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IP Crime and Enforcement Report 2017/18

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IP Crime and Enforcement Report 2017/18 Intellectual Property Office is an operating name of the Patent Office Chapter 1 Chapter 2 Chapter 3 Welcome 1 IP crime today 15 Tackling IP crime 45 Foreword 2 Overview 16 Overview 46 Introduction 4 IP Crime Group reports: Executive Summary 6 3a Governance 48 IP landscape in figures 8 3b Connectivity 48 3c Action 61 3d International 80 Disclaimer The findings, facts and opinions in the IP Crime and Enforcement Report are those of the IP Crime Group members and not necessarily the views of the IPO or the Government. The data has not been substantiated by the IPO. The work of innovators, ‘The mischief is two-fold; in the first place, as a foreign creators and inventors manufacturer produces a cheaper article, purporting to be one of sits at the heart of the ours, we lose the orders: and the next place, in consequence of Government’s Industrial that article being of a worse quality, we lose our reputation, which Strategy. Their ideas, is, in my opinion a greater loss than the former one.’1 supported by a stable business environment, offers Jackson’s wishes were granted. The Patent Office created the UK us the opportunity to build Trade Marks Registry in 1876. on our strengths as we plan Throughout this year’s report, the collaborative teams of experts for a future outside the EU. drawn from the sharp end of law enforcement, manufacturers, Enforcing and protecting IP merchants and trade associations, law makers and judges rights is undoubtedly one of evidence a passionate desire to protect our markets, consumers these strengths. and businesses from the very real threat of IP crime. Physical goods and property A key feature of this report is that our desire to encourage can exist in a world that cooperation between all parties involved in the fight against has few or no regulations, intellectual crime is paying dividends. Contributors frequently but intangible assets such Sam Gyimah describe how they work in tandem with teams of knowledgeable as copyright, patents, trade experts, many of whom also contributed to the report. This marks and designs are all called into being by rules. Protection of desire to voluntarily collaborate has now been combined with intellectual property assets is all about the implementation of a fair, an increasing level of expertise and proficiency in cross-agency, international regulatory system. sector and border cooperation. Moreover, consumers are In fact, the realisation that intangible assets require national and becoming increasingly aware of the value of intellectual property international legislation and a global approach to enforcement and the personal risks associated with counterfeiting and piracy. goes back a long way. In 1862, as Parliament debated the idea of creating a register of trade marks, Robert Jackson, Director of Spear and Jackson, Sheffield steel manufacturers, gave the following evidence to the parliamentary committee charged with researching the need for regulation: 1 Report of Parliamentary Select Committee on Trade Marks Bill, and Merchandize Marks Bill: Report, Proceedings, Minutes of Evidence – 6th May 1862: Minutes of Evidence 20th March 1862, page 1 House of Commons Parliamentary Papers Online – Pro Quest UK Parliamentary <https://idp.cf.ac.uk/idp/profile/SAML2/POST/SSO > (accessed 08/8/2017). 2 IP Crime and Enforcement Report 2017/18 Four themes reoccur throughout this report: Firstly, it’s clear that the rapid advances in the digital environment have brought opportunities and risks to consumers. Secondly, although improved cooperation between the enforcement, business and legal communities increases efficiency, challenging fiscal constraints limit the amount of direct enforcement action that A desire to encourage can be taken. Thirdly, in a post Brexit world, maintaining strong enforcement partnerships at European and international levels cooperation between inevitably creates challenges. Fourthly, engaging the public in all parties involved the fight against IP crime is becoming an increasingly important aspect of our remit. in the fight against This report showcases successes and evidences best practice in intellectual crime is the fight against counterfeiting and online piracy in the UK. paying dividends. A key message for all involved with the enforcement of intellectual property rights is that IP crime connects the local with the global. Effective deterrence within the UK depends on the work of Police, Trading Standards and Border Force Officers within an internationally coordinated context. Public opinion regarding intellectual property crime can only be Engaging the public altered through positive actions: deterring criminality by enforcing international rules, encouraging greater public respect for IP rights in the fight against IP and emphasising the dangerous nature of fake goods. crime is becoming an increasingly important Sam Gyimah aspect of our remit. Minister of State for Universities, Science, Research and Innovation IP Crime and Enforcement Report 2017/18 3 Every year I find the Supporting this, the 2017 