Canadian Genuine Product Certification - 5 - 2010-09-08
1. RCMP 1“E” Division Border Integrity
Federal Enforcement Section
Intellectual Property Rights
Economic Crime
Canadian Genuine Product Certification
Introduction
In the interest of bringing into focus the importance of enhancing our National Strategic Plan
with new and innovative ways to combat counterfeiting and piracy, excerpts from the
International Intellectual Property Alliance 2008 Special 301 Report on Canada are cited
hereunder.
“The continued prevalence of pirate product in Canada’s retail market indicates another
enforcement shortcoming: the RCMP's long-standing reluctance to target retail piracy. While this
may be attributable to the Canadian government’s failure to provide RCMP with adequate
enforcement resources, its record of cooperation with right holders to attack piracy remains
spotty. Although the RCMP has now listed intellectual property crimes among its top stated
priorities, its actions too often do not fulfill this commitment”.
The challenges we face as part of a network to combat the counterfeiting phenomenon may be
numerous, however no reasonable expectation of success can be met without introducing
measures that will effectively lower the supply of goods either coming into the country or by
being available at the retail level. Without effective border control, the retail level of counterfeit
products will go unabated. One such measure identifying counterfeit imports arriving at
Canadian Ports of entry is the Canada Border Services Agency (CBSA) Advanced Commercial
Information (ACI) program. There is good reason to expect an ability for increased counterfeit
identification by CBSA, as the RCMP Border Integrity Federal Enforcement Section advance
measures to streamline the process of effectively removing identified counterfeit products out
from the control of CBSA so as to dispose of them prior to reaching their point of destination.
A more significant measure and the focus of this document is to raise public awareness on
counterfeit and pirated goods so as to make Canadians aware of the economic and social costs
with an emphasis on the health and safety risks the products present. Canadians would then have
a better understanding of how purchasing counterfeit products supports criminals who traffic in
counterfeit products and the organized crime groups they work under. This would in turn change
a widespread public perception that counterfeiting and piracy are victimless crimes, to one that
would have them support our crime reduction efforts by making a conscious and informed
decision to not buy counterfeit products.
2. An initiative that focuses on empowering the Canadian consumer to make an informed choice on
the products they purchase is supported in the “Counterfeit Goods in Canada - A Threat to Public
Safety, Report of the Standing Committee on Public Safety and National Security” dated May
2007 39th
Parliament, 1st
Session. The 13th
Recommendation reads as follows:
The Need for Raising Public Awareness
1. The widespread public perception that counterfeiting and piracy are victimless
crimes is one of the factors that contributes, according to the evidence heard, to the increase in
the sale of counterfeit and pirated goods in Canada. The Canadian Anti-Counterfeiting Network
presented the results of a poll it had commissioned on this question, which suggests that
Canadians are three times more likely than Americans to purchase counterfeit and pirated goods.
1. According to Paul Hoffert (Chief Executive Officer of Noank Media) and Bob Sotiriadis (Lawyer
and Partner, Léger Robic Richard, L.L.P.) in particular, the government’s inaction in the fight against counterfeiting
and piracy can only reinforce that perception and foster “[...] a culture and a society that have a kind of disregard for
law in general.”Error! Hyperlink reference not valid. Here is what Mr. Sotiriadis had to say on the subject:
Logically, when a behavior is [normalized] — as Mr. Hoffert said earlier — it raises the
tolerance level for illegal activities and makes them more prevalent.
The Committee agrees with this analysis and the prevailing view of the witnesses that raising
public awareness of counterfeiting and piracy is central to the solution. We feel that when
consumers are aware of the risks that certain counterfeit goods present to their health and safety,
as well as the harm this does to the Canadian economy, they will be more vigilant and less
inclined to purchase such products. Accordingly:
RECOMMENDATION 13
The Committee recommends that the Government of Canada institute a campaign to raise
awareness of counterfeit and pirated goods to make the public aware of the economic and social
costs associated with this scourge, and emphasize the public health and safety hazards they
represent. The campaign should also raise Canadians’ awareness of the involvement of organized
crime, the use of child labor and human trafficking in the counterfeiting and piracy of goods.
___________________________
The cost to the Canadian economy is difficult to assess, however authorities agree that it is in the
billions of dollars annually. If we could impact even a small percentage of Canadians to make a
conscious decision not to buy counterfeit products because of the deleterious effects on people,
business and the economy, we will have reduced the demand for counterfeit products. This
initiative coupled with a media strategy denouncing counterfeit products, akin to a social stigma
similar to the one associated to people who smoke cigarettes or drink and drive, would make the
behavior of knowingly buying counterfeit products less acceptable to Canadians.
Drawing attention to people who make conscious decisions to buy genuine products can be
achieved by focusing on the retailers they frequent.
