RESTRICTED
WORLD TRADE IP/C/W/87
6November 1997
ORGANIZATION(97-4858)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
REVIEW OFLEGISLATION ONENFORCEMENT
Replies from theEuropean Communities andtheirMember States
toquestions from Hong Kong China1andJapan2
Thefollowing communication, dated 3November 1997, hasbeenreceived fromtheEuropean
Communities andtheirMember States.
_______________
REPLY TOQUESTION POSED BYHONG KONG CHINA
1. TheEuropeanUnionCouncil(EC)Regulation(theRegulation)onlycontainsmeasurestoprohibit
therelease forfreecirculation, import orexport ofcounterfeit/pirated goods inMember States. In
order toprovide sufficient andunified criminal legislation toMember States, willtheEuropean
Community plantointroduce criminal lawsrelating toIPRintotheRegulation?
Article 11ofRegulation No3295/94 provides thattheMember States havetointroduce penalties
toapply intheevent ofinfringements relating toIPRs covered byRegulation No.3295/94. Such
penalties must besufficiently severe toencourage compliance withtherelevant provisions.
REPLIES TOQUESTIONS POSED BYJAPAN
1. Please indicate the"competent authorities" stipulated inArticle 51oftheTRIPS Agreement.
Article 3ofCouncil Regulation No3295/94 of22December 1994provides thatineachMember
State, thecompetent authority toreceive applications foraction mustbeacustoms authority (designated
bytheMember State itself).
2. Please explain whether "proceedings leading toadecision onthemerits ofthecase" stipulated
inArticle 55oftheTRIPS Agreement, arejudicial oradministrative.
Theprovisions governing the"proceedings leading toadecision onthemerits ofthecase"
varyaccording totheMember States. These proceedings maybejudicial oradministrative.
1Document IP/C/W/81 .
2Document IP/C/W/82.IP/C/W/87
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3. Arethere anyways other thantheapplication stipulated inArticles 51and52oftheTRIPS
Agreement (hereafter referred toas"theApplication") which enable aright holder torequest the
competent authorities tosuspend therelease ofthegoods which infringe IPRsorwhich aresuspected
toinfringe IPRs?
There arenoother ways intheCommunity Regulation which enable arightholder torequest
thecompetent authorities tosuspend therelease ofthegoods which infringe IPRsorwhich aresuspected
toinfringe IPRs.
4. Please explain what termyourcountry regards as"areasonable period within which the
competent authorities shall inform theapplicant whether ornottheyhaveaccepted theApplication"
stipulated inArticle 52oftheTRIPS Agreement.
TheCouncil Regulation doesnotprovide foranyprecise period. Theonlyprovision which
deals withthisquestion (Article 3(5))stipulates thatthecompetent authority shallforthwith (emphasis
added) notify theapplicant inwriting ofitsdecision.
5. Please explain thetermduring which theApplication iseffective.
Itdepends ontheMember State. Twoyears renewable inGermany andAustria; oneyear
renewable inSpain andFrance; oneyearinSweden; sixmonths renewable inLuxembourg and
Portugal; sixmonths renewable onceinBelgium; sixmonths inItaly; three months renewable in
Greece; three months renewable onceinDenmark; three months inIreland; casebycasebasis in
theNetherlands, Finland andtheUnited Kingdom.
6. Please explain whether aright holder isobliged topayanyfeestolodge theApplication.
Itdepends ontheMember State. Theapplicant maybecharged afeeincertain Member States
(Denmark,Germany,Greece,Ireland,Austria,Portugal,SwedenandtheUnitedKingdom).Theamount
ofthefeevaries according totheMember State concerned.
7. Please indicate provisions oflawsandordinances which prescribe the"proceedings leading
toadecision onthemerits ofthecase" stipulated inArticle 55oftheTRIPS Agreement. Andplease
summarize theircontents.
Seereply toquestion 2.
8. Please explain thespecific procedure, ifany,tobeapplied tothegoods which arenotevident
whether ornottheyinfringe IPRs, inArticle 55oftheTRIPS Agreement.
Seereply toquestion 2.
9. Please explain theresponsibility thatthecompetent authorities andother related authorities
taketotherightholders whentheyfailtosuspend therelease intofreecirculation ofgoods which infringe
IPRs withregard tothesuspension based ontheApplication ortheExOfficio Action stipulated in
Article 58oftheTRIPS Agreement.
Therulesgoverning theresponsibility thatthecompetent authorities andotherrelated authorities
taketotheright holders varyaccording toMember States. Theapplicable provisions arethose of
theMember State where theapplication hasbeenmade (Article 9(1)ofRegulation No3295/94).IP/C/W/87
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10. Please explain theresponsibility thatthecompetent authorities andother related authorities
taketotherightholders when theyexamine goods which infringe IPRsandnevertheless release them
intofreecirculation withregard tothesuspension based ontheApplication ortheExOfficio Action
stipulated inArticle 58oftheTRIPS Agreement.
