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2. Contents
Introduction
What is counterfeiting?
The impacts of counterfeiting
Intellectual Property Rights conventions
IPR enforcement
Industry anti-counterfeiting forums
E-waste and counterfeiting
Measures to combat counterfeiting
Standards organisations
Guidelines for combating counterfeiting
Conclusions
ITU engagement
4. Counterfeiting – the extent of the problem
International trade in counterfeits
US$250 billion; 1.95% [OECD 2007]
US$600 billion; 5-7% [ICC Counterfeit Intelligence Bureau]
Wide range of products
Food, pharmaceuticals, clothes, electronic and automotive
components, all manner of consumer products, even a
whole store….
Consumer electronics - 22% of US Customs seizures in
2011 (16% increase by value over 2010) & about a third of
the goods in this category were mobile phones
ICT industry
US$100 billion [KPMG & AGMA 2007]
200 million mobile phones [MMA 2010]
Corresponds to about 13% of the mobile phone
market in 2011
6. “Counterfeit”
The WIPO Intellectual Property Handbook describes counterfeiting
as “first of all the imitation of a product. The counterfeit is not only
identical in the generic sense of the term. It also gives the
impression of being the genuine product……originating from the
genuine manufacturer or trader”
A counterfeit is:
An unauthorised copy;
Not conforming to the original manufacturer’s design, model, and/or performance
standards;
Not produced by the stated manufacturer or produced by unauthorised
contractors;
An off-specification, defective or used product sold as “new” or working; or
Has incorrect or false markings and/or documentation
7. Counterfeiting – an IPR contravention
Intellectual Property (WIPO)
1. Copyright, including “literary and artistic works such as novels, poems and plays,
films, musical works, artistic works such as drawings, paintings, photographs and
sculptures, and architectural designs”
2. Industrial property, including “inventions (patents), trademarks, industrial designs, and
geographic indications of source”
Counterfeiting relates to trademark infringement whereas piracy
relates to copyright infringement
Associated with the category of industrial property is protection
against unfair competition.
The Paris Convention for the Protection of Industrial Property includes “the
repression of unfair competition” within the area of “the protection of industrial
property” and states that “any act of competition contrary to honest practices in
industrial and commercial matters constitutes an act of unfair competition”
9. Impacts
Economic impacts
On rights holders as sale volumes and royalties, prices, brand value and
reputation, costs and scope of operations may be affected
On governments as tax revenues are reduced and need to finance activities to
combat counterfeiting
Counterfeiting may well have a negative effect on innovation, levels
of foreign direct investment, economic growth and employment, and
also redirect resources into organized criminal networks
Consumers may find that the quality of counterfeit goods is
substandard and also be presented with serious health and safety
risks – the use of counterfeit products can be extremely dangerous
11. IPR Conventions
English Statute of Monopolies [1623]
Precursor of patent law
Paris Convention for the Protection of Industrial Property [1883]
Aims to protect “patents, utility models, industrial designs, trademarks, service
marks, trade names, indications of source or appellations of origin, and the
repression of unfair competition”
Requires contracting states to take measures against “direct or indirect use of a
false indication of the source of the goods or the identity of the producer,
manufacturer or merchant”
WTO Trade-Related Aspects of of Intellectual Property Rights
(TRIPS) [1994]
First multilateral international trade agreements to protect IPR
Sets the minimum levels of protection to be applied in all WTO member countries
Requires governments to ensure that IPR infringement penalties are sufficient to
deter violation; that commercial scale violations are considered to be criminal
offenses; and that customs authorities should provide assistance to prevent
imports of counterfeit goods
Includes a procedure for IPR dispute resolution between WTO members
13. IPR enforcement activities
World Intellectual Property Organisation (WIPO) Advisory
Committee on Enforcement (ACE)
World Customs Organisation (WCO)
European Union
G8 Heiligendamm Process
Interpol
United Nations Commission for Europe (UNECE)
National initiatives (just a few examples)
France
Comité National Anti Contrefaçon (CNAC)
Institut National pour la Propriété Industrielle (INPI)
UK Intellectual Property Office
Kenya Anti-Counterfeiting Agency
15. Industry anti-counterfeiting initiatives
International Chamber of Commerce (ICC)
International Anti-Counterfeiting Coalition (IACC)
Mobile Manufacturers Forum (MMF)
International Electronics Manufacturing Initiative (iNEMI)
Association of Service and Computer Dealers International and
North American Association of Telecommunications Dealers
(AscdiNatd)
Alliance for Gray Market and Counterfeit Abatement (AGMA)
British Electrotechnical and Allied Manufacturers Association
(BEAMA) Anti-counterfeit Working Group
UKEA (United Kingdom Electronics Alliance)
Anti-Counterfeiting Group (ACG)
UNIFAB - Union des Fabricants
17. Counterfeit electronic components
US Senate Armed Services Committee – fall 2011
Department of Commerce’s Bureau of Industry and Security report:
Estimated 1,800 cases of counterfeit electronic components
being introduced in defence contract supply chains, involving
more than a million components.
