European Observatory on Infringements of Intellectual Property Rights annual report 2015.
Date: 2017-03-07
Institutions: European Union Intellectual Property Office
Subjects: European Union Intellectual Property Office, activity report, copyright, intellectual property

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF 
INTELLECTUAL PROPERTY RIGHTS

ISBN 978-92-9156-218-3
ISSN 1977-8481
doi 10.2814/11753
CAT. Nº TB-AH-16-001-EN-N   

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF 
INTELLECTUAL PROPERTY RIGHTS

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTS1 

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INTRODUCTION

THE OBSERVATORY AND THE EUIPO

IP IN THE DIGITAL WORLD

PUBLIC AWARENESS

LEGAL & INTERNATIONAL

ENFORCEMENT

ECONOMICS & STATISTICS

COOPERATION ACTIVITIES INCLUDING INTERNATIONAL COOPERATION

COMMUNICATIONS

OVERALL ASSESSMENT

CHALLENGES FOR 2016

Annex - 2015 Budget Execution

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12

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62

66

NOTE
Regulation  (EU)  2015/2424  of  the  European  Parliament  and  the  Council  amending  the  Community  trade 
mark regulation entered into force on 23 March 2016. One of the consequences is that the Office is now 
called the European Union Intellectual Property Office (EUIPO). The new name is used throughout this report, 
even though the name of the Office was OHIM during the period covered in it.

OO - ANNUAL REPORT 2015 - 05  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe European Observatory on Infringements of Intellectual Property Rights continued to develop 
during 2015, welcoming three new associations from a variety of sectors. As well as representatives 
from the 28 Member States, the Observatory network includes 61 representatives from the private 
sector,  7  organisations  representing  civil  society,  10  international  organisations,  and  10  MEPs 
designated by the European Parliament, who have been invited to take part.

The 2015 Work Programme was the second year of implementation of the 2014-2018 Multiannual 
Work Plan, which sets out the vision for the Observatory’s development and links it to the Office’s 
overall Strategic Plan.

In 2013, the first major research study was published, in partnership with the European Patent 
Office, which demonstrated the economic importance of IP rights to jobs, GDP and trade in the 
EU. The studies carried out since then have aimed to address a trilogy of themes — to quantify 
the importance of intellectual property rights (IPR) to the economy; to map what European citizens 
think and know about IPR; and to quantify the extent of IPR infringement and its consequences for 
the economy and society.

O1 - INTRODUCTION - 07  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSIn  2015,  the  second  phase  of  the  IP  Contribution  study  was  released,  consisting  of  firm-level 
research, analysing the differences between companies that use IPR and those that do not, as 
well as describing the use of IP rights among European small to medium-sized enterprises (SMEs). 
The study showed that companies that own IP rights perform better than those that do not, with 
the effect being particularly pronounced for SMEs.

Another major study from late 2013 indicated that while the vast majority of citizens value the 
importance of IP rights, there are sometimes contradictions in their behaviour, especially among 
younger people. These results were further analysed in 2015 through a qualitative and quantitative 
survey, the Youth Scoreboard, designed to deepen the analysis of European youngsters’ attitudes 
towards purchasing counterfeit goods and using illegal digital content.

08 - www.euipo.europa.eu

An important third set of studies, quantifying the economic costs of IP infringement, was begun 
in 2014 and continued in 2015. These studies aim to assess the magnitude of counterfeiting and 
piracy within the EU and are being carried out in collaboration with the Organisation for Economic 
Cooperation and Development (OECD) and the European Commission services, as well as through 
the Office’s own efforts.

An  Enforcement  database  (EDB)  and  an  Anti-Counterfeiting  Intelligence  Support  Tool  (ACIST) 
are  being  further  developed  by  the  Observatory  in  partnership  with  stakeholders,  including 
enforcement organisations and agencies, with the goal of increasing the amount of information 
they contain and encouraging greater use.

O1 - INTRODUCTION - 09  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe  EDB  helps  law  enforcement  authorities  to  recognise  counterfeit  goods  by  enabling  rights 
holders to securely share information on products and logistics with them. It also allows rights 
holders to automatically generate an application for customs action.

1 -  OJ L 299, 
27.10.2012, p. 5–12.

In addition, the Office is expanding the coverage of the Anti-Counterfeiting Intelligence Support 
Tool, which allows data on seizures that are provided by different enforcement authorities in the 
Member States to be stored, analysed and reported using a common standard.

The  Orphan  Works  database  has  been  fully  operational  since  October  2014.  It  is  a  single  EU 
database  on  orphan  works  to  be  shared  by  all  Member  States,  in  accordance  with  Directive 
2012/28/EU  of  the  European  Parliament  and  of  the  Council  of  25  October  20121.  In  2015,  the 
Office devised a strategy to encourage the use of the database as a central European repository 
of information related to orphan works, and created a stable network of stakeholders.

The Observatory is also working on best practice studies in a number of areas, and is participating 
in many important knowledge-sharing initiatives that will help to bridge the gap between the world 
of IP and enforcement officials.

On  the  wider  international  stage,  the  Office  cooperates  closely  with  the  Commission  and  EU 
enforcement agencies to ensure close alignment with broader EU policies and priorities in the 
field of IP.

In 2016 the Observatory will continue to look more deeply into the modus operandi and economic 
consequences of IP infringements. Other studies will analyse the role of trade secrets, the use of 
IP by European SMEs, and the role played by works in the public domain.

010 - www.euipo.europa.eu

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTS 
All these studies will combine to produce new narratives about the value of IP rights.

There are many challenges ahead for the Observatory, but the extensive network representing 
all aspects of society, combined with the expertise in the Office as a whole, is already contributing 
to the understanding of intellectual property and will continue to grow in importance in years to 
come.

António Campinos
Executive Director, EUIPO

O1 - INTRODUCTION - 011  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe Office’s Observatory department comprises the European Observatory on Infringements of 
Intellectual Property Rights and the service of the EUIPO’s chief economist.

The  European  Observatory  on  Counterfeiting  and  Piracy  was  established  by  the  European 
Commission  in  2009  as  an  EU-wide  network  of  representatives  to  support  the  protection  of 
intellectual property rights (IPR) and to help combat the growing threat of IP infringements, as well 
as to be a centre of excellence in the field of information and data relating to the value of IPR and 
the negative consequences of IPR infringements.

