Scottish Drug Enforcement Agency

FAKES FUND CRIME

INTRODUCTION

The growth in worldwide communication, technology and trade has created a global market place for counterfeit goods.
The development of communications and technology such as the internet has allowed those involved in counterfeiting in source countries to market their goods globally, as well as providing opportunities to launder profits.

Fake Goods web

SCALE

It is estimated that the market value of counterfeit goods worldwide is around $200 billion with a loss of 380,000 jobs as a direct result of IP Crime. In the UK the market in counterfeit goods is estimated to be £1.3 billion, with 5% to 7% of world trade being in counterfeit goods. Therefore the economic stability of certain areas is based on the production and sale of counterfeit goods.

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SERIOUS ORGANISED CRIME

‘When a kilo of fake CDs fetches 50% more on European markets than a kilo of cannabis leaf, no one should be surprised that organised crime is getting involved.” - Jose Manuel Barroso, President of the European Commission, 2008.

Intellectual Property Crime is perceived to be ‘low risk, high profit’ and is therefore utilised by Serious Organised Crime Groups to provide funding for more ‘risky’ criminality such as Class / A Drug Importation, Human Trafficking, Cannabis Cultivations and in some cases acts of terrorism.

 
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Public Perception

While members of our communities may not fully understand the serious repercussions resulting from the purchase of counterfeit goods, they are still willingly breaking the law to buy a fake DVD in the pub or counterfeit merchandise online.

Reports have shown that while the public are aware of the consequences of buying fakes and its links to organised crime, up to 90% in some areas, they are still likely to buy. Serious Organised Crime Groups are making huge profits by feeding off of the belief that IP Crime is a victimless crime. The cycle of supply and demand exists within IP Crime just as it does within the illicit drug market.

Therefore in order to reduce demand, we must change the behavioural patterns of what is becoming a socially acceptable side of Scottish consumerism. This is perhaps the greatest battle which law enforcement agencies and their public and private partners face.

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Legislation

Counterfeiting — trademark infringement of items such as brand names, clothing, automotive parts and pharmaceuticals

Piracy — copyright infringement such as in the illicit copying of computer software, DVDs, CDs and the unauthorised downloading of music from the internet.

The legislation invdved in IPC is as follows, with the first four being the most utilised:

- Trade Marks Act 1994
- Copyright, Designs and Patent Act 1988
- Video Recordings Act 1984
- Fraud Act 2006
- Consumer Protection from Unfair Trading Regulations Act 2008
- Trade Descriptions Act

USEFUL LINKS

UK Intellectual Property Office (UKIPO) - www.ipo.gov.uk

World Intellectual Property Organisation (WIPO) - www.wipo.int

Federation Against Copyright Theft (FACT) - www.fact-uk.org.uk

Federation Against Software Theft (FAST) - www.fastiis.org

British Phonographic Institution - www.bpi.co.uk

British Video Association (BVA) - www.bva.org.uk

Anti-Counterfeiting Group (ACG) - www.a-cp.org

The Entertainment and Leisure Software Publishers Association (ELSPA) - www.elspa.com

Industry Trust for IP Awareness Ltd - www.copyrightaware.co.uk  www.piracyisacrime.com

E-bay anti-counterfeiting information - www.ebav.co.uk/safetycentreagainstcounterfeits

Design and Artists Copyright Society (DACS) - www.dacs.org.uk