Behind the scenes at Mexico’s IP crime unit

“Mexico is a country that is on the verge of a major transformation, not only in economics but also in the political and social order.”

Those who see Mexico as simply the poor neighbour of the US may be surprised by Arturo José Ancona García-López’s statement, but a look at some recent statistics reveals some interesting facts.

Packing a punch

In a table that ranks the world’s nations by the value of all goods and services each produces at US prices—what economists call gross domestic product at purchasing power parity exchange rates—compiled by the Central Intelligence Agency, Mexico stands 11th.

Population and size-wise, it is not far behind. It is the 14th largest country in the world, with an area of nearly 2,000,000km². With around 118 million people crammed into its borders it is the 12th most populous.

So it’s hardly surprising that its capital, Mexico City, was chosen as the host for the 50th anniversary gathering of the Inter-American Association of Intellectual Property (ASIPI).

But while delegates switch between enjoying what the city has to offer and attending ASIPI’s sessions on the latest IP developments in Mexico and around the world, they may not necessarily be aware of the work going on behind the scenes by Mexico’s special IP crime unit to stamp out IP abuse.

Arturo José Ancona García-López, better known as Arturo Ancona, is the man in charge of it.

Despite his glowing assessment of Mexico’s likely imminent transformation and his positive view of the future, Ancona says there are persistent problems that require action.

“Parallel to this process of profound transformation is the permanence of multiple problems that require a great effort to overcome,” he explains.

IP challenges

Ancona says a historical lag in economic progress has contributed to high levels of piracy and counterfeiting and, as a result, an increased workload for him as the unit’s chief.

As head of the unit, which forms part of the Attorney General’s office, Ancona has direct responsibility for keeping a lid on all kinds of IP abuse, from assessing initial complaints to carrying out investigations and, in some cases, making arrests.

Although responsible for the full spectrum of IP abuse, the unit’s primary concerns are counterfeiting and piracy, both of which Ancona says are particularly prevalent.

As he explains, this could be due to a number of factors including the high availability and low market price of fake products, a lack of supplies of genuine products at competitive prices and high levels of unemployment.

But as Ancona notes, the counterfeiting problem is an evolving one and even since the unit’s formation little more than ten years ago, the problems surrounding fake goods and their readily available nature have changed dramatically.

“Until a few years ago, counterfeiting was confined mainly to luxury items or objects of cultural consumption, such as music, movies or books. Nowadays any product that has a market value is susceptible to counterfeiting,” he tells WIPR.

“Thus, in Mexico, as seems to be happening around the world, we find that counterfeits are purchased by consumers unknowingly.

“They are buying products such as repair kits, appliances, medicines, food or drinks. These threaten the health and lives of people, and criminals make huge profits by selling them to people unaware of the fakery.”

Cracking down

Formed in 2003, the unit works closely with other government authorities, including state branches of the Attorney General’s office, the Mexican Institute of Industrial Property, and the Directorate General of Customs.

“We share various responsibilities, such as measures for customs control and the inspection of public markets,” Ancona explains.

Collaborations this year ... have enabled the unit to conduct widespread crackdowns in markets previously perceived to be a haven for IP abuse

“In addition to this coordination, we are currently working together on a specialised committee, through which we are working on new research plans and joint operations.”

This, according to Ancona, forms part of the unit’s goal of increasing efficiency.

As is the case with the UK’s IP crime unit, the Police Intellectual Property Crime Unit (PIPCU), much of the unit’s intelligence and ability to carry out arrests and raids relies on working with industrial organisations.

It is these joint efforts that have proved useful in clamping down on piracy levels, as well as counterfeits.

Collaborations this year, including one with the Recording Industry Association of America, have enabled the unit to conduct widespread crackdowns in markets previously perceived to be a haven for IP abuse, Ancona says.

These include Tepito and San Juan de Dios, in Guadalajara, once known throughout the world as notorious markets for piracy.

Ancona reels off statistics from operations conducted this year, which include the capture of more than 8,000 disc burners and the destruction of more than 30 “laboratories” that produced pirated films and CDs.

“Thanks to this, it has been possible to avoid the production of more than 960,000,000 fake records,” reveals Ancona, using figures provided by the Asociación Protectora de Cine y Música (Association for the Protection of Film and Music), an industry body that seeks to protect creative industries in Mexico.

“These associations have actively participated in carrying out these operations and publicising the results,” Ancona says.

He continues: “But these were not the only cases. Throughout this administration, we have made a special effort to dismantle counterfeit factories and been able to detect and dismantle clothing and footwear factories throughout the country.

“In the same way, we have achieved important seizures of counterfeit products, which were smuggled through the country’s customs.”

Ancona says other seizures have also yielded “substantial amounts” of fake cigarettes, batteries and electronics.

But while the unit has worked to clamp down on hard-copy piracy and counterfeiting it is also focusing its efforts on targeting online abuse.

Ancona refers to a survey by the American Chamber of Commerce of Mexico, which found that nine out of ten Mexicans had openly admitted to consuming pirated material.

He highlights two recent trends as being a particular danger to the public: the sale of illegal software by websites that encourage people to download pirated copies, and sites that offer copies of music and movies in exchange for donations and advertising.

These cases, says Ancona, are particularly problematic due to the difficulty of finding where a website is registered, slow international cooperation and the level of specialisation and technical expertise needed to determine how the sites are used, including payment transfer systems.

Despite a sizable section of the country’s population openly admitting to carrying out IP abuse, Ancona is no stranger to the dangers posed.

Aside from his anti-crime work he regularly participates in educational campaigns designed to inform the public about the dangers of piracy and counterfeiting. He is adamant that the support of the public will be key to the unit’s success in the future.

“Counterfeit products do not meet the quality standards required by the state,” he explains.

“This problem threatens companies that see their revenues suffer, inhibits investment in product innovation and encourages companies to move to safer markets. It also damages the revenue capacity of the state, which limits its ability to implement better policies and reduces productive investment.

“In this regard, I would like to achieve greater consumer awareness of the risks and real costs of consumption of counterfeits, so that citizens become key allies in the fight against these crimes,” he adds.

The rise of police units dedicated to tackling IP crime around the world is notable. In the UK, PIPCU, a little over a year old, is regularly publicising its scalps and arrests. But as its former head Detective Chief Inspector Andy Fyfe told our sister magazine Trademarks and Brands Online earlier this year, its primary focus is online-based crime.

Although online piracy is included in the work being carried out in Mexico, it seems that much of its work is focused on removing the threat of hard copy counterfeiting.

While it may be a country on the cusp of transformation, it seems there is still some way to go if it is to permanently shake off the influx of counterfeits.