Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee - Enhancing the enforcement of intellectual property rights in the internal market
Date: 2009-09-11
Institutions: European Commission
Subjects: Internet, approximation of laws, audiovisual industry, audiovisual piracy, computer piracy, copyright, free movement of goods, industrial counterfeiting, information system, intellectual property

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 11.9.2009 
COM(2009) 467 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT AND THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE 

Enhancing the enforcement of intellectual property rights in the internal market 

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TABLE OF CONTENTS 

1. 

2. 

2.1. 

Enforcing Intellectual Property Rights: turning a long-term commitment into action 3 

Understanding the challenges and reducing the risks: an EU Counterfeiting and 
Piracy Observatory....................................................................................................... 5 

Supporting IPR enforcement through comprehensive information and sharing of best 
practices........................................................................................................................ 6 

2.2. 

Shaping the Observatory as a platform for stakeholders and Member States.............. 7 

3. 

3.1. 

3.2. 

4. 

4.1. 

4.2. 

4.3. 

5. 

Fostering administrative cooperation across Europe ................................................... 8 

Increasing the transparency of national structures and systems................................... 8 

Promoting cross-border cooperation through modern information-sharing tools........ 9 

Building coalitions: facilitating voluntary arrangements between stakeholders.......... 9 

Focusing on common ground amongst stakeholders ................................................... 9 

Combating IPR infringements through Stakeholders' Dialogues .............................. 10 

Tackling the sale of counterfeit goods over the internet ............................................ 10 

Conclusions ................................................................................................................ 11 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT AND THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE 

Enhancing the enforcement of intellectual property rights in the internal market 

1. 

ENFORCING  INTELLECTUAL  PROPERTY  RIGHTS:  TURNING  A  LONG-TERM 
COMMITMENT INTO ACTION 

In today’s knowledge-based society intellectual property rights (IPR) are vital business assets, 
encouraging  innovation  and  creativity  by  ensuring  a  fair  return  on  investment.  IPR  play  an 
increasingly important role, fostering economic growth by protecting and enabling inventors, 
designers and artists to benefit from the commercial value of their creations. This results in an 
essential cycle of business development, knowledge and further innovation. Moreover, trade 
marks  in  particular  can  have  a  beneficial  effect  on  consumers,  in  many  cases  signifying 
quality  and  a  reassurance  that  the  products  and  services  they  buy  are  legitimate,  safe  and 
reliable. 

The  EU  is  home  to  some  of  the  largest  and  most  successful  businesses  in  the  world,  who 
consider IPR to be amongst their most precious commercial possessions. However, within the 
Single Market IPR are equally important to small and medium-sized enterprises (SMEs), who 
use  them  to  protect  their  intangible  assets  and  to  gain  access  to  vital  ‘start-up’  finance  and 
venture capital. It is essential that the European Union continues to support this environment 
through a high-standard intellectual property culture that protects and creates opportunities for 
vital European talent. 

The growing value of IPR is an indicator of success. However, it also makes them attractive 
to counterfeiters and pirates, who are often well financed and have become organised, highly 
skilled  entrepreneurs  operating  on  an  industrial  scale.  These  infringers  make  full  use  of 
advances  in  technology  and  trade,  adopting  modern  business  models  to  control  the 
production, distribution and sale of illicit goods across borders and continents. The internet is 
one such tool that is being used to drive a worldwide market in infringing products, which is 
stifling innovation and threatening jobs. 

In  Europe,  counterfeiting  and  piracy1  have  a  dramatic  and  damaging  effect  on  business  and 
they  have  the  potential  to  become  even  more  problematical  due  to  the  recent  economic 
downturn  and  the  growing  range  of  fake  products  being  sold.  While  luxury  goods,  fashion, 
music  and  film  products  have  traditionally  been  targeted,  today  counterfeiting  and  piracy 
affect  a  wider  variety  of  mass  consumption  goods  such  as  foodstuffs,  cosmetics,  hygiene 
products,  spare  parts  for  cars,  toys  and  various  types  of  technical  or  electrical  equipment2. 

