1. Ronald Brohm SNB-REACT Cancun, 1 December 2009 European Anti – Counterfeiting Network

2. Not for profit Europe wide operational support 170 members Legal, administrative, investigation, monitoring Over 1.000 seizures monthly Offices in major European cities and Istanbul Network of agents and partners SNB-REACT network

3. Intermediaries and counterfeit trade 1. Landlords, 2. ISP's, 3, Carriers Unintentional facilitate and disguise trade Beneficiary! Our position: at minimal costs intermediaries can prevent and repress AND protect themselves against claims

4. Why involve 'third parties' Number of incidents is too numerous/costly to manage for rights owners and LEA Facilitating and disguising illegal trade should be discouraged They are the first line of contact with the infringer and in a good position to tackle the problem Not to impose costs but to create fair competition!

5. Whom to address 1. Landlords: offering facilities for retail traders 2. ISP's: providing a platform for sales of counterfeit goods 3. Carriers: shipping fake goods crossboarders We ultimately want them to: - surrender the counterfeits for destruction - allow the removal from the Internet of the counterfeit offers; - suspend market retailers from the markets - disclose the supply chain

6. Goal and ways Goal: Create a shared responsibility to protect consumer and to safeguard a fair economy, and hence, reduce outlets of counterfeiting Ways: changing their trade conditions with their clients Demand for law changes, clarifying the shared responsibility Initiating test cases

7. Freight conditions principal shall pay all costs arising from a border detention of counterfeit goods; in such cases the carrier is entitled to abandon the goods for destruction, if the principal does not explicitly objects Advantages –No costly and lengthy proceedings –Reduced storage costs –Immediate access to supplier –Carrier covered against claims –Preventive measure

8. International law TRIPS: 41 without compensation of any sorts, disposd outside the channels of commerce in such a way as to avoid any harm caused to the rights holder Presently too often rights holders requested to bear expenses third parties Carriers better positioned to waive burden on infringer International transport rules do not stand in the way of this fair practice!!

9. Test cases REACT Carriers: REACT-China Shipping; Rotterdam district Court 22.08.06: demurrage costs have to be paid by principal of carrier, who should be referred to by the carrier and not rights holder (recent case BGH: 17.09.09; an inactive forwarder/shipper may be held liable) All in line with case law developments IPS's and to a lesser extent landlords

10. Lobby activities SNB-REACT approached UNECE; governing body of transport treaties European Union: Amend border regulation 1383/2003

11. Conclusion –We demand first of all cooperation of third parties In rights owners, government's and their own interest By simple modification of trade conditions –If needed, cooperation from authorities, lawmakers to assist in creating a shared responsibility to fight the counterfeiting problem –This approach will be much more effective than stronger penalties or more LEA NO room for ignorance

12. Thank you for your attention Ronald Brohm rbrohm@snbreact.org +31206406363 www.snbreact.org