During 2015, the network at the heart of the European Observatory on Infringements of Intellectual 
Property Rights continued to develop, welcoming three new associations from a variety of sectors.

At the end of 2015, the Observatory network included 61 representatives from the private sector, 
7 organisations representing civil society, 10 international organisations, and 10 MEPs designated 
by the European Parliament that have been invited to take part, as well as representatives from 
the 28 Member States.

Private-sector  representatives  include  a  broad  and  balanced  range  of  EU  and  national  bodies 
representing  the  various  economic  sectors,  including  creative  industries,  most  involved  or 
experienced in the fight against IPR infringements. Consumer organisations, SMEs, authors and 
other creators are also represented. Thus, the Office complies with the requirement of the proper 
representation in the Observatory of all the actors mentioned in Article 4(2) of Regulation (EU) No 
386/2012 of the European Parliament and the Council of 19 April 20122.

2 -   OJ L 129, 
16.5.2012, p. 1-6.

O2 - THE OBSERVATORY AND THE EUIPO - 013  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSA full list of the network members is available on the Observatory’s website at:

https://euipo.europa.eu/ohimportal/en/web/observatory/observatory-network

The Observatory has published a set of criteria for private sector stakeholders, designed to ensure 
that the Observatory can benefit from a broad range of expertise, whilst ensuring that meetings 
remain manageable and functional (See Box 1).

Box 1: criteria for new private stakeholders for the Observatory

Pan-European associations or international organisations

Registered in the EU Transparency Register

Not individual corporations

Affected by counterfeiting or piracy and/or active in enforcement

Able to represent companies/authors/creators within their specific sectors.

Able  to  provide  key  information  about  a  particular  sector,  including  statistical  data  in 
compliance with Article 5(2)(b) of Regulation (EU) No 386/2012.

The Observatory has five Working Groups set up on the basis of proposals from stakeholders, 
which are used extensively to guide the implementation of projects.

The Working Groups cover:

IP in the Digital World
Public Awareness
Legal & International
Enforcement
Economics & Statistics

014 - www.euipo.europa.eu

In 2015, the five Working Groups met in Alicante in March and in Brussels in September.

The  Observatory  also  draws  on  an  Advisory  Board  composed  of  experts  from  the  academic, 
business and political spheres, which advises the Executive Director on the Observatory’s work. 
The  Board  is  chaired  by  Lord  Mogg  and  includes  Frederick  Mostert,  José  Luís  Arnaut,  Gerhard 
Bauer and Professor Ian Hargreaves.

The Observatory has strong dependencies on, and synergies with, other key activities or projects 
in  the  Office,  such  as  the  EUIPO’s  website,  the  tools  created  by  the  Cooperation  Fund,  and  the 
activities of the Academy and of the International Cooperation area.

The  Observatory  operates  under  its  2014-2018  Multiannual  Work  Plan,  in  order  to  provide  a 
longer-term perspective and integration with the Office’s Strategic Plan. The multiannual plan is 
also the basis for the annual Work Programme for the Observatory, which sets out the objectives 
for the year ahead.

O2 - THE OBSERVATORY AND THE EUIPO - 015  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe three main goals of the Observatory are at the heart of the Multiannual Work Plan and are 
the following.

To  provide  facts  and  evidence  for  use  in  the  formulation  of  effective  IP  policies  by 
policymakers.

To create tools and resources to step up the fight against IP infringement.

To raise awareness of IP and of the negative effects of counterfeiting and piracy.

In a similar way to the overall Strategic Plan for the Office, the Observatory’s Multiannual Work 
Plan  rests  on  two  complementary  pillars.  The  first  pillar  aims  to  strengthen  the  public-private 
network that makes up the core of the Observatory’s function and the second to facilitate and 
promote cooperation with third countries, in order to advance knowledge and enhance protection 
of intellectual property.

The Observatory’s goals are achieved by developing initiatives grouped in the following five Lines 
of Action.

Evidence-based contributions and data to enable EU and national policymakers to shape 
effective IP enforcement policies and to support innovation and creativity.

Data, tools and databases to support EU and national authorities in the fight against IP 
infringement.

Knowledge building and learning programmes for enforcement authorities as well as for 
businesses — especially SMEs.

Supporting  campaigns  to  raise  overall  awareness  of  the  importance  of  IP  and  the 
negative effects of IP infringement.

Initiatives to help rights holders protect their IP rights within and outside the EU.

Each year the specific projects and activities are developed, described and prioritised in the annual 
Work Programme of the Observatory.

016 - www.euipo.europa.eu

Further refinement takes place on a yearly basis in line with developments in EU policies, taking 
into  consideration  the  input  and  feedback  received  from  Member  States,  EU  institutions,  and 
Observatory stakeholders. Much of this work is carried out through the Working Groups of the 
Observatory.

The  process  followed  by  the  Observatory  to  produce  its  reports  and  studies  is  based  on  the 
following principles.

Observatory stakeholders should be involved in identifying the reports and studies to 
be undertaken, as well as in defining the scope and terms of references for the reports/
studies identified.

The reports/studies should be carried out independently, entirely in line with the agreed 
terms of reference.

Observatory stakeholders should be given the opportunity to know about the conclusions 
of the reports/studies in advance and to provide comments.

The rules governing the Office and more particularly its decision-making process should 
be respected.

The process will apply to all new studies that the Observatory conducts.

In the following sections, the activities carried out to support the three main goals within the scope 
of each of the five Working Groups are described in detail.

Article  7(3)  of  Regulation  (EU)  No  386/2012  requires  the  representatives  from  the  public 
administrations,  bodies  and  organisations  in  the  Member  States  to  be  duly  consulted  on  the 
Annual Report. The public stakeholders have been kept  informed and asked for their input on 
the  Work  Programme,  and  the  results  of  the  Observatory’s  work  have  been  reported  to  them 
regularly. The formal submission of the report under Article 7(3) took place at the Public Sector 
Stakeholders’ meeting which was held in Rotterdam from 19 to 20 April 2016.

O2 - THE OBSERVATORY AND THE EUIPO - 017  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe activities of the IP in the Digital World Working Group consist of studies to support the first main 
goal of the Observatory, to provide facts and evidence for enforcers and policymakers. In addition, 
the Orphan Works database, set up under a specific legal mandate, contributes to achieving the 
second  goal,  which  is  to  provide  tools  and  resources  for  IPR  enforcement.  Finally,  a  European 
Aggregator of Legal Offers will help consumers to find legal digital content and thereby support the 
third Observatory goal of raising awareness of IP.