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In  this  Communication,  the  term  "counterfeiting  and  piracy"  should  be  understood  as  covering  the 
infringement  of  all  intellectual  property  rights  as  referred  to  in  the  Statement  by  the  Commission 
concerning Article 2 of Directive 2004/48/EC; OJ L 94, 13.4.2005, p. 37. 
The latest Commission Community Customs Report warns that the threat to consumer health and safety 
is  increasing  dramatically,  with  the  seizure  of  items  more  than  doubling  in  2008  to  178  million,  of 
which about 20 million potentially dangerous to health and safety of EU citizens, or 11% of all items 
intercepted; IP/09/1106 of 9.7.2009. 

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This  has  resulted  in  risks  to  the  health  and  safety  of  European  citizens.  In  particular,  the 
increase in fake medicines3 is of growing concern4. The Commission has implemented a legal 
framework within the Single Market that provides the tools to enforce IPR in a fair, effective 
and proportionate way. The IPR Enforcement Directive5 is one of the cornerstones of this. It 
has harmonised the laws of Member States with regard to civil measures for the enforcement 
of all IPR and a proposal on criminal sanctions is currently under discussion in the Council6. 

The EU Customs Regulation, which allows for the detention of goods suspected of infringing 
IPR,  is  another  pillar  of  the  legal  framework7.  The  Commission  is  currently  consulting 
Member States and stakeholders on how this Regulation can be further improved. 

With  a  principal  body  of  laws  in  place,  the  Commission  now  proposes  to  supplement  the 
line  with 
regulatory 
Competitiveness  Council  Resolution  of  25  September  2008  on  a  comprehensive  European 
anti-counterfeiting and piracy-plan. 

framework  with  complementary  non-legislative  measures, 

in 

In  this  respect  support  for  small  and  medium-sized  enterprises  (SMEs)  is  imperative.  A 
survey carried out on behalf of the Commission in 2007 confirmed that infringements of IPR 
create major problems for European SMEs, many of which lack the resources and finances to 
pursue infringers8. The Commission has therefore focused on increasing support in this area, 
reflecting the strong emphasis being placed on IPR and knowledge management since the re-
launch of the Lisbon Strategy in 2005. In April 2009, the final report of the advisory expert 
group,  set  up  by  the  Commission,  provided  recommendations  on  the  assistance  required  by 
SMEs9. In line with the findings of the report, the Commission is continuing with a number of 
related projects to help SMEs integrate IPR into their innovation strategies and business plans. 

At  global  level  the  Commission  has  developed  a  long-term  strategy  for  the  enforcement  of 
IPR  in  third  countries10.  In  the  framework  of  this  strategy,  a  list  of  "priority  countries"  has 
been put together and this is regularly updated11. Other major initiatives concern negotiations 
on  an  Anti-Counterfeiting  Trade  Agreement  (ACTA)  and  an  EU-China  Action  Plan  to 
increase  customs  cooperation  on  protecting  IPR.  In  addition  to  this,  the  Commission  has 
launched its China IPR SME Helpdesk. This provides SMEs with the business tools they need 
to develop their IP rights and manage related risks. 

Consolidating public and private sector partnerships is also imperative. In May 2008, a High 
Level Conference on Counterfeiting and Piracy was organised, together with Members of the 
European Parliament, to launch a sustainable EU strategy for a more participative approach12. 
The  Conference  was  followed  by  the  Commission’s  Industrial  Property  Rights  Strategy  for 

