August 3, 2011

Anti-Counterfeiting Trade Agreement a good start to combating bogus products

Column | Korky Koroluk

Counterfeiting continues to be in the news, with progress made on an anti-counterfeiting treaty coming, along with news of more bogus products on the market.

Sometimes, when reading the news, I can’t figure out whether to laugh or cry.

First came news that the “final text” has been published of something called the Anti-Counterfeiting Trade Agreement.

The object of the agreement is to set up an international framework for governments’ efforts to combat the proliferation of counterfeiting and piracy, practices that undermine legitimate trade and the development of the world economy.

The countries that took part in the negotiations were Canada, Australia, the European Union and its member nations, plus Japan, Korea, Mexico, Morocco, New Zealand, Singapore and Switzerland. But within days of publication of that “final text,” the agreement was rejected by Mexico. And since most people in most of the negotiating nations have never heard of the agreement, it’s likely other countries will reject it, as well. Already, there are worried sounds coming from the European Union, which would have to change some of its existing laws and guidelines to bring them into line with the new agreement.

Another concern is that countries like China, and others that produce a lot of counterfeit products, are not involved. The idea is to get them to join later, but so far, none has shown any willingness to do so.

China’s absence, in particular, is worrying. There is a culture of counterfeiting there that has been in the news lately.

We’ve long known that many counterfeit products on Canadian store shelves are made in China, including many small parts used by electrical contractors, and warnings have been sounded from time to time. There have also been cases, not of counterfeiting, but shoddy or unsafe products, like of pipe made from substandard steel, and drywall that emitted hydrogen sulphide and other gases that sickened people and corroded household wiring and plumbing.

Chinese counterfeiters don’t just sell to off-shore markets. A lot of their stuff is sold within their own country to people eager to own clothing carrying labels like Adidas, Louis Vuitton and Calvin Klein. And it’s not just products. A case came to light a couple of weeks ago of a counterfeit store.

A whole store in the southwestern city of Kunming was tricked out to look exactly like an Apple store — complete with all the design elements, the display cases, the staff tee-shirts bearing the Apple logo, and Apple computers, phones and accessories on the shelves. The staff seemed genuinely to believe they worked for Apple.

But they weren’t. The store isn’t an Apple store, nor even an authorized Apple reseller. The merchandise was genuine, but it was likely purchased abroad and smuggled into the country to avoid taxes. That means buyers would have no guarantees or access to technical support. Indeed, many weren’t even given receipts.

The discovery of the store brought a flood of other counterfeiting stories to light, some of them really comical.

There were the men’s socks that are made from “100% pure sock.” And the “genuine” Harry Potter books printed on white copy paper and bound only with staples.

There is even a story about Hyundai cars with BMW stickers pasted over the Hyundai nameplates. The labels apparently come off in the rain.

So while people in many other countries negotiate in good faith to come up with an agreement that might curb counterfeiting, there are in other countries people of dubious faith willing to make and sell knock-offs.

That’s what I meant when I said there are times when I don’t know whether to laugh or cry.

Korky Koroluk is an Ottawa-based freelance writer. Send comments to editor@dailycommercialnews.com

Print | Comment