Since its inception, the Internet has grown to encompass every facet of our lives, and given us the ability to conduct business at lightning speed.
It has also provided us with great convenience, and now we can shop from the comfort of our own homes, ordering a multitude of goods and services with just the touch of a button. In fact, the breath-taking growth of e-commerce over the past number of years, and accelerated by the Covid-19 pandemic, has seen a 20% growth compared to 2019.
While e-commerce has created an opportunity for smaller companies by giving them a more flexible route to a wide and varied market, it has also allowed counterfeiters to capitalise. The Covid-19 pandemic has intensified the problem of intellectual property (IP) crime, with criminal networks reacting very quickly to the crisis and adapting their strategies to take advantage of the shifting landscape. Law enforcement authorities are continuously engaged in identifying and shutting down sites that engage in fraudulent activities. However, despite these efforts, the problem remains significant. Indeed, the agile approach inherent to such criminal activities is also down to their effective use of social media and the proliferation of new forms of payment, making it easier than ever for counterfeiters to conduct business.
According to recent data, when it comes to counterfeit products, 56% of custom seizures at EU borders involve e-commerce. When broken down further, China sits at the top as the source of more than 75% of counterfeit goods, followed by Hong Kong at 5.7%, Turkey (5.6%) and Singapore (3.3%). When looking at custom seizures related to e-commerce, over 90% of them are shipped into the EU in small parcels.
And the range of goods counterfeited varies from sub-standard toys, personal protective equipment, and most worryingly, medicines. The list goes on, but this should show those who believe counterfeiting is a victimless crime, that it is anything but. Unfortunately, it is often too late when people realise that these products can pose a serious, and sometimes life-threatening risk.
This is one of the many reasons why the EUIPO is working hand in hand with a multitude of e-commerce marketplaces, rights holders and institutional partners to help tackle online infringements of intellectual property rights.
The European Multidisciplinary Platform Against Criminal Threats, or EMPACT as it is more commonly known, has once again added IP crime to its list of priorities. EMPACT is a security initiative that sets out to identify, prioritise and address threats posed by organised international crime. The EUIPO welcomes this move as it focuses EU efforts in its fight against international crime. Together, in close cooperation with Europol and others, the EUIPO within the scope of its mandate, continues to support their actions.
We also have new tools at our disposal in the fight against IP crime. Utilising the immutable essence of blockchain, it will allow us to create an authentication platform that will interconnect product “track and trace” solutions with the risk analysis systems of participating enforcement authorities and existing EUIPO tools. Additionally, the EU IPR Enforcement Portal, a platform that permits all rights holders, enforcers, the European Commission and EU delegations to enter IPR enforcement information through what we call ‘Applications for Action’, facilitates the triggering of customs seizures and provides yet another link between rights holders and enforcement officials.
However, it remains clear to us that we need to continue working together if we are to be effective in our fight against IP crime, and though it can take many forms, one thing is undeniable – cooperation is key. That is why joint efforts, such as the study on the ‘Misuse of e-commerce for trade in counterfeits’ between the EUIPO and the OECD are so important, because the more we understand the threat from counterfeits, the more effective our combined efforts will be against them.