A more thorough explanation:

The Madrid Agreement is a treaty that was established in 1890 to create a system for the international registration of trademarks. The official name of the agreement is the Madrid Arrangement Concerning the International Registration of Marks. It was created during the Madrid Revision Conference of the Paris Convention and was last revised in 1967.

Under this treaty, a trademark registered in a member nation that is also registered with the World Intellectual Property Organization receives equal protection in all signatory nations. This registration system is called the Madrid Union. The United States ratified the treaty in 2002.

For example, if a company registers their trademark in the United States and also registers it with the World Intellectual Property Organization, they will receive the same level of protection for their trademark in all other member nations of the Madrid Union.

The Madrid Agreement also includes provisions to prevent false or deceptive indications of source for imported goods. This means that member nations can seize falsely marked imported goods to discourage companies from using false indications of geographic source.

For example, if a company in China falsely marks their products as being made in the United States, the United States can seize those products when they are imported to prevent the company from deceiving consumers about the origin of the products.