COAC IPR Enforcement Subcommittee Kickoff Conference Call

Thursday July 17, 2008

2:00-3:15PM

Roll Call:

**Trade Attendees/Organizations Reps**:

Tony Barone/ Rubie Mages -- representing Pfizer

Barry O'Brien -- Hasbro, Inc

Dean Brocious -- Limited Brands

Lee Sandler -- Sandler Travis Rosenberg

Diane Darvey -- National Association of Chain Drug Stores (NACDS)

Joe Gavin -- U.S. Council for International Business

Brad Huther -- U.S. Chamber of Commerce

Mark Mutterperl/Jon Kent -- representing International Trademark
Association (INTA)

Rick Nelson -- Counsel representing Cisco/Micro Sun Systems

Norm Schenk, UPS

David Simpson, Nike, Inc.

DeeJay Smith, Proctor & Gamble

Maria Strong, International Intellectual Property Alliance (IIPA)

Evelyn Suarez, Williams Mullen

John Sullivan, Costco Wholesale Group

**Members/Organizations not present:**

Bruce Leeds, The Boeing Company/COAC member

William Cook, Chrysler Corporation/COAC member

Sandy Merber, General Electric

Brian Monks, Underwriters Laboratories

Hall Northcott, American Association of Exporters and Importers (AAEI)

Alfred Paliani, Quality King Distributors/ QK Healthcare, Inc.

Phil Spayd, Global Trade Policy

Renee Stein, Microsoft Corporation

**Government Attendees**:

Kim Marsho

Tim Skud

Therese Randazzo

Michael Schreffler

Minutes:

**Welcome and Introduction:**

Kim Marsho, CBP Director of Trade Relations (TR) and Commercial
Operations Advisory Committee (COAC) Designated Federal Officer (DFO)
welcomed all new subcommittee members.

Kim started with an overview of her position and how CBP Trade Relations
is responsible for the management of COAC. Kim further explained the
role of COAC and that it is composed of 20 appointed members of the
international trade community which as a body provides advice and
recommendations to Customs and Border Protection (CBP) and Treasury
regarding Homeland Security and Trade Related Functions. The COAC from
time to time will form subcommittees to address specific tasks or
topics. The COAC is co-chaired by Tim Skud, Deputy Assistant Secretary,
Tax, Trade and Tariff Policy, U.S. Department of Treasury and by CBP
Commissioner Ralph Basham.

The COAC IPR Enforcement Subcommittee was informed that Tony Barone,
Pfizer, Inc and Barry O'Brien, Hasbro, Inc are both COAC members and are
co-Chairs of the subcommittee. Tim Skud, Treasury and Therese Randazzo,
CBP Director of IPR Policy & Programs are the government subcommittee
co-chairs. Kim mentioned that she or Michael Schreffler will be serving
as Designated Federal Officer for the subcommittee and will be
responsible for administrative support of the work of the subcommittee.

Kim further reported that the work discussed in the subcommittee will be
discussed at the quarterly COAC public meetings and CBP plans to capture
minutes and post to the CBP web site so the public will be able to see
what the COAC is doing on this topic. Kim also reminded the group that
the members of this subcommittee were brought together to form this
subcommittee for their expertise on IPR enforcement as well as other
members for their points of view and how the advice and recommendations
would impact these particular stakeholder groups. The goal is to have
balanced views from a broad spectrum from the trade community while
keeping the subcommittee at a manageable size.

At this point the subcommittee "Statement of Work (SOW)" was discussed
and it was explained that this is a tool that CBP is using to help us
focus and keep the subcommittee on the same page and provide some basic
operating ground rules. Within the "Background" section, it was pointed
out that the subcommittee will report directly to the COAC. The
subcommittee will not report directly to the Government. The work that
the subcommittee is producing (advice and recommendations) is going to
be submitted to the COAC subcommittee co-chairs and will then be
submitted to the COAC for full deliberation. This process helps with
transparency on the government's decision making process.

The final point Kim addressed regarding the SOW was that the work
submitted by the subcommittee is that of the trade community. The
government is participating to provide guidance. Tim and Therese provide
subject matter expertise on the topic, while Michael and Kim will
provide support for the subcommittee.

**Opening Remarks by Co-Chairs:**

Barry O'Brien welcomed all new members and explained that the
subcommittee is in a good position with CBP to improve the IPR
processes. He mentioned that he brings 28 years of import experience to
the subcommittee and that he is the current chairman of the
International Trade Committee of the Toy Industry of America (TIA) which
has a strong interest in IPR enforcement and protection. He told the
subcommittee that over the past years there has been improvements on
recordations but there is a need to improve or reinvent this process.
COAC is an example of where the government and trade by working together
can improve the IPR process.

Tony Barone, is a logistician for Pfizer, Inc and will be ending his
2^nd^ term as a COAC member in November. Tony feels that through the
advisory committee process the trade can provide actionable
recommendations to the Government so that processes can be improved. Of
particular concern to Tony is public safety.

