Recent Challenges for Enforcement of Intellectual Property Rights

Changing patterns of counterfeiting and piracy

Today counterfeiting and piracy affect a huge spectrum of different goods, from aircraft parts to detergent, from alcohol and perfumes to security holograms. No industry is spared. Whereas previously high-end branded goods were a principal target, the latest trend is also to copy ordinary branded consumer goods - even those as mundane as toothbrushes. The type of goods counterfeited is changing constantly in line with market trends.

Counterfeiters are getting cleverer. They are exploiting technological advances to produce copies hardly distinguishable form the originals, in some cases even outsmarting the proprietors. They are making extensive use of the Internet, resulting in the sale and distribution of fake goods at enormous speed and with no geographical limitations. And they are seeking to circumvent border measures by moving imitation goods across borders in "disassembled" form, i.e. waiting until the consignment has passed through customs before sticking on the trademark labels which would make it obvious that the goods are counterfeit.

The problem is escalating, as demonstrated by the ever greater quantities and types of counterfeit goods seized each year. In 2004, seizures of fake foodstuffs and alcoholic beverages doubled at the European Union external borders, while seizures of computer hardware increased nine-fold over the previous year (see table). The scale and nature of the problem demands a coordinated approach to enforcement measures at the national, regional and international levels.

European Union - Counterfeit Seizures (comparison 2003-2004)

* Percentile increase in number of articles seized

* Computer equipment (hardware) 899%

* Electrical equipment 707%

* Foodstuffs, alcoholic and other drinks 197%

* Clothing and accessories 102%

* Toys and games 47%

* Perfumes and cosmeticis -22%

* Watches and jewellery -27%

* Audio CDs, games, software, DVDs, etc -43%

Percentile increase in number of articles seized.

Calculating the Cost: OMO

OMO is a detergent, sold and distributed by Unilever. In 2004, a counterfeit version came on the market for a few months in Mozambique. The counterfeit product, AMO, imitated the OMO graphics...