Global anticounterfeiting

strategy

2015

Presentation document

CONFIDENTIAL AND PROPRIETARY

Any use of this material without specific permission of Furla S.p.A. is strictly prohibited

1

Furla world

Furla Today: 100% Italian design with style that has made its mark on

the international stage

Created by Furlanetto family over 80 years ago and is one of the few

Italian firms today that still maintains family ownership combined with a

strongly managerial company structure: tradition that is constantly

renewed

Headquartered in Bologna, in a historic 18th century villa and in

Palazzo Furla, Milan. From there, with constant commitment, the

company promotes and develops its internationality markets

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Main aspects

Fast and

effective

actions

Worldwide

protection of

Furla brand

reputation and

identity

Creation of a

database to

manage all the

cases

Development of a

centralized

management and

monitoring

system of all the

cases of

infringement

3

Places where we found fakes

I. FIRST CHALLENGE

PROTECT TRADEMARK PORTFOLIO

Build a strong IP portofolio

Extend portfolio’s scope of

protection

Continue trademark monitoring

Act consequently against

Trademark thieves to avoid

brand free rides and assets’

dilution

Secure supply chain to avoid

abuses of IPR

Protect shapes of bags and

items that acquire a certain

popularity

Extend protection to such

shapes when the infringers go

after them without trademark

Increase the chances of

acquiring overall brand

reputation

PROTECTION OF DESIGN IS KEY TO COMBAT COUNTERFEITING:

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Actions taken

Custom monitoring in China and Italy

Surveillance over the web

Administrative raids against manufacturers in China

Civil and criminal actions against importers/distributors

Cease and desist letters to distributors/retailers in several

countries

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Key achievements

Products seized

Compensation for

damages

Settlement

agreements

Infringing ads shut

down on Internet

Achievements Key results

25,518

pcs

75.000

Euro

15

1.672

10

Candy and Metropolis fakes without Furla TM EXAMPLES

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Candy fakes with Furla TM EXAMPLES

12

Raids in China EXAMPLES

13

Singapore custom seizure EXAMPLES

*2014 up to October 9th

Total number of seized bags

until September 2014: 25,518

6 individuals have been detained in the course of our raid actions

In 2014 we have successfully coordinated

several large-scale raids in which a combined

14,723 counterfeit “Furla” handbags were

seized.

Several of the involved infringers are now under

criminal investigation.

Criminal suspects and workers detained by PSB

Manufacturing facility

Thanks to our efforts in maintaining relations

with customs officials and registering Furla’s

rights, we have been informed about seizures

of altogether 8,795 handbags and purses by

customs in several cities. We are continuing to

investigate targets that are being reported to

us to identify larger infringer networks.

III. RECAP 2013-2014

CUSTOMS TRAINING & RELATIONS

WITH OFFICIALS

We took part in a customs training on

April 10, 2014, presenting certain

information of Furla to the Fujian and

Xiamen customs. About 30 customs

officials and 25 representatives of

various brands participated in the

meeting.

In our own presentation we presented

Furla’s history, best-selling products and

comparisons between genuine and

counterfeit Furla handbags. We believe

the customs officials had a good

impression of Furla and its products.

Customs training in April 2014

Over the last months we have also intensified our relations with several customs offices in

China who are continuously sending us notices of counterfeit Furla products they have

seized.

Thanks to our continued efforts, Furla can now benefit from the fact that customs are

getting more and more familiar with their brand.

Fake “Furla” handbag that was seized together with

over 8,000 handbags and purses by Huangpu Customs

On July 29th we visited the Chief of the Longgui Police Station in Guangzhou to offer them a

banner on behalf of Furla as recognition of their great work. The Longgui Police seized about

10,000 fake “Furla” handbags in Guangzhou with an estimated value of 2,610,000 EUR.

We are hoping for more raids in this area now that the police is familiar with the Furla brand,

which they were previously not aware of.

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QBPC events and trainings until October 9th 2014

Working Briefings and Exchange Meeting on IP Crime by MPS, in

Beijing, September 19, 2014

Meeting on Remarkable IP Cases Study and Discussion by Beijing

High Court, Beijing, May 22, 2014

Guangdong AIC, in Guangzhou, May 21, 2014

GACC Briefing/Training on its upgraded Online IPR Recordal System,

in Beijing, May 16, 2014

Customs training attended by Fuzhou and Xiamen customs, in Ningde

city Fujian Province, April 10, 2014

Training of Guangdong police officers May 2014

IV. TRENDS 2015

E-COMMERCE AND COUNTERFEITING

A market survey was made is to map out the counterfeiting landscape in China, based

on field investigations and survey of the main e-commerce platforms. After an analysis

based on areas, kind of infringements, keywords and counterfeit products, several

targets have been identified and described.

Hainan

Heilongjiang

Jilin

Liaoning

Hebei

Shandong

Fujian

Jiangxi

Anhui Hubei

Hunan

Guangdong

Guangxi

Shanghai

Henan

Shanxi

Inner Mongolia

Shan’xi

Ningxia

Gansu

Qinghai

Sichuan

Guizhou

Yunnan

Tibet

Xinjiang

Jiangsu

Zhejiang

Beijing

Eastern

China:

2,401

Relevant

Results in all.

Other Provinces in

China:

1,064 Relevant

Results in all.

Sothern China:

6,198 Relevant

Results in all.

OUR SEARCH RESULTS CONFIRMED THAT WE SHOULD KEEP ON FOCUSING AND

PUTTING EFFORTS IN ENFORCEMENT ACTIONS/INVESTIGATIONS IN GUANGDONG

PROVINCE IN THE YEAR OF 2015.

Guangdong

Total Relevant

Leads: 5,639

Percent.: 58,4%

Zhejiang

Total Relevant

Leads: 1,340

Percent.: 13,9%

Zhejiang province has already become the second major source of counterfeited FURLA

products. Like Guangdong province, a few large Customs are located in this area and the

manufacturers are also experienced in international trading.

We must definitely keep an eye on this area and put more efforts/resource in possible

actions.

Investigation of the most important markets in Guangzhou

and Shenzhen (Guangdong Province). 1. Guanzhou Markets

The results of Candy Bag survey in all 25+ markets in Guangzhou show that:

• 6 markets were found with 11 stores selling Candy Bags

• 5 are selling Candy Bags with Furla trademark

2. Shenzhen Markets

In the 20 markets of handbags in Shenzhen, only two stores

were discovered with one Candy Bag (without Furla TM) each.

Southern China is the area with the largest number of counterfeited

products, followed by Eastern China

However, the area of Yiwu in Zhenjiang counts the largest number of

trademark infringements

The almost totality of the infringements are found on the e-commerce

platforms, then no effort should be put in street markets;

Counterfeiting in the Chinese Market: mostly infringement of

copyright/design patent

Counterfeiting Oversea Markets: there is a higher number of

trademark infringements in the e-commerce platforms dedicated to

exportation (ex.Alibaba).

SUMMARY

Continue with online anti-counterfeiting programs

Select targets in China suitable for harsh police or judicial

enforcement rather than mere admnistrative raids

Continue and increase cooperation with Police and Customs

Counterfeiting in the Chinese Market: mostly infringement of

copyright/design patent

Educate Enforcement authorities and create brand awareness.

TO DO

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Upcoming activities

Ad hoc custom monitoring and extension to all EU countries

Further criminal and civil actions against manufacturers and

importers in other countries depending on the fakes quantities

Upgrading of Furla centralized management of cases to reduce

costs and maximize results

Training Furla’s staff and partners for the collection of evidence of

counterfeiting

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summit series:

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