John Anderson Chairman The Global Anti-Counterfeiting Group

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John AndersonChairmanThe Global
Anti-Counterfeiting Group
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• Chairman GACG Network
• IP Enforcement Project Consultant at
• Queen Mary Intellectual Property Research
  Institute, University of London
• EU Phare, Taiex and EuropeAid Projects
• Formerly Director General Anti-Counterfeiting
  Group (UK)
• Vice-Chair, UNECE Team of Specialists on IP
• WIPO Advisory Committee on Enforcement
• UN Inter-Regional Criminal Research Institute
• Interpol IP Crime Action Group
• INTA and Marques a/c Committees

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Measuring the economic and social impact of
piracy and counterfeiting The view of the
private sector European Industry
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The view of the private sector European Industry

• Global rather than European .....
• Industry Association(s)... (Compromises)
• Individual industry sectors and individual
  companies, AND especially certain
  multinationals have strikingly divergent views
• So... the ideal strategic private/public
  partnership view!

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Summary

• What are we hoping to achieve?
• The scope of the problem
• Comment on OECD Report
• A brief history of measurement and methodology
• The challenges for future measurement and
  methodology

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What industry is hoping to achieve

• Quantify its own economic losses and justify its
  costs on protection and enforcement
• Quantify national, regional and global economic
  losses to persuade governments, IGOs enforcements
  agencies and courts to act
• Quantify trends over time and geography to shift
  allocation of resources and persuade authorities
  to do so also
• Show robust causal link between all economic
  losses and actual social consequences in order to
  increase public awareness and affect consumer
  choices

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What is confusing

• There does not seem to be a clear difference
  between what can be measured objectively
  (quantitatively) and what we would like to
  measure subjectively (qualitatively) i.e. the
  difference between
• Economic and commercial losses - SHOULD be
  possible
• Personal, social losses much more DIFFICULT
• The questionable objective of trying to measure
  impact on TRADE
• AND confusion between measuring levels of
  enforcement and actual levels of infringements
  ... More later

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The scope of the problem

• International
• Multinational
• Cross-border
• Pan-industry
• Highly organised, criminal
• Flexible
• Adaptable (displacement)
• Resources

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The scope of the problem 2

• The Internet and digital downloads
• China
• Official inertia
• The development agenda

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The OECD Report

• Commendable effort
• Disjointed terms of reference
• Too many masters (Research by committee)
• No new research
• Perceptions (... the development agenda)
• Presentation

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A brief selective history of measurement and
methodology

• Original ICC project
• UK ACG/Italy Indicam
• GACG/CEBR
• Counting Counterfeits
• Several local, sectoral and regional studies
• But methodologies all different...

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Challenges for the Future

• Clear objectives of what is to be measured
• Start with quantity percentages
• Then quantity volumes
• Then costs
• Street value
• Genuine goods value
• Indices (e.g. year on year/countries or blocs
  industry sectors)
• Economic extrapolations
• Investment
• Tax revenue
• Public Spending

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Simultaneously but separately...(1)

• Enforcement e.g.
• Seizures confiscations, destruction orders
• Civil and administrative complaints
• Litigation
• Criminal cases
• Arrests
• Convictions
• Penalties

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Simultaneously but separately...(2)

• Social impact
• Deaths
• Injuries
• Factory closures
• Job losses
• Links to organised crime
• Links to terrorism

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Challenges for the Future Methodology

• 1.Choose a range of specific products
• 2.Measure total market within a country or bloc
• 3.Collate market penetration of leading brands of
  genuine products
• 4. Calculate total market for genuine products
• 5. Apply formula (e.g 2-4 equals illegal
  production assembly or importation......)

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Challenges for the Future Methodology

1. Statistics collected statutorily by Competition
   (anti-trust) authorities
2. Consumer/Market surveys
3. Demographics
4. Official sources police, customs, courts, Health
   and Safety authorities hospitals
5. Open source data mining

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Contact/Information

• janderson.gacg_at_btinternet.com
• mail_at_uaacp.org
• www.gacg.org