Intellectual Property at the Border: Protecting Brands and Avoiding Counterfeit Imports
Why intellectual property protection matters for Canadian importers
Intellectual property (IP) enforcement at the Canadian border affects far more than brand owners alone. Importers, distributors, e-commerce sellers, and even small businesses can face serious consequences if goods are suspected of infringing trademarks or copyrights.
The Canada Border Services Agency (CBSA) actively enforces certain IP rights at the border. When violations are identified, shipments may be detained or seized, leading to financial losses, penalties, and in some cases criminal or civil liability.
IP enforcement impacts three main groups
Brand owners and rights holders
Protect trademarks and copyrighted works from counterfeit goods that undermine brand value, safety, and consumer trust.
Legitimate importers
Must ensure that products sourced internationally do not infringe Canadian IP rights, even if the goods were legally purchased abroad.
Consumers and small businesses
Face limits on personal imports and resale of branded products, particularly when items enter commercial channels.
Why this matters now
Counterfeit goods represent tens of billions of dollars in global trade annually, and Canada has strengthened its border enforcement tools. CBSA officers are increasingly trained to identify suspected counterfeit shipments, making seizures more frequent than in the past.
Related reading: Post-CARM Compliance Strategies Guide
Which intellectual property rights does CBSA enforce?
CBSA’s authority at the border focuses primarily on trademarks and copyrights. Patent enforcement is generally handled through the courts rather than at the border.
Trademarks
What is protected
Registered Canadian trademarks appearing on goods, packaging, or labels.
Common trademark violations
Counterfeit clothing, footwear, electronics, and accessories
Unauthorized use of well-known brand names or logos
Luxury knockoffs
Fake safety or certification marks
Registration requirement
The trademark must be registered with the Canadian Intellectual Property Office (CIPO) and recorded with CBSA to enable border enforcement.
Gray market considerations
Genuine branded products imported without authorization (parallel imports) may still raise trademark issues, depending on how the trademark is used and the circumstances of importation.
Copyright
What is protected
Copyrighted works such as books, software, movies, music, video games, and artistic content.
Common copyright violations
Pirated software or digital media
Counterfeit books or publications
Unauthorized reproductions of artwork
Bootleg recordings
Personal use
Limited personal-use imports may be allowed, but commercial quantities face much stricter scrutiny.
Patents
CBSA does not actively enforce patent rights at the border. Patent holders must pursue civil remedies through the courts. However, patent-infringing goods may still be detained if they also involve trademark counterfeiting.
Understanding CBSA’s Request for Assistance (RFA) program
What is a Request for Assistance?
The Request for Assistance (RFA) program allows IP rights holders to formally ask CBSA for help identifying and detaining suspected counterfeit goods at the border.
How the RFA process works
Rights holder submits an RFA application to CBSA
Product details, images, and authentication guidance are provided
CBSA officers monitor imports for suspected infringements
Shipments are detained when concerns arise
Rights holder is notified to examine the goods
Counterfeit goods are seized and destroyed if confirmed
Cost considerations
No fee to file an RFA
Rights holders may pay storage or examination costs
Legal proceedings, if required, are the responsibility of the rights holder
Who should consider filing an RFA?
Brand owners experiencing recurring counterfeiting
Licensed distributors of major brands
Companies in high-risk sectors such as luxury goods, electronics, pharmaceuticals, and consumer safety products
An RFA acts as a strong deterrent and protects legitimate supply chains.
Related reading: Restricted and Controlled Goods Guide
Risks importers face when counterfeit goods are involved
Criminal liability
Importing counterfeit goods is a criminal offence under Canadian law.
Potential penalties
Summary conviction: fines up to $1 million and imprisonment up to 2 years
Indictable offence: fines up to $2 million and imprisonment up to 5 years
Even without direct intent, “willful blindness” — deliberately avoiding confirmation of authenticity — can establish criminal knowledge.
Civil lawsuits
Rights holders may pursue civil action for infringement.
Possible exposure
Statutory damages per infringing item
Recovery of lost profits
Disgorgement of importer profits
Legal costs awarded to the rights holder
Large shipments can result in significant financial exposure.
Administrative consequences
CBSA may:
Seize and destroy goods without compensation
Impose penalties
Increase scrutiny on future imports
Beyond financial loss, reputational damage with CBSA and customers can be long-lasting.
How importers can avoid counterfeit risks
Conduct thorough supplier due diligence
Best practices
Confirm suppliers are authorized by brand owners
Request and verify authorization letters
Review business registrations and references
Avoid unusually low pricing
Common red flags
Prices far below market value
Refusal to provide documentation
Generic email addresses
Pressure for cash payments
Authenticate products before large orders
Order samples first
Compare with known genuine products
Verify serial numbers and security features
Use brand owner authentication services where available
Strengthen contracts with suppliers
Include:
Written authenticity warranties
Indemnification clauses
Audit rights
Clear remedies for counterfeit delivery
Related reading: Supply Chain Resilience Guide
Parallel imports and gray market goods explained
What are parallel imports?
Parallel imports are genuine branded goods purchased abroad and imported without authorization from the brand owner or its Canadian distributor.
Are parallel imports legal in Canada?
They may be permitted in some circumstances, particularly for personal use. However, commercial resale can raise trademark, licensing, and regulatory issues.
Risks include
Civil lawsuits
Warranty invalidation
Non-compliance with Canadian standards
French labeling and safety requirements
Parallel imports are not counterfeit, but they are not risk-free.
What happens when CBSA detains goods for IP review?
The detention process
CBSA detains the shipment
Importer and rights holder are notified
Goods are examined
CBSA determines release, seizure, or abandonment
Possible outcomes
Release if goods are proven authentic
Seizure and destruction if counterfeit
Voluntary abandonment to avoid litigation
Detentions often involve delays, storage fees, and legal costs.
Special considerations for e-commerce sellers
Online sellers face elevated risk due to global sourcing and limited product control.
Best practices
Buy only from authorized suppliers
Authenticate products before listing
Maintain supplier documentation
Respond quickly to authenticity concerns
Marketplace platforms strictly prohibit counterfeit goods and may suspend accounts without warning.
Related reading: E-commerce Import Guide
Best practices for IP compliance
For brand owners
Register trademarks in Canada
File and maintain CBSA RFAs
Respond quickly to detentions
Educate authorized partners
For importers
Verify authorization chains
Keep detailed records
Train purchasing teams
Act immediately when issues arise
Maintain IP-related records for at least six years.
Key takeaways
CBSA actively enforces trademarks and copyrights
Counterfeit imports carry criminal, civil, and financial risk
Supplier verification is essential
Parallel imports require careful legal assessment
Documentation and authentication protect legitimate businesses
Frequently asked questions
Can I unknowingly import counterfeits?
Yes, but goods will still be seized. Demonstrating good faith may reduce penalties.
Are “same factory” goods legal?
No. Without brand authorization, they are counterfeit regardless of origin.
Can seized goods be returned or sold?
No. Counterfeit goods are destroyed without compensation.
Need help navigating IP compliance at the border?
Maska International Customs Broker assists importers with supplier verification, documentation review, and CBSA IP issues to help prevent costly disruptions. Request an IP compliance consultation
Warm regards,
Anton
Maska International Customs Broker