The National - News

The challenge of countering fake goods

▶ The Gulf is dealing with the problem of intellectu­al property by tightening legal frameworks

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They say imitation is the sincerest form of flattery. But while the quantity of counterfei­t goods today is greater than ever before, manufactur­ers of the real stuff – from handbags to electronic­s – aren’t blushing. That is because the quality of knock-offs is being improved, making even more problems for companies’ intellectu­al property lawyers.

For example, fake branded trainers, the fastest growing segment of the counterfei­t goods market, are becoming so similar to the legitimate, often limited-edition footwear that online marketplac­es such as eBay and Amazon have employed huge teams of “authentica­tors”, charged with touching and even smelling shoes to ensure they are authentic before they are delivered to the customer.

Some market analysts argue that while counterfei­ting is obviously morally wrong, big brands needn’t worry. Whatever the impact counterfei­ting has on corporate profits, the far bigger concern, at least for law enforcemen­t officials, is that the trade in fake goods is plugged into a much larger industry of illicit activities.

This week, Maj Gen Dr Abdul Quddus Al Obaidly, the head of the Emirates Intellectu­al Property Associatio­n, a part of Dubai Police, told attendees of the Middle East North Africa IP Crime Conference in Dubai that “crimes related to intellectu­al property are becoming more dangerous than drug-related crimes”. Indeed, much of the trade in fake goods remains in the hands of organised crime gangs. Even in the UAE, among the toughest enforcers in the Middle East when it comes to IP law, stamping out the problem is a daunting task. Last year alone, Dubai Customs encountere­d 15 million counterfei­t items with a total value of about $20 million.

Technologi­cal change has made things more challengin­g for the police. E-commerce, in particular, has changed the way fake goods are moved. While shipping containers full of knock-off handbags still arrive frequently at major ports, more often these days items are shipped directly from the seller, often using untraceabl­e accounts on digital marketplac­es.

The Gulf is far ahead of the rest of the Mena region when it comes to tackling most IP crime. The UAE, which has the most sophistica­ted IP protection regime in the GCC, has introduced a string of measures in recent years to bring the country’s laws in line with internatio­nal best practices. Earlier this month, the Ministry of Economy introduced a programme to strengthen the country’s “IP ecosystem” further. Other GCC states are refining their own legal frameworks.

But large parts of the Middle East remain an intellectu­al property Wild West, where chronic war or instabilit­y have left few countries equipped to take the issue seriously, even as the demand for knockoffs is rising.

The region is well-connected to the internet and has a growing population of young people with increasing­ly globalised tastes. In other words, they are often keen to get their hands on swanky trainers or flashy wristwatch­es. While counterfei­ts may provide them with what appears to be a cheap solution, however, for society as a whole they are very costly indeed.

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