MEPs vet plans to jail counterfeiters

MEPs on the European Parliament’s legal affairs committee will vote next week (20 March) on politically sensitive proposals to punish people or companies that infringe intellectual property (IP) rights.

Measures proposed by the European Commission in 2005 would require all member states to impose hefty fines or prison sentences on offenders.

The Commission’s venture into the contentious area of criminal lawmaking was prompted by a 2005 judgement at the European Court of Justice allowing community penalties for environmental crimes. Proposals on copycat crime were drafted before a Commission paper published last month setting out proposals for punishing environmental crime.

Under the IP proposals, member states should punish offenders with at least four years of prison. Fines of between €100,000 and €300,000 would be imposed in cases where criminal organisations were involved or in cases where public health was threatened. Member states could impose heavier penalties if they so wished.

Counterfeiting has become a lucrative and relatively low-risk activity for crime organisations. "Flows of counterfeited goods increased by 1,850% worldwide during the last 12 years," said Italian Socialist MEP Nicola Zingaretti, who is drafting Parliament’s opinion on the proposals. "The directive would lay down minimum standards for the protection of intellectual property rights and… aims at harmonising national legislation," he added.

"It affects organised crime and whatever is linked to massive production of counterfeited goods on a commercial scale. European states are the first victims of this black market, which affects consumers’ health and public finances, as well as companies."

Zingaretti has divided crimes into two main categories, with more serious penalities for piracy of products with health or security risks. The latter could include counterfeit toys containing phthalates that can cause damage to the kidneys and testicles, and perfumes containing aryl amines, a substance that causes irreversible damage to the bladder. Counterfeit medicines are also targeted. According to the World Health Organisation, at least 200,000 people die each year after taking bogus medicine.

With Green MEPs opposed to the Commission’s proposals, Zingaretti has sought to form a majority with Liberal and centre-right EPP-ED members. Austrian Green MEP Eva Lichtenberger said that proposals should only cover large-scale crime, steering clear of areas already covered by national laws and omitting consumers. Greens are particularly concerned about amendments proposed by Dutch Liberal MEP Toine Manders, which go so far as proposing penalties for consumers purchasing copycat goods.

Zingaretti’s report is expected to be voted on in a full session of Parliament this May. Proposals could be considered by member states before summer.

MEPs on the European Parliament’s legal affairs committee will vote next week (20 March) on politically sensitive proposals to punish people or companies that infringe intellectual property (IP) rights.