O3 - IP IN THE DIGITAL WORLD - 019  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSORPHAN WORKS DATABASE

The digitisation and dissemination of orphan works poses a particular cultural and economic challenge 
—  the  absence  of  a  known  rights  holder  means  that  cultural  institutions  are  unable  to  obtain  the 
required  authorisation  to  digitise  a  book,  for  example.  Orphan  works  represent  a  substantial  part 
of the collections of Europe’s cultural institutions (e.g. the British Library estimates that 40 % of its 
copyrighted collections — 150 million works in total — are orphan works).

Directive 2012/28/EU sets out common rules on the digitisation and online display of orphan works 
and  establishes  the  creation  of  a  single  European  register  for  all  recognised  orphan  works  to  be 
shared by all Member States. The inclusion of a work in the register will enable cultural institutions to 
use orphan works while ensuring adequate protection for rights holders.

7.1  EPSO COMPETITIONS AND CAST LISTS

020 - www.euipo.europa.eu

The development of the registry was entrusted to the Office and was finalised at the end of 2014. 
In 2015, the Office devised a strategy to encourage the use of the database as a central European 
repository of information related to orphan works, and has created a stable network of stakeholders. 
Awareness-raising  and  training  initiatives  have  been  carried  out  in  collaboration  with  competent 
national  authorities,  key  beneficiary  organisations  (such  as  libraries,  educational  establishments, 
museums,  as  well  as  archives,  film  or  audio  heritage  institutions  and  public-service  broadcasting 
organisations)  and  the  European  Commission.  The  user  friendliness  of  the  database  was  further 
improved by two releases in 2015, facilitating, in particular, bulk uploading of works into the database. 
The number of records in the database stood at approximately 1 430 at the end of 2015.

3 - TM5 is a 
cooperation forum 
for the world’s 
five leading trade 
mark registration 
offices, including the 
EUIPO, the United 
States Patent and 
Trademark Office, 
the Japan Patent 
Office, the Korean 
Intellectual Property 
Office, and the State 
Administration for 
Industry & Commerce 
of the People’s 
Republic of China.

VOLUNTARY COLLABORATION PRACTICES

In 2014, members of the IP in the Digital World Working Group, as well as the Office’s TM5 partners3, 
were  asked  for  help  to  identify  voluntary  collaboration  practices  between  private  operators  (for 
example, content owners and internet service providers) in their respective countries, designed to 
combat online IPR infringement. Some 20 such practices were identified as a result of this process.

In  the  second  phase  of  the  study,  six  practices  were  selected  by  the  Working  Group  for  a  very 
thorough analysis of their legal framework and efficacy. The study analyses in depth the application 
of the selected practices by assessing: the role of the parties; the duties and procedures employed; 
coexistence of measures established by the legal framework, including fundamental rights and data 
protection rules; the role of technologies used in implementing the practice; the costs assumed by 
the parties involved in implementation; the role of educational activities; and the effectiveness of the 
measures. During 2015, the analyses of voluntary practices from Austria, France and the UK were 
completed. Once the analyses for the other countries (Denmark, the Netherlands and the USA) have 
been completed, the combined report will be published.

O3 - IP IN THE DIGITAL WORLD - 021  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSAn Observatory two-stage study on business models used in online infringement has commenced, 
in  order  to  map  the  models  used,  and  consequently  to  raise  awareness  amongst  enforcement 
officials and policymakers. In the first phase, the main business models have been identified using a 
combination of literature review, case law and other qualitative methods. The report has been finalised 
and has been circulated to the members of the Working Group.

The second phase will be carried out in 2016, when between 200 and 300 websites will be chosen for 
closer analysis.

A test case is being undertaken to simulate searches by consumers for legal offers of music. Panels of 
ordinary consumers in a number of Member States will be given a list of tasks that involve accessing, 
downloading, streaming and where necessary purchasing content from authorised services. In this 
context, cross-border availability and access will also be assessed.

A pilot study was carried out in Austria in November 2015, after which the test scenario was adapted. 
Other Member States will follow in 2016.

In order to help consumers find legal offers online, the Observatory has launched a project to create a 
European portal (and aggregator) in order to inform consumers better about the legal offers available 
in  the  realms  of  music,  sport,  films/TV,  videogames  and  books.  The  European  website  will  link  to 
national aggregators of legal offers that already exist or that will be built with the help of the Office.

One of the deliverables of the project is the construction of a toolkit with supporting software, which 
will enable national administrations to build national aggregators. A pilot study has begun involving 
France, Latvia, Portugal and the UK that is expected to be finalised during 2016, after which point, the 
addition of further Member States is envisaged. In a second, subsequent project, the searchability of 
the tool will be extended so that consumers can search for legal content by title of the work and other 
criteria.

022 - www.euipo.europa.eu

In addition to helping consumers locate legal offers, the Observatory also wants to help answer their 
questions  about  copyright,  especially  in  the  digital  environment.  Copyright  laws  are  complex  and 
vary from Member State to Member State, so that even consumers who might not wish to infringe 
sometimes do so because of their lack of knowledge. To help address this need, the Observatory, 
together with its civil society stakeholders, has developed a set of FAQ and has engaged a dedicated 
coordinator, who has obtained country-specific answers to those questions from academic experts 
in each Member State. During the first half of 2016, the FAQ will be published online, in a form that is 
accessible to the ordinary citizen.

One  of  the  ways  in  which  rights  holders  across  the  world  seek  to  combat  IPR  infringement  is  by 
employing a ‘Follow the Money’ strategy to tackle the revenue sources providing infringing websites 
with their financial resources. This strategy includes drying up financial support from advertising, thus 
making these websites less commercially viable. In many cases, major brands inadvertently advertise 
on suspected infringing websites, lending these sites credibility and possibly funding infringement and 
risking brand damage. Often this is due to a lack of understanding about which websites pose an IPR 
infringement risk. Accordingly, the Observatory carried out a study on digital advertising on websites 
suspected of selling infringing goods in 2015 and published the resulting report in January 2016.

