Product Identification Training U.S. Customs and Border Protection

1. Product Identification TrainingU.S. Customs and Border Protection

2. Disclaimer The opinions expressed herein are those of the rightful owner and do not necessarily reflect the position of Customs and Border Protection (CBP). Decisions as to whether or not merchandise should be detained or seized for infringing protected intellectual property rights are to be made in accordance with established procedures by CBP personnel at the appropriate management level of the concerned field office. CBP personnel who have questions arising from this product identification manual should call the IPR Helpdesk at (562) 980 3119, ex. 252, or the IPR Branch, OR&R, at (202) 572-8710. Source: US CBP Product Training Guidelines, LA Strategic Trade Center LA STC)

3. In the News

4. Intellectual Property Crime - On the Rise • World Customs Organization (WCO) estimates counterfeiting accounts for 5-7% of all global merchandise trade (equivalent to lost sales of $512 billion). Counterfeit car parts total up to $12 billion worldwide ($ 3 billion in the U.S.). • Massive increase in global counterfeit activity in last five years • It is estimated that over 250,000 U.S. automotive manufacturing jobs are lost to counterfeiters diluting the market with counterfeit parts which drives demand down for Genuine parts. • Counterfeit parts are sold at 50-85% of Genuine pricing and are estimated to deliver at only 20-30% of their value (performance, wear, system integration). Source: Business Week, February 7, 2005 and June 5, 2000

5. Developments in China • Estimated 30% of products in mainland China are counterfeit • China’s weak rule of law makes it difficult for Beijing to enforce policies, especially in disobedient local jurisdictions. • Local police and courts are hesitant to pursue counterfeiters, particularly when powerful state-owned enterprises are involved or a local economy may be negatively impacted • As state-owned factories saw legitimate sales of their own goods fall, they began copying foreign brands to use excess production capacities • Fake goods are often mixed into legitimate product shipments • Chinese counterfeiters have become highly sophisticated in copying packaging, at times indistinguishable from the original. Source: Business Week, February 7, 2005 and June 5, 2000

6. Global Network “Counterfeiters have developed a global reach through tie-ups with organized crime…They are entrepreneurs with finance, manufacturing, and distribution talent as well a connections, who come together for moneymaking enterprises”. – Business Week Counterfeiting companies often operate at multiple levels in the global marketplace that include small and large manufacturers, packagers, distributors and retailers. An orchestrated effort is needed between Intellectual Property Rights (IPR) holders and enforcement officials to address this ever-growing concern.

7. Eastern Europe Asia USA/Canada ? Southern Europe Middle East Latin America South Africa Major Counterfeit Areas Counterfeiting is a global problem

8. Training Objectives • Build a strong partnership and open dialogue with U.S. Customs and Border Protection in the fight against Intellectual Property Rights (IPR) infringement. • Create greater awareness of the characteristics and security features of Chrysler genuine parts and accessories. To Benefit • Society/Economy • Protect customer health and safety • Prevent illegal activities - Undermine funding of organized crime • Save jobs in home market • 4. Secure tax revenues Company 1. Protect brand image and reputation 2. Secure technology and competitiveness 3. Improve sales, profit and market share 4. Reduce unjust liability suits 5. Minimize excess parts from flooding the market

9. ProductProtection IntellectualProperty Rights Human Resources Brand Awareness Signage Infringement Market Analysis Cooperation with Customs Authorities Issues with Contractual Partners Lobbying Networking Scope of Brand Protection The activities of Chrysler’s Brand Protection Team is multifaceted. Creating and promoting brand awareness stands at the core of its activities. Cooperation with Customs and other authorities worldwide is key to success in the fight against the abuse of intellectual property rights.

