Smuggled cigarettes and counterfeit watches seized by customs
Half-a-million smuggled cigarettes and hundreds of counterfeit designer watchers have been seized by customs officers from a South Wales storage facility. HM Revenue & Customs (HMRC) officers discovered the illegal Sila and Raquel branded cigarettes – known as “cheap whites” – during a raid on a unit in Bridgend town centre on Tuesday. The cigarettes, which have a duty loss of about £100,000, are illegal in the UK. A 50-year-old man from Pencoed, and a 57-year-old man from Birmingham, have been arrested and bailed for further questioning in March. In addition to the cigarettes, “hundreds” of fake Ice watches were recovered from the storage facility as well as £6,000 in cash. A spokeswoman for HMRC said the cigarettes could be linked to organised crime. “Tobacco smuggling is a global, highly profitable business controlled by organised crime groups, the proceeds from smuggling are often used to fund other forms of serious crime such as drugs and weapons smuggling and human trafficking. “The trade makes cheaper tobacco more readily available to the young and vulnerable, as well as taking trade away from honest businesses who only sell duty paid products.” She added anyone approached by a person selling tobacco products should be aware of the key signs that point to them being illegal. These include products without health warnings, or warnings not in English, products without the “UK duty paid” fiscal mark and unusual or foreign brands, such as those seized on Tuesday. She also said local trading standards were notified and will deal with the counterfeit watches. Anyone with information about cigarette smuggling can call the Customs Hotline on 0800 59 5000.
Lear MoreOnly 26% Brand Owners Participate in Anti-Counterfeiting Coalitions
Data shared at last week’s Intellectual Property Owners Association (IPO) annual meeting in Boston suggests that too few trademark owners are contributing to a united front against counterfeiting. Companies participating in this year’s IPO corporate benchmarking survey were asked whether they belong to anti-counterfeiting groups or associations, including industry coalitions that pool money to take action against counterfeiters. Of those companies that responded, just 26% said that they were members of such anti-counterfeiting groups. WTR has previously covered the challenges that brand owners face in getting consumers on side to help counter the copycats. The ultimate success of anti-counterfeiting lies in ending the demand for fakes, as well as cutting off the supply. To achieve this, consumers need to be educated on the socio-economic impact that counterfeiting can have on their everyday lives and those of others around the world; though for that to be a success, trademark owners need to provide better evidence of the links between counterfeiting and harmful activities such as organised crime, unsafe working practices and tax evasion, among others. Speaking to WTR back in issue 38, True Religion Brand Jeans general counsel Deborah Greaves suggested that the most effective way of getting this message across to the public is via “a wide-scale, media-based campaign… But a brand like ours just doesn’t have the resources to go out there and spearhead one by ourselves.”
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$210m-worth of fake Hermès handbags seized in US
US customs have seized more than 16,000 counterfeit Hermès purses and handbags that could have fetched about $211m at genuine retail prices. Customs and Border Protection (CBP) intercepted nine separate shipments from China and Hong Kong at the Los Angeles/Long Beach seaport complex in an operation between June 6 and September 17. The fakes are thought to have been destined for sale in southern California retailers, and would probably have been worth less than $300,000 at domestic street prices. A $14m shipment of fake Hermès bags was seized at the same port in February 2013 (see picture). Typically genuine Hermes bags – such as the iconic Birkin line – sell for between $9,000 and $18,000, said LA/LB’s assistant port director Elva Muneton in a PE.com report.
Last year, Hermès won $100m in damages from 34 websites that sold counterfeit copies of its products including Birkin and Kelly handbags, wallets, watches, belts and jewellery, while a Chinese national received a life sentence for running an operation making fake Hermès products in Dongguan, Guangzhou province.
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Singapore is No. 4 for illicit tobacco use; 1 in 4 cigarettes here illegal
Crocs exec says speed key to tackling counterfeits
Footwear company Crocs Inc has said the key to protecting its brand from counterfeiters is simply to be quicker at bringing new product lines to market. The company’s chief financial officer Jeffrey Lasher said during the firm’s second-quarter results call he company is being challenged by illegitimate copies of its products around the world, particularly in countries where intellectual property (IP) laws and enforcement are not as strong as established markets such as the US or Japan. The Asia-Pacific region is an increasing important market for the sandal and clog maker as its core markets in the US, Europe and Japan start to slow down. The company already makes 66 per cent of its revenues outside its home US market, and Asia (excluding Japan) has been the start performer – growing at around 20 per cent to reach $202m in the first half of this year, or around 30 per cent of the total turnover of $675m. “Our strategy is to just outpace the counterfeiters,” Lasher told investors earlier this month. The company needs to keep updating its range with production and engineering requirements that set a high design hurdle for counterfeiters to overcome.
Lear MorePernod Ricard turns to QR codes to fight fakers
French beverage company Pernod Ricard will add QR codes to all products sold in China from next April in a bid to thwart counterfeiters and engage with customers. Customers buying Pernod Ricard beverages will be able to scan the codes using their smartphone and not only check if the bottle is genuine but also learn about the production process and other features of the brand, whilst providing valuable market intelligence to the manufacturer, according to a just-drinks.com report.