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See http://www.ip-talk.eu/?p=607 ‘Medi-Fake’ action results (February 2009) – over 34 million illegal 
medicines seized. 
http://www.interpol.int/Public/ICPO/PressReleases/PR2008/PR200865.asp and http://www.icc-
ccs.co.uk/bascap/article.php?articleid=780. 
Directive 2004/48/EC of 29.4.2004; OJ L157, 30.4.2004, p. 16. 
COM(2006)168 of 26.4.2006. 
Council Regulation (EC) No 1383/2003 of 22.7.2003; OJ L196, 2.8.2003, p. 7. 
Technopolis, ‘Effects of counterfeiting on EU SMEs‘. 
http://ec.europa.eu/enterprise/enterprise_policy/industry/doc/Counterfeiting_Main%20Report_Final.pdf 
http://ec.europa.eu/enterprise/enterprise_policy/industry/ipr_report.htm. 
COM(2004)749 of 8.11.2004; OJ C 129, 26.5.2005, p.3. 
http://ec.europa.eu/trade/issues/sectoral/intell_property/ipr_epc_countries_en.htm 
Press release IP/08/652. 

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Europe13  and  the  adoption  of  the  Competitiveness  Council  Resolution  on  a  comprehensive 
European anti-counterfeiting and anti-piracy plan14. The Council’s conclusions confirmed the 
need  to  make  IPR  enforcement  work  better  within  the  Single  Market  by  complementing 
legislation  with  a  range  of  non-legislative  measures.  It  also  called  on  the  Commission  to 
continue to focus firmly on border controls in the form of an anti-counterfeiting customs plan 
for  2009-2012.  This  plan  has  been  developed  by  the  Commission  in  conjunction  with  the 
Member States 15. 

2. 

UNDERSTANDING  THE  CHALLENGES  AND  REDUCING  THE  RISKS:  AN  EU 
COUNTERFEITING AND PIRACY OBSERVATORY 

The broad facts about the widespread damage caused by infringements of IP rights are well 
documented.  However,  comprehensive  information  to  help  develop  priorities  and  target 
enforcement  more  effectively,  and  thus  pave  the  way  for  better  collaboration  and  evidence-
based policies, has been more difficult to assemble. 

In  2006,  a  report  by  the  OECD16  reflected  that  one  of  the  biggest  challenges  facing 
governments  and  business  is  getting  reliable  and  up-to-date  information  on  the  extent  of 
counterfeiting  and  piracy  and  the  impact  on  our  economies  and  society,  including 
employment  in  Europe.  Despite  work  carried  out  in  some  sectors  to  analyse  the  scope  and 
scale of the problem the figures use different methods and sources, with the resulting lack of 
comparative data. 

Moreover, a wide range of information is held by national enforcement bodies, European and 
national IP offices and assorted professional business organisations. This data is often difficult 
to  assimilate.  One  of  the  more  robust  sources  of  information  available  is  published  by  the 
Commission  and  is  based  on  annual  customs  detentions  at  EU  borders17.  However,  border 
detentions only show part of the picture, since they only relate to goods entering or leaving 
the  EU  territory.  It  is  necessary  to  widen  the  overall  knowledge  base  to  fully  assess  the 
economic and societal implications of counterfeiting and piracy and to understand why some 
products,  sectors  and  geographical  areas  within  the  EU  are  more  vulnerable  than  others. 
Comprehensive  and  comparable  data  will  also  help  to  establish  agreed  priorities  and 
programmes, targets for enforcement and more focused consumer awareness campaigns. 

To  achieve  this,  the  Competitiveness  Council  advocated  the  creation  of  the  European 
Counterfeiting  and  Piracy  Observatory  as  the  principal  EU  instrument  to  ‘enable  regular 
assessments, on the basis of the data which the public and private sectors wish to provide, of 
the extent of counterfeiting and piracy and a more precise analysis of these phenomena’18. 

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COM(2008)465 of 16.7.2008. 
Council Resolution of 25.9.2008, OJ C 253, 4.10.2008, p. 1. 
OJ C 71 of 25.3.2009, p. 1. 
OECD; ‘The Economic Impact of Counterfeiting and Piracy’ (2006); 
http://www.oecd.org/sti/counterfeiting. 
Report  on  EU  Customs  enforcement  of  intellectual  property  rights;  results  at  the  European  border  – 
2008; http://ec.europa.eu/taxation_customs/. 
Supra note 14, point 15. 

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2.1. 