O3 - IP IN THE DIGITAL WORLD - 023  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe activities of the Public Awareness Working Group support the third main goal of the Observatory 
— to raise awareness of IP and of the negative effects of counterfeiting and piracy. Much of this 
work is based on the studies that are conducted by the Observatory within the scope of its other 
working groups, particularly Economics & Statistics and IP in the Digital World.

O4 - PUBLIC AWARENESS - 025  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSOne  finding  from  the  IP  Perception  study  published  in  2013  was  that  between  35  %  and  50  %  of 
young Europeans display attitudes that favour counterfeiting or illegal downloading. Education would 
seem to be one of a number of ways of tackling the issue. It was for this reason that a mapping study 
on intellectual property education in school curricula in EU Member States was carried out, with its 
final report published in September 2015. This study aims to understand how children are exposed 
to IP, IPR and associated subjects within primary and secondary schools across the 28 EU Member 
States. In addition, the results are compared with three innovative countries outside the EU, namely, 
Singapore, Switzerland and the USA, as well as the Hong Kong Special Administrative Region of the 
People’s Republic of China.

The results of the study show that in the EU and non-EU countries/regions analysed, no specific stand-
alone IP subject or comprehensive IP education programme exists in the current official curricula. 
Nevertheless, IP and related themes are integrated into one or several subjects as a cross-curricular 
subject  throughout  all  education  levels.  Emphasis  on  specific  IP  rights  varies  according  to  their 
specificities, complexity and relevance for different age groups. IP issues mostly target the secondary 
school  level  in  EU  Member  States,  whereas  they  target  younger  children  in  the  non-EU  countries 
studied.

026 - www.euipo.europa.eu

The study provides examples from the European Union and elsewhere from which suitable models 
can be adapted to fit in with the diverse nature of the educational systems in the 28 Member States. 
The study also clearly indicates that copyright is by far the most frequently mentioned in EU curricula, 
leaving other IP rights far behind.

As part of the Youth Action Plan, a qualitative and quantitative survey, the Youth Scoreboard, has been 
completed to deepen the analysis of European youngsters’ attitudes towards purchasing counterfeit 
goods and using illegal digital content. This is a follow-up to the 2013 IP Perception study, but focuses 
on the 15-24 age group and analyses youngsters’ behaviour and motivation more deeply.

Another strand of the Youth Action Plan, the build-up of a community and online dialogue on social 
media networks has been launched, with the creation of Facebook and Twitter accounts and mapping 
young  opinion  leaders,  influencers  and  multipliers  for  the  younger  generation  in  the  28  Member 
States. The Ideas Powered Facebook account accumulated over 20 000 ‘likes’, mainly from the target 
audience (91 % are aged 15 to 24) and the Twitter account has over 8 000 followers.

An  online  platform,  the  Ideas  Powered  website,  has  been  developed  to  serve  as  a  repository  of 
content for the social media accounts, and also as an operational platform to support and share the 
contributions of youth opinion leaders and influencers, while supporting the organisation of a monthly 
video competition designed to generate interest and traffic to the website and to the social media 
accounts.

O4 - PUBLIC AWARENESS - 027  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe Observatory’s website hosts an inventory featuring more than 150 awareness-raising campaigns 
across the EU.

In addition to direct communication and other awareness-raising activities, the EUIPO has responded to 
requests by stakeholders to help promote Member State involvement in awareness-raising initiatives.

National  Offices  can  currently  request  the  support  for  initiatives  and  events  intended  to  raise 
awareness through the annual bilateral cooperation framework. For other stakeholders, the Office 
has designed an annual fund to support existing awareness-raising initiatives in Member States or to 
develop new ones.

The EUIPO’s financial contribution is based on the principle of co-financing, with the Office contributing 
up to 80 % of the total eligible costs of each project.

028 - www.euipo.europa.eu

A formal ‘call for proposals’ was published on 16 January 2015, with a deadline of 31 March 2015. 
Among the 125 eligible proposals evaluated, 11 projects were selected for financial support, amounting 
to a total budget of EUR 500 000. The selected projects will support the Observatory objectives by:

reaching out to youngsters, highlighting the positive value of IP and the importance of 
being fair to creators and innovators, with approaches of relevance for the audience such 
as gamification, social media dialogue and e-learning activities;

bringing IP closer to citizens in their daily lives, at local level and highlighting the value of 
originals and creativity, contrasted with the damages of counterfeiting and piracy;

building a better understanding of IP by developing educational programmes in schools 
for children from various age groups.

Most European companies are SMEs, and the majority of these SMEs do not use any registered IP 
rights. Accordingly, it is important for the Observatory to understand how SMEs decide whether or not 
to use IPR, and what the barriers are to their use.

During 2015, the Office commissioned the SME Scoreboard, a survey to further explore whether and 
how SMEs use IP, what issues they encounter when protecting their IPR; when, where and how they 
register their rights — and if they do not, why not. The survey also covers licensing and its impact, as 
well as enforcement issues.

Carried  out  by  the  professional  polling  organisation  GfK,  the  survey  took  place  between  June  and 
September 2015 and involved almost 9 000 telephone interviews with companies in all 28 EU Member 
States. The results will be used to inform awareness-raising initiatives and other activities designed to 
help SMEs protect their IP rights. The final report will be published in early 2016.

O4 - PUBLIC AWARENESS - 029  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe activities under this heading mainly support the first two goals of the Observatory, to provide 
fact-based  evidence  and  to  create  tools  and  databases  for  enforcement.  In  addition,  specific 
activities  aimed  at  rights  holders,  such  as  the  country  guides,  and  international  cooperation 
activities also fall within the scope of this Working Group.

O5 - LEGAL & INTERNATIONAL - 031  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSCountry  guides  have  been  produced  by  the  Observatory  to  provide  basic  assistance  to  IP  rights 
holders and their advisers on the IP protection and enforcement system in the countries concerned. 
The current batch of guides, published in 2014, includes Brazil, China, India, Russia, and Turkey. In 
2015, a country fact sheet was added for Ukraine.

Each guide gives some brief background information on the country concerned, outlines the legal 
framework and identifies weak points concerning IP protection and enforcement. Some basic advice 
is provided together with details of useful contacts. Links to online resources are provided where they 
are available.

