1. Combating IPR Infringement in the Supply Chain
IPR Enforcement Conference
21 June 2016
Brussels, Belgium

2. Crime outstripping enforcement and regulatory agencies
The current dynamics:
Transition of counterfeit from luxury items to general consumer products:
Exploitation of underdeveloped countries
Challenge to public attitude of a “victimless crime”
Raises the stakes and criminal status of the act
Crime outstripping enforcement and regulatory agencies
Political fatigue
Globalisation assisted by the virtual market place
Slow realisation of the scale
Length of the supply chain protects the perpetrator and adds to cost of enforcement action

3. Market perspective
Counterfeiters’ production entering increasingly global market place, facilitated by the Internet
They follow recognisable business models
Fakes have an international supply chain
Rights holders, regulators and enforcement agencies need to focus on source
Continued focus on destination
Diminishes return on effort
Only addresses the smaller players
Little or no risk to the counterfeiter
Manufacturing bases & Markets =
Counterfeiting bases & Markets
Fakes have an international market and need transportation
Express carriers are not immune
Members have global networks and reach
Members’ capacity to identify nature of goods is limited
Member operations are integrated and transparent “end to end”
Members transport goods in good faith
Members’ brands are global and are targets in their own right
EEA members recognise:
Concern for society and the economies they service
Rights holders are also our customers
Need to reinforce relationships with Customs and stakeholders

4. Seizures from express have decreased
Number of Cases/Seizures by Mode of Transport
In the EU seizure cases in express shipments in 2014 decreased to 4,117 from 7,390 in 2013.
Stakeholders need to focus on the origin to have a marked effect:
Greater chance of significant impact
Non registration of trade marks in country of manufacture means sourcing is legalised
IP legislation and penalties in country of manufacture required to support enforcement agencies
Better return on resource and effort
Cut out source and attack the main beneficiary
Regulatory framework to encourage bilateral enforcement activities

5. Secure and compliant operations
The Express industry has established, enhanced processes and procedures that promote a secure and compliant supply chain:
Compliance with international legislation (Annex 17 ICAO, Doc 30 ECAC, Reg 185/2010, Decision 2010/774)
Significant investment in facility security and inspection systems supported through our own internal audit programme.
Global training programs & procedures in place
Source: Global Express Association

6. Express delivery chain
The express industry utilizes sophisticated networks to collapse the time and distance between places thereby globally connecting business. Shipments from anywhere, to anywhere can be delivered within hrs
How we help Customs identify and stop IPR violations:
Advance electronic shipment information: Express delivery companies transmit electronic information in advance of arrival of shipments to enable Customs to perform risk assessment and target shipments for further examination.
Track and Trace: Systems allow packages identified by Customs as suspicious to be removed from traffic flows and provided to Customs officers for further examination.
Facilities: Express delivery companies provide Customs officers at express delivery hubs with adequate facilities and equipment to enable them to identify and examine suspect shipments efficiently.
Information on shippers and consignees: Express delivery companies provide Customs administrations with available relevant information that may legally be disclosed on shippers and consignees of shipments identified as containing offending goods.
Close accounts of customers publicly identified by Customs as repeat offenders.
Source: Global Express Association

7. Joint pilot project with OLAF
Identified threat
Legal Framework
Structural Description
Stakeholders
Objective of the Pilot Project
Operational Targets
Modus Operandi
Operational Description
Exchange of Information
Roles of European Commission (OLAF) and Europol
Briefing Meeting
De-Brief Meeting and Reporting
Financing
Communication
Coordinators
Participating States
Rights holders
Law enforcement authorities
Sponsor Organisations
Express operators

8. The express industry is committed to fight IPR violations
The primary liability of a third-party carrier in the case of an IPR infringing shipment is to provide information on that shipment when requested to do so by Customs and other regulatory or enforcement authorities in accordance with applicable law.
IPR offences are committed by shippers and/or consignees, NOT by freight forwarders and/or postal and delivery service providers.
We welcome all initiatives of the European Commission, regulators and enforcement agencies in cooperation with their counterparts in third countries, that focus on the source of counterfeit and IPR-infringing goods.
Customs-Integrators partnership:
Integrators have limitations
Not the originator of the sales transaction, the shipment or the information
No expertise to identify counterfeit material
No law enforcement authority
Potentially bound by data protection and commercial sensitivity regulations
Customs has powers
Mandated to intercept counterfeit crossing international borders
Authority for detention and investigation, using access to IPR holders/experts
Enforcers of EU and national legislation; IPR, safety and security
Both share concerns and a desire to address them
To address the increasing problem of fakes in the international supply chain
To build on mutual understanding of legitimate trade and the express model
To make best use of the resources available, including data

9. THANK YOU