FAKE GOODS EARNING CRIMINALS MORE THAN DRUGS, DUBAI CONFERENCE HEARS
▶ Money made from counterfeit items and piracy are funding narcotics trade, warn officials at intellectual property event
Criminal gangs are making more money from intellectual property crimes than drug trafficking, a Dubai conference has been told.
While buying a fake handbag or watching sporting events on non-official streams might seem harmless – with the logic being that the companies losing out are already so rich they would never notice – the reality is in fact very different, Dubai Police said.
They warned that money raised through the sale of fake items is often used to fund other criminal activities – not least drug trafficking.
The Middle East North Africa IP Crime Conference heard on Tuesday that over the past five years, Dubai Police have seized fake goods with a street value of about $2.37 billion.
Meanwhile, in the EU, intellectual property crimes have generated revenue of $43 billion in recent years, said a senior official.
This compares with $28 billion earned by criminals from drug-related activities.
“Crimes related to intellectual property are becoming more dangerous than drug-related crimes,” Maj Gen Dr Abdul Al Obaidly, assistant commander-in-chief for Quality and Excellence and head of the Emirates Intellectual Property Association at Dubai Police, told the conference.
IP crime encompasses the manufacture, distribution and sale of counterfeit and pirated goods. As well as physical items, this covers patents, trademarks, industrial designs and literary and artistic works, for commercial gain.
Artificial intelligence has increased the scope for IP crime, the event heard.
“There needs to be global legislation and amendments on laws to face IP crimes, now we are in the metaverse and AI era,” said Maj Gen Al Obaidly.
“The digital revolution presents new challenges in IP crimes – such as ownership of patent rights created by AI or trademarks in the virtual world.”
He added that social media was a major platform for promoting fake goods.
Maj Gen Al Obaidly was speaking on the opening day of the two-day conference, titled Uncovering Future Capabilities.
The event, held at the Palazzo Versace Hotel, was hosted by the EIPA with the International Criminal Police Organisation (Interpol), alongside government bodies including the Ministry of Interior, the Ministry of Economy, Dubai Police, Dubai Customs and the Trademark Owners Council.
It featured 35 speakers from 14 countries and attracted about 600 participants.
“IP crimes can be used to fund other crimes,” said Dr Jorge Garate, excellence and pioneering consultant at Dubai Police and a member of the EIPA, told the gathering.
“IP is a growing concern in criminal and civil justice levels, but the problem is the law of AI against IP crime is still in the early stages.
“These IP crimes include electronics, luxury products, accessories, pharmaceuticals, vehicle parts, recorded music, movies and more.”
Dubai Police have received almost 1,300 reports of IP crime since 2019, arresting almost 1,340 suspects. Seized items were worth Dh8.7 billion ($2.37 billion), said officials.
Protecting intellectual property rights was gaining greater importance amid global economic changes related to digital rights, said Ahmed Musabih, director general of Dubai Customs.
“Dubai Customs dealt with around 333 intellectual property disputes that involved 15 million counterfeit items, with a value of Dh73.4 million last year,” said Mr Musabih.
Major sporting events are another target of criminal gangs who broadcast illegal coverage of football and boxing matches, said Malek Hannouf, chairman of the Gulf Brand Owners group.
Mr Hannouf also presented a case study of the seizure of 10 fake designer’ bags in a Canadian airport, set to be delivered to customers. The fake goods
Crimes related to intellectual property are becoming more dangerous than drug-related crimes MAJ GEN DR ABDUL AL OBAIDLY Dubai Police
had arrived from the UAE. “We managed to get the name of the sender and tracked the social media platforms used to sell the products,” said Mr Hannouf.
A woman was doing live broadcasts promoting the products, he said.
Sharjah Police monitored the social media accounts and tracked the woman.
She was arrested in her Sharjah apartment, where thousands of fake designer bags were found.
“The street value of the bags was estimated at Dh20 million,” said Mr Hannouf.
In 2021, the UAE updated legislation and increased punishments to crack down on the fake goods industry.