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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Enforcement <strong>of</strong>ficials need to be will<strong>in</strong>g to use<strong>in</strong>novative tools to tackle <strong>the</strong> challenges presentedby counterfeit<strong>in</strong>g and need to know that <strong>the</strong>y will besupported with <strong>the</strong> necessary legal tools and resources.Rights holders are will<strong>in</strong>g to support <strong>in</strong>novativeprogramm<strong>in</strong>g <strong>in</strong> order to address <strong>the</strong> challenges<strong>the</strong>y face.Partnerships With IntermediariesThere are a number <strong>of</strong> measures through which IPRcan be effectively enforced onl<strong>in</strong>e, yet it is <strong>in</strong>creas<strong>in</strong>glyoccurr<strong>in</strong>g through partnerships with “onl<strong>in</strong>e<strong>in</strong>termediaries.” Typically, positive relationshipsbetween rights holders and <strong>the</strong>se <strong>in</strong>termediaries,<strong>in</strong>clud<strong>in</strong>g onl<strong>in</strong>e payment processors, search eng<strong>in</strong>es,Internet service providers, onl<strong>in</strong>e advertisers, onl<strong>in</strong>eretailers, web auction sites, web host<strong>in</strong>g providers,doma<strong>in</strong> name system (DNS) registries and social mediaplatforms, can provide <strong>the</strong> basis for cooperation <strong>in</strong> <strong>the</strong>prevention <strong>of</strong> counterfeit distribution. This relationshiprequires <strong>the</strong> support <strong>of</strong> government.In <strong>the</strong> OECD’s Declaration for <strong>the</strong> Future <strong>of</strong> <strong>the</strong> InternetEconomy, <strong>the</strong> organization outl<strong>in</strong>ed eight goals, two<strong>of</strong> which were to ensure respect for IPR and to ensurea trusted Internet-based environment which <strong>of</strong>fersprotections to <strong>in</strong>dividuals. The OECD has stated thatgovernment cooperation with Internet <strong>in</strong>termediariesis key to protect<strong>in</strong>g both consumers and IPR onl<strong>in</strong>e. 96Payment processors have proven to be will<strong>in</strong>gpartners <strong>in</strong> work<strong>in</strong>g with rights holders to prevent<strong>the</strong> <strong>in</strong>fr<strong>in</strong>gement <strong>of</strong> rights onl<strong>in</strong>e. As an example,VISA participated <strong>in</strong> Operation Pangea, us<strong>in</strong>g itsparticipation <strong>in</strong> <strong>the</strong> project as an opportunity to rem<strong>in</strong>dits clients that all <strong>of</strong> <strong>the</strong>ir transactions processed byVISA must be compliant with <strong>the</strong> laws <strong>in</strong> both <strong>the</strong>country <strong>of</strong> <strong>the</strong> seller and <strong>of</strong> <strong>the</strong> buyer. 97Many sites that <strong>of</strong>fer counterfeit and pirated goodsderive a portion or all <strong>of</strong> <strong>the</strong>ir revenues fromadvertis<strong>in</strong>g. The banner and display ads that appearon <strong>the</strong>se websites are frequently placed <strong>the</strong>re by adbrokers who place onl<strong>in</strong>e advertis<strong>in</strong>g <strong>in</strong> <strong>the</strong> view <strong>of</strong>target audiences for advertisers. Operators <strong>of</strong> sitesthat <strong>of</strong>fer counterfeit goods also use <strong>the</strong>se servicesto advertise <strong>the</strong>ir illegitimate products <strong>in</strong> associationwith legitimate goods. A two-pronged approach byowners <strong>of</strong> legitimate content is required to addressthis problem. First, advertisers <strong>of</strong> legitimate productsmust demand that onl<strong>in</strong>e ad brokers not place <strong>the</strong>irads on websites that <strong>of</strong>fer illegitimate goods and that<strong>the</strong>se same brokers not place ads on <strong>the</strong>ir legitimatewebsites for illegitimate goods. Second, <strong>in</strong> order toavoid consumer confusion, action must be taken by adbrokers to limit <strong>the</strong> use <strong>of</strong> <strong>the</strong>ir services by operators<strong>of</strong> illegitimate websites. Onl<strong>in</strong>e advertisers, alsoconcerned about <strong>the</strong> safety <strong>of</strong> <strong>the</strong>ir consumers, aretak<strong>in</strong>g some positive action. Google has acknowledgedthat “Like all o<strong>the</strong>r Internet companies, we are fight<strong>in</strong>ga war aga<strong>in</strong>st a huge number <strong>of</strong> bad actors—fromwebsites sell<strong>in</strong>g counterfeit goods and fraudulenttickets to underground <strong>in</strong>ternational operations try<strong>in</strong>gto spread malware and spyware.” 98Recently, two major <strong>in</strong>dustry associations, TheAssociation <strong>of</strong> National Advertisers and <strong>the</strong> AmericanAssociation <strong>of</strong> Advertis<strong>in</strong>g Agencies, implementedpolicies to discourage <strong>the</strong>ir members from plac<strong>in</strong>gadvertisements on rogue sites—sites that <strong>in</strong>fr<strong>in</strong>geIPR. In this process, <strong>the</strong> agencies recommendedthat companies <strong>in</strong>clude a clause <strong>in</strong> <strong>the</strong>ir advertis<strong>in</strong>gcontracts that require advertisers to take “commerciallyreasonable measures” to prevent <strong>the</strong>ir ads fromappear<strong>in</strong>g on rogue sites. 99 The groups <strong>in</strong>dicated that<strong>the</strong>y made this commitment because “we should notknow<strong>in</strong>gly allow our bus<strong>in</strong>esses and brands to supplyf<strong>in</strong>ancial lifeblood or lend a veneer <strong>of</strong> legitimacy to96 OECD, The Economic and Social Role <strong>of</strong> Internet Intermediaries, April 2010. Available at: www.oecd.org/dataoecd/49/44949023.pdf97 VISA Press Release, VISA supports global law enforcement action aga<strong>in</strong>st rogue onl<strong>in</strong>e pharmacies, October 14, 2010. Available at:http://www.visaeurope.com/en/newsroom/news/articles/2010/support<strong>in</strong>g_operation_pangea.aspx98 Google Official Blog Mak<strong>in</strong>g Our Ads Better for Everyone March 14, 2012. Available at: http://googleblog.blogspot.ca/2012/03/mak<strong>in</strong>g-ourads-better-for-everyone.html99 Brendan Sasso, Advertisers Pledge not to Support Rogue Sites, The Hill, May 3, 2012. Available at: http://<strong>the</strong>hill.com/blogs/hillicon-valley/technology/225249-advertisers-pledge-to-not-support-rogue-pirate-sites<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 23