Counterfeiting in the Canadian Market - Manitoba Chambers of ...
Counterfeiting in the Canadian Market - Manitoba Chambers of ...
Counterfeiting in the Canadian Market - Manitoba Chambers of ...
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The development <strong>of</strong> <strong>the</strong>se k<strong>in</strong>ds <strong>of</strong> tools, whichfacilitate coord<strong>in</strong>ated efforts with<strong>in</strong> departments andoutreach to stakeholders, are precisely <strong>the</strong> k<strong>in</strong>d <strong>of</strong><strong>in</strong>itiatives that border <strong>of</strong>ficials should be empowered toundertake.More recently, <strong>the</strong> WCO has developed <strong>the</strong> InterfacePublic-Members (IPM) Database, which providescustoms agents with “real-time” <strong>in</strong>formation onproducts particularly at risk <strong>of</strong> be<strong>in</strong>g counterfeited,along with <strong>in</strong>formation on common transit routes,markers <strong>of</strong> au<strong>the</strong>nticity and photos <strong>of</strong> genu<strong>in</strong>e goods.The WCO encourages rights holders to register <strong>the</strong>irgoods <strong>in</strong> this database. One <strong>of</strong> <strong>the</strong> major advantages<strong>of</strong> <strong>the</strong> IPM program is that it is free <strong>of</strong> charge andaccessible <strong>in</strong> <strong>the</strong> various languages <strong>of</strong> <strong>the</strong> WCOmember states. As <strong>of</strong> February 2011, 65 customsadm<strong>in</strong>istrations have enrolled, <strong>in</strong>clud<strong>in</strong>g Canada’s. 55Adapt<strong>in</strong>g to Small ShipmentsMechanisms to address onl<strong>in</strong>e <strong>in</strong>fr<strong>in</strong>gement and <strong>the</strong>shipment <strong>of</strong> small quantities <strong>of</strong> counterfeit goodscont<strong>in</strong>ues to be a problem for customs <strong>of</strong>ficials.Though it is known that air freight (approx. 40%) andpostal service (approx. 24%) are <strong>the</strong> ma<strong>in</strong> means fortransport <strong>of</strong> counterfeit goods, <strong>in</strong> 2008 nearly 80% <strong>of</strong>articles deta<strong>in</strong>ed at EU borders were transported bysea—<strong>the</strong> most convenient means <strong>of</strong> transport<strong>in</strong>g largequantities <strong>of</strong> goods. 56 Despite this, a 90% <strong>in</strong>crease <strong>in</strong><strong>the</strong> number <strong>of</strong> customs cases <strong>in</strong> <strong>the</strong> EU between 2009and 2010 is attributed to small shipments through <strong>the</strong>postal service, where over 60% <strong>of</strong> items deta<strong>in</strong>ed werecounterfeit medic<strong>in</strong>es. 57 This <strong>in</strong>crease <strong>in</strong> counterfeitproduct be<strong>in</strong>g delivered <strong>in</strong> small shipments is alsonoted by American authorities. In 2011, customsseizures decreased <strong>in</strong> value due to a high volume <strong>of</strong>low-value packages <strong>in</strong>tercepted, <strong>in</strong>clud<strong>in</strong>g a number <strong>of</strong>mail and courier packages. The <strong>in</strong>crease <strong>in</strong> number <strong>of</strong>small shipments deta<strong>in</strong>ed led to 24% more seizures <strong>in</strong>2011 than 2010. 58 Customs <strong>of</strong>ficials have acknowledgedthat “Over <strong>the</strong> past five years, <strong>the</strong> trade <strong>in</strong> counterfeitand pirated goods has shown a marked shift towardus<strong>in</strong>g <strong>in</strong>ternational mail and express courier servicesto transport this illegal merchandise,” with an 84%<strong>in</strong>crease <strong>in</strong> <strong>the</strong> number <strong>of</strong> seizures at mail and courierfacilities s<strong>in</strong>ce 2007. 59Clearly this mechanism <strong>of</strong> delivery <strong>of</strong> counterfeitproduct ordered onl<strong>in</strong>e is a grow<strong>in</strong>g problem whichwill require cont<strong>in</strong>ued attention. EU customs <strong>of</strong>ficialsexperienced an <strong>in</strong>crease <strong>in</strong> <strong>the</strong> number <strong>of</strong> cases from43,572 <strong>in</strong> 2009 to 79,112 <strong>in</strong> 2010 and <strong>in</strong>dicated this<strong>in</strong>crease had a l<strong>in</strong>k to <strong>in</strong>creased sales on <strong>the</strong> Internet. 60This trend has not escaped <strong>the</strong> notice <strong>of</strong> <strong>in</strong>ternationalmail handlers; <strong>the</strong> Universal Postal Union (UPU)passed a resolution urg<strong>in</strong>g its member countries toencourage <strong>the</strong>ir designated operators to “take allreasonable practical measures to support customs <strong>in</strong><strong>the</strong>ir role <strong>in</strong> identify<strong>in</strong>g counterfeit and pirated items <strong>in</strong><strong>the</strong> postal network.” 6155 www.wco.org56 Jo<strong>in</strong>t Research Centre on Transnational Crime, p. 1157 Report on EU Customs, p. 258 Intellectual Property Rights: Fiscal Year 2011 Seizure Statistics, US Customs and Border Protection and US Immigration and CustomsEnforcement, Executive Summary.59 Ibid., p 1560 Results at <strong>the</strong> Border 2010, at p. 1161 Universal Postal Union, Work Done By Customs Group to Implement Resolution C 37/2008. Available at: www.upu.<strong>in</strong>t/document/2011/an/cep_c_2_gd-2/d008b.pdf<strong>Counterfeit<strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong> <strong>Canadian</strong> <strong>Market</strong> | The <strong>Canadian</strong> Intellectual Property Council 17