EU plans new curbs on counterfeiters
Recorded music, branded fashion items, car parts, medicines and toiletries are just some of the counterfeit goods being smuggled into the European Union. Indeed it is a worsening problem. According to figures from member states, the volume of pirated goods intercepted by EU customs increased almost ten-fold in the four years between 1998 and 2001.
In response, the European Commission has proposed updating an existing EU anti-counterfeiting regulation. It has proposed new rules that would lay down the conditions for customs action against goods that right holders or customs authorities suspect of infringing intellectual property rights.
The proposed rules would also define the measures to be taken by the competent authorities against goods found to have infringed certain intellectual property rights. In effect, many of the measures amount to a harmonised set of standards for national customs authorities to adhere to, with the main focus of making the system affordable and accessible to the right holder.
The commission would also extend the scope of the regulation to new intellectual property rights, including plant variety rights, geographical indications and designations of origin. Robert Verrue, the new director general for tax and customs union, said the problem of counterfeiting had been underestimated for years.
He highlighted the scale of the problem, estimating the trade in pirated CDs alone at €4-5 billion a year and putting the value of seized goods in 2001 at more than €2 billion. Another European Commission estimate is that more than 100,000 jobs are lost each year due to the phenomenon of counterfeiting and piracy. Verrue also said increasingly it was small and medium-sized firms which were losing business to the counterfeiters.
Michael Cashman, British Socialist Member of the European Parliament, told EU Reporter that the proposals were "excellent news." The long-time anti-counterfeiting campaigner welcomed the measures that he thought would make the law clearer. Cashman said the proposals "meant more access for right holders and contained new intellectual property rights," but particularly praised the proposed introduction of controls on designation of origin, something he had been requesting for three years. "Everyone in the chain will benefit," Cashman said.
Cashman's involvement in the counterfeiting issue results from the problems experienced by the ceramics industry in his West Midlands constituency. Gerhard Schmid is also concerned about the problem. The German socialist MEP's constituency borders the Czech Republic, from where he says many counterfeit items arrive. Indeed the commission admits European enlargement has made the fight all the more urgent, since most pirated goods enter Europe from the east and many accession countries have become thriving markets for the fakes.
However, Schmid - an expert on the counterfeiting of money and credit card fraud - points out that although the arrival of counterfeit goods from outside the EU is the biggest problem, there are still counterfeit goods being made in member states.
Business groups stress the need for a strong legal framework to combat the counterfeiting crime. The European Association of Craft, Small and Medium-Sized Enterprises (UEAPME) observes that it is "very important for firms to have confidence in the ability of community legislation to help them expand and to safeguard their rights effectively."
UEAPME also points out that "small and medium-sized enterprises are generally not in a position to bear the high expenses required either to protect intellectual property rights or to follow the long procedures inherent in the fight against counterfeiting."
However, the association professed itself "very glad" that the commission took into account the interests of SMEs, in particular with abolishing fees and securities and allowing SMEs cost-free access to the regulation. The proposals need to be approved by a qualified majority of the EU Council of Ministers after consulting the European Parliament.
- Joseph Smallwood
In response, the European Commission has proposed updating an existing EU anti-counterfeiting regulation. It has proposed new rules that would lay down the conditions for customs action against goods that right holders or customs authorities suspect of infringing intellectual property rights.
The proposed rules would also define the measures to be taken by the competent authorities against goods found to have infringed certain intellectual property rights. In effect, many of the measures amount to a harmonised set of standards for national customs authorities to adhere to, with the main focus of making the system affordable and accessible to the right holder.
The commission would also extend the scope of the regulation to new intellectual property rights, including plant variety rights, geographical indications and designations of origin. Robert Verrue, the new director general for tax and customs union, said the problem of counterfeiting had been underestimated for years.
He highlighted the scale of the problem, estimating the trade in pirated CDs alone at €4-5 billion a year and putting the value of seized goods in 2001 at more than €2 billion. Another European Commission estimate is that more than 100,000 jobs are lost each year due to the phenomenon of counterfeiting and piracy. Verrue also said increasingly it was small and medium-sized firms which were losing business to the counterfeiters.
Michael Cashman, British Socialist Member of the European Parliament, told EU Reporter that the proposals were "excellent news." The long-time anti-counterfeiting campaigner welcomed the measures that he thought would make the law clearer. Cashman said the proposals "meant more access for right holders and contained new intellectual property rights," but particularly praised the proposed introduction of controls on designation of origin, something he had been requesting for three years. "Everyone in the chain will benefit," Cashman said.
Cashman's involvement in the counterfeiting issue results from the problems experienced by the ceramics industry in his West Midlands constituency. Gerhard Schmid is also concerned about the problem. The German socialist MEP's constituency borders the Czech Republic, from where he says many counterfeit items arrive. Indeed the commission admits European enlargement has made the fight all the more urgent, since most pirated goods enter Europe from the east and many accession countries have become thriving markets for the fakes.
However, Schmid - an expert on the counterfeiting of money and credit card fraud - points out that although the arrival of counterfeit goods from outside the EU is the biggest problem, there are still counterfeit goods being made in member states.
Business groups stress the need for a strong legal framework to combat the counterfeiting crime. The European Association of Craft, Small and Medium-Sized Enterprises (UEAPME) observes that it is "very important for firms to have confidence in the ability of community legislation to help them expand and to safeguard their rights effectively."
UEAPME also points out that "small and medium-sized enterprises are generally not in a position to bear the high expenses required either to protect intellectual property rights or to follow the long procedures inherent in the fight against counterfeiting."
However, the association professed itself "very glad" that the commission took into account the interests of SMEs, in particular with abolishing fees and securities and allowing SMEs cost-free access to the regulation. The proposals need to be approved by a qualified majority of the EU Council of Ministers after consulting the European Parliament.
- Joseph Smallwood