The number of incidents rose from 3,868 in 2005 to 9,356 in
2008.
Informal sector recycling of components.
18. E-waste
Largest and fastest growing manufacturing waste
41.5 million tons in 2011
Expected to rise to 93.5 million tons in 2016
In spite of the Basel Convention, much e-waste is exported
77% of that from England and Wales is exported to Africa
(primarily Ghana and Nigeria)
20. Example - Mobiles
Many used and scrap mobile phones are shipped to countries in
Africa from the EU under the guise of reuse.
Some of these are repaired and find their way back into the market
(although they may not meet the specifications of the manufacturer).
Most are recycled in the informal sector.
21. Metals in mobiles
40 elements including copper, tin, cobalt, indium, antimony, silver,
gold and palladium.
Combined sales of mobile phones and PCs in 2007 accounted for 3%
of the world mine supply of gold and silver, 13% of palladium and
15% of cobalt.
22. Basel Convention Programmes
Partnership on Computing Equipment (PACE)
Mobile Phone Partnership Initiative (MPPI)
Guidelines have been produced on the:
environmentally sound testing, refurbishment and repair of used computing
equipment;
environmentally sound material recovery and recycling of end-of-life computing
equipment;
transboundary movement of used and end-of-life computing equipment;
environmentally sound management of used and end-of-life mobile phones;
refurbishment of used mobile phones;
collection of used mobile phones;
material recovery and recycling of end-of-life mobile phones;
awareness raising-design considerations; and
transboundary movement of collected mobile phones.
23. ITU initiatives
The ITU signed an agreement with the Secretariat of the Basel
Convention in March 2012 with the aim of promoting the
environmentally sound management of e-waste and protecting the
environment from the adverse effects of this waste
ITU-T Study Group 5 is mandated to study the environmental
impacts of information and communications technology
Recommendation ITU-T L.1000 “Universal power adapter and charger solution
for mobile terminals and other ICT devices”
Recommendation ITU-T L.1100 “Procedures for recycling rare metals in
ICTgoods”
26. Identifiers – some examples
International Mobile Equipment Identity
(IMEI)
Electronic Product Codes (EPCs)
ISO/IEC 15459 Unique identifiers for
supply chain tracking
Ubiquitous ID Center uCodes
27. Automatic Identification and Data Capture
(AIDC)
Barcodes (linear/matrix)
Radio Frequency Identification (RFID)
Secure printing and hologram labels
28. Supply Chain Management
ISO 28000:2007 Specification for security management systems for
the supply chain
ISO 28001:2007 Security management systems for the supply chain
– Best practices for implementing supply chain security –
Assessments and plans – Requirements and guidance
ISO 28003:2007 Security management systems for the supply chain
– Requirements for bodies providing audit and certification of supply
chain security management systems
ISO 28004:2007 Security management systems for the supply chain
– Guidelines for the implementation of ISO 28000
ISO 28005-2:2011 Security management systems for the supply
chain -- Electronic port clearance (EPC) -- Part 2: Core data
elements
30. Other secure supply chain standards
World Customs Organisation (WCO) SAFE Framework of Standards
IEC TC 107
IEC/TS 62668-1 Process management for avionics - Counterfeiting prevention -
Part 1: Avoiding the use of counterfeit, fraudulent and recycled electronic
components.
