Consultation announcement regarding possible legislation on the incorporation of counterfeit deterrence technology in products capable of handling digital images

(2003/C 255/13)

In the context of protecting euro banknotes against counterfeiting the European Central Bank (ECB) invites manufacturers based in the European Union (EU) and importers or distributors of products capable of handling digital images (hereinafter "the industry") to submit comments in connection with the ECB's request to the Commission of the European Communities to initiate legislation making it mandatory to incorporate counterfeit deterrence technology into such products. Such legislation would apply to products produced, imported or distributed in the EU. Any individual, organisation or group of organisations may submit comments.

Counterfeit deterrence

The ECB, in partnership with a number of major banknote issuing authorities, has formed the Central Bank Counterfeit Deterrence Group (CBCDG) to address the threat to paper currency posed by the increasing use of personal computers, inkjet printers, scanners, digital imaging tools and other products capable of handling digital images. The CBCDG, which was established by the Governors of the central banks of the G-10, seeks to engage the industry in developing and implementing technologies that will prevent the digital reproduction of banknote images. To further this goal the ECB and other central bank members of the CBCDG have begun soliciting support from the industry for the incorporation of counterfeit deterrence technologies in software and hardware products.

The initiatives

The CBCDG has developed counterfeit deterrence technology which is currently available for use by equipment or software manufacturers free of charge. A number of international companies have already started to incorporate this technology into their products on a voluntary basis. However, given the size of this market segment, concluding separate agreements with all of the undertakings concerned is not considered a workable option.

As a result, the possibility of enacting appropriate Community legislation is under consideration. Such legislation would require any equipment, software or other products manufactured, imported, distributed or sold within the EU that is capable of capturing images or transferring images into, or out of, computer systems or of manipulating or producing digital images for the purposes of counterfeiting, to incorporate counterfeit deterrence technology.

Any individual, organisation or group of organisations that could be affected by such legislation is invited to submit comments on, inter alia, the possible impact of such legislation on the following:

(1) products;

(2) costs;

(3) competitive position both inside and outside the EU;

(4) market share; and

(5) future business developments.

Comments in English or in the relevant Community language are invited from all interested parties by 19 December 2003, either by e-mail to cac@ecb.int or by registered post to: Counterfeit Analysis Centre European Central Bank Kaiserstraße 29 D - 60311 Frankfurt am Main.

Subject to the level and nature of the response briefing seminars may be held.

The ECB may publish submitted comments, except for any parts identified by the submitter as confidential, and use them in the context of the abovementioned seminars or in discussions with the Community legislator.

Further information on the fight against counterfeiting of the euro can be found at:

http://www.europa.eu.int/comm/ anti_fraud/pages_euro/index_en.html

or

http://www.euro.ecb.int