032 - www.euipo.europa.eu

Currently, there is no EU-level database that contains information about IPR infringements suffered 
by companies in third countries. ACRIS (Anti-Counterfeiting Rapid Intelligence System) is designed to 
fill that gap. It is an intelligence database that allows EU companies to report, in a structured format, 
information about IPR infringements that they believe they are the victims of and the respective follow-
up by local authorities in countries outside the European Union. This data will be used to:

produce statistical information to assess the level of potential violations in each country 
and measure the efficiency of actions taken by enforcement authorities; this will allow EU 
companies to make informed business decisions;

update information on the IPR landscapes for use by DG Trade;

feed into the bilateral dialogues of DG Trade with non-EU countries of interest.

The tool was developed during 2015, and the first (restricted) release was launched in February 2016.

4 - The EUIPO’s 
existing case-law 
search tool allows 
users to consult 
trade mark and 
design decisions of 
the EUIPO, national 
courts in the 
European Union, and 
the General Court 
and Court of Justice.

A pilot project to collect national case-law related to enforcement of IP rights and make it available in 
the Office’s case-law database4 began in 2014 and is being carried out in collaboration with National 
IP Offices. IP offices of the EU were invited to participate in this pilot project. Eight National Offices 
agreed  to  take  part  in  the  pilot:  Denmark,  Spain,  France,  Lithuania,  Romania,  Slovenia,  Sweden 
and  the  United  Kingdom.  The  Community  Plant  Variety  Office  (CPVO)  was  invited  to  provide  key 
judgments related to enforcement of plant variety rights. In total, 339 judgments were provided by 
National Offices implementing the pilot project and the CPVO. The work was reimbursed according 
to normal cooperation agreement procedures. To ensure that the quality of service is uniform and 
that all National Offices apply the rules in the same way, the Observatory performed quality control of 
information collected for the pilot project and met with representatives from the participating offices 
in order to agree improvement actions where required.

Key  judgments  are  to  be  understood  as  judgments  in  relation  to  the  application  of  enforcement-
related  measures  or  procedures  in  IP  infringement  cases.  The  types  of  IP  covered  include  trade 
mark rights, design rights, copyright and rights related to copyright, patent rights, plant variety rights, 
geographical indications and trade secrets.

O5 - LEGAL & INTERNATIONAL - 033  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSIn 2015, the Czech Republic, Ireland, Latvia, Hungary and Austria joined the project, with additional 
Member States expected to join in 2016.

A comprehensive study on the costs of storage and destruction of counterfeit goods in each Member 
State was published by the Legal Working Group (the predecessor of today’s Legal & International 
Working Group) in 2010, before the establishment of the Observatory as it is known today. The study 
was based on the practice and consequences reported by litigators5 and focused on differences in 
laws and practices among the Member States.

5 - Available at: 
http://ec.europa.
eu/internal_market/
iprenforcement/docs/
corrective_measures_
en.pdf

Since  the  establishment  of  the  Observatory  at  the  EUIPO,  an  updating  exercise  has  been  carried 
out,  channelled  through  national  authorities  to  map  the  changes  in  the  situation  in  each  Member 
State, including new Member States. The updated report was published in 2014 and is available on 
the  Observatory’s  website.  To  supplement  the  information  contained  in  the  existing  report,  which 
focuses on the practices in each Member State, a quantitative assessment of the costs of storage and 
destruction costs was begun in 2015 that will form part of the overall quantification of infringement 
workflow.

034 - www.euipo.europa.eu

To carry out this quantitative assessment, the Office has retained a leading market research company, 
GfK, to carry out a survey of companies and public authorities. The survey follows a two-stage model: 
the first stage, carried out in 2015, combined focus groups of private companies designed to define 
the relevant costs and develop the questionnaire; and the second phase, currently under way, consists 
of distributing and administering the questionnaire. The questions posed in the survey are as clear 
and concise as possible in order to extract the necessary data, and the survey involves the private 
sector as well as the public sector. Those involved are being contacted by the chosen contractor in 
each Member State.

The study is expected to be finalised during 2016.

International cooperation

The Observatory supports a broad range of cooperation activities carried out in the framework of the 
EUIPO’s status as the implementing agency for EU-funded programmes in third countries. The EU 
delegations network, created in 2014, met in Brussels in July 2015. These activities are discussed in 
greater detail in Section 8 below.

O5 - LEGAL & INTERNATIONAL - 035  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe activities under this heading support the second main goal of the Observatory — to provide 
tools  and  databases  for  use  in  enforcement,  and  to  carry  out  knowledge-building  activities  for 
enforcers and other stakeholders. Many of those activities are carried out jointly with Europol and 
Eurojust.

O6 - ENFORCEMENT - 037  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe EDB helps law enforcement authorities to recognise counterfeit goods by enabling rights holders 
to securely share information on products and logistics with the authorities.

The  tool  is  free  of  charge  and  is  built  on  existing  IP  databases,  such  as  TMview,  DesignView  and 
the  European  Commission’s  (DG  Agriculture  and  Rural  Development)  database  on  geographical 
Indications, where updated information about the validity of the different IP rights at stake can be 
found  by  enforcement  authorities.  Rights  holders  can  introduce  information  into  the  tool  in  their 
own  language,  and  the  database  automatically  translates  it  into  the  language  of  the  enforcement 
professionals who access it.

After the latest roadshow of the EDB for customs, which ended in February 2015, the tool was made 
accessible  to  all  EU  customs  and  some  police  authorities  have  also  started  to  use  it.  The  tool  has 
developed and become a real means of communication between companies and the enforcement 
authorities in Member States. At the end of 2015, more than 270 companies had entered information 
into the tool. The EDB has been linked to the DG Taxation and Customs Union COPIS system. Since July 
2015, it has been possible to send electronically generated Applications for Action (AFAs) via the EDB.

In September 2015, the Office hosted its first EDB Forum. The event gathered around 90 police and 
customs  officials  from  the  28  Member  States  and  more  than  100  rights  holders.  It  was  a  unique 
opportunity  for  rights  holders  to  meet  EU  enforcers  from  all  EU  Member  States,  and  to  share 
experiences  and  discuss  the  latest  enforcement  trends.  The  Forum  featured  several  sectoral 
workshops addressing the problems of IP infringement by industry sector, a number of workshops on 
the EDB, as well as an exhibition. During the exhibition, EDB users had an opportunity to share their 
experiences of counterfeit goods and to show enforcers where to find their product information in 
the EDB.