The move is an extension of the company’s use of QR codes and smartphone apps to engage with its customers, for example by providing access to personalised drink recipes. Pernod Ricard has adopted a multi-layered approach to anti-counterfeiting, with field teams constantly scanning the marketplace for fakes and packaging innovations adopted to make it harder for criminals to mimic its products. In addition the QR codes, the company has also introduced distinctive bottle designs for its Ricard and Absolut Elyx brands that adhere to certain specific 3D dimensions and are harder to copy. In 2011, the company scored a victory against counterfeits in Asia after Chinese Supreme People’s Court handed down a verdict on a case involving Chivas Regal and Royal Salute in Daxing.
Lear MoreMeasures tightened against fake products
Lab tests mandatory for imported goods from Nov. 4
MADINAH – Saudi Customs Department will impose a ban on import of goods for which there are no laboratory test facilities in the Kingdom from Nov. 4 (Muharram 1). A committee, comprising various government agencies, took the decision to ban entry of such products, as well as to return them to their original destinations, according to sources at the department. The committee has also ordered returning those goods, which do not have the attached certificates. Custodian of the Two Holy Mosques King Abdullah has approved the committee’s decision. The committee issued the order after examining the annual report of the Saudi Standards, Metrology and Quality Organization (SASO) in this regard. The department has notified all importers in the Kingdom that the ban decision should be enforced strictly effective from the beginning of the next Hijri year. Saudi Customs has instructed the concerned agencies to test the products to ensure that they are meeting all the terms and conditions set by SASO. This is also part of the measures to prevent entry of counterfeit and duplicate products into the Kingdom.
Lear MoreInternational – Only a quarter of brand owners participate in anti-counterfeiting coalitions, survey reveals
Data shared at last week’s Intellectual Property Owners Association (IPO) annual meeting in Boston suggests that too few trademark owners are contributing to a united front against counterfeiting. Companies participating in this year’s IPO corporate benchmarking survey were asked whether they belong to anti-counterfeiting groups or associations, including industry coalitions that pool money to take action against counterfeiters. Of those companies that responded, just 26% said that they were members of such anti-counterfeiting groups. WTR has previously covered the challenges that brand owners face in getting consumers on side to help counter the copycats. The ultimate success of anti-counterfeiting lies in ending the demand for fakes, as well as cutting off the supply. To achieve this, consumers need to be educated on the socio-economic impact that counterfeiting can have on their everyday lives and those of others around the world; though for that to be a success, trademark owners need to provide better evidence of the links between counterfeiting and harmful activities such as organised crime, unsafe working practices and tax evasion, among others. Speaking to WTR back in issue 38, True Religion Brand Jeans general counsel Deborah Greaves suggested that the most effective way of getting this message across to the public is via “a wide-scale, media-based campaign… But a brand like ours just doesn’t have the resources to go out there and spearhead one by ourselves.” There may be compelling reasons for a brand owner to refrain from participation in a broad-based anti-counterfeiting association – for some, the prospect of being open and vocal about their counterfeit problems may feel like they would be offering an invitation to further copycats.
http://www.worldtrademarkreview.com/daily/Detail.aspx?g=03eede42-79ba-48d6-918a-578ff947cbf6
Lear MoreCounterfeiting, piracy used in terror funding
Counterfeiting, piracy and smuggling are emerging as the likely sources for financing international terrorist organisations, non-state sponsored terrorist organisations and domestic terrorist groups, a Ficci-Ernst & Young study has said. While conventional modes of terror financing, like state sponsorship and donations, continue to play a big role, newer modes, like counterfeiting, piracy and smuggling, have also started emerging, and terrorist organisations worldwide are exploiting such means to further their cause, it said. The study quoted reports compiled by various agencies revealing penetration of counterfeiting is huge in some sectors. It said almost 10 per cent of all the drugs sold worldwide are fake and this number goes up to 25 per cent in India. Ficci conducted a detailed study of seven sectors in India on the impact of grey markets on sales loss to industries and taxation loss to the government. Grey market in the automobiles sector is close to 30 per cent, followed by over 26 per cent in computer hardware and cumulative losses to the government in tax revenue due to these is close to Rs 4,000
Lear MoreCounterfeiting, piracy and smuggling used to finance terror
According to Ficci-Ernst & Young study suggested measures like setting up of govt agencies that should be solely responsible for preventing counterfeiting and piracy
Contemporary techniques like counterfeiting, piracy and smuggling are fast emerging as the likely sources for terrorism financing, according to a Ficci-Ernst & Young study. “Counterfeiting, piracy and smuggling are emerging as the likely sources for financing of international terrorist organisations, non-state sponsored terrorist organisations and domestic terrorist groups,” the study said. While conventional modes of terrorism financing such as state sponsorship and donations continue to play a big role, newer modes such as counterfeiting, piracy and smuggling have also started emerging and terrorist organisations worldwide are exploiting such means to further their cause, it said. The study suggested measures like setting up of government agencies that should be solely responsible for preventing counterfeiting and piracy. Besides, it also recommended strengthening of laws and regulations to aid enforcement agencies in investigating and prosecuting perpetrators of such crimes. According to the study, the government must create and implement standard technical solutions for piracy and smuggling, to be adopted across industry sectors and create awareness among consumers and enforcement agencies on the importance of effectively tackling counterfeiting, piracy and smuggling.
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