France-Diplomatie
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"Label France" No. 68

Counterfeiting: a worldwide scourge

Illust:

European countries, 26.7 kb, 400x246

European countries are joining forces to control imports of counterfeit products
and intercept them, through agents of the
European Anti-Fraud Office (OLAF).


The market in counterfeit goods has grown alarmingly in recent years. Formerly limited to luxury goods, the counterfeit industry is now invading practically every sector of the economy. A veritable scourge, against which France is attempting to protect itself.

Serious dangers to health
Changing consumer attitudes

An ordinary week at Roissy-Charles-de-Gaulle airport, near Paris. Customs officers have just seized a batch of counterfeit versions of a well-known drug designed to solve male sexual problems; a few days earlier they intercepted a stock of sunglasses, copies of models designed by top brands; tomorrow, they may find counterfeit electronic components, fake perfumes or adulterated foods. The counterfeit market is growing apace: according to the Organisation for Economic Co-operation and Development (OECD), 5 to 9 % of world trade is today believed to be the product of this parallel network.

Illust:

France has just signed, 21.7 kb, 165x247

France has just signed a
cooperation agreement with
China to fight counterfeiting.
Seizure of counterfeit French
and Italian brands of bags,
hats and watches from a
store in Beijing (China) in
May 2007.


Serious dangers to health

The report drawn up in 2006, when a programme of action against counterfeiting was launched in France, goes so far as to describe this illegal activity as a genuine "scourge". According to Pascal Couvry, whose communication agency led this campaign under the aegis of the Ministry of Economy, Finance and Industry, consumers are not yet sufficiently aware of the harmful effects of counterfeiting, especially in terms of health. "I am thinking particularly of counterfeit anti-malarial or anti-cancer drugs, which are real poisons". He also mentions fraudulent and dangerous car parts, toys whose solidity is far from guaranteed with small parts that might be swallowed by babies, or adulterated food products that can lead to serious food poisoning; not to mention cosmetics that cause allergic reactions, and sunglasses that do not protect the eyes, etc.

The reason why counterfeiting has turned from a cottage industry to a business on an industrial-scale in just a few years, is because it is extremely lucrative, for, according to experts, every euro invested brings a return of about 10 euros, which offers an absolute windfall to criminal networks. Pascal Couvry explains it thus, "When the various networks of traffickers realised that it was just as profitable to invest in the counterfeit industry as in drugs, arms or prostitution and a lot less risky, they quickly targeted this new market".

Globalisation and the growth in internet sales have accelerated this process. The Colbert Committee (www.comite-colbert.com ), an association of some sixty luxury brands in France, which is very active in the fight against counterfeiting, has no hesitation in condemning "the anonymity and sense of impunity conferred by the web" and deplores the "logistical support" provided by certain websites that turn a blind eye to this trade.

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Currently expanding, 15.9 kb, 165x238

Currently expanding rapidly,
the counterfeit medicines
industry - which accounts for
10 % of the world pharmaceuticals
market - is in the hands of
well organised mafias. Counterfeit
antibiotics, antithrombotics
and cancer drugs endanger the
lives of the sick.


Changing consumer attitudes

In the view of Elisabeth Ponsolle des Portes, CEO of the Colbert Committee, "tools and a common will among all states" need to be implemented now and "a genuine change in attitude among consumers" brought about. The message relayed in airports by the poster campaign launched by the Colbert Committee in April 2007, in partnership with the Customs office, unambiguously stresses the level of penalties imposed [1].

The fact is that a majority of consumers plays down the crime. A survey in 2006 showed that 34 % of French people considered the purchase of a counterfeit product as "not serious". Attitudes are beginning to change however, even in the countries considered the most lax, where cases of poisoning with counterfeit baby milk have sparked off waves of national indignation.

In France, the fight against counterfeiting is already defined as a government priority, notably in the form of increased customs inspections and stronger legislation. Paris is also recommending the development of bilateral cooperation: agreements in the customs sector were strengthened in 2006 with Italy and Russia, and a protocol has just been signed on this issue between France and China. Perhaps the time has come for international awareness to be consolidated.

Marie-Michèle Martinet
Journalist

 
 
 

The impact on the economy: the case of France

-  6 billion euros of lost revenue every year.
-  30 000 jobs destroyed.
-  1 in 2 companies is affected by the counterfeiting problem.


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