A White House report highlighted intellectual property content in the U.S.-Mexico-Canada Agreement (USMCA) and described a case involving counterfeit Levi’s Jeans.
In the report, the White House states that the United States continues to work with Canada and Mexico to ensure full implementation of intellectual property protection and enforcement obligations.
Counterfeit Levi’s Jeans
Regarding the case, a U.S. jury convicted two individuals of conspiring to traffic counterfeit Levi’s.
On August 2, 2024, a federal jury convicted Marin Morales-Espinoza and Francisco Alvarado-Ramirez of conspiring to traffic counterfeit Levi’s jeans labels, rivets and buttons used to manufacture counterfeit jeans. Morales paid individuals to smuggle these pieces from Mexico into the United States through the Calexico port of entry.
In addition, a co-conspirator paid Morales to move the pieces to his home in Los Angeles. This co-conspirator then delivered the parts to Alvarado, who used them at his factory in the Garment District to manufacture the counterfeit jeans.
At the port of entry, authorities confiscated tens of thousands of fake labels, buttons and rivets. They also seized more than 2,000 counterfeit jeans finished at Alvarado’s factory.
These counterfeit products were sold in local markets by other members of the conspiracy.
The senior director of global brand protection for Levi Strauss & Co. testified that none of the people involved worked for Levi’s. In addition, he explained to the jury the differences between genuine and counterfeit products.
Intellectual Property Regulations
The USMCA entered into force on July 1, 2020. This treaty fosters win-win trade by promoting freer markets, fairer trade and strong economic growth in North America.
It includes a modern, advanced intellectual property chapter, which sets a new precedent in U.S. trade policy.
The USMCA also offers comprehensive protections against trade secret misappropriation, including when it involves state-owned enterprises. It also includes the strongest border enforcement mechanisms among previous free trade agreements.
On the other hand, it ensures robust copyright protection, greater transparency in the recognition of geographical indications (GIs) and full national treatment. These measures strengthen the protection of intellectual property rights, which are essential for driving innovation, generating economic growth and supporting jobs.