EU strengthens measures against counterfeit goods, July 2003

Ministers from the EU's Member States adopted a Regulation on 22 July 2003, which seeks to combat the growing problem of counterfeiting and piracy in the European Union.

Only proposed by the European Commission on 20 January 2003, the new Regulation replaces Regulation 3295/94/EC strengthening the powers of customs officials to intercept counterfeit goods whilst also enhancing intellectual property rights. The main features of the new Regulation are:

• Extension of the scope of the Regulation to new intellectual property rights (Plant variety rights, geographical indications and designations of origin)

• Abolition of fees and securities charged by customs officials for the provision of information, making it easier for companies, particularly SMEs, to make claims

• The process of destroying fraudulent goods will be accelerated

The European Commission welcomed the Council's swift adoption of the Regulation warning that the problems of counterfeiting and piracy on the increase. In 2001 100 million counterfeit items were intercepted on the EU's borders, compared to 10 million in 1998, levels for the first half of 2003 suggest these figures are to continue. Although CDs, DVDs and cassettes accounted for 40% of these goods in 2001, 4 million items of food and drink were seized as well as 1 million pieces of electrical equipment and 1.5 million toys and games. The effect of the trade on the EU's economy is estimated at €2 billion with many of the goods coming from the Asian continent and countries in Southern and Eastern Europe.

However, Frits Bolkestein, the European Commissioner with responsibility for the issue, is confident that the new Regulation will have a significant impact on reducing the trade. In addition, a European Commission proposal for a Directive harmonising intellectual property rights, which is currently going through the decision making process, is expected to further strengthen the EU's defences against counterfeited and pirated goods.

Links:
European Commission:
	22.07.03:	Press Release: Counterfeiting - European Commission welcomes the adoption of the new Regulation strengthening the role of customs in intervention [IP/03/1059]
	20.01.03:	Press Release: Commission proposes to make it easier for customs to act against counterfeiting
	DG Taxation and Customs: The fight against counterfeit goods and piracy
European Sources Online: Financial Times:
	23.07.03:	EU Members agree measures to cut out flood of fake goods
European Sources Online: In Focus
	Commission acts against counterfeiting and piracy, January 2003

Helen Bower

Compiled: Wednesday, 23 July 2003

The EU adopted a Regulation on 22 July 2003, which seeks to combat the growing problem of counterfeiting and piracy in the European Union.