IHA News Release

FOR IMMEDIATE RELEASE:
Contact: Deborah A.Teschke
Manager, Media Relations & Communications
847-692-0110

IHA SETS SIGHTS ON COUNTERFEIT GOODS AS NEXT LEGISLATIVE PRIORITY FOR HOUSEWARES INDUSTRY

ROSEMONT, ILL. (July 29, 2005)—The International Housewares Association, on the heels of its successful efforts to enhance the standing of creditors in commercial bankruptcies in the recent Bankruptcy Reform bill, is now focusing on the Stop Counterfeiting in Manufactured Goods Act as the top legislative priority for its Government Affairs agenda and the housewares industry.

H.R. 32, the Stop Counterfeiting in Manufactured Goods Act, was introduced in the House of Representatives earlier this year and passed by a voice vote in May. Among other things, the bill mandates both the destruction of the counterfeit goods and the forfeiture of any assets traceable to illegal counterfeiting activities. The legislation would also permit the destruction of any equipment used to make the counterfeit products, along with the counterfeit labels/patches/medallions that are unattached to any of the goods. The bill has been referred to the Senate Judiciary Committee where is awaits further action.

IHA is joining the Coalition Against Counterfeiting and Piracy, which is being organized by the U.S. Chamber of Commerce and the National Association of Manufacturers to work to enact legislation to combat product counterfeiting during the 109th Congress.

“ The U.S. Customs Service has estimated that counterfeiting has resulted in the loss of 750,000 jobs and costs the United States some $200 billion annually,” said Phil Brandl, IHA president. “The effect on the home products industry alone has been substantial. H.R. 32 has focused the Congress’s attention on the problem of product counterfeiting. Over the coming months, IHA will be lobbying Congress to strengthen the bill to better address the No. 1 priority of home products manufacturers—stopping the flood of counterfeit goods before they enter the U.S. marketplace.”

Members of IHA’s Government Affairs Committee discussed H.R. 32 with their Congressional representatives during visits to Capitol Hill in late June. In arguments supporting H.R. 32, committee members concluded that the influx of counterfeit goods from foreign markets is causing significant adverse effect on everything from housewares products to machine dies and tools.

" By allowing the destruction of counterfeit goods and the equipment used in producing those goods, H.R. 32 will enhance a company's ability to protect its proprietary rights in regard to brand and products offered to the marketplace,” said Bill Reibl, president and chief executive officer of Progressive International Corp. and a member of the Government Affairs Committee. “But the real damage is done to producers when such goods enter the marketplace. Congress and business must work together to develop an acceptable safeguard to protect U.S. manufacturers, especially those companies that are smaller and can’t afford the legal costs to litigate patent and trademark infringements.

“ If we can craft a viable safeguard, this legislation will go far in helping small businesses like Progressive International invest in future product and brand development, which in turn will allow the company to continue to grow and expand employment.”

IHA members who have had their products counterfeited or pirated and sold in the U.S. are being encouraged to tell IHA about their experiences. The Association will be participating in an Organization for Economic Co-operation and Development survey about industry counterfeiting and piracy and would like to include examples from IHA members. All information will be kept confidential and used in the aggregate for the survey response. Companies that would like to provide information about their counterfeit or pirated goods experience should detail their experience in an email and send by Friday, Sept. 2, to IHA’s Government Affairs Office at govtaffairs@housewares.org.

Further information about H.R. 32 – Stop Counterfeiting in Manufactured Goods Act – is available from IHA’s Government Affairs Office at govtaffairs@housewares.org or 703-549-3630.

The International Housewares Association is the 67-year-old voice of the housewares industry, which accounted for (US)$265 billion at retail worldwide in 2003. The not-for-profit, full-service association sponsors the world's premier exposition of products for the home, the International Home & Housewares Show, and offers its 1,700 member companies a wide range of services, including industry and government advocacy, export assistance, State-of-the-Industry reports, point-of-sale and consumer panel data through Housewares MarketWatch, executive management peer groups, a unique community at www.housewares.org and group buying discounts on business services.