Combating Counterfeit and Substandard ICT Devices (Geneva, Switzerland, 17-18 November 2014) Intergovernmental Initiatives Against Counterfeit and Substandard ICT Products – Strategic Goal VI of WIPO Ms. Louise van Greunen, Director Building Respect for IP Division, WIPO [email protected] Geneva, Switzerland, 17-18 November 2014 Intergovernmental Initiatives Against Counterfeit and Substandard ICT Products – Strategic Goal VI of WIPO Ms. Louise van Greunen Director, Building Respect for IP Division, WIPO ITU Event on « Combating Counterfeit and Substandard ICT Devices » , November 17, 2014 Definitions Counterfeit Article 61 of the TRIPS Agreement Substandard Below an established or required standard Article 61 of TRIPS Criminal procedures and penalties at least in cases of wilful trademark counterfeiting and copyright piracy on a commercial scale Definitions: Article 51 fn 14 Counterfeit trademark goods: goods and packaging – unauthorized trademark – identical or substantially similar – infringing rights in country of importation Pirated copyright goods: copies – directly or indirectly - without consent or authorization - infringing rights (copyright or related right) in country of importation Public demand: “Fakegifts.com” DiPadova - largest Internet site dealing in counterfeit goods: Rolex, Cartier, Mont Blanc... he said: “… and even if they shut down one site, I'll put up another. I’m very much aware of what I'm doing, but the money is good, I'm going to keep doing it” sentenced (14.12.01) - 24 months prison + 3 years supervised released + US$ 14 million in restitution to TM owners WHY? Understanding consumer attitudes and behaviours CF purchaser profiling (BASCAP Study summary) « Happy Purchasers » These consumers feel CF is a « smart purchase » - good copies. They usually purchase sophisticated products (fashion, electronics, software…) in small quantities. Among highest income levels. « Innocent Purchasers » These consumers feel they have a « moral right » to purchase CF as they are in what they regard a difficult personal situation. They are commonly found in emerging markets, as well in more developed markets among lowest income levels. « Robin Hoods » Refuse to accept the system - consider branded products overpriced and contest the margins, distribution system and taxes. Strong feelings against big corporations and see no point in protecting their interest. « Genuinely frustrated » These consumers would like to have original goods, but can’t afford it. They buy CF out of frustration but are not really happy about it and feel embarrassed to admit they don’t have the « Struggling Consumers » means to buy original goods. They sometimes These consumers belong to the lowest income level categories. They « explain» their purchase behavior by a normally work hard to provide for their family. Counterfeiting is not an « justification speech » on exaggerated margins, issue and they are unable to distinguish between a genuine product good fake quality and grey market distribution and a fake. They concentrate on their basic needs. system. TOP REASON BASCAP Study: DRIVERS 1% 3% 2% 1% Cannot afford the genuine product 5% They think genuine products are overpriced 5% They don't know it's not genuine 35% It would be ridiculous or stupid to pay the full price of genuine products 6% Because the don't have access to the genuine products CF product "do the job" just as well as genuine ones They are constantly offered those products by sellers CF products are more easily accessible than genuine 21% They want to help CF products sellers CF sellers are more willing to serve their customers than regular retailers 21% According to you why would a person likeyourself buy certain CF products? Select THE reason you find most relevant TOP DETERRENT 4% BASCAP Study: Deterrents 3% 4% They can damage your health or safety If you buy genuine you'll have better service and warranty 5% 34% You waste your money 5% Your money goes to criminals Poor quality can damage the equipment you own You set a bad example to children around you 9% You can get into trouble with the police You steal from the original companies You contribute to damaging the economy 10% 15% 11% You support a business based on stealing others' idea or art WIPO – Strategic Goal VI Program 17: Expected Results Create and enabling environment that promotes respect for IP - balanced policy dialogue - Recommendation 45 (WIPO Development Agenda) Strengthened legal frameworks and capacity building strategic and coordinated - right holder cooperation Integration of IP issues in enforcement related activities of partner Organizations and strategic cooperation Recent activities: WIPO/ACE/9/2 Advisory Committee on Enforcement (WIPO Assemblies - September 23 to October 1, 2002) One single Committee in charge of global enforcement issues with objectives: • • • • • Coordination with certain organizations and the private sector to combat counterfeiting and piracy; Public education; Assistance; Coordinate national and regional training; and Exchange of information. Sessions of the ACE www.wipo.int 1st Session: 2003 2nd Session: 2004 - The role of the judiciary and the prosecution in enforcement activities 3rd Session: 2006 - Education and awareness-building, including training 4th Session: 2007 - Cooperation and coordination at the different levels – criminal enforcement 5th Session: 2009 – Contribution of, and costs to, right holders in enforcement, taking into account Recommendation No. 45 of the WIPO Development Agenda 6th, 7th and 9th sessions of the ACE – 2011, 2012 and 2014, respectively A literature review of methodologies and gaps in the existing studies; Identification of different types of infractions and motivations for IPR infringements, taking into account social, economic and technological variables and different levels of development; Targeted studies with an aim to developing analytical methodologies that measure the social, economic and commercial impact of counterfeiting and piracy on societies taking into account the diversity of economic and social realities, as well as different stages of development; Analysis of various efforts, alternate models and other possible options from a socio-economic welfare perspective to address the counterfeiting and piracy challenges. 9th (2014) and 10th (2016) sessions of the ACE Practices and operation of alternative dispute resolution systems in IP areas Preventive actions, measures or successful experiences to complement ongoing enforcement measures with a view to reducing the size of the market of counterfeited or pirated goods ACE exhibition Awareness raising Awareness raising Promotional Material i respect ! ip rights Cooperation Global Congress on Counterfeiting and Piracy WIPO / WCO / INTERPOL + private sector partnership http://www.ccapcongress.net/ Cooperation with various other IGO’s and NGO’s WIPO/UNEP Regional Workshops on the Disposal of Counterfeit Goods http://www.wipo.int/export/sites/www/freepublicatio ns/en/patents/948/wipo_pub_948_4.pdf WIPO Report p 67: Telecoms Devices “Growth sectors in mobile device e-waste recovery include: Gathering focus on battery and printed circuit board e-waste within mobile devices Increasing use of chemical separation techniques Decontamination of mobile device waste streams Recovery of silver from mobile devices” Thank you!