3. Giving positive recognition to retailers by publicly identifying and promoting them as retailers
who sell only genuine trademark products would establish a moral and ethical distinction that the
industry sectors, including business associations and Intellectual Property Rights holders, could
get behind and support.
This initiative serves several goals, including: (1) readily identifying retailers who carry only
genuine products and are honest and socially responsible to the public; (2) increasing
responsibility on reputable chain store buying agents, to ensure added measures are taken to not
purchase products that may be counterfeit; (3) establishing confidence in consumers who don’t
want to be fooled into purchasing a counterfeit trademark or copyrighted product believing it to
be authentic; and (4) dissuading retailers from carrying counterfeit products. A corollary and
consequential effect would also be to identify and draw attention to those retailers whose lack of
due diligence and business practices are questionable. The eventual isolation of non certified
retailers would draw the attention of law enforcement and private industry and expose them to
anti-counterfeiting actions. (See RCMP Retail Enforcement) Initiatives designed to increase
consumer responsibility and increase consumer confidence will ultimately drive down demand
for illicit products at the retail level and, consequently reduce the eventual supply of counterfeits
arriving at the ports of entry. This initiative is:
“Canadian Genuine Product Certification”.
Vision
In association and with support from the Canadian Anti-Counterfeiting Network, Canadian
Intellectual Property Council and associated agencies, the “Canadian Genuine Product
Certification” initiative will have partnerships necessary to launch, promote and support an
initiative that would change the way in which Canadians perceive the effects of counterfeiting. A
strategic public relations campaign would introduce the initiative, its participants and draw the
media community to focus on the negative effects counterfeiting has on the Canadian economy,
job opportunities for young people, health and safety risks imposed on Canadians through lack of
proper control measures by manufacturers in third world countries, and how counterfeiting and
piracy are related to Organized Crime and possibly Terrorist financing. There will be a clearer
public understanding of why authorities and the private sector have embarked on a campaign to
combat the illegal trafficking in counterfeit goods. This will “kick start” authentic product
retailers who will want the public to readily identify them as being certified to apply for and
receive “Canadian Genuine Product Certification”. Certification applications will quickly gain
momentum and the buying public will eventually openly discuss and select retailers who are
displaying the certification certificate and window emblem identifying them as Canadian
Genuine Product Certified Dealers. Consequently, a certain stigma will develop associated to
people who are known to purchase from non certified retailers. This process also enables the
public to further identify retailers who are most likely to be truthful and trustworthy, giving rise
to a desperately needed focus on the criminality of the counterfeit and pirating industry.
Intellectual Property Rights holders will further be invited to include the certification emblem on
their products and certify warehouses where their products are delivered.
4. The validated list of certified warehouses or points of delivery in Canada would provide further
assistance for authorities in determining product authenticity. Because suspected counterfeit or
unlicenced products examined by CBSA and the RCMP are usually destined to destinations
throughout the country, this would enable speedy efficient identification of genuine product vs
counterfeit.
This, coupled with the understanding that only genuine products are being sold at Certified
retailers, would add further certainty to the publics perception that the product, they are
purchasing are genuine and that they are not being duped by fake goods.
Mission Statement
With the goal of entrenching the RCMP commitment to Intellectual Property Rights enforcement
as a National objective, targeting importation and distribution of counterfeit products is vital.
The 2009/2010 National Critical Objectives cite Intellectual Property Rights as one of four
critical objectives, where RCMP Divisions are expected to focus their efforts through strategic
initiatives. The outreach measurement for success targets the increase in the percentage of
individuals who have modified their behavior after receiving information at 89%.
It is imperative that innovative measures be introduced to protect IPR holders and the Canadian
economy from the uninterrupted flow of counterfeit products arriving at the ports of entry and
making their way to street level merchants. Establishing a systematic approach at Customs
border control that will interrupt the flow of counterfeit products at the ports of entry, and the
introduction of a “Canadian Genuine Product Certification” program, will be viewed as a
significant, positive and innovative approach led by the RCMP.
Imports and retail sales of counterfeit products posing health and safety risk to Canadians will
continue to be the priority focus of the Federal Enforcement Section. Enhanced working
relationships with CBSA stemming from a structured approach to identify and process
counterfeit goods identified at the ports of entry and the introduction of the “Canadian Genuine
Product Certification” will result in increased seizures and promote legitimate retailers who sell
only authentic products.
Objectives
What is “Canadian Genuine Product Certification”
“Canadian Genuine Product Certification” is a Government/Private Industry initiative, designed
to identify and promote retailers who sell products that do not infringe on Intellectual Property
Rights. A media campaign would launch and draw attention to the initiative by first certifying
recognized Canadian retailers to lead the initiative. Retailers would be encouraged to apply for
certification through a website, fax machine or email address.
