EU and US companies join forces to combat pirating of consumer goods

Date: 08/01/1998

By Leyla Linton

FIRMS behind top brand names in the EU and the US are to form a global anti-counterfeiting group to combat the pirating of consumer goods.

Around 2,000 companies from the EU's 15 member states and the US have decided to join forces to lobby and swap information about the activities of counterfeiters.

The Global Anti-Counterfeiting Group (GAG) will be formally launched in the spring, but its members have already begun work on a database. They also plan to organise joint actions, such as training for customs officials.

"Together, we have every kind of brand imaginable. It is a great force," said Volker Spitz, chairman of the German anti-counterfeiting group (VBP), who came up with the idea of forming a global network of anti-piracy organisations two years ago.

As preparations for the launch of the new network are being finalised, the VBP is calling on the European Commission to propose a ban on the personal import of counterfeit goods.

It is unhappy that the current EU regulation on counterfeiting permits the import of pirated non-commercial goods and says that this amounts to legitimising an illegal activity.

But the lobby group has so far failed to win the institution over to its point of view. "The Commission does not want to do anything about personal import. It is hiding behind the member states, but it has a duty to propose controls," said a VBP spokesman.

He stressed that the problem was much greater than a few tourists bringing in a T-shirts and cited the example of a supermarket in the Czech Republic which specialises in counterfeit goods and advertises them in Germany.

Germany is increasingly being used as an entry point into the EU for counterfeited goods, including sportswear and spare car parts, according to the VBP. Such goods usually originate in Turkey and are transported through Eastern Europe, in particular the Czech Republic, says the organisation.

The VBP estimates that counterfeiting adds up to 70,000 to the yearly unemployment figure in Germany and leads to an average loss for manufacturers affected by piracy of between 5% and 10% of annual turnover.

It claims the problem has increased by at least 50% over the past two years and is continuing to worsen. Counterfeiting is also spreading from famous brands such as Nike to smaller manufacturers such as clothing manufacturer Homeboy.

But Spitz says it is still difficult to persuade authorities and consumers to take the problem seriously. "People think it is a petty crime, but counterfeited goods, especially toys have health risks. Counterfeited textiles can even contain cancer-inducing chemicals," he said, adding that consumers who thought they were getting a bargain should be aware of the dangers.