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1 July 2014Trademarks

Counterfeits reach 3bn, WCO report says

The number of counterfeit items reported worldwide hit 3 billion for the first time last year but that figure is only “the tip of the iceberg”, the World Customs Organization (WCO) has claimed.

According to the WCO’s Illicit Trade Report, the “tremendous increase” of fake goods stressed the gravity of the counterfeit problem.

The jump, from 43 million last year, was put down to two large-scale enforcement operations carried out during the year.

The annual report contains five sections: it has a chapter on IP, but also covers drugs, the environment, health and safety, and revenue and security.

Its aim is to raise awareness on emerging threats and highlight the efforts of customs authorities.

When comparing the available data to last year, the WCO revealed there had been an increase in countries reporting IP-related infringements from 58 to 69.

The most common interceptions and seizures centred on pharmaceutical products, followed by electronic appliances and food items.

China remained the biggest hotbed for making counterfeits, with more than 9,000 cases reported during the year, while the US was the most common destination.

The rise in pharmaceutical products marks a change from last year, where the majority of interceptions were on accessories and clothing, with pharmaceuticals in third place.

One of the biggest hauls of counterfeit pharmaceuticals this year came following a ten-day clamp down in Africa called ‘Operation Biyela’.

During that period participating customs administrations intercepted more than 1 billion illicit products with pharmaceutical products accounting for almost 50 percent.

The report said “countless” types of counterfeit medicines were found, including diet supplements, anti-malaria tablets and antibiotics.

“Clearly, no medicine is safe from counterfeiting. Whatever the treatment, there is always a risk for the medicines to be counterfeit,” the report said.

In terms of brands, Nike, which was involved in more than 1,000 cases of counterfeit seizures, was the most commonly targeted.

Apple, Samsung, Rolex and Luis Vuitton made up the rest of the top five.

“Despite the alarming number of intercepted medicines, clothing commodities and brands remain in top five of all ranking lists, whether the criteria is made according to the number of cases, pieces or value,” the report said.

Kunio Mikuriya, secretary general at the WCO, said sharing the information with the public was a contribution towards better understanding the phenomenon of illicit trade.

“Developing more robust measurement methodologies and working with data should also serve as better guidance to policymakers working in this area,” Mikuriya added.

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