Supporting  IPR  enforcement  through  comprehensive  information  and  sharing 
of best practices 

The  Commission  is  now  establishing  an  Observatory  to  serve  as  the  central  resource  for 
gathering,  monitoring  and  reporting  information  and  data  related  to  all  IPR  infringements. 
However,  the  Observatory  should  play  a  much  wider  role,  becoming  the  platform  for 
representatives from national authorities and stakeholders to exchange ideas and expertise on 
best  practices,  to  develop  joint  enforcement  strategies  and  to  make  recommendations  to 
policy-makers. 

Ensuring that the Observatory becomes the pan-European source of knowledge and a central 
resource  for  stakeholders  and  public  authorities  engaged  in  IPR  enforcement  activities  will 
require  close  collaboration  between  the  Commission,  the  Member  Sates  and  the  private 
sector.  The  aim  therefore  is  to  involve  public  and  private  representatives  from  across  the 
European  Union  and  to  bring  them  together  in  partnership  with  consumers  to  cultivate  a 
broader  understanding  of  the  problems.  This  will  facilitate  the  development  of  practical 
solutions,  more  focused  awareness  raising  strategies  and  more  collaborative  action.  An 
important  deliverable  would  be  a  publicly  available  Annual  Report,  presented  by  the 
Commission and providing specific information on core work areas. 

In particular, the Observatory will: 

•  improve the collection and use of independent, reliable information and data; 

– 

– 

– 

– 

developing  a  benchmark  methodology  for  the  collection,  analysis  and 
reporting of independent data relating to IPR infringements ensuring that 
the information is aggregated objectively and in a balanced manner; 

carrying  out  detailed  analyses  and  providing  regular  assessments  of  the 
economic and societal implications, including the impact on innovation, 
involvement  of 
competitiveness  and  employment 
organised crime and risks to the health and safety of European citizens; 

in  Europe, 

the 

using  comprehensive  data 
from  public  authorities  and  private 
organisations to assess the strengths and weaknesses of IPR enforcement 
throughout the Internal Market; 

providing  regular  and  specific  reports  to  identify  vulnerabilities  within 
the Internal Market, to highlight the threats and challenges and to drive 
evidence-based  enforcement  strategies.  The  publicly  available  reports 
will  provide  a  solid  knowledge  base,  and  will  become  central  tools  in 
setting priorities and measuring progress; 

•  promote and spread best practice amongst public authorities; 

– 

– 

identifying  and  assessing  IPR  enforcement  coordination  in  the  Member 
States; 

promoting  and  spreading  best  practice  in  particular  through  innovative 
and  successful  cooperation  initiatives  between  different  enforcement 
authorities as well as other relevant national authorities; 

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– 

– 

– 

identifying  and  documenting  enforcement  training  programmes  carried 
out in different Member States and spreading best practice; 

encouraging  that  publicly  funded  projects  fully  respect  intellectual 
property rights; 

fostering public and private sector cooperation, in particular with respect 
to awareness-raising and the training of enforcement agencies; 

•  spread successful private sector strategies; 

– 

– 

– 

– 

– 

identifying  and  assessing  successful  anti-counterfeiting  and  piracy 
strategies and action undertaken by the private sector and spreading best 
practice; 

reaching  out  to  a  wide  range  of  stakeholders  in  the  distribution  chain, 
such  as  organisers  of  trade  fairs,  transport  and  logistics  companies  and 
payment service providers;  

encouraging efforts to enhance the quality of intellectual property rights 
in order to enable effective enforcement; 

identifying successful public awareness campaigns, developing strategies 
and  initiatives  and  spreading  best  practice  throughout  economic  sectors 
and across national borders; 

exploring  how  awareness  and  education  about  IPR  can  be  promoted 
among young people; 

•  identify, report and propose solutions to key problems; 

– 

assessing  and  highlighting  problems  in  specific  geographical  areas  and 
specific  sectors  and  delivering  recommendations  to  policy-makers, 
enforcement agencies and stakeholders. 

2.2. 

