Historic declaration to fight counterfeits signed by brand owners and shipping firms
The Story:
Representatives from a number of global shipping companies, logistics firms, anti-counterfeiting organizations and multinational brand owners signed a declaration of intent last week aimed at preventing the maritime transportation of counterfeit goods. While described as “historic” by those involved, commentators say success will require a line-up of projects to curb the billions of dollars of counterfeit goods being shipped around the world.
Background:
The declaration came about following increased brand owner concerns that vessels shipping legitimate products were being exploited by criminal networks to transport counterfeit goods. This follows a recent report by the OECD and EU IP Office which claims $461 billion in counterfeits were moved through international trade routes in 2013, with 10% of those shipped on maritime vessels. Another report, released in 2015 by the International Chamber of Commerce’s (ICC) Business Action to Stop Counterfeiting and Piracy (BASCAP) and entitled ‘Role and Responsibilities of Intermediaries: Fighting Counterfeiting and Piracy in the Supply Chain’, concluded that closer cooperation was required with key intermediary channels, including transport operators.
Efforts from various sectors:
This led to BASCAP setting up a working group tasked with just that. It initiated a cross-sector dialogue with the transport industry and, a year after the report was released, the declaration of intent was achieved. Signed in Brussels late last week, signatories include some of the world’s largest shipping and logistics companies – including Maersk, Expeditors, CMA-CGM, Kuehne + Nagel and the Mediterranean Shipping Company – as well as the International Federation of Freight Forwarders Associations (FIATA). On the brand owner side, BASCAP unsurprisingly added their name, as well as 10 of its members, all of which are major brands facing inevitable multinational counterfeiting challenges; Bayer, Chanel, CropLife, Dupont, Lacoste, P&G, Pfizer, Philip Morris International, Richemont, and Unilever.
First time effort:
While the declaration is “non-binding”, it is the first time that the global shipping industry and brand owners have made a public commitment to work together to tackle the issue of counterfeit goods on shipping vessels. More specifically, the declarations include a zero tolerance policy on counterfeiting, strict supply chain controls, and various others due diligence checks to ensure business cooperation is severed with those suspected of dealing in fakes. Furthermore, there is a pledge to work together on anti-counterfeiting ventures.
Talking further about the proposed outcomes of the declaration, Jeff Hardy, BASCAP’s director, said it “paves the way for new voluntary collaboration programs between intermediaries and brand owners to stop the abuse of the global supply chain by counterfeiters”. Matteo Mattei, the brand integrity manager at Philip Morris International, reiterated this hope for stronger ties, saying: “Closer collaboration with vessel owners and freight forwarders is the key to preventing abuses and achieving sustainable results.”
The next step, Hardy added is, “To move forward with discussions with our maritime industry partners to develop specific projects, focusing initially on promoting the declaration to others in the industry”. Specific details about what those projects will entail, outside of spreading awareness of the declaration itself, was not mentioned. However, talking to World Trademark Review following the announcement, Hardy gave further clarification on the proposed plans: “We’ll be looking to create some industry-specific, counterfeiting-specific ‘know your customer’ materials as a starting point, because it is as important to know ‘who gave you the shipment’ as it is to know what’s in the container. In fact, there are a number of tried and true industry practices that we’ll adapt for use here.”
On top of that, Hardy added: “We’ll also begin collecting and sharing information between the supply chain players, brand owners and customs to increase the transparency in the system and more accurately identify those that have initiated illegal shipments. We will be holding working meetings throughout the industry to share the message of ‘zero tolerance’ so that illicit traders are aware that complacency is no longer the status quo. Brand owners who wish to get involved – along with those in the supply chain – are welcome and can learn more by contacting me.”
Positive response:
Talking to attendees at the following day’s INTA Digital World Conference in Brussels, response to the declaration was positive. However, in an industry where the signing of declarations and memorandum of understandings is common, parties must ensure momentum is not lost (as is sometimes the case) and that a timetable of projects to tackle the issue head-on is set up. Nonetheless, one attendee suggested that the declaration is a positive sign at least that the shipping industry’s priorities are in the right place, adding: “This is the third such declaration by the industry. The first being on the shipping of arms/weapons, the second in relation to the shipping of wildlife; both of those led to positive and proactive action. Hopefully, this new declaration has a similarly effective result.”
Indeed, Unilever’s global brand protection director, Meena Sayal, suggests that the dialogue so far is an indication that the transport industry is ready and willing for a “cooperative and collaborative response” to tackle counterfeits with brand owner partners. “[We] have been frustrated in seeing that the same transport companies that we use to ship our products around the world are being abused by criminals to distribute fake versions of our products,” she stated. “We recognize this is a new and complicated issue for many in the transport industry but appreciate the unanimous recognition – from all of the companies that we have talked to – that there is a problem and that more can be done to solve it. This declaration represents an important first step in this process and we look forward to now moving forward with the joint work required to develop concrete actions that we can all agree on.”
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Source: World Trademark Review
