According to the European Commission’s latest report on piracy, the number of seizures of counterfeit goods significantly increased in 2007. But there is still work to do, says Richard Lewis

Counterfeiting is a growing and increasingly dangerous phenomenon, according to a recent report by the European Commission. Its statistics of seizures in 2007 not only confirm growth in the transportation of counterfeit goods, but also reveal how counterfeit and pirated materials continue to threaten the health and safety of EU citizens, their jobs and the competitiveness of the European Community, as well as trade and investment in research and innovation in the territory.

But the report also emphasises that the practice is not unbeatable. It reports that in 2007, EU Customs seized more than 79 million counterfeit and pirated goods and handled more anticounterfeiting cases than ever before. A total of more than 43,000 cases were dealt with in that year, up nearly 17% from 2006. But these figures only really reflect the fact that seizures involving smaller quantities of counterfeit and pirated goods have increased. The overall amount of articles seized decreased from 128 million in 2006 to 78 million in 2007.

Most alarmingly, Customs officials have also reported a rise in the number of seizures of fake goods that are potentially dangerous to consumer health and safety. In 2006, more than 2.7 million counterfeit medicines and more than 1.6 million counterfeit cosmetics and personal care products were seized.

The high quality of fakes often makes identification impossible without technical expertise. Further, changes in the routes of fraud, an increased range of products being copied and the use of the internet in selling counterfeit goods is making Customs’ job even more challenging, according to representatives of the European Commission.

Fighting fraud
There are now few doubts regarding the implication of international criminal organisations in the worldwide trafficking of counterfeit and pirate goods. And, as the new techniques and stringency employed in customs control develop, so do those techniques used by defrauders. Many cases of using ‘hidden’ methods have been discovered, such as the discovery of double bases in containers or in bags to conceal counterfeit or pirated products, but counterfeiters are finding ever more intelligent ways to transport fake goods.

In 2007, EU Customs seized more than 79 million counterfeit and pirated goods and handled more anticounterfeiting cases than ever before.

According to the Commission, one of the principal methods of dispersing counterfeits is the traffic of tourists returning home from holiday, bringing back souvenirs. Each year, they say, tens of millions of articles are transported by passengers worldwide, often unaware of their involvement in the trafficking, but enabling criminal organizations to profit nonetheless. They argue that victory over counterfeiters can only really come from an increase in the collective awareness of the dangers that it represents. But, there is still a lot of work to do on this front. According to a recent survey carried out by MORI, 40% of people questioned would contemplate buying counterfeit goods.

Protect your rights
Customs administrations play an essential role in protecting the EU market from counterfeiting and piracy. However, it is becoming clear that Customs cannot achieve significant results in the fight against counterfeiting and piracy without the help of the rights holders themselves. For the European Commission, such cooperation is the most effective weapon against piracy, and as such must be strengthened.
They recommend that industries covered by IP law help to fend off repeated attacks from counterfeiters by lodging applications for action. In order to do this, the rights holder (or their representative) must fulfil two conditions: the application must provide the qualified Customs administration with a sufficiently accurate description to make identification possible, and proof must be provided that confirms that the applicant is indeed the holder of the right in question.


COUNTERFEITING IN 2007

• The overall amount of articles seized decreased from 128 million in 2006 to 78 million in 2007.
• Cigarettes and clothing still remain the main sectors for large seizures of counterfeit goods (34% and 22% respectively).
• Cosmetics and personal care products increased by 264%, toys by 98%, foodstuffs by 62%, computer equipment by 62% and medicines by 51%.
• The most counterfeited medicines are those for erectile dysfunction. Other common counterfeit medicines include those used to reduce cholesterol and to treat osteoporosis and hypertension.

Source: European Commission’s Report on Community Customs Activities on Counterfeit and Piracy in 2007


This article first appeared in IP Review, issue 23

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