Jean BergevinHead, Intellectual Property and Fight Against Counterfeiting,
European Commission
Stéphanie Martin Policy Officer, Intellectual Property and Fight Against
Counterfeiting, European Commission
Craig Moss Chief Operating Officer, CREATe.org
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Jean BergevinHead, Fight Against Counterfeiting and Piracy Unit, European Commission
Stéphanie Martin Policy Officer, Intellectual Property and Fight Against Counterfeiting, European Commission
Craig Moss,Chief Operating Officer, Center for Responsible Enterprise and Trade (CREATe.org)
Type Trademark Design Rights
Copyright Patent Trade Secret
Definition Symbol, word, or words legally registered or established by use as representing a company or product
Protects the visual design of objects
Exclusive legal right to reproduce, publish, sell, use or distribute original works of authorship
A grant giving the creator of an invention the sole right to make, use, and sell that invention for a set period of time
Any confidential or proprietary business information that provides a competitive edge
Examples Logo, company name, brandname, graphics, slogan, catchphrase
Shape, configuration, contours,colors,texture of products or packaging
Software, music, films, books, photos
Governments determine which inventions receive patents
Unreleasedproducts, technical information and know-how, internal business information
Top IP Infringement
• Counterfeits and excess production (the "third shift")
• Product/design prototypes being shared with competitors
• Unauthorized sub-contractors
• Improper use/disposal of tooling
• Theft of trade secrets: plans, designs, technology
• British luxury sports carmaker Aston Martin was forced to recall 17,590 cars due to counterfeit parts
• Subcontractor Shenzhen Kexiang Mould Tool Co Limited was using counterfeit DuPont plastic material to mold pedal arms
• Aston Martin is now being supplied directly by a DuPont distributor
Counterfeit Goods
Counterfeits Entering Legitimate Supply Chains
Legitimate Suppliers Legitimate Distributors
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Fight Against Counterfeiting: Integrity of Supply Chains
& Follow the Money
Jean BergevinStéphanie MartinDG Internal Market, Industry, Entrepreneurship and SMEsUnit F5 Intellectual Property and Fight Against Counterfeiting
Adoption on 1st July 2014 - COM(2014)392
10 actions focused on commercial-scale IP infringements
2 key actions:- Action 2: Integrity of Supply Chains- Action 3: Follow The Money
Adoption on 28 October 2015 - COM(2015)550
The "Follow the Money" approach was announced as a key initiativeof the IP chapter of the Single Market Strategy.
ACTION 2 – Integrity of Supply Chains
Vulnerability
Globalised supply chains have become wider.
Many actors involved, several tiers:fragmentation and little transparency
This opacity increases drastically the vulnerability of supply chains.
Due Diligence Holistic
Supply chainintegrity
Track and Trace
TechnologiesIntellectual Property
Due Diligence
Supply Chain integrity
Supplychain
integrityMechanisms
Develop a transparency, responsibility and fairness culture throughout the supply chain
Implement good practices (audits, codes of conducts, labels, training of employees…)
Involve every actor in the supply chain under the responsibility of rightholders
Authenticity Integrity
ObjectiveDevelop cost-effective technological tools for
supply chain integrity.
Why?Provide authorities and consumers with
information on both the authenticity and the integrity of products..
How?Cooperation between right holders, security
companies, standards organisations.
1. Voluntary: non-legislative scheme based solely on voluntary good practices
2. Voluntary-Plus: semi-legislative scheme based on voluntary good practices + review of the IPR Enforcement Directive 2004/48
3. Compulsory: legislative scheme providing due diligence obligations
"Win-Win"
Rightholders: effective IP protection, other benefits related to supply chain integrity.
Consumers: responsible supply chains would ensure safety, authenticity and integrity of products
Suppliers: transparency would promote fair business practices throughout supply chains
Society at large: responsible supply chains would help promote environmental and social standards
within supply chains
Workshop5 June 2015
Ongoing online Consultation
(December 2015)
Communication2017
Action 3 – “Follow The Money”
Source of Revenues
Disrupt
Enhance
Promote
the money trail of infringing activities
The involvement of intermediaries in IPR enforcement at EU level
the initiatives that already exist at national level
Major source of income for IP infringing sites
Advert misplacement: damage to brand equity
Consumer online trust and security issue
Payment services used by IP infringers (purchasing products, subscription)
In breach of payment providers' operating rules
Consumer online trust and security issue
• Shippers
• Retailers
• Wholesalers…
“Given the similarities between many of the underlying issues… we believe that companies will benefit from aligning their IP protection strategies with those strategies associated with improved social and environmental performance… In particular, companies are likely to benefit from establishing management systems that lay the foundation for respecting and protecting IP…”
• Stanford Business School, “Similarities in Managing Supply Chain Sustainability and Intellectual Property” March 2014
Problem:• A publicly-traded global manufacturer discovered their largest
authorized distributor was selling 20% counterfeit goods
Consequence:• Fakes caused reputational and financial damage - lost sales plus
replacement/repair of faulty counterfeit goods
Challenge:• Did not want to hurt relationship with largest distributor or make
situation public knowledge and hurt company reputation –especially with investors
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Legal Approach Management Systems Approach
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For further information:[email protected]
Action Plan on enforcement of IPR:http://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:52014DC0392&from=EN
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