Shaping the Observatory as a platform for stakeholders and Member States 

In  its  Resolution  the  Council  suggested  that  the  Observatory  should  be  based  on  existing 
Commission structures, which should be light and flexible and, where necessary, make use of 
external  expertise.  Therefore,  the  Commission  will  provide  the  central  administrative 
resource. However, Member States’ representatives and stakeholders will play an integral part 
in the work of the Observatory and the achievement of its objectives. 

Member  States  will  be  asked  to  appoint  a  national  representative  and  the  participation  of 
stakeholders will need to reflect a broad range of European and national bodies, representing 
the different economic sectors most concerned by and most experienced in the fight against 
counterfeiting  and  piracy.  European  consumers  also  need  to  be  properly  represented  and 
invited to play an active role. In this way the Observatory could help consumers to become 
active  and  responsible  partners.  In  addition,  particular  attention  needs  to  be  given  to  the 
representation of SMEs. 

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3. 

FOSTERING ADMINISTRATIVE COOPERATION ACROSS EUROPE 

Administrative  cooperation  between  different  enforcement  authorities  needs  to  be  improved 
to  ensure  consistent  and  efficient  IPR  enforcement  across  the  Internal  Market.  Due  to  the 
international nature of IPR infringements, improving internal cross-frontier cooperation is not 
only  a  legislative  obligation,  it  is  a  clear  necessity,  and  while  administrative  cooperation 
already  operates  in  the  area  of  Customs  it  is  clearly  lacking  in  other  areas  and  needs  to  be 
developed19. 

Greater administrative cooperation in the field of IPR enforcement should also be seen in the 
wider  context  of  a  partnership  between  the  Commission  and  the  Member  States  in 
implementing  a  borderless  internal  market20.  To  this  end,  an  efficient  network  of  contact 
points across the European Union is essential to promote rapid exchanges of information on 
suspect  products,  manufacturing  sites,  distribution  routes  and  key  sales  points.  This  will 
generate synergy, which in turn will help to coordinate national policies and to provide mutual 
assistance. 

Developing  better  coordination  is  also  necessary  within  Member  States  between  those 
involved  in  the  enforcement  of  IPR.  To  ensure  more  effective  exchanges  of  information, 
national authorities must be in regular contact with each other and with relevant private sector 
bodies.  Therefore,  Member  States  are  called  upon  to  appoint  National  Coordinators  with  a 
firm  mandate  to  synchronise  IPR  enforcement  issues  between  their  respective  national 
enforcement  agencies.  These  National  Coordinators  should  be  directly  linked  through  a 
central  system  and  should  act  as  pivotal  contact  points  for  industry  bodies,  liaising  with 
stakeholders and facilitating cross-frontier collaboration. 

As the national centres of IPR expertise, National IP Offices have an important contribution to 
make.  They  could  play  a  valuable  role  in  building  platforms  and  strategies  to  drive 
coordinated  approaches  and  spreading  best  practices.  This  role  could  be  extended  to  new 
functions  such  as  awareness-raising,  specific  support  for  SMEs  and  coordination.  Other 
international IP focal points, such as the European Patent Office, may also wish to reach out 
with  their  expertise  and  best  practices.  Moreover,  in  respect  of  trade  marks  and  designs, 
cooperation  between  the  OHIM  and  the  national  offices  could  be  further  extended  to  cover 
EU cooperation and future enforcement programmes and action. 

3.1. 

Increasing the transparency of national structures and systems 

Transparency needs to be improved in respect of the national structures to provide support to 
stakeholders at cross-border levels, particularly SMEs. Following a comprehensive round of 
consultation,  in  which  all  Member  States  have  participated  and  produced  information,  the 
Commission  is  currently  analysing  the  structures  that  Member  States  have  put  in  place  to 
combat IPR infringements. This will result in a report that will map existing frameworks and 
strategies  and  provide  best  practice  indicators.  The  report  will  be  presented  at  meetings  of 
stakeholders  and  Member  States,  in  the  context  of  the  Observatory,  in  the  second  half  of 
2009. 