OECD Report on counterfeit trade in Intellectual Property Crime the UK found that almost 4% of all UK imports in 2013 were Report is recognised counterfeit, worth £9.3 billion. This translates to around 60,000 internationally as a jobs being lost and almost £4 billion in lost tax revenue aside comprehensive insight to from any consumer harm issues, fraud and further targeting of the exceptional activity of individuals for other forms of crimes like fraud, identity theft and agencies and partners in the malware. This concerning report, produced with support from the United Kingdom tackling UK IPO, was followed in July 2018 by an All Party Parliamentary IP crime, and this year’s Group investigating the UK response to Illicit Trade. Drawing report, 2018, maintains evidence from over 50 stakeholders, recommendations included that high standard. It support for the formation of a UK Anti-Illicit Trade Group with showcases best practice clear governance and accountability, empowered to facilitate and and enforcement activity, coordinate partners across this complex enforcement landscape. alongside the complexity of world trade and future Central to enabling effective enforcement activity is the work challenges on the horizon. of the IPO Intelligence Hub, located at Newport, Wales, within the Copyright and Enforcement Directorate of the IPO. Working Giles York Contributions from the UK’s experts in IP are presented with partners and stakeholders from industry, law enforcement here from the enforcement community, policy developers, and other government departments it comprises researchers, administrators and judges. intelligence officers, financial investigators and analysts. Developing intelligence to map organised crime and create The government’s Industrial Strategy, published in November ‘Local Profiles’ on IP and illicit trade for Police Forces, illustrates 2017, set out key foundations for productivity, with ‘Ideas’ how global IP crime impacts individuals and businesses locally. and ‘People’ being two specific aspects that the UK’s IP With two Financial Investigators within the hub confiscation of enforcement strategy underpins. Maintaining a secure IP system over £1.2m worth of assets from criminals has been achieved is fundamental to encouraging innovation and supporting using the Proceeds of Crime Act. businesses to start and grow. This year’s report provides ample evidence of how UK businesses and agencies work closely and The proliferation of criminality and types of products collaboratively to support that strategy. counterfeited is highlighted by the range of enforcement actions taken by Trading Standards at this local level. Examples range This incredible snap-shot of IP crime in the UK today identifies from counterfeit DVDs in Staffordshire, fake Rolex and Swatch key themes, like emerging threats on supply chains, use of online watches in West Sussex, footwear in Manchester and MAC content and complex technological systems that challenge our lipsticks in Wales with over 300 times the legal limit of lead in the agencies at markets, ports and distribution centres. counterfeit product. 4 IP Crime and Enforcement Report 2017/18 The Crown Prosecution Service Specialist Fraud Division (SFD) has developed a high level of experience in prosecuting a wide range of IP cases and is part of the European Prosecutors’ network sharing good practice. The SFD works closely with Police teams, the specialist Police Intellectual Property Crime Unit (PIPCU), to a The proliferation of consistent and co-ordinated approach. Extending the prosecution options is The Private Prosecutors’ Association, established in 2017 criminality and types of by a group of practitioners with experience of bringing private products counterfeited is prosecutions. Under draft is a Code of Conduct for bringing private prosecutions which those who practice in this area can highlighted by the range of adopt as a benchmark and which they and others, including defendants, can go to as a point of reference. enforcement actions taken by Trading Standards at This comprehensive report puts the spot light on the work across the UK, not just on enforcement, but projects to this local level. improve public engagement on the consequences of IP crime, the technical developments on traceability and protection of complex supply chains, and the important outreach work conducted by the leadership of the UK IPO with our partners across Europe, Asia and America to ensure the UK is a world leader on protection IP rights. This comprehensive report My personal thanks go to all the elements of the system that tackle IP Crime day in and day out, keeping the public safe, puts the spot light on bringing criminals to justice and protecting the economy of the UK and this report is testament to their hard work. the work across the UK, not just on enforcement, but projects to improve CC Giles York, QPM IP Crime Group Chair public engagement on the consequences of IP crime. IP Crime and Enforcement Report 2017/18 5 The Annual IP Crime and Enforcement Report is a chance for Traceability everyone involved in the business of securing the reputation of the market to see the big picture.
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