Schaper Manufacturing Co. v. Regan

5 Ct. Int'l Trade 97
CourtUnited States Court of International Trade
DecidedMarch 21, 1983
DocketCourt No. 83-3-00333
StatusPublished

This text of 5 Ct. Int'l Trade 97 (Schaper Manufacturing Co. v. Regan) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schaper Manufacturing Co. v. Regan, 5 Ct. Int'l Trade 97 (cit 1983).

Opinion

Boe, Judge:

The plaintiff is the owner of registered and recorded copyrights in certain toy vehicles, which said copyrights pursuant to customs regulations were recorded with the customs service.

Subsequent to the recording of the copyrights in question, the plaintiff was informed by the customs service that 125 cases of imported merchandise were being held by the Port Director of Customs, Pittsburgh, Pennsylvania, which were suspected to be pirati[98]*98cal of plaintiffs copyrighted toy vehicles. Pursuant to customs regulations plaintiff demanded the imported toy vehicles by excluded from entry into the United States and posted a bond required by the customs service in the amount of $20,448.00.

Subsequently, on November 5, 1982, plaintiff was further informed that the Port Director of Customs in Pittsburgh, Pennsylvania, was holding two additional shipments of imported merchandise which, in turn, were suspected of being piratical copies of plaintiffs copyrighted toy vehicles.

With respect to the latter shipments designated as customs entry 83-800602-7 and customs entry 83-800586-6, the plaintiff again demanded their exclusion from entry into the United States and posted bonds in the respective sums of $83,794 and $14,778 as determined and required by the customs service.

In the respective imported shipments it appears that some of the articles contained therein were piratical copies of the plaintiffs toy vehicles and other articles therein were non-piratical copies. No evidence has been submitted with respect to the number or piratical copies as distinguished from non-piratical copies contained in each shipment. Nor does it appear that the customs service presently has a record of such information. In response to the request of plaintiff that separate bonds be filed with the customs service for each model of a toy vehicle imported and that a determination of a copyright violation accordingly be made on a model by model basis, the customs service at Pittsburgh, Pennsylvania, advised the plaintiff that only one bond per shipment is permitted. On December 29, 1982, and admittedly “prior to transmittal of the case to the Commissioner of Customs or his designee for decision” as provided by 19 CFR § 133.43(c)(4), plaintiff requested in writing the withdrawal of two bonds previously filed by it with the customs service in the amount of $83,794 and $14,778, respectively. On December 29, 1982, as required by 19 CFR § 133.43(c)(4), plaintiff filed in writing a statement agreeing to hold the customs service harmless for any consequence of returning the bonds and the release of the detained articles.

Despite the provision contained in 19 CFR § 133.43(c)(4) that the District Director “shall require” both the copyright owner and the importer to sign such a hold harmless agreement, the importer, Milton D. Myer Co., has refused to file the required statement.

In a communication by customs under date of February 22, 1983 together with a ruling issued on said date, plaintiff was advised:

1. That the single bond required of the plaintiff to be posted for each shipment would not be separated on a model by model basis thereby delineating between piratical or non-piratical copies.
2. That the imported model, “Super Climber” pick-up truck infringed the Scottsdale Copyright Number VA 101-550 owned [99]*99by the plaintiff and, accordingly, was denied entry. The request of the importer to re-export said vehicles was granted.
3. That the imported model “Super Climber” jeep did not infringe on plaintiffs Renegade Copyright Number VA 101-548 and, accordingly, said detained imported vehicles were to be transmitted to the importer.
4. That the bonds posted by the plaintiff, the copyright owner, should be released and transmitted in full to the importer.

In a communication with an officer of the port district at Pittsburgh, Pennsylvania, plaintiffs counsel was informed that the customs service would transmit to the importer the three bonds here-inbefore referred to and posted by the plaintiff at such time as notice of re-export of the vehicles determined to have infringed on the copyright of the plaintiff had been received by the customs service.

A Temporary Restraining Order with respect to the bonds in question was made and entered by this court under date of March 4, 1983.

In the instant proceeding the plaintiff seeks a preliminary injunction enjoining the Secretary of the Treasury and the Commissioner of Customs from releasing from their immediate custody and control these bonds posted by the plaintiff. At the hearing on plaintiffs application for a preliminary injunction before this court on March 14, 1983, it was admitted and agreed that the sole purpose in seeking a preliminary injunction was to preserve the status quo with respect to the present custody and control of the bonds posted by the plaintiff with the customs service pending the final determination upon the merits of all issues raised in plaintiffs complaint now on file herein.

In considering plaintiffs request for the issuance of a preliminary injunction, it is necessary that reference be made to the applicable customs regulations relating thereto.

No dispute exists with respect to the authority of the District Director of Customs to seize imported articles which he determines constitute piratical copies of a recorded copyright work. 19 CFR § 133.42. As indicated by the foregoing statements of facts, the provisions of 19 CFR § 133.43 relating to the notice provided by customs to the importer and copyright owner, to the written demand for exclusion of entry by the copyright owner and the filing of a bond in the sums determined by the customs service, have been fully complied with. It is with particular reference to 19 CFR § 133.43(c)(4) that attention is directed with respect to the instant proceeding:

(4) Withdrawal of bond. At any time prior to transmittal of the case to the Commissioner of Customs or his designee for decision, the copyright owner may withdraw a bond filed in accordance with paragraph (b) of this section. Prior to returning [100]*100the bond to copyright owner and release of the detained articles, the district director shall require the copyright owner and the importer to file written statements agreeing to hold the United States Customs Service and the district director harmless for any consequence or return of the bond and release of the detained articles. After the withdrawal of a bond, the district director shall release importations of the same article by the same importer without further notice to the copyright owner.

In 19 CFR § 133.44

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Cite This Page — Counsel Stack

Bluebook (online)
5 Ct. Int'l Trade 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schaper-manufacturing-co-v-regan-cit-1983.