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EC Treaty, Article 10; Directive 2004/48/EC, Article 19. 
Commission  Recommendation  2009/524/EC  of  29.6.2009  on  measures  to  improve  the  functioning  of 
the single market ; OJ L 176 of 7.7.2009, p. 17. 

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3.2. 

Promoting cross-border cooperation through modern information-sharing tools 

Improving  the  exchange  of  up-to-date  information  to  promote  cross-border  cooperation  is  a 
vital need. In its Resolution the Competitiveness Council called on the Commission to set up 
a  network  for  rapid  exchange  of  key  information,  drawing  on  national  contact  points  and 
modern information-sharing tools. 

To achieve this aim an electronic network for information sharing on IPR infringements in the 
Internal  Market  will  need  to  be  available  to  a  wide  range  of  national  bodies,  including 
different enforcement agencies and national IP offices. It will need to: 

•  support  ‘real-time’  exchanges  of  information  on  goods  and  services  infringing 

IPR in the internal market; 

•  allow  the  swift  exchange  of  alerts  concerning  specific  products,  trends  and 

potential threats, and 

•  provide facilities to overcome language barriers for national authorities. 

Building  on  its  experience  with  other  Internal  Market  systems,  such  as  the  Internal  Market 
Information  Exchange  system  (IMI)21  and  the  market  surveillance  information  exchange 
system  (ICSMS)22,  the  Commission  is  currently  analysing  how  a  modern  system  could  be 
designed to respond best to users’ needs by way of an interface for essential information to be 
shared and exchanged and how it could build on existing networks, such as for example IMI. 

4. 

BUILDING  COALITIONS:  FACILITATING  VOLUNTARY  ARRANGEMENTS  BETWEEN 
STAKEHOLDERS 

4.1. 

Focusing on common ground amongst stakeholders 

The fight against counterfeiting and piracy is not only of benefit to rights owners, it is also in 
the interest of other stakeholders, such as importers, trade fair organisers, retailers, including 
e-commerce platforms. 

Counterfeiting  and  piracy  severely  damage  trust  and  confidence  in  the  trade  of  goods  and 
services, in particular on the internet or across borders. For business this can result in the loss 
of opportunities. For consumers, counterfeiting could cause a reluctance to make the best use 
of new distribution channels, or to take advantage of bargains throughout the Internal Market. 

Moreover, the wide variety of counterfeit goods which potentially affect the health and safety 
of  any  European  citizen,  such  as  fake  pharmaceuticals,  foodstuffs,  cosmetics,  hygiene 
products, electronic and technical equipment and spare parts for cars etc., demonstrate that it 
is in the common interest of all concerned to work together to fight this growing phenomenon. 

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22 

http://ec.europa.eu/idabc/en/document/5378/5970. 
http://www.icsms.org/icsms/App/index.jsp. 

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Therefore, rights holders and other stakeholders should be encouraged to exploit the potential 
of  collaborative  approaches  and  to  place  more  emphasis  on  joining  forces  to  combat 
counterfeiting  and  piracy  in  the  common  interest,  also  taking  advantage  of  possible 
alternatives to court proceedings for settling disputes. 

4.2. 

Combating IPR infringements through Stakeholders' Dialogues 

The focus on common interests should allow voluntary arrangements to be fostered between 
stakeholders  and  thus  practical  solutions  to  be  found.  Voluntary  arrangements  to  combat 
counterfeiting and piracy on the ground can give stakeholders the flexibility to adapt quickly 
to  new  technological  developments.  Moreover,  this  approach  empowers  stakeholders 
themselves  to  work  out  optimal  measures,  particularly  technological  solutions.  Voluntary 
agreements  can  also  be  more  easily  extended  beyond  the  European  Union  and  become  a 
foundation for best practice in the fight against counterfeiting and piracy at global level. 

