DKPTO

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DKPTO

• A Zero Tolerance response to
• Counterfeiting and Piracy?

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• The Threat
• To National Wealth
• To Consumer Health

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The second oldest profession

• 2nd Century Gallic Wine
• 1690 Thomas and Anne Rogers
• Revolutionary war 1776

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Fakes and knock-offs?

• If ideas can be owned they can be traded
• No product is too cheap we have met our enemy
  and it is us
• In quality fakes have come along way
• It is now a serious threat to consumers and local
  and national economies
• And an international arena for conflict

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Some Figures

• OECD - trade in counterfeit and pirated products
  could have been up to USD 200 billion in 2005 -
  this amount is larger than the national GDPs of
  about 150 economies
• 80 million fake DVDs are bought each year in
  Britain, 50 of film revenue is from home video
• Over 40 of CDs DVDs sold are pirated (IFPI)
  - In UK 72m goes to Organised Crime
• Indian film industry loses 950m a year in its
  domestic market
• In May 2006 HM Customs seized 43m counterfeit
  cigarettes in North of England
• Recent study Centre for Medicines in Public
  interest global sales of counterfeit
  prescription drugs set to reach 75 billion by
  2010
• EU Customs Report 17 increase in cases of goods
  seized (43,671 cases over 79m articles)
• Arrival of more dangerous fakes as foods,
  beverages perfumes, alcohol, automotive parts and
  medicines (cosmetic seizures up 264 foodstuffs
  64 and medicines 51)

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Licensed to Kill?

• Togo all legal music distribution withdrawn or
  closed (the day the music died)
• Survey of pharmacies in Lagos found 80
  counterfeits
• United Airlines - fake airline parts found with
  a life-span of 600 hours compared to 20,000
• Shenzhen News estimated 192,000 died in 2001 due
  to fake drugs
• WHO 8 of world drug supply is fake (32bn)
• Fake Cough medicine tainted with antifreeze from
  China 100 died
• US 1937 Panama 2006 Diethylen Glycol

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Where do they come from?
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Why? Its money in motion

• A 21st century crime and criminals have been
  quick to exploit
• Deregulated financial sectors - Abandoned
  exchange controls wider playing field more
  international ownerships money in motion
• Increased globalisation more open borders
• Unprecedented growth in the black-markets
  including immigration, counterfeit products even
  counterfeit fuel
• A battle for the wallet - shoppers succumb and
  dont see it as a threat
• Governments against market forces
• International arena for conflict

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How has it spread?

• Widespread availability of sophisticated
  technology
• E-commerce better access to retailers
• Legal penalties in most countries are low if
  they exist at all
• Organised Criminal networks
• multi strands,
• no hierarchies,
• not budget orientated,
• no legal/political limits,
• no national boundaries
• Judiciary not always considered it as a serious
  crime

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Result

• 20 years ago IP crime was 1 of the size it is
  today (5bn to 500bn since the early 90s)
• Threatens to overwhelm legitimate businesses
  throughout the world
• It changes the perception of theft and the
  overall view society has of theft and it does
  it to children
• It stimulates the view that it is less of crime
  to steal from the successful Stealing form the
  stars
• It involves honest and upright people
• It generates massive amounts of unaccountable
  cash making it attractive to organised crime
• By some its regarded as the world's most
  successful example of globalisation
• A High Profit Low Risk Crime WE ALL PAY

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Changing Enforcement Scene

• Criminality follows the economy
• A knowledge based economy provides more
  opportunity
• Thats where crime operates
• IP is more valuable than ever
• and.as criminality moves towards hi-tech crime
• Expertise can be outside normal policing

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What about enforcement?

• Increased enforcement responsibilities
  priorities
• Stretched resources
• Enforcement often shaped by ill informed public
  opinion
• Limited Intelligence lack of profiling
• Criminals know our rules, organisational
  structures, and standards and look at our systems
  closely to identify weaknesses
• Everything about is changing - except, may be,
  the way we fight

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So are we losing?

• Its deeply embedded
• Different illicit trade specialities come
  together illegal immigration and counterfeiting
• We havent put the pieces together
• Havent identified where to aim Guangzhou or
  London
• Weve tended to look for goods not criminals
• High moments but no sustained victory difficult
  to establish progress

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On top of this

• Unprecedented expansion of Europes borders
• The EU is now the largest trading bloc in the
  world, larger even than the United States.
• Bringing in new MS, the Union is enlarging the
  domain of democracy and peace, but this expansion
  also brings new vulnerabilities
• With enlargement, Europes new Member States have
  stepped directly into the front line of EU
  security.
• Now able to exert more control over our national
  borders with our new EU neighbours but we are
  also charged with controlling part of the outer
  borders e.g. with Russia and Turkey

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and

• EU is closer to regions prone to conflict and
  slower economic progress
• Countries where border policies and practices
  still being developed
• Transit Zones - Black Sea region
• Soft Security threats cannot be dealt with in
  traditional ways
• Counterfeiting gives opportunities for non
  indigenous groups to establish criminal markets

