The Customs Administration is dealing with the goods under suspicion of infringing the intellectual property right in accordance with the provisions of the Article 67, Paragraph 3 of the Customs Law ("Official Gazette of the Republic of Montenegro", No. 07/02, 38/02, 72/02, 21/03, 31/03, 29/05, 66/06 and "Official Gazette of Montenegro", No. 21/08) and Regulation on measures of customs authority with the goods under suspicion of infringing the intellectual property rights ("Official Gazette of Montenegro", No. 33/11).
Regulation on measures of customs authority with the goods under suspicion of infringing the intellectual property rights ("Official Gazette of Montenegro", No. 33/11) is harmonised with the basic principles of the Agreement on Trade-Related Aspects of Intellectual Property Rights of the World Trade Organisation (TRIPS).
The Regulation on measures of customs authority with the goods under suspicion of infringing the intellectual property rights stipulates the conditions for undertaking actions with goods suspicious of infringing an intellectual property right, procedure for undertaking such actions, as well as measures for protection of intellectual property rights undertaken by the customs authority in cases when the goods are found to infringe the intellectual property rights.
In accordance with the Regulation customs authority may suspend customs procedure and detained the goods based on application for action of right holder and ex-officio.The customs authority may, in accordance with the Regulation, undertake the actions when goods suspicious of infringing an intellectual property right is: declared for release for free circulation, export or re export, found during the control of goods entering or leaving the customs territory of Montenegro, placed under a suspensive customs procedure or placed in free zone or free warehouse.
The Regulation on measures of customs authority with the goods under suspicion of infringing the intellectual property rights covers the protection of trademark, copyright or related right, industrial design, patent, supplementary protection certificate, plant variety, designation of origin or geographical indication and topography of semi-conductors.
Regarding the data related to the lodged applications for action for protection of intellectual property rights, please note that 44 applications for action for protection of intellectual property rights were lodged to the Customs Administration in 2011. 39 applications were adopted and five applications were rejected due to formal irregularities.
In 2012, 42 applications were lodged to the Customs Administration, out of which 41 applications for action for protection of Intellectual Property Rights were adopted by the Customs Administration and 1 was rejected due to formal irregularites.
In 2013, up to 31st of October, 52 applications were lodged to the Customs Administration, out of which 46 applications were adopted, three applications were rejected due to formal irregularities, while three applications are being processed.
3. Article 52 of the TRIPS Agreement provides that a right holder initiating the procedures of TRIPS Article 51 shall be required to provide adequate evidence to satisfy authorities there is a prima facie an infringement. Could information be provided as to what Montenegro requests, such as any application fee, what is the length of time for which an accepted application is valid, and whether applications are filed at a central office or at ports of entry?
The provisions of Articles 4, 5 and 6 of the The Regulation on measures of customs authority with the goods under suspicion of infringing the intellectual property rights stipulate the proofs submitted by the right holder to this Administration when addressing with the application for action for protection of intellectual property rights.
Namely, the right holder who wishes to protect an intellectual property right shall submit to the Customs Administration the application for action for protection of intellectual property rights,to the address of its headquarters at Oktobarske revolucije No. 128 Podgorica. The application is lodged in two copies in the form found in the annex to the Regulation (Annex 1) and it is filled in accordance with the Instructions for filling in the form and submission of the application for action for protection of an intellectual property right, which is also an integral part of the Regulation. Application and Instructions can be downloaded from the web site of Customs Administration http://www.upravacarina.gov.me/ (in Montenegrin and English).
The application must contain information that enables the customs authority to easily recognise the goods related to the application, specifically: correct and detailed technical description of the goods, all information in possession of the right holder related to the type or manner of infringement of the intellectual property right, name and address of contact persons for administrative and technical issues.
The applicant can also provide other available data on: value of original goods; location of the goods or destination of the goods; details based on which the shipment or packaging of the goods can be identified; expected date of arrival or forwarding of the goods; type of transport; importer, exporter or holder of the goods; country or countries where the goods are produced, as well as transport routes; technical and other differences, if known, between the original goods and the goods suspected of infringing intellectual property rights.
The right holder shall be obliged to accompany the application with the proof that its right has been registered and valid in Montenegro. Excerpt from the relevant register shall also be considered to be a proof. If the application is lodged by authorised user of the right, it shall also be obliged to lodge document that proves the acquisition of right of usage.
If the application is lodged by the representative of the right holder, it shall be obliged to lodge the authorisation for representation, i.e. the power of attorney by which the right holder is explicitly authorising the agent to represent it at the customs authority of Montenegro in matters of protection of an intellectual property right.
Applications for action shall be accompanied by a declaration from the right-holder, in accordance with the Article 6 of the Regulation, accepting liability regarding the damages that might occur with the procedure if the initiated procedure is terminated due to an act or omission by the right-holder or in the event that the goods in question are subsequently found not to infringe an intellectual property right.
With such declaration, the right holder is obligated to bear expenses related to the storing and keeping the goods withheld under the customs control.
Declaration should be made on special form found in Annex 2, making the integral part of the Regulation.
No fee is paid for lodging of the application for action for protection of intellectual property rights.
Customs Administration, within 30 working days following the lodging of the application, is making the decision on undertaking actions for protection of intellectual property rights and submits it to the applicant in written form. When the circumstances order for urgent undertaking of actions and when the application contains sufficient data related to the shipments, suspicious of containing goods infringing the intellectual property rights, the customs administration is adopting the decision within three working days following the day of lodging of application at the latest.
Actions for protection of intellectual property rights are approved for a period not exceeding one year following the adoption of the decision. Approved period can be extended for one year, following the written request of the right-holder, which was submitted prior the expiry of approved period, and if all previous expenses, charged to the right holder have been paid.
4. Article 61 of the TRIPS Agreement provides for criminal procedures and penalties, sufficient to act as a deterrent, for willful trademark counterfeiting or copyright piracy on a commercial scale. Could information be provided on the disposition of criminal cases involving trademark counterfeiting or copyright piracy and the criminal penalties and jail time ordered in those cases?
For the requested criminal offenses against intellectual property, in the period from 2009 to 2013, criminal proceedings were conducted before Montenegrin courts only for the criminal offense of Unauthorised Use of Copyrighted Work or an Object of a Related Right under Article 234 of the Criminal Code of Montenegro ("Official Gazette of the Republic of Montenegro", No. 70/03, 13/04, 47/06 and "Official Gazette of Montenegro", No. 40/08, 25/10, 32/11 and 40/13). We note that the Criminal Code does not stipulate the criminal offense of trademark counterfeiting for which the information is requested, as well as that using another's trademark is an act of execution of criminal offense of Abuse of Trade Name under Article 271 of the Criminal Code, but not the criminal offense itself.
In relation to criminal proceedings in respect of the criminal offense under Article 234 of the Criminal Code, please note the following:
In 2011, the Basic Court in Niksic pronounced one guilty verdict by which the accused was found guilty and sentenced to three months in prison, two years on probation.
In 2012, the Basic Court in Niksic pronounced one guilty verdict by which the accused was found guilty and sentenced to three months in prison, one year on probation.
In 2013, the Basic Court in Herceg Novi pronounced one guilty verdict by which the accused was found guilty and sentenced to three months in prison, two years on probation.
All three verdicts are final.
