Copycat pirates put a damper on Christmas spirit

Date: 11/12/1997

By Leyla Linton

AS TOY manufacturers gear up for the Christmas rush in what is a highly seasonal market, they know that counterfeiters will be doing exactly the same thing in the hope of cashing in too.

For toymakers who invest heavily in their products, combating piracy is time-consuming, frustrating and costly. But the financial losses would be even greater if they took no action.

Sten Juul Petersen, chairman of Toy Industries in Europe's intellectual property committee and legal adviser to the Lego group, said it was hard to put an accurate figure on the financial losses resulting from counterfeiting, but a 'guesstimate' based on a recent survey indicated 10-12&percent; of annual turnover.

The damage to toy manufacturers is not just financial. Toy Industries in Europe (TIE) argues that fake toys often do not meet safety standards, are dangerous and undermine customer goodwill. Common hazards are small pieces on which children can choke, or toxic ingredients.

Counterfeiters concentrate on the most popular toys, for example Barbie dolls or Lego, according to Petersen. The Rubik's cube craze over a decade ago led to such heavy copying that its manufacturers gave up the fight against the pirates.

The new European anti-counterfeiting regulation which came into force two years ago has made a difference, according to TIE, but the problem in dealing with the counterfeiters lies not so much in expanding existing legislation, but in applying it. “Enforcement is by far the biggest problem in the world and the EU,” said Petersen.

TIE would also like legislation to force people who bring counterfeit toys into the EU for their personal use either to surrender them or face criminal charges.

While most counterfeit toys come into the Union from Far Eastern countries, EU members such as Italy and Greece are not blameless either, says Petersen.