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What can we do?How can we enforce and allow
free movement of goods and prevent isolation from
neighbours?It means finding new ways to
workWe need coordinated efforts, by both old
and new EU border countries, to ensure a
consistent and high-level of security over the
whole of the EUs frontiers.
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So co-operation not legislation

• This is a fast moving crime area and laws are not
  always nimble enough
• Sustainable results rely more on cooperation than
  legislation
• EXAMPLE - Only between 5 and 10 of the serious
  criminals in prison. Figures suggest that if
  someone is in crime for 20 years he/she has only
  a 5 chance of being caught.
• No single body or country can crack organised
  crime on its own
• We are all part of a complex network of
  relationships, national, EU and international
• Promote regional efforts

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A National Strategy

• The UK anchored the intention to reduce the
  harm caused to by serious organised crime in a
  national strategy
• Full Backing of the PM (in Governments business
  manifesto)
• Together with the Serious and Organised Crime
  Agency IPO set up a Multi Agency Structure based
  on a National Intelligence Model
• (NIM successfully pioneered by the OCTF in
  Northern Ireland based on a structure of expert
  groups

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Having a National Strategy

• The Strategy gave the UK a key focus .
• to gather, store, analyse and disseminate
  information.
• This is a powerful and important piece of
  machinery.
• .collaboration is the name of the game

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How do you build this knowledge?

• The UK-IPO set up an enforcement centre
• Spent time and money on turning the machinery
  into something that will support enforcers

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Then what?

• Identify our operational opportunities
• Get a grasp and understanding of what the choices
  are
• By
• Building an understanding of what the underlying
  problems are
• Not just whos doing it
• How the criminal business works

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Making it work

• Means identifying
• Clear intelligence gaps
• Where uncoordinated enforcement exists
• Producing reliable statistics and intelligence
  on the scale, trends, production and distribution
  of counterfeit goods

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Whats the Commissions Strategy?

• In July 08 the Commission adopted a
  Communication on an Industrial Property Rights
  Strategy for Europe.
• Based on Key proposals to develop integrated
  strategy of non legislative measures to support
  enforcement
• Strengthening understanding and collaboration

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Strategy for Europe

• Included plans to
• Improve information gathering, methodologies,
  analysis and reporting
• Develop administrative and enforcement networks
• Improve systems for rapid exchange of
  information
• Improve consumer understanding by developing
  more effective education and public awareness
  strategies

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Comprehensive EU anti- counterfeiting and Anti
piracy Plan

• Better Administrative Cooperation wide variety
  of administrative bodies/agencies among the
  Member States - cooperation lacks coherence -
  even more complicated between different bodies in
  different MS
• OBJECTIVE establish effective system and network
  for administrative cooperation between MS to
  promote Europe-wide actions.
• European Observatory to fight Counterfeiting and
  Piracy
• OBJECTIVE set up a dedicated Observatory
• to collect data,
• analyse statistics,
• Focus for public and private exchange and propose
  best practice
• Drive focused awareness campaigns
• Rapid Information Exchange
• OBJECTIVE set up a system to allow
  administrations to alert and discuss issues and
  trends
• Stakeholders' dialogue and Inter-Industry
  agreements

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Strategy for Europe

• Council and French Presidency strongly supports
  the approach
• Council adopted a Resolution on a Comprehensive
  European Anti-counterfeiting and Anti-piracy Plan
  on 25th September 2008.
• The resolution is strong political sign of the
  importance that Member States now attach to the
  enforcement of intellectual property rights

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Borders?

• Last Customs Action Plan 2005-2008
• Work on new Plan is being finalised

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What is this new plan?

• An operational frontiers plan with concrete
  activities aimed at-
• The Health and Safety of consumers
• Organised crime
• The globalisation of counterfeiting
• Impact of the Internet

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What else is Customs doing?

• Addressing specific challenges and restrictions
• Transhipment
• De minimis levels (affects tourists and
  passengers)
• Article 11 simplified procedures
• Storage and destruction
• Re-cycling
• Electronic exchange of information
• Donations to Charities

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Customs

• Developing a manual to provide strong guidance to
  rights holders on the submission of applications
  for Customs Action
• On-line in 22 languages
• Downloadable forms
• Contact Officers in all Member States

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But what can Industry do?

• Continue to drive awareness raising
• Provide Intelligence to enforcers
• Agree MOUs
• When making applications to Customs and
  enforcement, provide as much information as
  possible
• the products,
• authorised distributors,
• normal shipping routes and
• possible methods of infringement
• Provide contact point information in all
  countries for enforcement and administrative IPR
  Divisions
• Provide support to enforcers at the time of
  detention of goods technical or forensic
  examination
• Always take legal action in appropriate cases
• Provide technical advice and equipment

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And More?

• WE must all be prepared to contribute to joint
  Task Forces on IP enforcement, if invited
• Where possible, help enforcers to store and to
  destroy infringing goods following successful
  court cases
• ALWAYS think about Chasing the Money -
  financial investigations and assets recovery

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• Become a model for developing States

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If you didnt how good they are
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Contact

• DG Markt Enforcement Unit
• phil.lewis_at_ec.europa.eu