038 - www.euipo.europa.eu

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSACIST allows data on seizures, provided by different enforcement authorities in the Member States, to 
be stored, analysed and reported under a common standard.

In addition to data on customs seizures in each Member State, which the DG Taxation and Customs 
Union provides annually, data concerning seizures carried out by police within the Member States 
is  also  being  collected.  The  goal  is  to  ensure  a  regular  and  sustainable  flow  of  data  to  give  the 
complete picture to all interested parties that consult the ACIST database. Users can access and use 
the information by producing statistical reports. As for seizures in the internal market, data from the 
national authorities in 15 EU Member States are also available in the tool.

The tool has been available on the Observatory’s website for consultation since November 2014.

O6 - ENFORCEMENT - 039  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe joint situation report, published in April 2015, describes the situation of counterfeiting in the EU, 
focusing on several areas of concern.

Top countries of provenance: third-country versus EU production of counterfeit goods.

The role of Free Trade Zones (FTZs) in providing opportunities for criminal networks to 
export larger quantities of counterfeit goods to the EU.

Links to other forms of crime such as fraud, forgery, tax evasion, smuggling and human 
trafficking.

The role of trans-national organised crime networks.

Infiltration of the legal distribution chain by counterfeit goods.

Sale and distribution of counterfeits via the internet.

040 - www.euipo.europa.eu

As in previous years, several initiatives in the area of knowledge building for enforcers were undertaken 
in 2015.

Partnering with Europol, a joint knowledge and competences programme for law enforcement officers 
was set up. This resulted in several sectoral seminars, each involving more than 100 participants. 
Those taking part included enforcement authorities (police, customs and prosecutors) from across 
the EU as well as experts from the specific sector in focus.

The successful Judges’ Seminar series has continued to run, bringing together senior IP judges and 
prosecutors  from  every  EU  Member  State,  and  occasionally  from  the  USA.  In  2015,  four  seminars 
focusing  on  different  thematic  areas  and  the  biannual  symposium  were  held  in  Alicante.  The  first 
workshop of the European Intellectual Property Prosecutors Network, co-chaired by the Observatory 
and Eurojust, was hosted by the EUIPO in June 2015. This network is composed of prosecutors from 
all  Member  States,  and  its  purpose  is  to  identify  and  deploy  effective  actions  to  support  judicial 
authorities involved in large-scale counterfeiting cases, and to share knowledge and best practices.

Two major knowledge-building conferences were held during 2015, on the Counterfeiting of Cosmetics, 
Perfumes  and  Luxury  Products  in  June,  and  on  the  Infringements  of  Designs  protected  by  Design 
and  Copyright  Law  in  November.  Both  conferences  were  organised  in  cooperation  with  Europol 
and Eurojust. A comprehensive report was produced after each of the events, including conclusions 
and proposals. These reports were widely distributed through the Europol Expert Platform and are 
available on the Observatory’s website. Regional seminars for enforcers were organised in Italy and in 
Hungary.

An interagency coordination group on infringements of IP rights was set up with representatives from 
other EU agencies and Commission Directorate-Generals, as well as international organisations such 
as the World Intellectual Property Organisation (WIPO), the World Customs Organisation (WCO) and 
the OECD. The group met at WIPO’s headquarters in Geneva in March 2015.

O6 - ENFORCEMENT - 041  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe  activities  in  the  Economics  &  Statistics  area  consist  principally  of  studies  and  analyses  that 
support the first main goal of the Observatory, to provide facts and evidence to support policy.

The  IP  Contribution  study  (firm-level)  was  published  in  June  2015.  This  major  study,  a  follow-up 
to the 2013 industry-level study, examined the relationship between ownership of IP rights and 
economic  performance  for  more  than  130  000  companies  in  12  EU  Member  States.  It  found 
that companies that owned trade marks, patents or registered designs had higher revenue per 
employee,  employed  more  workers,  and  paid  higher  wages  than  companies  that  owned  no  IP 
rights. This relationship was particularly strong for SMEs.

O7 - ECONOMICS & STATISTICS - 043  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSAn important set of studies quantifying the economic costs of IP infringement began in 2014. These 
studies aim to assess the magnitude of counterfeiting and piracy within the EU. It is a complex task, 
although an OECD study in 2008 demonstrated that estimations based on solid and transparent 
methodologies are indeed possible. This work is partly being carried out in collaboration with the 
OECD (in the case of trade in counterfeit goods), and partly through the EUIPO’s own efforts, such 
as the sectoral studies on infringement. The first sectoral report on infringement quantification, 
focusing on perfumes and toilet preparations, was published in March 2015. A report on clothing, 
footwear and accessories was published in June 2015. In September 2015, the third report in the 
series was released, on sports goods, followed by a report on toys and games in December 2015. 
Several more sectors will be investigated using this methodology. Each report quantifies the lost 
sales in the legitimate economy due to the presence of counterfeit goods in the EU marketplace, 
as well as the resulting loss of employment and public sector revenue.

044 - www.euipo.europa.eu

In addition, the Office has also begun work on a study of infringement of geographical indications, 
in cooperation with the European Commission.

Following a suggestion by three civil society members of the Observatory, a pilot study on the value 
of public domain works has begun. This study focuses on the film industry, a highly creative and 
important sector for the modern economy, and aims to examine to what extent successful films 
are based on works in the public domain.

The directive on trade secrets proposed by the European Commission explicitly envisages the role 
of the Observatory in investigating this matter. Accordingly, a study on the economic importance of 
trade secrets is being carried out in cooperation with the Centre for European Economic Research 
(ZEW) in Mannheim. A pilot study for Germany has been completed, while the study of the other 
EU Member States is ongoing, with a view to publication in the first half of 2016.

O7 - ECONOMICS & STATISTICS - 045  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThis  study  investigates  which  types  of  companies  tend  to  use  trade  secrets,  analysed  by  size, 
economic  sector  (services  versus  manufacturing),  and  other  factors.  There  is  a  particular  focus 
on the complementary use of trade secrets and registered IP rights, using data collected via the 
Community Innovation Survey (CIS).

Taken together, the trilogy of studies on the economic contribution of IP rights, the perception of IP 
and the economic cost of infringement, and their follow-up studies, such as the Youth Scoreboard 
or SME Scoreboard, are intended to bridge the information gap on IP among EU citizens and to 
serve as the basis for creating new narratives on the value of intellectual property.

