Ministry of Economic Development DIRECTORATE-GENERAL for the FIGHT AGAINST COUNTERFEITING – ITALIAN PATENT and TRADEMARK OFFICE
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Ministry of Economic Development DIRECTORATE-GENERAL FOR THE FIGHT AGAINST COUNTERFEITING – ITALIAN PATENT AND TRADEMARK OFFICE COUNTERFEITING AS AN ACTIVITY MANAGED BY TRANSNATIONAL ORGANISED CRIME AND THE POSSIBLE RE-USE OF SEIZED ASSETS FOR THE PROMOTION OF INTELLECTUAL PROPERTY AND ECONOMIC GROWTH United Nations Interregional Crime and Justice Research Institute Ministry of Economic Development DIRECTORATE-GENERAL FOR THE FIGHT AGAINST COUNTERFEITING – ITALIAN PATENT AND TRADEMARK OFFICE COUNTERFEITING AS AN ACTIVITY MANAGED BY TRANSNATIONAL ORGANISED CRIME AND THE POSSIBLE RE-USE OF SEIZED ASSETS FOR THE PROMOTION OF INTELLECTUAL PROPERTY AND ECONOMIC GROWTH United Nations Interregional Crime and Justice Research Institute Ministry of Economic Development DIRECTORATE-GENERAL FOR THE FIGHT AGAINST COUNTERFEITING – ITALIAN PATENT AND TRADEMARK OFFICE COUNTERFEITING AS AN ACTIVITY MANAGED BY TRANSNATIONAL ORGANISED CRIME AND THE POSSIBLE RE-USE OF SEIZED ASSETS FOR THE PROMOTION OF INTELLECTUAL PROPERTY AND ECONOMIC GROWTH United Nations Interregional Crime and Justice Research Institute Copyright Ministry of Economic Development Directorate-General for the Fight Against Counterfeiting – Italian Patent and Trademark Office Via Molise 19 - 00187 Rome [email protected] [email protected] Website: www.uibm.gov.it © Ministero dello Sviluppo Economico, 2014 ISBN: 9788890749131 All rights reserved. No part of this book may be reproduced or distributed by any means, including photocopies, microfilm or any other medium, without the written permission of the owner of the Copyright Study commissioned and funded by Directorate-General for the Fight Against Counterfeiting – Italian Patent and Trademark Office (DGLC-UIBM) Ministry of Economic Development Carried out by the United Nations Interregional Crime and Justice Research Institute (UNICRI) Directorate-General for the Fight Against Counterfeiting – Italian Patent and Trademark Office working group: Gianluca Scarponi, Paola Riccio, Enrico Maccallini UNICRI working group: Marco Musumeci, Vittoria Luda di Cortemiglia, Elena D’Angelo Our thanks go to the following experts, law enforcement agencies and National Administrations for their collaboration: the National Agency for the Administration of Confiscated Assets (ANBSC), Lino Busà, Benoit Godart, Pietro Grasso, Gioacchino Polimeni, Fausto Zuccarelli, the Italian Financial Police. Translated by PSG Translations CONTENTS FOREWORD ............................................................................ page 5 COUNTERFEITING AS AN ACTIVITY MANAGED BY TRANSNATIONAL 1° ORGANISED CRIME PREFACE............................................................................... page 13 METHODOLOGY ................................................................... page 17 Note on methodology ..........................................................page 17 Sources ...............................................................................page 17 Quantitative analysis: scope of the phenomenon ................page 22 Quantitative analysis: examination of case studies .............page 24 THE ANALYSIS FRAMEWORK ............................................ page 27 Defining the dangers of counterfeiting .................................page 27 1. The scale of counterfeiting in Italy ...........................page 27 2. The social hazards of counterfeiting .......................page 32 Organised crime: which definition? ......................................page 36 1. Transnational organised crime ................................page 36 2. Organised crime in Italy: an overview .....................page 41 Factors of attraction for criminal organisations ....................page 48 MAPPING OF ORGANISED CRIME’S INVOLVEMENT IN COUNTERFEITING OFFENCES IN ITALY ............................ page 55 Criminal management of counterfeiting ...............................page 55 1. The production phase and supply of raw materials ...........................................................page 57 2. How goods are handled, delivered and distributed ................................................................page 60 3. The main types of counterfeit goods .......................page 66 4. The role of transnational organised crime ...............page 69 5. Profile of local criminal organizations: relations between criminal organisations and the typology of criminal networks involved ....................................................page 77 6. The crime routes: origin, transit and destination. ....page 87 7. Technology used by criminal networks and counter-strategies ...................................................page 89 Links with