Brussels, 30/01/2003 (Agence Europe) - On Thursday the European Commission presented a proposal for a Directive on the enforcement of intellectual property rights. The directive aims to establish common standards and punish fraud by carrying out "best practices in Member States". These common principles will only apply to infringements committed in the trade arena or infringements hat cause significant harm to right holders. They do not envisage measures that would be more favourable to right holders than the measures already contained in Community and national legislation.
Going beyond the multilateral agreements on intellectual property rights (TRIPS), the new directive intends to introduce the following new measures: 1) the possibility for management funds and professional associations to directly represent right holders in court, provisions that already exist in French and Belgian consumer protection codes; 2) The notion of a lump sum for damages equivalent to double the licence fee (to cover for administrative expenses such as those caused by research and identification) exists in very few Member States, for example Greece, Ireland, Austria and the UK. 3) Compensation to the right holder for loss of profits does not exist in, for example Netherlands, Spain and UK; 4) a right to judicial disclosure of information on origins of products and distribution networks which applies in several Member States (United Kingdom, Netherlands and, Belgium, Germany, Denmark and Luxembourg.
The draft directive sales takes into account the defences rights, in the measures that it abides by the principles of TRIPS and grants rights for damages when a company is caused wrongly of fraud or suffers from temporary measures put in place by the legal system.
After having presented the text for strengthening the mean of the customs authorities for fighting against counterfeit imports (see EUROPE 21 January p 11) into the European Union. At the same time it is continuing its reflection on the penal aspect of the fight against counterfeit in the framework of the Forum bringing together representative from companies, the legal system, police and justice and customs.
"The development of counterfeiting and piracy is increasing affecting companies, society and public administrations, stressed the Commission in its communiqué. It points out that a study on the impact of counterfeiting in Europe published in June 200 by the Global Anti-Counterfeiting Group estimated losses at more than 17,000 jobs every year. VAT losses for EU governments rose to EUR 100 million. The problem is particularly worrying in certain sectors of the economy, information technology where 37% of software use is pirated - a loss f 2.9 million Eurasia for industry. Counterfeit products represented around 25% of audio-visual sales, 22% for shoes and clothes and 12% for toys. The Commission also stresses in its Communication that pharmaceutical; food and car products fraudulently produced threatened consumer safety.
Fritz Bolkestein stressed in the communication that these looses hindered industrial innovation and cultural creativity putting in peril a European competitiveness. In drawing attention to the Parliament and Council he said that the efficiency of our defence means against piracy would depend on the speed in which we put this provision into place.