046 - www.euipo.europa.eu

O7 - ECONOMICS & STATISTICS - 047  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSUnder  the  regulation  entrusting  it  with  the  Observatory,  the  Office  was  also  tasked  with  encouraging 
international cooperation, in close alignment with broader EU policies and priorities in the field of IP.

In line with this principle, the Office’s engagement in ECAP III, covering the ten countries in the ASEAN region, 
IP Key in China, the Russia project and the new India project, has allowed the Observatory to provide input on 
how to increase respect for IP and help European companies investing in these areas to protect their IP rights.

The Office carried out a survey, on behalf of the EU Commission (DG Trade), of EU entities with an interest in 
the enforcement of IP rights in third countries. The purpose of the survey, previously carried out by DG Trade 
every two years, is to identify the countries where businesses face the biggest problems enforcing their IP 
rights, so that they can be prioritised. The next survey will be carried out in early 2016.

A number of IP offices in third countries have expressed an interest in conducting IP Contribution studies for 
their economies. The Observatory is assisting such offices by providing information about the methodology, 
data and other aspects of the study.

O8 - COOPERATION ACTIVITIES INCLUDING INTERNATIONAL COOPERATION - 049  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTS8.1 COOPERATION WITH THE EUROPEAN COMMISSION AND AGENCIES

In 2015, a high level of cooperation from several of the European Commission’s services assisted 
the Observatory in its work.

In this context, the European Council has adopted a specific EU Customs Action Plan6 to combat 
IPR infringements during the next five years.

One of the objectives of this action plan is to strengthen cooperation between the Commission 
and the Observatory. In order to do this, the Office has been working with the DG Taxation and 
Customs Union on knowledge building, the development of an e-learning module for customs, and 
cooperation on databases.

6 - http://eur-lex.
europa.eu/LexUriServ/
LexUriServ.do?uri=O-
J:C:2013:080:0001:
0007:EN:PDF.

Due  to  the  large  number  of  institutions  and  agencies  with  a  common  interest,  an  Interagency 
Coordination  Group  on  IPR  infringements  has  been  set  up  with  representatives  from  other  EU 
agencies and Directorates-General of the Commission.

This group discusses ongoing activities, projects and issues among those agencies that deal with 
IPR infringements to avoid duplication of efforts and to seize opportunities for collaboration. The 
fourth meeting of the coordination group was held in Geneva on 25 March 2015.

The Observatory has also been working closely with DG Enterprise and Industry (now DG Internal 
Market, Industry, Entrepreneurship and SMEs) to ensure there are synergies between our respective 
activities and to avoid duplication, with particular emphasis on supporting the needs of SMEs.

The EUIPO and Europol already began to cooperate in the area of knowledge building in 2013; 
and in 2014, because of the ‘alarming’ increase in online counterfeit purchases, the two agencies 
agreed on a special focus for tackling this problem.

In 2015, the EUIPO and Europol signed an agreement, under which the Office will finance a newly 
created Europol IPR Crime Coordination Centre with an annual contribution of EUR 500 000, in 
order  to  improve  information  gathering  and  monitor  trends  in  the  field  of  online  IP  crime  and 
related  areas.  Assistance  will  also  be  given  to  the  relevant  law  enforcement  authorities  in  the 
Member States. This cooperation will benefit users by strengthening the enforcement of IP rights. 
The work on setting up the centre began in 2015, with the official launch envisaged for the second 
quarter of 2016.

050 - www.euipo.europa.eu

Many of the knowledge-building events and activities that are organised in cooperation with Europol 
also benefit from cooperation with Eurojust and CEPOL, the European police training college.

6 - http://eur-lex.

europa.eu/LexUriServ/

LexUriServ.do?uri=O-

J:C:2013:080:0001:

0007:EN:PDF.

O8 - COOPERATION ACTIVITIES INCLUDING INTERNATIONAL COOPERATION - 051  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe Observatory’s website continued to grow in 2015. It contains a wealth of content, including all 
past conference reports, numerous Observatory publications and studies, and the minutes of past 
stakeholder and working group meetings. The list of stakeholders and working group members are 
updated when there are any changes, and any new events are published on the events’ page, as are 
any new public awareness campaigns, videos and other material sent to us by stakeholders. There are 
also videos of events, such as the 2014 IP Enforcement Summit or the Observatory Plenary meetings.

Finally, there is a section for SMEs as part of the business and consumers’ section, including testimonial 
videos and an e-learning section, as well as guides and support.

During the last quarter of 2015, the Observatory’s website received on average almost 7 000 unique 
monthly visitors, with about 600 documents downloaded each month. The number of unique visitors 
has been rising throughout the year.

O9 - COMMUNICATIONS - 053  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSFurther to a request from stakeholders to receive regular communications about the Observatory’s 
work, an Observatory Newsletter has been published on a quarterly basis since December 2013.

The main objective of the newsletter is to share information with the stakeholders on the Observatory’s 
current workflows and to give members of the network the opportunity to express their views and to 
engage actively in our work by providing input to each edition. Each issue contains an editorial, which 
gives a policy perspective of the Observatory’s work, an update on activities, the calendar of upcoming 
events and news from stakeholders.

The newsletter is published in English. It is circulated to stakeholders by email, and is also published 
on the Observatory’s website. The October 2015 issue was sent to approximately 1 500 recipients, 
including 328 Observatory stakeholders, about 1 000 event participants and some 150 subscribers.

054 - www.euipo.europa.eu

As explained in Section 4 above, a social media campaign aimed at youngsters kicked off in October 
2014. Identified by a common logo, the ‘Ideas Powered’ tagline and specific visual identity (all tested 
among audiences), dedicated pages on Facebook and Twitter, as well as YouTube, were launched in 
2015, with a view to offering an online space for dialogue for youngsters to express themselves on IP-
related issues and thus build a community with the support of partners and multipliers. The Facebook 
page averages 1 post per day and has achieved over 20 000 ‘likes’, while the Twitter account averages 
3 posts per day and had over 8 200 followers at the end of 2015.

A website (www.ideaspowered.eu) supports the social media activities.

O9 - COMMUNICATIONS - 055  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSAccording  to  Article  7(3)(c)  of  Regulation  (EU)  No  386/2012,  the  Annual  Report  should  contain  ‘an 
overall assessment of the fulfilment of the Office’s tasks as provided for in this Regulation and in the 
work programme drawn up in accordance with paragraph 1’.

