Presented at: the Hong Kong Baptist University (18 October 2013) and Chinese University of Hong Kong (1st November 2013) — Conferences jointly organized by the European Union Academic Programme (EUAP) and respective University. Abstract: Counterfeiting is a global phenomenon. It would be mistaken to believe that comparative studies related to counterfeiting could ignore Chinese law, China being the main source of counterfeit goods, as well as Hong Kong law (a large part of counterfeit goods transit through Hong Kong), and EU law (final destination of the goods). License CC BY-NC-ND 4.0 | 2013

1. Fighting Infringement of IPRs
The European Approach
Chinese University of Hong Kong
Friday 1st November 2013
Emmanuel GILLET, Ph D
Visiting Scholar,European Union Academic
Programme in Hong Kong
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

2. Fighting Infringement of IPRs:
the European Approach
« Overview of IPRs
« Overview of IPRs
« Why Talking About Counterfeiting?
« Economics of IPRs in the European Union
« Counterfeiting: EU Statistics
« Counterfeiting: Ethical Issues / Social Offenses
« How Fighting Against Counterfeiting?
« EU Legal Framework
« Awareness Campaigns
« Cooperation
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

3. Fighting Infringement of IPRs:
the European Approach
Overview of IPRs

4. Fighting Infringement of IPRs:
the European Approach
Original literary works, films, musical compositions,
paintings, photographs, computer software, etc.
« Overview of IPRs
« Copyright
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

5. Pablo Picasso
Succession
Picasso FR
SolidWorks3D Dassault
Systems FR
Fighting Infringement of IPRs:
the European Approach
« Copyright
« Overview of IPRs
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

6. Fighting Infringement of IPRs:
the European Approach
« Copyright
« Overview of IPRs
Composer Interpreter
Franz Liszt (1811-1886) 郎朗 (1982 - )
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

7. Fighting Infringement of IPRs:
the European Approach
« Trademarks
« Overview of IPRs
Recognizable signs identifying products or services of a particular company
Trademark law protects;
- Trademarks owners; and
- Consumers
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

8. Fighting Infringement of IPRs:
the European Approach
« Trademarks
« Overview of IPRs
European Community Trademark
A single registration for 28 countries
500 million consumers
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

9. Fighting Infringement of IPRs:
the European Approach
« Designs
« Overview of IPRs
Creations consisting of a 2D or 3D shape
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

10. Fighting Infringement of IPRs:
the European Approach
« Designs
« Overview of IPRs
European Community Design
A single registration for 28 countries
500 million consumers
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

11. Fighting Infringement of IPRs:
the European Approach
« Designs
« Overview of IPRs
European community
design for a boat, created
and registered by
Philippe Starck

12. Fighting Infringement of IPRs:
the European Approach
European community
designs for a series of
bags, created and
registered by Louis
Vuitton

13. Fighting Infringement of IPRs:
the European Approach
« Geographical Indications
« Overview of IPRs
Recognizable signs used on eligible products produced
in a specific geographical location with specific material
and particular and recognized knowledge
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

14. Fighting Infringement of IPRs:
the European Approach
« Overview of IPRs
« Geographical Indications
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

15. Fighting Infringement of IPRs:
the European Approach
« Overview of IPRs
« Geographical Indications
Champagne 香槟Champagne
EU symbol China symbol
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

16. Fighting Infringement of IPRs:
the European Approach
« Overview of IPRs
« Patents
Inventions that provide technological solutions to
technological problems
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

17. Fighting Infringement of IPRs:
the European Approach
« Overview of IPRs
« Patents
European patent
One registration for 28 countries +
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

19. Fighting Infringement of IPRs:
the European Approach
Economics of IPR in the EU

20. Fighting Infringement of IPRs:
the European Approach
« Economics of IPR in the EU
• About 50% of EU industries are IPR intensive
• IPR-intensive industries account for 1/3rd of all jobs in the EU
• These industries generated almost 39% of total economic activity (GDP) in the EU, worth €4.7 trillion
• IPR-intensive industries account for 90% of the EU’s trade with the rest of the world
Source: The European Observatory on Infringements of Intellectual Property Rights, the Office for Harmonization in the Internal
Market (OHIM) and the European Patent Office (EPO)
http://oami.europa.eu/ows/rw/pages/OBS/index.en.do
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

21. Fighting Infringement of IPRs:
the European Approach
Counterfeiting: statistics

22. Fighting Infringement of IPRs:
the European Approach
« Counterfeiting: statistics
Source: Report on EU customs
enforcement of intellectual property
rights / Results at the EU border
2012 (europa.eu)
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

23. Fighting Infringement of IPRs:
the European Approach
Source: Report on EU customs
enforcement of intellectual property
rights / Results at the EU border
2012 (europa.eu)
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

24. Fighting Infringement of IPRs:
the European Approach
Virtually anything
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

25. Fighting Infringement of IPRs:
the European Approach
Source: Report on EU customs
enforcement of intellectual property
rights / Results at the EU border
2012 (europa.eu)
China + Hong Kong
72,3%
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

26. Fighting Infringement of IPRs:
the European Approach
Value: One billion euros
(11 billion HKD)
« Counterfeiting: statistics
Source: Report on EU customs enforcement of
intellectual property rights / Results at the EU
border 2012 (europa.eu)
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

27. Fighting Infringement of IPRs:
the European Approach
Social offenses

28. Fighting Infringement of IPRs:
the European Approach
« Counterfeiting: Ethical Issues / Social Offenses
o Illegal work
o Child labor
o Slavery
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

29. © Fecomércio SC
Fecomercio-sc.com.br

30. Fighting Infringement of IPRs:
the European Approach
« Counterfeiting: Ethical Issues / Social Offenses
o Products quality
o Dangerousness
o Loss of jobs
o Loss of tax incomes
o Organized crime / terrorism
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