IEC/TS 62668-2 Process management for avionics - Counterfeit prevention - Part
2: Managing electronic components from non-franchised sources (under
development).
SAE International (originally the Society for Automotive Engineers)
SAE AS5553 “Counterfeit Electronic Parts; Avoidance, Detection, Mitigation”
SAE ARP6178 “Counterfeit Electronic Parts; Tool for Risk Assessment of
Distributors”
SAE AS6081 “Counterfeit Electronic Parts; Avoidance Protocol, Distributors”.
SAE AS6171 “Test Methods Standard; Counterfeit Electronic Parts”.
31. Testing
IEC Conformity Assessment
IECEE – IEC System of Conformity Assessment Schemes for Electrotechnical
Equipment and Components
IECEx - IEC System for Certification to Standards relating to Equipment for use
in Explosive Atmospheres
IECQ - IEC Quality Assessment System for Electronic Components
IEC Certification Body Scheme
IECEE CBTC Online - test certificate registration system for national certification
bodies that also allows public access
IEC Quality Assessment
IECQ Electronic Components Management Plan (ECMP) for avionics systems
IECQ Hazardous Substances Process Management (HSPM) scheme
33. Market Surveillance
“activities carried out and measures taken by designated authorities
to ensure that products comply with the requirements set out in the
relevant legislation and do not endanger health, safety or any other
aspect of public interest protection”
UNECE recommends that national market surveillance and customs
activities be coordinated and that rights holders be given the
possibility of informing market surveillance authorities about
counterfeits
Registration of products may be required
e.g. the Standards Organisation of Nigeria has recently introduced an e-product
registration scheme in an attempt to limit the sale of sub-standard and counterfeit
products
35. Standards organisations
ISO TC 246
ISO 12931performance criteria for
authentication solutions used to combat the
counterfeiting of material goods
ISO/IEC JTC1 / SC31 and CEN TC225
AIDC
IEC TC 107
SAE
37. Guidelines
Anti-Counterfeiting Forum
Best practices for Original Equipment Manufacturers, distributors and component
manufacturers
Components Technology Institute Inc. (CTI)
Counterfeit Components Avoidance Program (CCAP-101) for the certification of
independent distributors of electronic components
Independent Distributors of Electronics Association (IDEA)
specification for counterfeit mitigation and inspection (IDEA-STD-1010A) and
also a quality management specification (IDEA-QMS-9090).
ICC IP Roadmap
includes recommendations for business and government actions on all aspects
of intellectual property protection, including combating counterfeiting and piracy
The UK IP Crime Group Supply Chain Toolkit
aims to raise awareness of the problem of counterfeit goods entering legitimate
business supply chains and offers guidance on how to protect intellectual
property assets
39. Conclusions
Counterfeiting is a growing problem that is affecting an ever wider range of
products
The legal instruments to combat counterfeiting are largely in place but
enforcement is still weak
Governments not only need to enforce IPR regulations but also implement
the Basel Convention to ensure that used and end-of-life equipment is
handled in an environmentally sound manner
Governments may also wish to link market surveillance activities to those of
the customs authorities to improve the capabilities of detecting counterfeit
products
There is a need for greater awareness on the part of companies and
consumers of the issues of counterfeiting
Counterfeiting can be combated by equipment lifecycle management, not
only of the supply chain but also of the return, reuse and recycling phases
Combating counterfeiting requires cooperation across industry sectors as
enforcers such as customs authorities require as many generic tools as
possible rather than an array of sector-specific mechanisms
41. ITU activities
Resolution 177 of the 2010 Plenipotentiary Conference of the ITU
“invites Member States and Sector Members to bear in mind the legal and
regulatory frameworks of other countries concerning equipment that negatively
affects the quality of their telecommunication infrastructure, in particular
recognizing the concerns of developing countries with respect to counterfeit
equipment”
ITU-T Study Groups 16 and 17
Recommendations relevant to the identification and authentication of objects
ITU-T SG5
responsible for studying design methodologies to reduce the environmental
impacts of the use of ICT by such means as recycling
42. Possible future activities
Identification schemes and establishing
identifier management structures
Authentication mechanisms
Information systems for product life-cycle
management
Information systems for counterfeit
detection