1O - OVERALL ASSESSMENT - 057  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe tasks assigned to the Office are set out in Article 2(1) of Regulation (EU) No 386/2012. These tasks 
are listed below, together with the activities and projects carried out in 2015 in support of each task. It 
should be noted that in some cases an activity can contribute to more than one task. In addition, the 
Orphan Works database is set up under a specific legal mandate.

(a) improving understanding of the value of intellectual property;

SME Scoreboard;
IP Contribution study (firm-level);
study of the value of the public domain in films;
study of the economic importance of trade secrets.

(b)  improving  understanding  of  the  scope  and  impact  of  infringements  of  intellectual 
property rights:

study of business models used in online infringement;
study of digital advertising on suspected infringing websites;
storage and destruction study;
the EUIPO-Europol situational report on counterfeiting;
infringement quantification (sectoral studies and joint study with the OECD);
study of infringement of geographical indications.

(c) enhancing knowledge of best public and private sector practices to protect intellectual 
property rights:

voluntary collaboration practices;
IP in education study;
knowledge-building events.

(d assisting in raising citizens’ awareness of the impact of infringements of intellectual 
property rights:

test case for availability of legal offers;
legal offers aggregator;
FAQs on copyright for consumers;

058 - www.euipo.europa.eu

youth action plan;
grant scheme.

(e) enhancing the expertise of persons involved in the enforcement of intellectual property 
rights:

knowledge building for enforcers;
the studies related to infringement listed under item (b) above.

(f)  enhancing  knowledge  of  technical  tools  to  prevent  and  tackle  infringements  of 
intellectual  property  rights,  including  tracking  and  tracing  systems  which  help  to 
distinguish genuine products from counterfeit ones:

EDB;
ACIST.

(g) providing mechanisms which help to improve the online exchange, between Member 
States’ authorities working in the field of intellectual property rights, of information 
relating to the enforcement of such rights, and fostering cooperation with and between 
those authorities:

ACRIS;
European Intellectual Property Prosecutors Network;
case-law on IPR enforcement.

(h) working, in consultation with Member States, to foster international cooperation with 
intellectual  property  offices  in  third  countries  so  as  to  build  strategies  and  develop 
techniques, skills and tools for the enforcement of intellectual property rights:

country guides;
cooperation activities discussed in Section 8 of this Annual Report.

In summary, the Office is carrying out a broad range of activities to accomplish all the tasks assigned 
to the Observatory by Regulation (EU) No 386/2012.

1O - OVERALL ASSESSMENT - 059  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSIn  late  2015,  the  Office  carried  out  a  survey  of  Observatory  stakeholders.  The  overall  results  were 
positive, showing that in general stakeholders are satisfied with the work the Observatory is carrying 
out.  This  can  been  seen  under  the  section  regarding  overall  satisfaction  and  fulfilment  of  the 
Observatory’s mandate, where a total of 94 % of respondents are satisfied with the progress made 
by the Observatory since it was transferred to the Office and consider that the Observatory has been 
successful in carrying out the tasks entrusted to it by Regulation (EU) No 386/2012.

060 - www.euipo.europa.eu

1O - OVERALL ASSESSMENT - 061  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe  first  years  of  the  Observatory  at  the  EUIPO  have  been  devoted  to  laying  the  foundations  for 
awareness  raising  through  studies  such  as  the  IP  Contribution  and  IP  Perception  studies,  and  to 
creating tools such as the EDB or the Orphan Works database. Now that those foundations are laid 
and the tools have been built, the challenge is to maximise their impact for the benefits of IP rights 
holders, and ultimately society at large.

11 - CHALLENGES FOR 2016- 063  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSTools such as the EDB, the Orphan Works database and ACIST are now established, and in 2016 the 
focus will be on increasing their use by rights holders, beneficiaries and authorities.

The publication of the joint study with the OECD on counterfeit trade, the study on GI infringement and 
a number of sectoral studies on infringement will further add to the knowledge of the economic impact 
of counterfeiting. Infringement in the digital sphere, focusing on illicit downloading and streaming of 
music, film and e-books, will also be studied.

Other studies will examine the ‘how’ aspect of infringement, including the modus operandi of illicit 
online  business  models,  the  way  they  are  financed,  and  how  rights  holders  and  platforms  can 
cooperate to fight online infringement.

064 - www.euipo.europa.eu

A number of projects have been planned on public awareness, based on the information provided 
by the studies. Awareness-raising efforts will be carried out by supporting initiatives in the individual 
Member States. In addition, consumers must be provided with accurate information about what is 
and what is not permitted, for example, in terms of copyright law, and where they can obtain content 
from legitimate sources.

Many important knowledge-building events will be organised during 2016, in cooperation with partners 
such as Europol, Eurojust and CEPOL, as well as the EPO. In addition, the Observatory will participate 
in numerous events organised by others.

In late 2015, the Office and CEPOL agreed to set up an e-learning platform for enforcement authorities 
across the EU, the Virtual IP Training Centre. During 2016, the two organisations will work together on 
formulating and executing the project plan to operationalise this agreement.

11 - CHALLENGES FOR 2016- 065  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTS 
066 - www.euipo.europa.eu

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe Observatory is part of the EUIPO and its budget is embedded in the overall Budget of the Office. 
For  2015,  the  total  expenditure  for  Observatory  activities  (excluding  salaries  of  statutory  staff  and 
other staff-related expenditure) was EUR 8.5 million.

Annex - 2015 Budget Execution- 067  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSThe table below summarises the expenditure by subject area. 

Subject Area (Working Group)

Amount spent in 2015 (€ million)

Public Awareness

Enforcement

Legal & International

IP in the Digital World

Economics & Statistics

Statutory meetings *

Total

2.5

3.5

0.5

1.3

0.4

0.3

8.5

* ‘Statutory 
meetings’ refers to 
the cost of hosting 
meetings such 
as the Public and 
Private Stakeholder 
meetings, the Plenary 
and the Working 
Group meetings.

068 - www.euipo.europa.eu

 
Annex - 2015 Budget Execution- 069  

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTSEUROPEAN OBSERVATORY ON INFRINGEMENTS OF 
INTELLECTUAL PROPERTY RIGHTS

EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTS

Avenida de Europa, 4, 
E-03008- - Alicante
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