Tim Skud thanked those new members that volunteered to join the IPR
enforcement subcommittee and mentioned that we have a wide variety of
stakeholders and the viewpoints of all stakeholders need to be
considered prior to taking actions on recommendations.

Therese Randazzo, as Director of Intellectual Property Rights Policy &
Programs for CBP will serve as subcommittee subject matter expert on CBP
IPR issues and will serve as the central point of contact responsible
for coordinating CBP efforts internally and with other government
Departments and Agencies. She also thanked those new members for taking
the time to be a part of the subcommittee. She encouraged the group to
prioritize its recommendations and to keep themt manageable so that the
government and members can see results from this group.

**Introductions by new subcommittee members:**

-   **Dean Brocious**, Director of Brand Protection, Limited Brands

-   **Diane Darvey**, Director Legislative and Regulatory Affairs for
    the National Association of Chain Drug Stores (NACDS). Diane both
    attorney and pharmacist.

-   **Rubie Mages**, Director Global Security Programs, Pfizer, Inc.

-   **Joe Gavin**, Vice President, Trade Policy and Associate Washington
    Representative for the U.S. Council for International Business

-   **Brad Huther**, U.S. Chamber of Commerce

-   **Mark Mutterperl**, representing the International Trade Mark
    Association (INTA) and partner of Fulbright & Jaworski.

-   **Jon Kent**, also representing the International Trade Mark
    Association (INTA), has his own law firm in Washington.

-   **Rick Nelson**, outside counsel representing Cisco and Sun Micro
    Systems, expert in technology IPR issues. Mr. Nelson is with the
    firm of Sideman & Bancroft.

-   **Lee Sandler**, of Sandler Travis & Rosenberg and Sandler Travis
    Trade Advisory Services Inc (STTAS).

-   **Norm Schenk**, Vice President, Customs &Trade Compliance,
    Enterprise wide for UPS and former 8^th^ & 9^Th^ term COAC member.

-   **Davie Simpson**, Director of Security, Nike, Inc.

-   **DeeJay Smith**, Brand Protection Manager Western Hemisphere for
    Procter & Gamble.

-   **Maria Strong**, representing the International Intellectual
    Property Alliance (IIPA) which is a coalition of associations
    regarding copyright and trademark rights holders. Is with the firm
    Greenberg Traurig of Washington DC.

-   **Evelyn Suarez** is with Williams Mullen and has former experience
    as a government attorney with both U.S. International Trade
    Commission and the Customs Service.

-   **John Sullivan**, Associate General Counsel for Costco Wholesale
    Group.

**Administrative issues**:

Kim mentioned that in order to make progress with this group, we thought
we would set up recurring biweekly calls and that issues would be
discussed at next meetings, in particular brainstorming a project list
for the subcommittee to focus on.

Barry added that if in the event that a member could not make the
regularly scheduled meeting we plan to have minutes and the group
members are available via email. He suggested that CBP look into
creating a web board for posting subcommittee activities and documents.

Barry also stated that the primary objective is to strengthen the trade
partnership with CBP and encouraged everyone to think in terms of the
current "as is" processes and what would/should be the "to be" processes
of tomorrow. He also mentioned that we need to keep focused up front
with the SOW and keep in mind that the subcommittee can continue with
other priority projects.

Tony asked about the primary obstacles for CBP and the government and
what are the barriers to doing an enhanced interdictions scorecard?

**Brainstorming:**

Kim and Barry stated that the next meeting would be used as
brainstorming session for members to identify priority projects for the
subcommittee to focus on. Tony added that the subcommittee might focus
on projects that are of more interest for some members than others and
that therefore we may break into small group to address specific issues.

Dave Simpson suggested that China Customs has a General Deposit (Bond)
system that seems to work and that this might be something for the U.S.
to pursue but regulations might need to be modified. Tim Skud suggested
that a small working group be formed to flush out the details of how
this would work. He also mentioned that there is already another COAC
subcommittee addressing Bonds and that this would be an opportunity for
cross fertilization of subcommittees.

Kim asked for a list of project ideas prior to the next meeting.

Norm Schenk suggested that members should share global expertise and
share global best practices.

Therese cautioned the group to look at IPR processes broadly and not to
solely focus on interdictions at the border. The group should look at
what non-rights holders and others can do to contribute to improve the
processes.

Tony asked if other government agencies with a stake in IPR can be
invited. Therese suggested that this would be premature at this time
until we know our focus areas. The subcommittee was reminded that for
now the focus is on CBP processes that can be improved.

Meeting adjourned at 3:17PM

**Action Items:**

Subcommittee members:

-   Lee Sandler, Dave Simpson and DeeJay Smith to form working group to
    discuss IPR bond idea. Will present findings at future conference
    call.

-   Subcommittee members with project ideas are to submit to Michael
    Schreffler for distribution prior to the next conference call
    scheduled for July 31^st^.

Government:

-   Michael Schreffler to check about availability of an international
    call in number for subcommittee members.

-   Michael to provide directory of subcommittee members and circulate
    copy of July 17^th^ meeting minutes.

Prepared by:

Michael Schreffler

CBP Trade Relations

7/21/2008