A process would be established to control certification so authenticity is not a problem.
5. Retailers and other appropriate business types would receive a certification certificate and a
uniquely designed window emblem. Both would be displayed prominently at the retail outlet to
represent their integrity to the public.
A governing body would be required to certify, monitor and if necessary withdraw certification,
on a continual basis. A board of directors representing government and private industry would
oversee and regulate the governing body.
RCMP Retail Enforcement
As retail Certification grows, there will increasingly be fewer retailers who remain uncertified.
Information received by Law enforcement on counterfeit sales will more than likely be directed
at non certified retailers. The resulting enforcement action will effectively isolate those
businesses who are more likely to be selling counterfeit products. It is recommended that the
initial enforcement on any identified retailer or wholesaler where confirmation of counterfeit
sales has be made be initiated with a view of first bringing that business into compliance with the
Copyright Act laws. This will require a voluntary forfeiture of all identified counterfeit property
and serving the offender with a counterfeit notification letter which serves to pave the way in
addressing knowledge in any future violation. A follow up visit at a future date will be required
to ensure compliance is maintained. If a further infraction occurs, law enforcement can initiate
an undercover purchase of product to confirm the product is counterfeit followed by the
execution of a search warrant with a view of advancing criminal charges. This is an approach
that has already proven to be successful in British Columbia.
Supporting the Initiative
A first objective for this initiative is to acquire Border Integrity support to advance the concept to
the next level. Once the stake holders have been identified, a formal presentation would be
developed to effectively present the initiative and provide opportunity for a comprehensive
discussion and subsequently determine the buy in and the next steps. Stakeholders will be
identified and invited to partner in the development of the initiative.
Partnerships
Protecting Intellectual Property Rights (IPR)’s at the enforcement level generally occurs at two
different levels; (1) the moment counterfeit products arrive in the country by land, sea or air, to
(2) the time in which they are identified at a local retailer being sold from store shelves.
The RCMP Federal Enforcement Section will seek out appropriate partners and enhance
relationships with existing partners as this initiative moves forward to the development stage.
Some of the agencies under consideration include: Canadian Anti-Counterfeiting Network,
Canadian Intellectual Property Council, Chamber of Commerce, Business Associations, Canada
Border Services Agency, the Competition Bureau and Health Canada.
6. Developing Guidelines
A committee made up of representatives from the aforementioned existing and proposed partners
will cooperatively develop the “Canadian Genuine Product Certification” guidelines. The
guidelines will lay out in writing, processes, procedures and rules regulating the initiative. A
managing body will be formed to implement and oversee the initiative.
Campaign to Launch
Selecting the first and subsequent retail stores to launch the initiative will lead the media
campaign designed to attract National attention as well as give momentum to the initiative. The
campaign must also be designed to encourage businesses to become certified by focusing on the
advantages. Businesses must perceive the benefits of certification outside of the “no cost”
attraction.
Conclusion
The 2008 “E” Division Federal Enforcement Strategic Plan identifies “E” Division Border
Integrity’s commitment to developing a multifaceted approach that includes the introduction of
new and innovative ideas that strengthen the partnerships with Intellectual Property Rights
holders. Among the objectives in that plan is to measure success by reducing the supply of
products resulting from a reduced demand.
This certification initiative will be viewed as government action that demonstrates the
importance to counteract the proliferation of counterfeit products in our communities. It also
answers the perceived government inaction in the fight against counterfeiting and piracy on both
the domestic and international level.
In a time where organized crime groups and their effects on communities has been highly
publicized, it would be timely to recognize a separation between honest businesses and the
organized crime groups behind the sales of counterfeit products. People need to have a clear
understanding of the extensive impact the profit from the sales of counterfeit products has on
society, as well as knowing how the profits benefit organized crime. They also need to have a
clear vision of where the products are manufactured and the real possibility that child labor is
very much apart of the production process, as well as the serious health and safety concerns
associated with counterfeits.
We must not allow the present Canadian behavior that normalizes the availability and purchasing
of counterfeit and pirated products to persist and continue to raise the current tolerance levels,
thereby consequently making counterfeiting even more prevalent. When consumers are
repeatedly faced with information surrounding the negative and detrimental effects of
counterfeiting and piracy, it is far more likely they will be less inclined to buy counterfeit
products.
7. Challenges presently facing law enforcement in Canada and the absence of deterrent penalties
for convictions related to trademark and copyright offences beg that we consider alternative
approaches to effectively enhance our ability to counteract this type of property crime. It is
within our capacity to significantly impact and influence the way in which Canadians perceive
counterfeit products.
Prepared by:
Cpl Norm Massie
RCMP “E” Division Border Integrity Program
Federal Enforcement Section