WHAT IS COUNTERFEITING? NATIONAL BOARD AGAINST COUNTERFEITING (NBAC) www.hamisitasellen.hu The National Board Against Counterfeiting (NBAC), established in 2008, is a body composed of members from both public institutions and social and economic interest organisations working in the field of intellectual property protection. The mission of the NBAC is to combat counterfeiting and copyright piracy. The NBAC’s initiatives and activities seek to improve the effectiveness of the fight against the infringement of intellectual property ¡rights and to increase the preparedness of law enforcement bodies involved in the fight against counterfeiting. In addition, the NBAC organizes information and public awareness campaigns and programmes to change people’s attitude and reduce the demand for counterfeit products.
NATIONAL TAX AND CUSTOMS ADMINISTRATION www.nav.gov.hu National Tax and Customs Administration (NAV) plays a significant role in the protection of intellectual property rights by the detection and detention of fake and pirated products and by preventing the entry of counterfeit products into the European Union. Most of the products on display at this exhibition come from the procedures of the Hungarian Customs Authority.
Counterfeiting refers to the imitation or copying of others’ intellectual product or creation, i.e. intellectual property, without their (the creator’s, the inventor’s or the developer’s) authorization. Counterfeiting of products: illegal imitation of products Counterfeiting of trade marks: illegal use of a trade mark (brand name, logo) that is owned by a manufacturer or trader to distinguish their goods, i.e. when an actual trade mark is placed on a product or is associated with a service that is not the legitimate product or service offered by the trade mark owner. Piracy: copyright infringement
COUNTERFEITING OR PIRACY IS A SERIOUS BREACH OF LAW! Counterfeiters cause huge material and immaterial damage to the owners of genuine products, and pose various risks - in certain cases even health risks-to consumers. Today almost everything is counterfeited from clothing, CDs, DVDs to electronic devices, spare car parts, foodstuff and medicines. The EU customs authorities detained 178 million fake articles in 2008, and 118 million fake articles in 2009.
THREATS OF COUNTERFEITING Buying counterfeit products supports organised crime! Criminals often finance serious crimes such as drugs, arms or human trafficking through coun足terfeiting. Counterfeiters do not meet safety and quality standards! The only purpose of counterfeiters is to make profit, therefore they try to produce counter足feit goods at the lowest possible price. Counterfeiters jeopardize the safety and lives of consumers! The lack of instruction manuals and the use of low quality components make fake elec足 tronic devices dangerous and increase the risk of accidents! Counterfeit products are excluded from warranty! The amount paid for fakes is thus a waste of money, while the damage they can cause may incur serious financial costs.
HOW TO PENALIZE CONTERFEITERS? Due to the serious impacts of counterfeiting and piracy, a strict approach and effective enforcement are needed. In Hungary the following authorities are engaged in the fight against counterfeiting and piracy: courts, prosecutors, the Police, the National Tax and Customs Authority, the National Consumer Protection Authority, the Hungarian Competition Authority, the National Pub足lic Health and Medical Officer Service and the Central Agricultural Office. The penalty for committing crimes linked to counterfeiting can be a fine or even imprisonment for up to eight years. If the Hungarian customs authorities find counterfeit and pirated products in the course of their checks, they are entitled to confiscate them. Confiscated products are destroyed most of the time.
EXPIRED, RELABELLED, CONTAMINATED? Counterfeit foodstuffs to the value of nearly USD 50 billion (HUF 8889-5) are sold every year in the world! The majority of counterfeit foodstuffs do not belong to the category of luxury goods but are everyday household products. It is milk powder, infant nutri tion, instant coffee, soft drinks and alcoholic beverages that constitute the greatest proportion of counterfeit products. Consuming fake foodstuffs and drinks can put our health at serious risk. The illegally produced foodstuffs may contain infectious agents, toxic substances, allergens or impurities. There have been examples of spices coloured with carcinogenic substances, pork cheese infected with Salmonella, vodka diluted with antifreeze fluid or cooking oil contaminated with mineral oil. The un pleasant symptoms often appear only long after consuming the fake product. Counterfeit pesticides constitute a serious source of risks! Not only do they cause damage to manufacturers and distributors, they also seriously jeopardize the environment, and the vegetables and fruits treated with counterfeit and illegal pesticides are indirectly harmful to consumers’ health.
HOW TO AVOID COUNTERFEIT FOODSTUFFS? ∞ Be wary of buying too cheap products and unauthorised street vendors! ∞ Check the packaging of the product! The lack of a label in the language of the destination country is a telltale sign of counterfeit products! ∞ Always check the expiry date! ∞ Check if the product is stored in the shop in accordance with the description of the storage requirements defined on the product! Even the best quality food can be dangerous if it is not stored in appropriate conditions. ∞ Always ask for the receipt! In case of quality problems, you can only complain and enforce your rights effec tively if you have the receipt. ∞ If you have any doubts or find any product suspicious, seek assistance from the food safety authority (in Hungary: Food and Feed Safety Directorate of the Central Agricultural Office)!
VICTIMS OF COUNTERFEITING
WOULD YOU WEAR IT?
∞ Consumers: Counterfeiters deceive consumers by selling them fake products of low quality. Some products even threaten the health and safety of consumers.
