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John Anderson Chairman The Global Anti-Counterfeiting Group

John Anderson Chairman The Global Anti-Counterfeiting Group. Chairman GACG Network IP Enforcement Project Consultant at Queen Mary Intellectual Property Research Institute, University of London EU Phare , Taiex and EuropeAid Projects

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John Anderson Chairman The Global Anti-Counterfeiting Group

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  1. John AndersonChairmanThe Global Anti-Counterfeiting Group

  2. Chairman GACG Network IP Enforcement Project Consultant at Queen Mary Intellectual Property Research Institute, University of London EU Phare, Taiex and EuropeAid Projects Formerly: Director General Anti-Counterfeiting Group (UK) Vice-Chair, UNECE Team of Specialists on IP; WIPO Advisory Committee on Enforcement; UN Inter-Regional Criminal Research Institute Interpol IP Crime Action Group INTA and Marques a/c Committees

  3. Measuring the economic and social impact of piracy and counterfeiting The view of the private sector European Industry

  4. The view of the private sector European Industry • ‘Global’ rather than European ..... • Industry Association(s)... (Compromises) • Individual industry sectors and individual companies, AND especially certain ‘multinationals’ have strikingly divergent views • So... the ‘ideal strategic private/public partnership’ view!

  5. Summary • What are we hoping to achieve? • The scope of the problem • Comment on OECD Report • A brief history of measurement and methodology • The challenges for future measurement and methodology

  6. What industry is hoping to achieve: • Quantify its own economic losses and justify its costs on protection and enforcement • Quantify national, regional and global economic losses to persuade governments, IGOs enforcements agencies and courts to act • Quantify trends over time and geography to shift allocation of resources and persuade authorities to do so also • Show robust causal link between all economic losses and actual social consequences in order to increase public awareness and affect consumer choices

  7. What is confusing • There does not seem to be a clear difference between what can be measured objectively (quantitatively) and what we would like to measure subjectively (qualitatively) – i.e. the difference between: • Economic and commercial losses - SHOULD be possible • Personal, social losses – much more DIFFICULT • The questionable objective of trying to measure impact on TRADE • AND confusion between measuring levels of enforcement and actual levels of infringements ... More later

  8. The scope of the problem • International • Multinational • Cross-border • Pan-industry • Highly organised, criminal • Flexible • Adaptable (displacement) • Resources

  9. The scope of the problem 2 • The Internet and digital downloads • China • Official inertia • The ‘development’ agenda

  10. The OECD Report • Commendable effort • Disjointed terms of reference • Too many ‘masters’ (Research by committee) • No new research • Perceptions (... the ‘development agenda’) • Presentation

  11. A brief selective history of measurement and methodology • Original ICC project • UK ACG/Italy Indicam • GACG/CEBR • ‘Counting Counterfeits’ • Several local, sectoral and regional studies • But methodologies all different...

  12. Challenges for the Future • Clear objectives of what is to be measured • Start with quantity – percentages • Then quantity – volumes • Then costs • Street value • Genuine goods value • Indices (e.g. year on year/countries or blocs; industry sectors) • Economic extrapolations • Investment • Tax revenue • Public Spending

  13. Simultaneously but separately...(1) • Enforcement – e.g. • Seizures; confiscations, destruction orders • Civil and administrative complaints • Litigation • Criminal cases • Arrests • Convictions • Penalties

  14. Simultaneously but separately...(2) • Social impact: • Deaths • Injuries • Factory closures • Job losses • Links to organised crime • Links to terrorism

  15. Challenges for the Future: Methodology 1.Choose a range of specific products 2.Measure total market within a country or bloc 3.Collate market penetration of leading brands of genuine products 4. Calculate total market for genuine products 5. Apply formula (e.g 2-4 equals illegal production assembly or importation......)

  16. Challenges for the Future: Methodology • Statistics collected statutorily by Competition (anti-trust) authorities • Consumer/Market surveys • Demographics • Official sources: police, customs, courts, Health and Safety authorities; hospitals • Open source data mining

  17. Contact/Information janderson.gacg@btinternet.com mail@uaacp.org www.gacg.org

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