FMCG Illicit trade and impact on counterfeiting Measures to avoid counterfeiting and Piracy A Regional Perspective Vanessa Ferguson Anti-Counterfeiting Department: KISCH IP 7 September 2018
Going back to our roots PANGEA Supercontinent that existed during the Paleozoic era Assembled from earlier continent units 335 years ago Started breaking up 175 million years ago
FWD 175 million years - International trade relations - Trade free zones - Online Trade: growing in Africa (South Africa, Nigeria & Kenya) - Connectivity - International investment - International demand
Cross- border trade & transit routes
Practical challenges Regional groupings
Country Membership to Regional Economic Communities complex web of competing Commitments different rules and standards Results in: high costs to intra-africa trade; and undermine trade facilitation efforts
Practical challenges Regional groupings Enforcement of these trade marks in each territory covered by the local national laws and the underlying principles of territoriality. Southern Africa now finds itself in a difficult position in balancing: Freedom of movement of goods between territories Territorial limitations in IP Rights enforcement.
Concerns cross- border trade
Borders & Informal Trade Est. over 3 million migrant workers in SA Porous borders Two push factors intra SADC trade: Widespread unemployment Shortage of essential goods in the region Informal cross border trading accounts for close on 40% of intra SADC trade. Source of funding: Personal and family savings Quantities: 3-4 cartons, boxes or bags per trip. Transport of goods: By bus, coaches or on foot. Type of goods: Goods that sell quickly
Practical challenges MDC Route The MDC route connects the landlocked Gauteng, Mpumalanga and Limpopo provinces to the port of Maputo in Mozambique.
Practical challenges Trans Kalahari Corridor The TKC is a joint corridor initiative between the governments of South Africa, Namibia and Botswana
Practical challenges Border Concerns Border relations and disconnect Profiling of specific consignments Informal cross border trade not targeted Lack of bonded warehouses & truck stops Management of the corridors Safety & security: Corruption Human resources: lack of trained inspectors & officials High Trade Volumes of goods
Enforcement Concerns - Costs of securing registration are relatively expensive (including prosecution costs) - there are often long delays in the application process - Traditional Enforcement and litigation expensive and lengthy - Lack of awareness/ respect of IP on the continent - Lack of specialist IP courts - Lack of precedents (South Africa & Kenya Good judgments and results)
Practical challenges Regional groupings
Practical steps in dealing with illicit goods Registration/ Enforcement of Registered Trade Mark Rights (Territorially limited) Regional Registration systems (ARIPO & MADRID) Enforcement of Common Law rights Protection of unregistered trade marks (well-known) Copyright or other rights (Patents/ Designs) Customs Provisions Regulatory Provisions Industry specific regulations (Pharmaceutical, Liquor etc) Labelling regulations NCRS Requirements
Points for inclusion in an effective strategy - Focus on all major ports (South African & Neighbouring territories) - Mozambique, Namibia, Angola, Tanzania & Kenya - Protection of IP rights; Customs registrations (formal & informal) - Inspections and investigations - Focus on all neighbouring borders - Education, awareness, lobbying - Focus on interception points along main corridors - Understanding of main distribution points and operations - Collaboration - Industry specific and related industries - Involvement of International stakeholders - Cross border industry bodies; WCO, Interpol, WIPO
World Customs Organisation (WCO) WCO is the only intergovernmental organization exclusively specialized in customs issues. drafting international customs norms, simplifying and harmonizing customs regimes WCO has also developed the Interface Public Members (IPM), that provides fast detection of counterfeited items. IPM: Egypt, Morocco, Tunisia, Angola, Djibouti, Kenya, Madagascar, Seychelles, Mauritius, Mozambique, South Africa, Tanzania, Uganda, Benin, Cameroon, Cape Verde, Central African Republic, Democratic Republic of Congo, Congo, Kenya, Liberia, Senegal and Togo 18
The Role of INTERPOL Priority is combating transnational organized crime, includes counterfeiting INTERPOL s legal assistance program : aims to support states in setting up effective legal frameworks against illicit trade and counterfeiting and in training all actors involved in the criminal justice process INTERPOL/UNICRI initiative, is the creation of a jurisprudence database on IP-related matters Active in Africa 19
The Role of WIPO Training courses on IP right enforcement Training of officials and enforcement officers (CIPC collaboration) Online tools & services 20
Questions & Concluding thoughts Vanessa Ferguson KISCH IP vanessaf@kisch-ip.com +27 11 324 3000 0824164901
Thank You Vanessa Ferguson