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CS Professional · Intellectual Property Rights - Law and Practice · Business Concerns in Commercializing Intellectual Property Rights

Arjun Exports' consignment of pirated software discs is seized by Customs at Mumbai port after the copyright owner, Techvani Ltd, gave notice under Section 53 and the goods were detained. Techvani produces no court order about disposal of the goods. What is the position?

Customs must release the goods because the owner produced no court order within fourteen days from the date of detention. Section 53(4) then ends their treatment as prohibited goods. The forty-eight hour period relates only to informing the parties of the detention.

  1. AGoods stay detained until the Commissioner decides otherwise
  2. BCustoms must release the goods if no court order is produced within fourteen days from the date of detentionCorrect
  3. CCustoms must release them if no order is produced within forty-eight hours
  4. DGoods are automatically forfeited to Techvani after one year

Explanation

Under Section 53(4), the Customs Officer shall release the goods, and they cease to be prohibited goods, if the notice-giver does not produce a court order on temporary or permanent disposal within fourteen days of detention. Forty-eight hours is the period for informing the importer and notice-giver of detention.

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