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Article 11.72: Destruction Order by Competent Authorities

                       Each Party shall provide that, without prejudice to other rights of action
                       open to the right holder and subject to the right of the defendant to seek
                       review by a judicial authority, its competent authorities shall have the
                       authority to order the destruction and the authority to order the disposal
                       of goods that are determined to be pirated copyright goods or counterfeit
                       trademark goods.  In cases where such goods are not destroyed, each
                       Party shall ensure that, except in exceptional circumstances, such goods
                       are disposed of outside the channels of commerce in such a manner as
                       to avoid any harm to the right holder.  In regard to counterfeit trademark
                       goods, the simple removal of the trademark unlawfully affixed shall not
                       be sufficient, other than in exceptional cases, to permit the release of the
                       goods into the channels of commerce.


                       Article 11.73: Fees

                       Where an application fee, merchandise storage fee, or destruction fee is
                       established or assessed in connection with border measures to enforce
                       an intellectual property right, each Party shall provide that the fee shall
                       not  be  set  at  an  amount  that  unreasonably  deters  recourse  to  these
                       measures.


                                                    SUBSECTION 4
                                                CRIMINAL REMEDIES


                       Article 11.74: Criminal Procedures and Penalties

                       1.     Each Party shall provide for criminal procedures and penalties to
                              be applied at least in cases of wilful copyright or related rights
                              piracy or trademark counterfeiting on a commercial scale.
                                                                                           61

                       2.     Each Party shall treat wilful importation of pirated copyright goods
                              or counterfeit trademark goods on a commercial scale as unlawful
                              activities subject to the criminal procedures and penalties referred
                              to in paragraph 1.  A Party may comply with its obligation relating
                              to importation under this Article by providing that distribution or



                       61  For the purposes of the application of this Article, paragraph 1 shall not prevent a
                       Party from determining the scope of application of criminal procedures and penalties in
                       case of wilful related rights piracy on a commercial scale, in accordance with its laws
                       and regulations.




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