraigned on charges that he engaged in criminal copyright and trademark infringement, in illegally importing infringing goods, and in money laundering.^[5] Much of the evidence that led to Mr. Guthrie’s arrest in China was found at a Mississippi flea market in 2003. And last month, ICE agents raided a flea market in Donna, Texas, where they seized 8,725 DVDs and CDs.^[6]

In related news, the United States is going to the World Trade Organization in an attempt to pressure China into doing more to combat intellectual property infringement.^[7]

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[1] ICE, Operation “Kopy Kat” Results in the Seizure of Thousands of Pirated Motion Picture DVDs and Music CDs, Oct. 27, 2005, available here.
[2] Id.
[3] Id.
[4] We discussed Mr. Guthrie’s return here.
[5] See US Department of Justice, Press Release: Defendant Faces 18-Count Indictment in First Joint Criminal Intellectual Property Investigation by United States and China, Oct. 25, 2005, available here.
[6] We discussed the Donna flea market raid here.
[7] See, e.g., Martin Crutsinger, U.S. Presses China on Piracy Action, Houston Chronicle, Oct. 26, 2005, available here.