WRITTEN QUESTION E-0113/99

by José Barros Moura (PSE) to the Commission

(2 February 1999)

Subject: Measures to prevent counterfeiting in the footwear industry

The counterfeit goods business is thriving on the single European market and as a result of world-wide trade liberalisation.

Trade mark owners may accordingly decide to terminate contracts with factories manufacturing the genuine article in order to isolate manufacturers involved in counterfeiting in the same country or region. In some cases such decisions naturally have adverse effects on employment, as can be seen in the footwear industry and the municipality of Felgueiras in particular.

The Portuguese Press has recently reported a problem of this type concerning the multinational company Kickers (which provides work for some 16 factories and 2 500 people in Felgueiras, generating a turnover of approximately ESC 15 billion). The danger is that the innocent will be punished instead of the guilty.

Since the steps being taken by national authorities are proving insufficient to prevent and punish counterfeiting, what action could the Commission and the EU take, not least with a view to safeguarding legal business activity and employment?

Answer by Mr Monti On behalf of the Commission

(30 March 1999)

The Commission shares the honourable Member's concern with regard to safeguarding employment. Combating counterfeiting helps to safeguards jobs. Indeed, counterfeiting has adverse economic and social consequences for firms as well as for the economy. The number of jobs lost as a result of counterfeiting is estimated to be at least 100 000 a year for the Community. Innovative and creative firms are the first to be affected by this phenomenon. The reaction of trade mark owners can take a variety of forms. The Commission is not in a position to comment on how effective they are.

In order to measure the economic impact of counterfeiting in the internal market, examine legislation in this area and suggest possible solutions that may be implemented to improve the fight against this phenomenon, the Commission on 15 October 1998 adopted a green paper on combating counterfeiting and piracy in the single market(1). The publication of this green paper marked the starting point of a wide-ranging consultation of all those concerned, which has not yet been completed. In connection with this consultation, the Commission and the German Presidency of the Council jointly organised a meeting in Munich on 2-3 March 1999 to hear the views of those concerned. More than 250 participants were able to voice their concern on the matter.

As for the initiatives that the Commission might take at the end of this consultation, it is too early at this stage to provide the honourable Member with any precise answer. However, the Commission does not exclude in principle any form of action or favour any method of combating counterfeiting in relation to any other. In view of the great variety of methods mentioned in the green paper, any measures that the Commission might be prompted to take would not necessarily be limited to legislative measures but could also comprise actions for the financial support of activities to combat counterfeiting, organisational or administrative actions or even incentive or facilitation measures.

(1) COM(98) 569 final.