News from Airpack, Inc. and John Gerrish & Associates

There has been a rise in the number of cases of misuse or fraudulent use of WPM (ISPM 15) trademarks. This is a very serious matter. The Department of Agriculture began implementation of the heat treatment requirement of wood packaging materials in September 2005. The treatment is designed to prevent plant pest that can destroy domestic agriculture and livestock from entering the United States in wood packaging materials. The stamp certifies that the wood pallets have been treated. Heat treatment is not required for wood pallets that carry products transported within the United States.

January 8, 2010 a former vice president of a Texas based grocery wholesaler, pleaded guilty in federal court in El Paso, Texas, to one felony charge for falsifying stamps certifying that wood pallets were heat-treated to prevent infestation, and were suitable for use in international transportation.

The former vice president of the company was expected to direct the transfer of products destined for Mexico from untreated pallets to treated pallets. Instead he created a copy of a stamp certification utilized by a legitimate wood pallet treating company and had hundreds of untreated domestic pallets falsely stamped as if they were treated. Saving the time to transfer food and pharmaceutical products between pallets, as well as the cost of treatment.

However, the stamps that were created were smaller than the legitimate stamp. So when companies received the fraudulently stamped pallets from Mexico, and had to send them to the legitimate stamp owner for repairs, the legitimate stamp owner noticed the falsification and notified the government.

An investigation was held by the Department of Agriculture and resulted in the seizure of fraudulently stamped pallets at the U.S-Mexican border. It was prosecuted by the Justice Department's Environmental Crimes Section and the U.S. Attorney's Office for the Western District of Texas.

For the fraudulent misuse of the trademark stamps offense, the former vice president had to pay a fine of $8,000.00 and is serving a term of probation.

Each agency has the responsibility to protect its mark. It is important that abuse of registered trademarks be stopped. Please advise your clients to report any suspected misuse of WPM stamps to the office of the American Lumber Standard Committee by calling the office at 301-972-1700 or by e-mailing alsc@alsc.org. All reports are investigated and kept confidential.