Report from the Commission to the European Parliament and the Council on the functioning of the Memorandum of Understanding on the sale of counterfeit goods via the internet

The sale of counterfeit goods over the internet is damaging and harmful to all legitimate stakeholders, including Internet Platforms and intellectual property Rights Owners and, most importantly, consumers. Online counterfeiting is a dynamic phenomenon, which is constantly changing and adapts to break into new business models. Illicit counterfeiting businesses are sophisticated; they react to anti-counterfeiting protection strategies.

The purpose of the Memorandum of Understanding (MoU) is to establish a code of practice in the fight against the sale of counterfeit goods over the internet and to enhance collaboration among its Signatories, so that they can effectively respond to this constant threat. There is collective recognition that cooperation is much better than litigation, which neither enhances market efficiency nor fosters consumer trust. The key aim is to instil trust in the market. The MoU promotes trust in the online marketplace by providing detailed measures against online offers of counterfeit goods as well as enhanced protection for consumers who unintentionally buy a fake.

The MoU covers leading e-commerce platforms as well as major brands in the field of fast-moving consumer goods, consumer electronics, fashion, luxury goods, sports goods, film, software, games and toys, all operating at both global and regional level.

This report analyses the progress, implementation and functioning of the MoU and takes stock of Signatories’ evaluation of its effectiveness in reducing the online sale of counterfeit goods within the EU. It is strictly limited to the MoU, and does not cover associated general policy issues.

It shows that the approach adopted by the MoU works, but also highlights the need for Internet Platforms and Rights Owners to remain alert and vigilant. The report concludes that the MoU should continue for another two years and that its membership should be extended. The Commission is considering further action to deal with the fight against counterfeiting more broadly and may propose an initiative later this year.

EUR-Lex: COM(2013)209: Follow the progress of this report through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2013:209:FIN

ESO: Background information: Too good to be true: the real price of fake products http://www.europeansources.info/record/press-release-too-good-to-be-true-the-real-price-of-fake-products/

---