Counterfeit Trade and Switzerland
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Mr. Hervé Lohr Swiss Federation Institute of intellectual Property Presentation at the 4th OECD Task Force meeting on Countering Illicit Trade, 18-19 April 2016. The Task force on Countering Illicit Trade (TF-CIT) aims to enhance the co-ordination capacity and risk awareness of enforcement bodies. During the presentations governments were invited to share their experiences and views in terms of enforcement policy initiatives, along with participating a policy dialogue involving industry, think tanks and academia.
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Counterfeit Trade and Switzerland
- 1. Counterfeit Trade and Switzerland Mr. Hervé Lohr Deputy Permanent Representative of Switzerland to the OECD Swiss Federal Institute of Intellectual Property Paris, 18 April 2016
- 2. Some Data from the new OECD/EUIPO-Report Economies of origin of right holders whose IP rights are infringed. (Based on worldwide customs seizures of counterfeit and pirated goods) Source: OECD-EUIPO (2016). Data based on values of seizures from 2011-2013 (pooled dataset). Note: * The term multiple refers to seizures of IP infringing products, for which right holders are registered in multiple economies. 2 0% 5% 10% 15% 20%
- 3. Some Data from the new OECD/EUIPO Report Interventions of Swiss Customs Officials by categories of goods Source: Swiss Federal Customs Administration FCA, 2015, commercial traded goods 3
- 4. How to deal with the problem? • On a private base: Source: Bloomberg.com 4
- 5. How to deal with the problem? • On the base of a public-private partnership (PPP): Swiss Anti-Counterfeiting and Piracy Platform • PPP founded 2005, association under private law since 2007 • Politically neutral non-profit association, does not take sides in individual cases • 36 Members from private sector/public sector/consumers • Some of the members: 5
- 6. How to deal with the problem? • On the base of a public-private partnership (PPP): Swiss Anti-Counterfeiting and Piracy Platform • Activities: • Information campaigns at airports and fairs • Press information • Website, flyers and leaflets 6
- 7. Thank You! Further Information: STOP PIRACY – Swiss Anti-Counterfeiting and Piracy Platform Jürg Herren, Vice President Stauffacherstrasse 65/59g 3003 Bern juerg.herren@ipi.ch info@stop-piracy.ch +41 31 377 72 66 7
Editor's Notes
- Thank you very much for the possibility to present some of our experiences with counterfeit trade. I’ll show you first some evidence for the dimension of counterfeit trade of Swiss goods according to the new OECD/EUIPO-study. Then let me illustrate some of the efforts we undertake in order to raise awareness amongst consumers. We try to spread the information that counterfeit trade is harmful not only for the Swiss economy (and in the case of counterfeit medicine for the consumers themselves) but not seldom also for the people in the production countries. One reason, why we were asked to do this little presentation is to show that not only the “big players” as the US or the EU are affected by forgery. As a small and export oriented economy with some globally well known goods and brands, Switzerland is one of the countries who’s rights holders are amongst the most infringed. Next slide
- Swiss IPR-intensive industries are highly globalized. Our economy is also well integrated in the global economy, through active participation in global value chains. In 2009 Switzerland’s exports represented 1.7% of total world exports in value added terms. Especially active in this context were those Swiss IPR-intensive manufacturing industries that rely on service-related activities (e.g. design, research and development). It allows these industries upgrading their products, offering higher quality and eventually capturing more value. This includes such industries as watch manufacturing, chemicals, machinery, electrical equipment, or textiles. At the same times the threats of counterfeiting and piracy are growing. The high IPR- and trademark-intensity of the Swiss economy and its high degree of integration with the global economy make the Swiss industry potentially vulnerable to the threat of counterfeiting and piracy. As you can see in the slide taken from the study presented this morning, Swiss companies are among the most affected by this problem. Switzerland ranks four on a list of economies, whose rights holders suffer from counterfeiting, right after the US, Italy and France; ahead of Japan, Germany and the UK. Swiss industry sectors that are hit the strongest are watch manufacturers (about 80% of cases). Other Swiss industries that suffer from this problem include tobacco, pharma and luxury products manufacturers (textile and jewellery). That is why we currently are thinking about a special report or case study done by the OECD study team and their detailed data for interested Swiss industries. It should be emphasized that fake products that infringe IP rights of Swiss companies can be found worldwide. Some of them are also traded to Switzerland. Swiss customs authorities amongst many other goods also seize a lot of fake Swiss Watches… Next Slide
- Whereas the last slide showed the amount of seizures of Swiss goods worldwide, Switzerland is also a well known (and probably highly profitable) target of fake goods. Fake handbags, watches, clothing and medicines, nothing that could not be copied – and bought by Swiss customers… The question remains, what can be done? We see two avenues: On the one hand, it is the task of the industries and their associations to prevent themselves from being copied. On the other hand the state can support with different measures these efforts from the private side. Next slide
- On a private base, firms can use several techniques in order to distinguish their goods from copies. One is depicted here: Bacterial fingerprinting. It us used to separate the original from counterfeits for some famous Swiss chees like Emmental or Tete de Moine. The DNA Fingerprinting method has a deterrent effect, not least because people know there is a method to catch fakes. And according to the data of the Switzerland Cheese Marketing Association, the effect is significant!
- Such precious private initiatives are supported in Switzerland by the work of a public-private partnership called STOP PIRACY. The STOP PIRACY Association is comprised 36 members, some of which are shown on the slide. These include private companies and associations from a wide range of industries, the authorities and other public sector institutions as well as consumer representatives. They are all actively united against counterfeiting and piracy. The non-profit organisation works to educate and raise awareness among consumers as well as to promote cooperation between the authorities and the business community. Due to the global reach of the problem, knowledge transfer is at the core of the association's work. As a public private partnership, a member of the Swiss Federal Institute of Intellectual Property (IPI), i.e. the Swiss IP Office, is vice-president of the association. The IPI also support the association by providing the secretariat of Stop Piracy. Our vision is not a world in which every fake can be seized and every counterfeiter put behind bars, but a world in which consumers don’t buy fakes.
- What is Stop Piracy doing? The aim is constant visibility of the topic and the awareness of the negative impact of piracy. Stop Piracy produces flyers and posters used at customs controls, in travel agencies etc. They organize public relations events, e.g. the destruction of fake watches by steamroller It acts as a one stop shop for questions and comments from the public Only a well-informed consumer refrains from buying fakes! We try to achieve our goals by including all stakeholders and creating synergies Integrating consumers not focusing on deterrence alone Measuring the impact of the campaign The new study of the OECD and the EUIPO underlines the necessity of continuing our work. There is still a lot to be done!