Making the Consumer a Strategic Ally: Awareness-Raising National Seminar – IP Protection and Enforcement relating to the Automotive Spare Parts – Topic 8 Bucharest, Romania May 25, 2017 Xavier Vermandele Senior Legal Counsellor, Building Respect for IP Division

Introduction Consumer Attitudes - Learning what happens at the demand side: To enlighten communication tactics helping changing the behaviors of the consumers by making them understand the implications of buying C&P goods And for law enforcement authorities? Role in educating and awareness-raising (preventive) Enforcement “results” as an element among others of raising awareness

2. Consumer Attitudes National Board against Counterfeiting (Hungary) – 2012 See Document WIPO/ACE/8/4in http://www.wipo.int/meetings/en/details.jsp?meeting_id=25015 (available in Russian language) European Observatory on Infringements of IP Rights – 2013 “The European Citizens and IP: Perception, Awareness and Behaviour”, in https://oami.europa.eu/ohimportal/documents/11370/80606/IP+perception+study ICC/BASCAP Research Report on Consumer Attitudes and Perceptions on Counterfeiting and Piracy – 2010 See: http://www.iccwbo.org/bascap/index.html?id=33865 http://www.wipo.int/edocs/mdocs/enforcement/en/wipo_ace_6/wipo_ace_6_6.pdf

3. Consumer Attitudes (Hungary 2012) “Did you buy counterfeit products in the past year?” 2011 2012 Source: National Board against Counterfeiting, Hungary

3. Consumer Attitudes (Hungary, 2012) “Did you buy counterfeit products in the past year?” Source: National Board against Counterfeiting, Hungary

3. Consumer Attitudes (Hungary 2012) Consumers’ awareness regarding the consequences of counterfeiting/piracy “Counterfeit products are as good in quality as originals” “In the long run, it is more profitable to choose an original product” “Due to the economic crisis, more people buy counterfeit products of uncertain origin” Source: National Board against Counterfeiting, Hungary

3. Consumer Attitudes (Hungary 2012) Consumers’ awareness regarding the consequences of counterfeiting/piracy “There is few mention of the risks of counterfeiting in the media” “Counterfeits also imply risks to consumers’ health” “Anyone selling a counterfeit good commits a crime” Source: National Board against Counterfeiting, Hungary

4. Consumer Attitudes (EU, Nov. 2013) General perceptions Level of objective knowledge of IP Source: European Observatory on Infringements of IP Rights, EUIPO

4. Consumer Attitudes (EU, Nov. 2013) General perceptions Is it acceptable to purchase counterfeit products when the price for the original and authentic product is too high? Source: European Observatory on Infringements of IP Rights, EUIPO

4. Consumer Attitudes (EU, Nov. 2013) General perceptions Is it acceptable to buy counterfeit products when the original product is not (yet) available where you live? Source: European Observatory on Infringements of IP Rights, EUIPO

4. Consumer Attitudes (EU, Nov. 2013) General perceptions Buying counterfeit products discourages companies from inventing new products and introducing them to the market Source: European Observatory on Infringements of IP Rights, OHIM

4. Consumer Attitudes (EU, Nov. 2013) General perceptions 96% of EU citizens agree it is important that inventors, creators and performing artists can protect their rights and be paid for their work 81% of EU citizens surveyed agree with the statement “buying counterfeit products ruins businesses and jobs” Source: European Observatory on Infringements of IP Rights, EUIPO

4. Consumer Attitudes (EU, Nov. 2013) Conflicting attitudes Buying counterfeit products is an act of protest and a way to resist to the market-driven economy and the large premium brands Source: European Observatory on Infringements of IP Rights, OHIM

4. Consumer Attitudes (EU, Nov. 2013) Conflicting attitudes Buying counterfeit products allows making a smart purchase that enables you to have the items that you wanted while preserving your purchasing power Source: European Observatory on Infringements of IP Rights, EUIPO

4. Consumer Attitudes (EU, Nov. 2013) Conflicting attitudes (EU 28) 34% of EU citizens surveyed agree with the statement “buying counterfeit products allows making a smart purchase that enables you to have the items that you wanted while preserving your purchasing power” 52% between 15 and 24 agree with statement, 34% of 35 to 44 year olds, 25% aged 65 or more 38% agree that “buying counterfeit products is an act of protest and a way to resist to the market-driven economy and the large premium brands” 49% between 15 and 24 agree with statement, 38% of 35 to 44 year olds, 32% aged 65 or more Source: European Observatory on Infringements of IP Rights, EUIPO

4. Consumer Attitudes (EU, Nov. 2013) Consumption 4% report they have purchased counterfeit goods intentionally over the last 12 months 6% report they have purchased counterfeit goods as a result of being misled over the last 12 months 7% of men report buying counterfeits v. 5% of women Source: European Observatory on Infringements of IP Rights, EUIPO

5. Consumer Attitudes (BASCAP, 2010) Study made in 5 countries with various socio-development levels: India Mexico Russia South Korea United Kingdom

PURCHASE FREQUENCY / Product Category Average 5 COUNTRIES 64% CF POTENTIAL ON THIS CATEGORY 55% 50% 42% 38% 36% 29% 28% 27% 27% 26% 23% 20% 19% © ICC/BASCAP Q4: For each type of products listed below please tell me if you have ever purchased counterfeit or illegal copies and how often you do so?

Variable influence of different factors on purchases DRIVERS Low price and increasingly better quality create temptation 2. Low risk of penalty equates to a license to buy 3. Availability, quality, price and low risk generate an overall sense of social acceptability DETERRENTS 1. Health risks and safety consequences 2. Waste of money 3. Genuine offer better services and warranty 4. Threat of legal action or prosecution delivers a wake up call 5. Links to organized crime have more traction that might be thought 6. People don’t want to harm « someone like me » © ICC/BASCAP 19

6. Awareness-Raising Acting on a demand-side – Consumer as an ally – Sensitizing the consumer => Awareness-Raising Major focus of a lot of Member States: See WIPO/ACE/9, WIPO/ACE/10, WIPOACE/11 (http://www.wipo.int/meetings/en/topic.jsp?group_id=142) Most recent ACE/11 (September 2016) – see documents WIPO/ACE/11/4 («Awareness-Building Activities and Strategic Campaigns as a Means for Building Respect for IP») and WIPO/ACE/11/5 («Initiatives of the WIPO Academy in Raising Awareness of IP among Young People through the Educational System») under http://www.wipo.int/meetings/en/details.jsp?meeting_id=39546

6. Awareness-Raising Source: IllicitTrade.com by TechTrace SA

6. Awareness-Raising

Multumesc! xavier.vermandele@wipo.int www.wipo.int/enforcement