10. Trademark Recordation The brands - “CHRYSLER”, “DODGE”, “JEEP”, and “MOPAR”; Logo’s including – the Pentastar, the Chrysler Wing Badge, the Mopar Omega ‘M’, the Dodge Ram’s Head, the “Jeep” logo, “HEMI”, the Viper Design logo, Viper Snake Head Shield, and the Prowler Cat; The vehicle names - “MAGNUM”, “300”, “300C”, “CHARGER”, “PT CRUISER”, “WRANGLER”, “PATRIOT”, “PROWLER”, and “VIPER”; Design’s including - NITRO GRILLE DESIGN, PT CRUISER VEHICLE DESIGN, CJ GRILLE DESIGN, TJ GRILLE DESIGN, COMPASS GRILLE DESIGN, CROSSHAIR GRILLE DESIGN, DAKOTA 05 MY GRILLE DESIGN, DODGE RAM 03 MY GRILLE DESIGN, DURANGO 04 MY FORWARD GRILLE DESIGN, JEEPSTER GRILLE DESIGN, MAGNUM 04 MY GRILLE DESIGN, RAM GRILLE DESIGN, XJ GRILLE DESIGN, LIBERTY GRILLE DESIGN, WJ GRILLE DESIGN, YJ GRILLE DESIGN, VIPER VEHICLE DESIGN, Other – “PLYMOUTH”

11. Most Commonly Counterfeited Parts And Accessories Parts Accessories Maintenance Collision/ Repair Suspension Automotive Collection / Vintage • Oil Filter • Air Filter • Brakes • Brake linings • Seals • Rotors • Flex disks • Bumpers • Covers • Head lamps • Tail lamps • Sheet metal • Oil pumps • Water pumps • Mercedes Star • Windshields • Steering arms • Tie rods • Alloy Wheels • Body striping • Decals • Trim • Plates • Logos • Key Rings • Caps • Lighters • Toys • Model cars • Clothing

12. When Counterfeit Parts are Used As Noted by Vehicle Testing Experts: • Counterfeit oil filters can cause sudden engine failure • Counterfeit suspension parts and wheels break when made of substandard material • Vehicle hoods without crumple zones penetrate the passenger compartment • Counterfeit brake pads, made of grass clippings and saw dust, have caused fatal accidents • Counterfeit windshields without safety shatterproof glass, cause injury or death

13. Chrysler Mopar Parts • To protect its trademarks , Chrysler features several identifying marks • Parts & Components - Part numbers are embossed on all automotive parts (variations possible) with the Chrysler “PentaStar” mark (predominate) or Omega “M” (occasional) • Labels -Chrysler employs security features in our labels to aid in the detection of counterfeit product • Unique typeset and colors • Micro-printing • UV Omega “M” • Additional covert markings

14. Genuine Packaging and Labeling • Chrysler Group outer packaging marks are: • Centered on both front and back • Additional barcode labels list the part number, location produced, date produced, and trademark, names and symbols • Multiple languages are listed for the origin of the part • And when shipped, the origin of shipment should also be clearly marked on bill of lading Outer package design Labeling

15. Genuine Parts Marking Chrysler Group parts are embossed with not only the part number, date codes, and supplier code, but also the trademarks.

16. Counterfeit PartsProduct / Packaging Counterfeit Chrysler Mopar Filters have been seized with a similar Pentastar logo and a misspelled trademark names. The slight changes of the marks, print, font, style, and colors also make these fakes confusingly similar. • The Pentastar’s internal lines are too thick • “Mopor” instead of “Mopar” • The silk screening on these fakes leaves the filter’s print smudged and hard to read • The boxes are made of inferior paper

17. Counterfeit PartsProduct Genuine Counterfeit • Counterfeit • No machining • Substandard materials Genuine Production of Counterfeit Oil Filters in China

18. Counterfeit brake pads stopped in Kuwait. Counterfeit PartsProduct Counterfeit Brake Pads – Kuwait seizure

19. Counterfeit Packaging Colors are off, packaging is inferior, part names are inaccurate

20. Raids in the Marketplace Fake oil filters seized in Thailand

21. Raids in the Global Marketplace Fake windshields produced and destroyed in China

22. Global Involvement Chrysler is an active member in industry action and support organizations, including • International Anti-Counterfeiting Coalition (IACC) • Motor Equipment Manufacturers Association (MEMA) • Quality Brand Protection Council (QBPC) and Automotive Industry Committee – China And works closely with • World Customs Organization (WCO) • Interpol

23. Contact Information

24. Additional Information www.chryslergroupbrandprotection.com

25. Questions Discussion