31. Fighting Infringement of IPRs:
the European Approach
© CNAC ⎢French National Anti-Counterfeit Committee
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

33. Fighting Infringement of IPRs:
the European Approach
EU Legal Framework

34. Fighting Infringement of IPRs:
the European Approach
« EU Legal Framework
« Civil aspects − IPRED 1 − Directive 2004/48 of 29 April 2004
on the Enforcement of IPRs
Measures to preserve evidences
Remedies: dissuasive
Destruction of the goods
Damages:
Member States shall take into account all appropriate aspects:
Negative economic consequences:
Lost profits,
Unfair profits made by the infringer
Moral prejudice
Punitive damages?
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

35. Fighting Infringement of IPRs:
the European Approach
Proposed directive on the CRIMINAL MEASURES aimed at
ensuring the enforcement of IPRs
Proposal removed
« EU Legal Framework
« Criminal aspects − IPRED 2
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

36. Fighting Infringement of IPRs:
the European Approach
« EU Legal Framework
« Criminal aspects (France)
Article L. 716-10-a), French Code of Intellectual
Property:
“Detaining or holding counterfeiting goods without a
legitimate reason is punished by three years
imprisonment and 300.000 € fine”.
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

38. Fighting Infringement of IPRs:
the European Approach
Simplified procedure / Destruction
§ Previously optional, now mandatory for Member States: power to destroy goods
without a court determination that the goods infringe the relevant IPR
« EU Legal Framework
« Customs - Regulation 608/2013 of 12th June 2013 governing
anti-counterfeiting action by customs authorities
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

39. Fighting Infringement of IPRs:
the European Approach
Procedure for the destruction of goods in small consignements
« EU Legal Framework
« Customs - Regulation 608/2013 of 12th June 2013 governing
anti-counterfeiting action by customs authorities
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

40. Fighting Infringement of IPRs:
the European Approach
« EU Legal Framework
« Customs - Regulation 608/2013 of 12th June 2013 governing
anti-counterfeiting action by customs authorities
Counterfeit goods travel more and
more via the post
Source: Report on EU customs
enforcement of intellectual property
rights / Results at the EU border
2012 (europa.eu)
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

41. Fighting Infringement of IPRs:
the European Approach
Case studies

42. Fighting Infringement of IPRs:
the European Approach
1. Designs

43. Fighting Infringement of IPRs:
the European Approach
« Paris Court of Appeals, 3 May 2006, Ste Julma c. Ste Louis
Vuitton
European community designs
Registered by Louis Vuitton in February 2004
For a new collection of hand bags named “Theda”
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

44. Fighting Infringement of IPRs:
the European Approach
« Paris Court of Appeals, 3 May 2006, Ste Julma c. Ste Louis
Vuitton
A few weeks later…
A French company imported from China 2.124 bags similar to Theda models
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

45. Fighting Infringement of IPRs:
the European Approach
« Paris Court of Appeals, 3 May 2006, Ste Julma c. Ste Louis
Vuitton
Main arguments
Validity of IPRs Good Faith / Bad faith
Claimant - Registered designs
- Previous
- Valid
Bad faith
Defendant Not valid Good faith
Court Claimant’s IPRs are valid Irrelevant
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

46. Fighting Infringement of IPRs:
the European Approach
« Paris Court of Appeals, 3 May 2006, Ste Julma c. Ste Louis
Vuitton
Damages Legal Costs
Investment (≈ 7 million Euros)
Number of counterfeit goods
200.000 €
15.000 €
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

47. IPR = Investment

48. IPR = Investment
"Spaghetti bowl" of International Investment Agreements
Source: UNCTAD

49. Fighting Infringement of IPRs:
the European Approach
2. GI

50. Fighting Infringement of IPRs:
the European Approach
« Champagne
Source: Darts-IP.com
¤ USA
¤ France
¤ Germany
¤ Belgium
¤ Italy
¤ Spain
¤ Switzerland
¤ China
¤ Australia
¤ India
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

51. Fighting Infringement of IPRs:
the European Approach
« Champagne
Source: Comité Interprofessionel des Vins de
Champagne (CICV) – champagne.fr
¤ Wines
¤ Cigarettes
¤ Shampoo
¤ Biscuits
¤ Cola
¤ Shoes
¤ Perfumes for women and men
¤ Perfumes for dogs
¤ Toilet brushes
¤ Various domain names
¤ Etc.
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

52. Fighting Infringement of IPRs:
the European Approach
Cooperation

53. Fighting Infringement of IPRs:
the European Approach
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

54. Fighting Infringement of IPRs:
the European Approach
« International Cooperation
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

55. Fighting Infringement of IPRs:
the European Approach
« EU - Asia
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

56. Fighting Infringement of IPRs:
the European Approach
« EU – Hong Kong
Council Decision 1999/400/EC of 11 May 1999 concerning the
conclusion of the Agreement between the European Community and
Hong Kong, on cooperation and mutual administrative assistance in
customs matters
Customs cooperation + Mutual administrative assistance
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

57. Fighting Infringement of IPRs:
the European Approach
« EU – Hong Kong
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

58. Fighting Infringement of IPRs:
the European Approach
Awareness Campaigns

61. Fighting Infringement of IPRs:
the European Approach
© Emmanuel GILLET

62. Fighting Infringement of IPRs:
the European Approach
© Musée de la contrefaçon ⎢ UNIFAB ⎢ Paris
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

63. Fighting Infringement of IPRs:
the European Approach
© European Commission
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D

64. Thank you
Emmanuel GIILLET, Ph D
Visiting Scholar,European Union Academic
Programme in Hong Kong
mail@egillet.com
CC BY-NC-ND 4.0 | Emmanuel GILLET, Ph D