1. Public-Private Partnerships: Fighting Counterfeits and Protecting IPR in the Former Soviet Union 1st EuroForum International Conference: Protection of Intellectual Property Rights in Russia and the CIS Moscow, Russia 29 January 2002

2. Global Counterfeiting  $650 billion lost sales/year: 7% of world trade!  200,000 lost jobs per year.  Billions in lost government revenues.  Injuries and deaths from fakes.  Finances organized crime & terrorists. Sources: Global Anti-Counterfeiting Group; European Union; Interpol; IACC

3. IPR CRISIS in FSU  Russia -- $2 billion plus per year.  Ukraine -- $1 billion per year.  Counterfeit alcohol kills 1,000s/year in FSU.  5-7% of medicines are fake in Russia.  90% plus of business software is counterfeit. Sources: CIPR Trademark Owner Surveys, Russian Federation Tax Police, Deloitte & Touche, AIPM, BSA, IFPI

4. Counterfeit Cigarettes FAKEORIGINAL Source: British American Tobacco

5. Trademark Infringement

6. Look-Alike Soft Drinks Source: The Coca-Cola Company

7. Counterfeit Medicines CLAFORAN CLAFORAN sterile powder for iv/im injection Source: Aventis; AIPM

8. Initial Differences Between Original and Fake ORIGINAL FAKE Source: Aventis, AIPM

9. Improved Claforan Fake ORIGINAL FAKE Source: Aventis, AIPM

10. Counterfeit Medicine Price List Claforan 1g (Aventis) $1.50 Claforan 1g (fake) $1.00 Claforan 1g (fake) Lot 030624 $ 0.50 Lot 050617 $ 0.70 Lot 070566 $ 0.70 Source: Aventis, AIPM

11. IPR Abuse in FSU: Analysis  Rampant infringements, hijacking, fakes.  Complex economic, social and political context.  Corruption and organized crime.  Imperfect legal regimes.  Poor enforcement.  Lack of political will.

12. Opinions of IP Owners  IPR abuse rated with taxes and customs as top barriers to trade & investment.  Counterfeiting is issue #1.  Little confidence in government.  Weak penalties (no deterence).  Private sector is BIG part of the problem. Source: CIPR Trademark Owner Surveys 2000 (Russia, Ukraine and the Baltic States)

13. Remedies to the Problem  Lobby political leadership; work with experts.  Train, fund and fairly compensate judges & enforcers.  Increase penalties; require physical destruction.  Educate government, media & consumers.  Activate trademark owners: domestic & foreign.  Increase public-private cooperation. Source: CIPR Trademark Owner Surveys 2000 (Russia, Ukraine and the Baltic States)

14. CIPR’s Trademark Advancing IP Rights and Enforcement Through Public-Private Partnerships

15. CIPR’s Domain Exclusive Geographic Focus Russia, FSU and Baltic States

16. CIPR’s Mission Industrial Property:Industrial Property:  Promoting Owner’s Rights.  Supporting Enforcement.  Fighting Counterfeits.  Relationships with Government Partners.

17. CIPR’s Members o A Coalition:  Multinational Corporations.  Business and Professional Associations.  Government Decision Makers.  Enforcement Authorities.  Intergovernmental Organizations.  Copyright & Software Owners ???

18. CIPR Corporate Members:  Adidas  Anheuser-Busch  Baker & McKenzie  BAT  Dell Computer  Diageo plc  Four Seasons Hotels  Fross Zelnick Lehrman & Zissu  Gallaher Limited  Guinness UDV  Japan Tobacco Int'l  ICN Pharmaceuticals  Kraft Foods Int'l  Philip Morris  Tiffany & Co.

19. CIPR Observer Status World Intellectual Property Organization (WIPO) CIS Interstate Council for the Protection of Industrial Property

20. CIPR Cooperating Organizations  Interpol  World Customs Organization  International Trademark Association  International Anti-Counterfeiting Coalition  European Federation of Pharmaceutical Industries  26 Associate Members

21. CIPR’s Strengths On-the-Ground Professionals:  CIPR Corporate & Associate Members.  Government and Enforcement Allies.  Legal Counsel and Judicial Support.  Lobbyists & Media Experts.  Substantive Knowledge & Expertise

22. CIPR’s Action Programs Advocacy and Lobbying:  Research, Education and Training.  International Affairs.  Legislative and Regulatory Initiatives.

23. CIPR and Anti-Counterfeiting oCoalition-Based Strategy:  “Gap Analysis” & Lobbying.  4 Ds: Detect, Desist, Destroy, Deter.  Tough Penalties and Court Sentences.  A Common, Cross-Industry Agenda.  Joint Public-Private Enforcement.

24. CIPR’s Unique Deliverables Relationships + Credibility with IPR Decision Makers = Direct Results for IP Owners and Government Regulators

25. CIPR’s Success Stories  Anheuser-Busch Companies: BUD  Diageo: SMIRNOFF  BAT: HOLLYWOOD  Phillip Morris: APOLLO-SOYUZ  Dalvey: DALVEY

26. CIPR’s Precedent for All Trademark Owners: Physical Destruction of Counterfeits in Latvia

28. CIPR Case Study: Latvia  Cross-border Contraband and Counterfeits: 60 million cigarettes (3 million packs) transited Latvia in last three months.  Corruption and Organized Crime.  Authorities seize two large shipments of fake Marlboros & B&Hs with CIPR assist.  GOL Position: Counterfeits warehoused - no arrests or criminal court actions on counterfeits.

29. CIPR Case Study: Latvia  Build a coalition of honest government officials.  Persuade Security Police to issue destruction orders without court order.  Organize public destruction event.  Win-Win: New GOL Policy on Counterfeits. Security umbrella for police and private investigators. Fake products destroyed! GOL, Police & Industry share credit.

30. The Case for Optimism  Political leadership awakening to crisis.  Domestic brand owners embracing IP.  Trademark owners facing facts and telling the truth. (Shared accountabilty!)  Working parterships with PTOs and enforcement authorities.  PTOs' & CIPR's credibility, leadership and capacity established FSU-wide.

31. WWW.CIPR.ORG Washington DCLondonMoscow KyivRigaChisinauAlmaty Contacts: Peter.Necarsulmer@CIPR.ORG Alexander.Shelemekh@CIPR.ORG