Enforcing IPR: where theory turns to action

Marie PattulloAIM, European Brands Association

WIPO Forum on IP and SMEs14 September 2007

AIM: who are we?

European Brands Association (Association des Industries de Marque)

Mission statement: “To create for brands an environment of fair and vigorous competition, fostering innovation and guaranteeing maximum value to consumers”

Counterfeiting today affects more and more everyday goods, affecting more and more unsuspecting consumers

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The benefits of brands

A contract of confidence with the consumer: repeat purchases based on trust re fitness for purpose, quality and ingredients etc.

Allow consumers to differentiate and to choose what they actually want to purchase

Innovation: for each extra €1 spent on research and development, brands generate €2 of extra value compared to just €1 for other business types (“Of brands and growth” – PIMS, 2004)

Brands boost employment: EU employment growth in innovative industries like branding is twice that of other sectors (DG III European Commission, 1995)

All of the above are destroyed by counterfeiting and piracy

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AIM Anti-Counterfeiting Committee

Major industry coalition; companies, national anti-counterfeiting groups (including Promarca in CH), sectoral and non-sectoral bodies

Mission:

To act as a strong, coherent voice for European industry in the fight against the manufacture, distribution and sale of counterfeit and pirated items

To engage in world-wide co-operation with all public and private sector stakeholders, including law enforcement agencies and public policy makers

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EUROPEAN INDUSTRY COORDINATION

Cross-Sectoral Members

AIM,BUSINESSEUROPE,

ECTA, BMD,ICC-BASCAP…

Sectoral Members

BIEM, Comité Colbert, EFPIA,

EURATEX, FESI, IFPI, IVF,MPA, TIE…

EuropeCOLIPA, IFSP,

TABD…

Global CACP, QBPC, GMA, INTA, OECD, UNECE,

WCO, WTO, WIPO…

National Anti-Counterfeiting

Group Members

ABAC-BAAN, ACG, APM,

IACC, INDICAM, Union de

Fabricants…

AIM Anti-Counterfeiting Committee

European institutions

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Corporate MembersBacardi-Martini, BatMARK,

Beiersdorf, Cadbury-Schweppes,Colgate-Palmolive, Danone, Diageo,

Ferrero, Georgia-Pacific, GSK,Heineken, Henkel,Lego,L’Oreal,LVMH, Microsoft, Nestlé, Nokia,

Pernod-Ricard, Philips, P&G,Reckitt-Benckiser, Sara Lee

International, Unilever…

ACRONYMSICC-BASCAP: International Chamber of Commerce – Business Action to Stop Counterfeiting & PiracyINDICAM: Italian anti-counterfeiting associationIFPI: International Federation of thePhonographic Industry IFSP: International Federation of Spirits ProducersINTA International Trademark AssociationIVF: International Video FederationMPA: Motion Picture AssociationOECD: Organisation for Economic Co-operation & Development QBPC: Quality Brands Protection CommitteeTABD: Transatlantic Business DialogueTIE: Toy Industries of EuropeUnion de Fabricants: French anti-counterfeiting associationUNECE: United Nations Economic Commission for EuropeWCO: World Customs OrganisationWTO: World Trade Organisation WIPO: World Intellectual property Organisation

ABAC-BAAN: Belgian anti-counterfeiting groupACG: Anti-Counterfeiting Group UKAIM: European Brands AssociationAPM: German anti-counterfeiting groupBIEM: Bureau des sociétés gérant les Droits d’Enregistrement et de reproduction MécaniqueBMD: United Brands Association, TurkeyCACP: Coalition Against Counterfeiting and PiracyCOLIPA: European Cosmetic Toiletry & Perfumery AssociationComité Colbert: French luxury goods associationECTA: European Communities Trade Mark AssociationEFPIA: European Federation of Pharmaceutical Industries and AssociationsEURATEX: European Apparel and Textile OrganisationFESI: European Sporting Goods IndustryGMA: Grocery Manufacturers of AmericaIACC: International Anti-Counterfeiting Coalition AIMAIM

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Enforcement must be…

… seen as the obvious corollary to registration – the defence and protection of a right, in this case an IP right

… practical, not theoretical

… collaborative; joint industry action (e.g. AIM Anti-Counterfeiting Committee), joint action with law enforcement and joined-up policing within law enforcement

… available and accessibleAIM®AIM®

Problems with enforcement

Varies hugely from country to country, even within the EU, e.g.:

look-alikes/parasitic copies Enforcement and UCP Directives interpretation of Customs Regulation right to information criminal sanctions

Non-accountability of land owners who allow market traders to deal in fakes & content providers/ISPs who allow fakes on their Internet sites

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Why is enforcement a problem?

Different level of appreciation of seriousness of IPR fraud in different countries

Unequal expertise of the judiciary, Customs, police etc.

Lack of resources

The bottom line: because the laws we have are not enforced!

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Current EU activities

Customs:• Suggested amendments to Customs Regulation (1983/2003)• Zero tolerance concerns• Intelligence sharing• Resource fears

Criminal sanctions proposal – ongoing contacts with institutions and Member States as to next steps

Watching brief on national implementation/Commission’s study on transposition of Enforcement Directive, concerns over right to information (etc)

DG ENTR: (1) Study on effects of counterfeiting on EU SMEs and a review of various public and private IPR enforcement initiatives and resources; final report expected end 2007 (2) study on use of IPR by SMEs:

http://www.proinno-europe.eu/NWEV/uploaded_documents/IPR_Expert_group_report_final_23_07_07.pdf (3) IPR awareness and enforcement project (including an enhanced version of the previous IPR Helpdesk); (4) regional seminars for SMEs… AIM®AIM®

Suggested Governmental action

Give Customs more resources and train up more IPR specialists

Train the judiciary to understand counterfeiting & piracy; dedicated IPR judges

Specialist police units also needed; appreciation of knock-on effects on other crimes; cross-border cooperation (e.g. Interpol); IPR crimes should also be recorded in national crime statistics

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LEAs/Rightholders joint action

Enforcement MUST be collaborative

Rightholders MUST file Customs applications!

Involvement of rightholders in investigations and exchange of information – i.e. both ways - with LEAs, including regular meetings

Joint training sessions – e.g. operational training by DG TAXUD, WCO etc.

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More international coordination?

TRIPs: we have it, it would take years to replace it, so let’s use it and enforce it

Active, practical measures – more specialist Customs, police and judges; exchanging officers from different jurisdictions; sharing best practices…

ENFORCING THE LAWS WE ALREADY HAVE!

Enforcement is not just a word. It is action.

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Thanks for listening.

Marie PattulloAIM - European Brands Association

9 Avenue des Gaulois B-1040 Bruxelles

marie.pattullo@aim.bewww.aim.be

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