Look-alikes 2003 Presentation from Philip Sheppard Public Affairs Manager AIM - European Brands Association

Ice- cream look-alikes Italy

Italy survey  59 responses, 19 (32%) cited problems  Most categories – especially dry food and beverages  16 retailers –especially Metro, Carrefour and Esselunga

Italy - what did companies do?  113 incidents, action taken in 74 (65%)  Negotiation in 49 cases  Litigation in 25 cases  Most cases pending  Wherever action taken and concluded, 100% success!

Italy - reasons for no action 1. Fear of retributive action 2. Insufficient legal framework 3. Low economic impact Italian equal top rating:  Retribution & weak law

Italy - trends  Slightly more responses than in 2000 – up from 48 to 59  Higher rate reporting problems – from 21% to 32%.  Incidents doubled to 113 from 55  But action also grown from 18% to 65%!

Italy - conclusion  Look-alike problem is getting worse  But manufacturers are more willing to take action to protect their rights and when they do, it works!

European survey more replies, bigger problem

European survey more cases

European survey look-alikes in most sectors

European survey what did companies do?  In top 12 countries, from 432 incidents, 48% of the time action was taken  80% negotiation, 20% litigation  86% of the time a positive result!

European survey results of taking action

European survey why 52% did nothing

European survey worst offenders

European survey is there a link to private label?

European survey - conclusions  Action works  As a result of increasing like-alikes, more companies are taking action and getting successful outcomes.

Legislative initiatives  EC proposed directive on unfair marketing defines unfair to consumers:  “taking account of all features”…  “including overall presentation”...  and if deception as to:  “the identity...of the trader”

Legislative initiatives - unfair marketing directive  First internal draft April 2003  Next draft June 2003  Then, Commission adoption, Parliament 1st reading, member states adoption, Parliament 2nd reading, final adoption 2004?