A more thorough explanation:

The Madrid Registration of Marks Treaty, also known as the Madrid Agreement, is a treaty that was established in 1890 to create a system for the international registration of trademarks. This treaty allows a trademark registered in one country to receive equal protection in all signatory nations. 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, their trademark will receive the same level of protection in all countries that are part 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 falsely marks their imported goods as being made in a certain country to increase their sales, member nations can seize those goods to prevent the company from misleading consumers.