other serious crimes ...........................................page 95 CONCLUSIONS ................................................................... page 101 BIBLIOGRAPHY .................................................................. page 105 THE POSSIBLE RE-USE OF ASSETS SEIZED TO CRIMINAL ORGANISATIONS 2° INVOLVED IN COUNTERFEITING ACTIVITIES FOR THE PROMOTION OF INTELLECTUAL PROPERTY AND ECONOMIC GROWTH INTRODUCTION ...................................................................page 113 THE MINISTRY OF ECONOMIC DEVELOPMENT/UNICRI RESEARCH PROJECT ........................................................page 115 PROFILE OF THE NATIONAL AGENCY FOR THE ADMINISTRATION OF CONFISCATED ASSETS ................page 119 Responsibilities of the Agency during the judicial phase, from seizure to final confiscation .......................................page 122 After the definitive confiscation order: how the confiscated assets are reallocated and managed ................................page 123 Monitoring the reallocated assets ......................................page 126 The confiscated assets ......................................................page 126 IDENTIFYING PROPERTIES SEIZED TO MAFIA COUNTERFEITING RINGS FOR THEIR POSSIBLE RE-USE TO PROMOTE INTELLECTUAL PROPERTY ...... page 133 The Camorra .....................................................................page 137 The ‘Ndrangheta ................................................................page 141 DATA SHEETS ..................................................................... page 145 CONCLUSIONS ................................................................... page 147 BIBLIOGRAPHY .................................................................. page 151 INDEX OF ACRONYMS ....................................................... page 155 FOREWORD During the majority of the many seminars held on the subject of counterfeiting, whether the discussion focuses on figures, on the analysis of consumer behaviour, on the damage created to business or even on a debate on industrial law, the listener will certainly hear at least two words and one issue that crops up again and again. “Innovation” is the word most frequently uttered by the most up-to-date and confident of speakers, perhaps with examples of its usage taken from the results of various web search engines. This will certainly be followed by “Synergy”, usually mentioned several times by the representatives of public institutions in an attempt to obviate the individualistic ethos that is a characteristic of any public body. The best seminars, however, will explore complex arguments aimed at reconstructing the somewhat ancient origins of counterfeiting. Some experts go back as far as the Renaissance, some to mediaeval times, and others even recount myths and legends from the ancient classical world. Their aim is basically to show how the market of fraud is more or less as old as civilisation itself. It is a plague that has always afflicted human economic activity, both ancient and modern. Behind this reasoning, there is a sincere desire to recognise the gravity of counterfeiting, almost as if there was a need to justify the commitment shown by all players – public and private – in combating this illegal activity. The results to date may have been important but they have yet to resolve the problem. Ultimately, however, I consider this approach to be rather counter-productive. It instils in the listener the doubt that at the end of the day all efforts are in vain, because since time immemorial where there has been commerce, there has been counterfeiting. But on closer inspection, counterfeiting as we know it today has no precedent in history. The quantity of counterfeit goods is vast. They have infiltrated almost all the world’s markets. Any product that a consumer or company can buy on the legal market can also be manufactured illegally. These are the real characteristics of modern-day counterfeiting, which can be traced back to a criminal activity that started in the 1970s. 7 The growth in criminal operations and the overdevelopment of counterfeiting has one overriding, undisputed player: transnational organised crime. Large quantities of cash to invest or reinvest, flexible, dynamic organisations with historic roots in certain territories, a consolidated hierarchy with a dense global network of criminal cells that has effectively internationalised the illegal trafficking of goods and the exploitation of personal criminal knowledge and experience to operate through tried and tested trade routes and channels of corruption: all these factors are available to the world of organised crime which in recent decades has substantially modified its configuration. Its sphere of operation and influence has now extended to encroach upon increasingly remunerative, antisocial areas