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

Louise.vangreunen@wipo.int

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

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 TRIPSCriminal 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.

« 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

means to buy original goods. They sometimes

« explain» their purchase behavior by a

« justification speech » on exaggerated

margins, good fake quality and grey market

distribution system.

« Struggling Consumers »These consumers belong to the lowest income level categories. They

normally work hard to provide for their family. Counterfeiting is not an

issue and they are unable to distinguish between a genuine product

and a fake. They concentrate on their basic needs.

« 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.

TOP REASON

According to you why would a person likeyourself buy certain CF products? Select THE reason you find most relevant

BASCAP Study: DRIVERS

35%

21%

21%

6%

5%

5%3% 2% 1%1%

Cannot afford the genuine product

They think genuine products are overpriced

They don't know it's not genuine

It would be ridiculous or stupid to pay the full price ofgenuine products

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

They want to help CF products sellers

CF sellers are more willing to serve their customers thanregular retailers

34%

15%

11%

10%

9%

5%

5%

4%

4%3%

They can damage your health or safety

If you buy genuine you'll have betterservice and warranty

You waste your money

Your money goes to criminals

Poor quality can damage the equipmentyou own

You set a bad example to children aroundyou

You can get into trouble with the police

You steal from the original companies

You contribute to damaging the economy

You support a business based on stealingothers' idea or art

TOP DETERRENT BASCAP Study: Deterrents

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 ACEwww.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 raisingPromotional 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/freepublications/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!