IPR Enforcement in the UK
Graham Mogg
Head of Intelligence Hub
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Overview
• Scale and impact of IP crime
• UK legal and enforcement framework
• Role of Intellectual Property Office
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Scale and cost of IP Crime
Counterfeiting and piracy is a huge problem
• OECD estimates that the global trade in counterfeit and
pirated products seized across national borders is worth
around US$200 billion – higher than the GDP of 150
countries.
• IP crime in the UK was estimated to be worth £1.3 billion in
2006 with £900 million flowing to organised crime (many feel
the actual figure today is significantly higher).
• Customs officials in Europe seized 79 million counterfeit or
pirated articles from across all sectors in 2007.
• Impact on public finance as well. In September 2009 HM
Revenue and Customs carried out a raid on an illicit vodka
plant. If it had been legitimate, the alcohol seized in that one
case would have brought in over £1million in duty.
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Health and safety impact of
counterfeits
Not just a question of cost and economic impact:
• Electrical goods with untested or faulty circuits pose the risk of
burns, fires and electrocution;
• Fake medicines may not contain the active ingredients needed
for treatment, and sometimes contain harmful products;
• Fake toys are not tested to safety standards and have been
found to have hazardous small parts and harmful contents such
as paint containing lead;
• Counterfeit Automotive parts and accessories
• Counterfeit tobacco can contain ingredients such as sawdust,
tobacco beetles and rat droppings. Government research
found counterfeit tobacco products can contain up to 160%
more tar, 80% more nicotine, 133% more carbon monoxide.
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Links to wider criminality
• Viewed by many as a low level ‘victimless’ crime, IP
crime is highly attractive to organised crime gangs. A
kilo of fake CDs reportedly fetches 50% more on EU
markets than a kilo of cannabis leaf and carries a much
lower risk.
• IP criminals dealing in counterfeit and pirated goods
have often been shown to be involved in other serious
crimes like narcotic and people trafficking, prostitution
and loan sharking.
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
UK legal framework: criminal
• Criminal offences for trademarks and copyright
infringements
– Section 92, Trade Marks Act 1994
– Section 107, Copyright, Designs and Patents Act
(CDPA) 1988
• Focus on businesses/commercial scale activities
• Scope for seizure of assets of IP criminals
– Proceeds of Crime Act 2002
• Other relevant offences
– Fraud Act
– Conspiracy to defraud
– Section 198, CDPA 1988
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
UK legal framework: civil
• IPR Infringements actionable in civil courts
– Patents, copyright, trade marks and design
laws
• UK has common law system (accusatorial)
cost and time of litigation
• Interim measures/final remedies
• Mediation, arbitration etc
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Sectors / Agencies
• Creative Industries
• Clothing and
Footwear
• Luxury Goods
• Tobacco
• Pharmaceuticals
• Automotive Industry
• Electrical Goods
• Toys
Intellectual Property Office is an operating name of the Patent Office
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Trading Standards
Police
HMR+C
UK Border Agency
MHRA
SOCA
SCDEA
Europol
Interpol
www.ipo.gov.uk
The role of the IPO?
• 2004 National IP Crime Strategy
– Identified need for better co-ordination
between enforcement/industry and govt
• IPO takes national lead.
– Co-ordination, facilitation and awareness
raising – within government and externally
– IP Policy lead
– NOT an enforcement authority but provides
coordination and direction
– Practical support through Intelligence Hub
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Key areas of focus
• Legal framework
• Intelligence-led enforcement
– Partnership working
– IPO Intelligence Hub
• IP Crime Group
• Awareness and training
– Officials, Businesses and Consumers
– Best practice tools and guides
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Legal framework
We need the right laws to provide a strong legal
framework.
– Rules that are relevant and clear and tackle the
problems caused by technological change
• P2P filesharing
• UK Copyright Strategy
– Effective remedies to target those who commit IP
crime, and to ensure they do not do so in future.
• Proceeds of Crime Act
• Sentencing guidelines
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
IPO Intelligence Hub
• Intelligence Hub – hosted and run by IPO
– share intelligence on counterfeiting and piracy between public
and private enforcement bodies
– offer expert analysis skills to help join up investigation
• Work with National Intelligence Model (levels 1-3)
• Investigators in public and private enforcement bodies
can submit intelligence reports to the hub.
• The hub then analyse this data to build cases for
enforcement agencies and industry bodies to take
forward.
• Enforcers can also submit requests to the hub to search
their database for relevant information which might
further a case they are already working on.
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Progress of the Intel Hub
• Memorandum of Understanding/Information Sharing
Agreements with enforcement and industry
• Receive growing number intelligence reports and
external enquiries per month
• Supported enforcement and industry in numerous
investigations so far
• Hub is a competent authority under Europol Convention
• Hub is a relevant authority under POCA and can conduct
financial investigations
• Provides monthly intelligence bulletins to enforcement
agencies and quarterly reports to government
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Intel Hub: Results
June 2009: Hub gathered evidence on an
organised crime gang involved in music piracy
(the DV8 case). Evidence was passed to
enforcers which led to arrests being made
and the investigations are ongoing.
Summer 2009: Hub helped the new UK
Border Agency to identify importers of
counterfeit footwear. This led to the seizure of
goods worth around £1.5 million which had
been destined for the UK market.
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
IP Crime Group
• Established by IPO in 2004
• Wide membership: key government departments,
enforcement and industry representative
• Work of the Group includes:
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discussion of strategic issues in relation to IP crime
identifying strategic priorities for collaborative action
identifying and disseminating good practice
raising awareness of IP crime
Annual Report on IP Crime in UK, reporting on
progress, scope and scale of IP crime and future
trends
– Co-ordinating activities – best use of resources
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Training and awareness
Variety of initiatives (by government and/or industry)
• Officials: programmes aimed at enforcers, including training
days and sessions, best practice manuals and summary
guides to the relevant laws.
• Work with local government, judiciary and other officials to
raise awareness of issues and tools to tackle IP crime
• Businesses: raising awareness of key issues with business,
like toolkits advising how to keep their supply chain free of
counterfeits and highlighting the problem of IP crime in the
workplace
• Consumers: UK consumer awareness campaigns tend to
focus on key areas. Government (health)/pharmaceutical
industry campaign in 2009 on dangers of counterfeit
medicines showed a man coughing up a dead rat after taking
counterfeit pills he bought online.
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Conclusion - Key activities for IPO
• National IP Crime Strategy
– Launched 2004
• Intelligence Hub
– Support for cases/wider intelligence picture
• IP Crime Group
– Co-ordinated working
– Best practice tools
• Annual IP Crime Report
– 2008/2009 Report
• Training and awareness activities
– Information guides, toolkits (see www.ipo.gov.uk )
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk
Graham Mogg
Head of Intelligence Hub
IP Enforcement Unit
Intellectual Property Office
+44 (0) 1633 814237
+44 (0) 7703 748048
[email protected]
Intellectual Property Office is an operating name of the Patent Office
www.ipo.gov.uk