Ronald BrohmSNB-REACTCancun, 1 December 2009

European Anti – Counterfeiting NetworkEuropean Anti – Counterfeiting Network

Not for profitEurope wide operational support 170

membersLegal, administrative, investigation,

monitoringOver 1.000 seizures monthlyOffices in major European cities and

IstanbulNetwork of agents and partners

SNB-REACT network

Intermediaries and counterfeit trade

1. Landlords, 2. ISP's, 3, Carriers

Unintentional facilitate and disguise tradeBeneficiary!

Our position: at minimal costs intermediaries can prevent

and repressAND protect themselves against claims

Why involve 'third parties'

Number of incidents is too numerous/costly to manage for rights owners and LEAFacilitating and disguising illegal trade should be discouragedThey are the first line of contact with the infringer and in a good position to tackle the problemNot to impose costs but to create fair competition!

Whom to address1. Landlords: offering facilities for retail

traders2. ISP's: providing a platform for sales of

counterfeit goods3. Carriers: shipping fake goods

crossboardersWe ultimately want them to:

- surrender the counterfeits for destruction

- allow the removal from the Internet of the counterfeit offers;

- suspend market retailers from the markets

- disclose the supply chain

Goal and ways

Goal: Create a shared responsibility to protect

consumer and to safeguard a fair economy, and hence, reduce outlets of counterfeiting

Ways:changing their trade conditions with their

clientsDemand for law changes, clarifying the shared

responsibilityInitiating test cases

Freight conditions “principal shall pay all costs arising from a border

detention of counterfeit goods; in such cases the carrier is entitled to abandon the goods for destruction, if the principal does not explicitly objects”

Advantages

– No costly and lengthy proceedings– Reduced storage costs– Immediate access to supplier– Carrier covered against claims– Preventive measure

International lawTRIPS: 41“without compensation of any sorts, disposd

outside the channels of commerce in such a way as to avoid any harm caused to the rights holder”

Presently too often rights holders requested to bear expenses third parties

Carriers better positioned to waive burden on infringer

International transport rules do not stand in the way of this fair practice!!

Test cases REACTCarriers: REACT-China Shipping; Rotterdam

district Court 22.08.06:“demurrage costs have to be paid by principal of

carrier, who should be referred to by the carrier and not rights holder”

(recent case BGH: 17.09.09; an inactive forwarder/shipper may be held liable)

All in line with case law developments IPS's and to a lesser extent landlords

Lobby activitiesSNB-REACT approached

UNECE; governing body of transport treaties

European Union: Amend border regulation 1383/2003

Conclusion– We demand first of all cooperation of third partiesIn rights owners, government's and their own interestBy simple modification of trade conditions– If needed, cooperation from authorities, lawmakers to assist in creating a shared responsibility to fight the counterfeiting problem– This approach will be much more effective than stronger penalties or more LEA

NO room for ignorance

Thank you for your attention• Ronald Brohm• rbrohm@snbreact.org• +31206406363• www.snbreact.org