For  voluntary  arrangements  to  be  agreed  and  implemented  it  is  vital  for  stakeholders  to 
engage in constructive dialogues, focusing on concrete problems and workable and practical 
solutions,  which  must  be  realistic,  balanced,  proportionate  and  fair  for  all  concerned.  Any 
voluntary  inter-industry  solution  has  to  be  compliant  with  the  existing  legal  framework  and 
should neither restrict in any way the fundamental rights of EU citizens, such as the freedom 
of expression and information, the right to privacy and the protection of personal data,23 nor 
impinge on legislative negotiations at EU level. The Commission offers to act as a facilitator 
for  such  stakeholder  dialogues  on  concrete  topics  by  inviting  the  parties  to  get  together,  by 
organising  meetings,  by  providing  the  administrative  and  logistical  support  and  by 
safeguarding,  where  necessary,  a  fair  balance  between  all  the  different  interests  at  stake, 
including  the  legitimate  rights  and  expectations  of  EU  citizens.  The  Commission  will 
carefully  monitor  the  development  and  functioning  of  voluntary  arrangements  and  remains 
ready to consider alternative approaches, if needed in the future. 

4.3. 

Tackling the sale of counterfeit goods over the internet 

As  a  first  example,  the  Commission  has  launched  a  stakeholders'  dialogue  on  the  sale  of 
counterfeit  goods  over  the  internet.  While  the  internet  is  not  in  itself  the  source  of 
counterfeiting,  it  has  nevertheless  become  an  important  vehicle  for  the  sale  of  fake  goods 
world-wide. Its global reach and accessibility, the possibility for traders to remain anonymous 
and  for  offers  to  be  placed  and  withdrawn  instantly  has  made  it  one  of  the  most  attractive 
tools for the sale of counterfeit goods. The enormous growth of the phenomenon makes this 
an area for priority action. It is also an area where voluntary arrangements would seem to be 
particularly  promising,  given  the  rapid  progress  of  technological  developments  and  the 
resulting need for practical technology-based solutions. 

Brand  owners  and  internet  companies  alike  have  recognised  this  and  have  committed 
themselves  to  developing  a  collaborative  way  forward.  Consequently,  the  Commission  has 
organised a structured dialogue between stakeholders to facilitate mutual understanding and to 
find solutions that will be in the interests of all concerned. A series of meetings have already 
taken place to address specific issues relating to the sale of counterfeit goods over the internet. 
Further  meetings  have  been  scheduled  before  the  end  of  the  year,  which  could  lead  to  a 

23 

Charter of Fundamental Rights of the European Union, Articles 7, 8 and 11; OJ C 303 of 14.12.2007, p. 
4. 

EN 

10 

   EN 

 
                                                 
Memorandum  of  Understanding,  dealing  with  issues  such  as  prevention,  identification  and 
removal  of  infringing  offers  (e.g.  Notice  and  Take-Down  procedures)  and  sellers  from 
internet  platforms.  However,  if  voluntary  arrangements  cannot  be  agreed,  the  Commission 
will need to consider legislative solutions, in particular in the context of the IPR Enforcement 
Directive24. 

5. 

CONCLUSIONS 

By providing  incentives to create, innovate  and  trade, intellectual property rights are one of 
the  cornerstones  of  a  competitive,  wealth-generating,  knowledge-based  society.  IPR 
infringements  cause  widespread  economic  harm  and  an  increasing  number  of  counterfeit 
products now pose a real threat to consumer health and safety. It is therefore in the interest of 
stakeholders and consumers alike to have a responsive enforcement system which is robust, 
proportionate and fair. 

The  Commission  seeks  to  ensure  this  by  complementing  the  existing  regulatory  framework 
with non-legislative measures to make for more collaborative and focused enforcement across 
the Internal Market, in particular by: 

•  supporting enforcement through an EU Counterfeiting and Piracy Observatory; 

•  fostering administrative cooperation throughout the Internal Market; 

•  facilitating voluntary arrangements between stakeholders. 

The  Commission  is  convinced  that  these  measures  will  significantly  strengthen  the  fight 
against counterfeiting and piracy, in the common interest of European citizens, business and 
the economy as a whole. 

24 

Supra note 5. 

EN 

11 

   EN