The document discusses the increasing prevalence of counterfeit pharmaceuticals and the challenges in enforcing rights against them, highlighting a 42% increase in seizures and a projected 19% growth in online spending. It emphasizes the need for a new approach that considers the changing tactics of counterfeiters and consumer behavior, advocating for collaboration among various stakeholders. Effective strategies should focus on reducing the ease of business for criminals and educating consumers about the risks of counterfeit goods.

1. Protecting
Our
Medicines
National Press Club, Washington, DC 10.27.11
Protecting rights-holders since 1979. Page 1

2. Securing the Global Supply Chain
2010 online global spending
$
$571 Billion 15 Billion
• Spending to grow by 19% in 2011
Google’s monthly search query volume
42% increase in seizures
40% of mail / express delivery
Consumers packages in FY 2010
shopped online
$5.6 Million
433 Domestic Value of
Seizures of counterfeit Counterfeit Pharm. Seizures
pharmaceutical shipments by in FY2010
DHS in FY 2010
Protecting rights-holders since 1979. Page 2

3. On the Web
Incidents of online sales of counterfeit/pirated
goods have grown exponentially in the past
decade among all industries
industries.
Why?
• Minimal Entry Costs
• Ease of Operation / Decreased Overhead
• Decreased Chance of Prosecution
Protecting rights-holders since 1979. Page 3

4. Current Enforcement Model
Available Tools:
• Cease & Desist Letters
• UDRP Complaint
• Complaint Pursuant to Website TOS / IP policy
• Lawsuit in Federal Court
Protecting rights-holders since 1979. Page 4

5. Practical Difficulties
Virtual anonymity of infringers;
Jurisdiction issues;
J i di ti i
High enforcement costs;
Inability to collect judgments;
Ease of relocation for the infringer.
Protecting rights-holders since 1979. Page 5

6. A New Approach
Effective strategies must take into account the changing
business models of counterfeiters and th h bit of
b i d l f t f it d the habits f
consumers.
Focus on:
• Criminals’ ability to transact business;
• Ease of locating sites;
• Education of consumers re: dangers of buying from unverified
sources.
sources
Protecting rights-holders since 1979. Page 6

7. Collaborative Approach
Everyone has a role to play
Pharmaceutical Manufacturers
Law Enforcement
Payment Processing Companies
Online Intermediaries (ISPs, Search Engines, Ad Networks)
Consumers
Protecting rights-holders since 1979. Page 7