The majority of counterfeit clothing is produced in Asia, especially in China, where counterfeiters often have fake trousers, T-shirts, shirts, bags, sunglass es, shoes or even socks made under inhumane conditions.
∞ Trade mark owners, manufacturers of original products: Counterfeit products cause loss of sales and thus loss of revenue to the manufacturers of origi nal products. The consumers’ trust in the quality of the original products also weakens, which results in further losses of come and may eventually lead to job losses. ∞ Economy: Counterfeiting results in losses of tax revenues, and adversely affects the rate of unemployment. The resources available to research and in novation decrease, and thus the economic growth slows down. ∞ Workers: Counterfeiters often use child labour and employ workers under substandard working conditions in order to save costs and gain more profit.
The most often counterfeited brands are, among others, Adidas, Nike or Louis Vuitton. Losses to the industries and the governments caused by the infringements result in thousands of job losses. Consumers are deceived by the poor quality fake clothing. Counterfeit cloth ing often becomes useless after its first wearing. Fake clothes may also cause allergic reactions and skin irritations due to the dangerous chemicals used during production.
IMPACTS OF PIRACY
Music, films and software are protected by copyright. These products cannot be used without the authorization of their authors. Illegal copying, downloading, file-sharing and the sale of fake products cause losses of USD 18-20 billion to the film industry, of USD 12.5 billion to the music industry, of USD 18.4 billion to the software industry and of USD 529 million to the book publishing industry. Fake CDs and DVDs purchased on the black market are usually of poor quality and may have wrong content. In the course of file-sharing unwanted contents can land on your computer. Using pirated software incurs risks: pirated software cannot ensure the same level of security as that of an original product, thus computers with such software can easily be attacked by viruses and other malicious programs, while the users can become victims of data phishing or cyber crime.
WHAT ARE THE DANGERS OF COUNTERFEIT TOYS?
According to the estimates, the European toy industry suffers losses to the value of USD 2.1 billion due to counterfeiting. The financial loss, however, is only one aspect of the dangers counterfeit toys pose. Toys of almost every kind have been counterfeited, risking children’s health and safety. The standards and requirements guaranteeing the secure use of toys are ignored during the production of fake toys. While clothing is of low quality, toys pose safety hazard. When buying products for children, it is recommended to check the place of origin, the manufacturer and the packaging of the product to see whether it is safe for the child.
COUNTERFEIT COSMETICS
COUNTERFEIT MEDICINES
In the case of cosmetics that come into direct contact with the skin, it is essential for manufacturers to make sure that their products are safe for health and cause no allergic reactions. The production of good quality cosmetics is thus preceded by a long and expensive research period and the authentic product can only be put on the market if it meets the regulatory requirements and is officially certified.
Counterfeit medicines make up 10 percent of the European pharmaceutical market.
Counterfeiters do not care about all this. Fake cosmetics, which are made without any expertise and precautionary measures in illegal factories, may have the same appearance and texture as their authentic counterparts, but they have nothing else in common. It is almost impossible to distinguish these fake products from the legal ones on shelves of shops or in the photos of catalogues. The unsuspecting buyer may experience the unpleasant and often serious side effects only after using the fake product.
Most often the so-called lifestyle medicines - such as weight loss drugs, drugs for treating erectile dysfunction, antidepressants or sedative drugs - are counterfeited, although the rate of counterfeit life足 saving, anti-cancer or cardiovascular drugs is also increasing, just as the proportion of counterfeit drugs for psychiatric diseases, infections or HIV/AIDS. Counterfeit medicines are not made under well- | controlled laboratory conditions: tablets are often coated in cement mixers and are dried on the floor. Active substances are often left out and are replaced by ingredients from other products or by useless substances unfit for human ; consumption. Tests have even revealed counterfeit medicines containing chalk powder, brick dust, illegal drugs or cement. Counterfeit medicines can cause serious health problems and can even lead to death owing to their unknown origin, ingredients and the uncontrolled conditions of their manufacture.
FIBERSCOPE OR SNAKE CAM
WHAT ARE THE TELLTALE SIGNS OF A FAKE PRODUCT?
A snake cam (official name: fiberscope) is a special instrument which makes it possible to look into heavily accessible and closed places without ruining the packaging or the product itself. The fiberscope is a flexible technical instrument with two fiber optic bundles. One of them forwards the picture to the eye of the examiner, while the other lights the examined area. A display screen or a digital image recorder can be attached to it to take and record pictures.
∞ The price of the product is unusually cheap compared to the usual price;
Fiberscopes are used in various fields, and although they are most often used by researchers, customs authorities also greatly benefit from using them during their checks and inspections.
∞ The product has no warranty card or user’s manual;
∞ There are typos or spelling mistakes on the labelling or packaging of the product; ∞ The product is sold separately although it is usually sold in packs; ∞ The product appears to be faulty or defective; ∞ The product is offered for sale at an unusual location;
∞ There is no information on the place of origin and the manufacturing of the product.
EXHIBITION OF THE NATIONAL BOARD AGAINST COUNTERFEITING www.hamisitasellen.hu www.facebook.com/nokamu 2014