Seereply toquestion 9.
11. Please explain theresponsibility thatthecompetent authorities andother related authorities
taketotheimporters when theysuspend therelease intofreecirculation ofgoods which donotinfringe
IPRs withregard tothesuspension based ontheApplication ortheExOfficio Action stipulated in
Article 58oftheTRIPS Agreement.
Therulesgoverningtheresponsibilitythatthecompetentauthoritiesandotherrelatedauthorities
taketoimporters varyaccording toMember States. Theapplicable provisions arethose oftheMember
State where theapplication hasbeenmade (Article 9(2)ofRegulation No3295/94).
12. Istherightholder informed ofidentities oftheimporters andconsignors when thecompetent
authorities "suspend" thegoods which infringe onIPRsorwhich aresuspected toinfringe IPRs, as
wellasthecasewhere therightholder isinformed ofidentities oftheimporters andconsignors stipulated
inArticle 57oftheTRIPS Agreement?
Thefirstsubparagraph ofArticle 6(1)ofRegulation No3295/94 provides thatthecompetent
authority shallnotify theholder oftheright, athisrequest, thename andaddress ofthedeclarant and,
ifknown, those oftheconsignee soastoenable therightholder toaskthecompetent authorities to
takeasubstantive decision. However, thisissubject totheapplication ofnational provisions onthe
protection ofpersonal data, commercial andindustrial secrecy andprofessional andadministrative
confidentiality.
13. Please explain themeasures toprotect confidential information inthecourse oftheinspection
stipulated inArticle 57oftheTRIPS Agreement. Andplease indicate provisions oflawsandordinances
which prescribe suchmeasures.
Regulation No3295/94 doesnotlaydown anyruleinthisrespect. Thismatter isdealtwith
byMember States.
14. Please explain theprocedures ofdetentions andseizures tobeordered bythecompetent
authorities based onArticles 51and55oftheTRIPS Agreement.
Thistechnical matter isdealtwithbyMember States.
15. Please explain theprocedures toappeal against anydecisions ordered bythecompetent
authorities based onArticles 51and55oftheTRIPS Agreement.
Thismatter isdealtwithbyMember States.
16. Please explain thebasis forcalculating thesecurity orequivalent assurance stipulated in
Article 53oftheTRIPS Agreement thatthecompetent authorities mayrequire anapplicant when they
suspend therelease intofreecirculation.
According toArticle 3(6)ofRegulation No3295/94, theMember States mayrequire theright
holder toprovide asecurity. Thissecurity istocover anyliability onthepartofthecompetent
authorities vis-à-vis thepersons involved inanimport orexport operation where theprocedureIP/C/W/87
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(suspension ordetention ofthegoods) initiated isdiscontinued owing toanactoromission bytheright
holder orwhere thegoods inquestion aresubsequently found nottobecounterfeit orpirated. This
security isalsotoensure thepayment ofthecostsincurred inkeeping thegoods under customs control
(suspension ordetention). Therules governing thecalculation oftheamount ofthesecurity vary
according toMember States.
17. Please explain whoshallpaythecostofdetentions based onArticle 51oftheTRIPS Agreement
ordestruction stipulated inArticle 59oftheTRIPS Agreement.
Thecalculation oftheamount ofthedetention costs orthedestruction costs aswellasthe
determination oftheperson liable aredealtwithbyMember States. Forexample, depending onthe
Member State, thedestruction costs maybeattributed totheimporter, therightholder ortheState
itself. Sometimes, thenational judge isthecompetent authority todecide.
18. Please explain whatkindofcases areregarded as"theexceptional circumstances" inwhich
thecompetentauthoritiesmayallowre-exportationofcounterfeittrademarkgoodsstipulatedinArticle59
oftheTRIPS Agreement.
Under Regulation No3295/94, there-export ofgoods, intheunaltered state, found tobe
counterfeit orpirated, isnever possible.
19. Arethereanyprocedures tolodge theApplication which isvalidinallEUMembers withregard
tothesuspension oftherelease intofreecirculation ofgoods which infringe IPRs bythecustoms
authorities? Ifany,please explain theprocedures.
There doesnotexistatthemoment intheCommunity anyprocedure which would allow the
lodging ofanapplication validinallEUMembers. However, concerning theCommunity trademark,
theCommission iscurrently considering thecreation ofasimpler procedure (single application for
action) applicable inallorseveral Member States depending ontherequest oftheholder ofthe
Community trade mark.