UNUnited Nations Economic Commission for Europe

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UNECE experts promoting new ways to combat counterfeit goods

Geneva, 25 January 2007 -- The dual tasks of protecting intellectual property rights and combating counterfeit goods are among the most pressing issues facing governments in the UNECE Region. Counterfeit goods can be life-threatening – for example, adulterated or contaminated foods, hazardous toys, substandard electrical products and shoddy car or aircraft parts. The UNECE Advisory Group on Market Surveillance (“MARS” Group) examined these and other consumer protection problems at its last meeting, held in Slovakia in September 2006.

The “MARS” Group’s findings will be of key relevance to discussions at the upcoming Third Global Congress on Combating Counterfeiting and Piracy, to be held 30 to 31 January 2007 at Geneva. This event, hosted by the World Intellectual Property Organization (WIPO) and convened by WIPO with Interpol and the World Customs Organization, will see participation by leading stakeholders at the global, regional and national levels.

As a part of the UNECE work on “good practices” in market surveillance, following long consultations, the “MARS” Group drafted a proposal urging Governments to enlist those authorities charged with enforcing product safety in the fight against counterfeit and pirated goods, where they could complement the efforts of Customs police and intellectual property agencies.

Specifically, UNECE experts proposed that after a given product had met all the safety, health and other requirements called for by national legislation, market surveillance officers should verify that the product is in fact genuine; i.e. that it has been produced legally and that use of a trademark or logo has been authorized by its legal owners. If results proved otherwise, the approval process would be suspended and the officers would promptly inform the intellectual property rights (IPR) holders concerned that counterfeit goods had been detected.

The experts at the meeting agreed that these procedures should not be a financial burden for market surveillance authorities and should neither replace or duplicate existing IPR enforcement tools nor create legal conflicts between the market surveillance and IPR efforts. Having two complementary processes would benefit both private consumers and commercial users, would help establish “rule of the law” principles in society, and would promote fair competition and business development.

Certain companies and Governments have already experienced great success using such an approach. In Ukraine, Procter and Gamble and the Ukrainian market surveillance authorities managed to detect and destroy a lucrative illegal market in “Procter and Gamble” products. Through a survey conducted in 1999, the company found that a staggering 43 per cent of the hair-care products and 23 per cent of the laundry products marketed under its name were counterfeit. An intense joint campaign by Procter and Gamble and State authorities, consisting of public confidence-building and deploying mobile testing laboratories for on-the-spot testing, succeeded in completely eliminating the counterfeit products.

The case of Procter and Gamble and the Ukraine is hardly unique – many companies and countries face similar situations – but thankfully its positive outcome can be replicated. Given the critical need worldwide for enhanced cooperation and new and effective measures, the potential impact of enlisting market surveillance forces in the fight against counterfeiting and piracy will surely be of great interest to the participants of the IPR Congress mentioned above.

The “MARS” Group works under the auspices of the UNECE permanent intergovernmental group of experts providing policy advice to Governments on standards, technical regulations, conformity assessment procedures and related issues (the UNECE Working Party on Regulatory Cooperation and Standardization Policies, or Working Party 6).

The “MARS” Group’s proposal will be submitted for final consideration and approval as a new UNECE Recommendation by Working Party 6 at its annual session in Geneva in November 2007.

For further information, please contact:

Serguei Kouzmine
Secretary to the UNECE Working Party on Regulatory Cooperation
and Standardization Policies (WP.6)
UNECE Trade and Timber Division
Palais des Nations, Office 444
CH-1211 Geneva 10, Switzerland

Phone: +41 (0)22 917 2771
Fax: +41 (0)22 917 0037
E-mail: [email protected]

Website: http://www.unece.org/trade/welcome.htm

For information on WP.6: http://www.unece.org/trade/wp6/welcome.htm

For information on the “MARS” Group: http://www.unece.org/trade/wp6/sectoral/mars/mars_bkgrd.htm

Ref: ECE/TRADE/07/P01