1. SNB - REACT Business Perspective IPR Protection April 1, 2009 Presentation Eli Mufisovski

2. Introduction SNB React – anti counterfeiting association Non-profit Our members- 150 well known companies are partner in our Business Partnership Group

3. Introduction Assist authorities Try to find most efficient way to fight counterfeit Service provider vs right owners

4. Introduction Counterfeit = worldwide industry organized by criminal organizations Right holders cannot combat this criminal phenomenon alone Balkan countries should join forces (EU)

5. Challenges In the Balkan area fight against counterfeit is difficult  Lack of legislation and experience Use the legislation more creatively The fight of counterfeit has started the past few years

6. Challenges  Raise awareness among public Most economy’s in the Balkan are not very strong Tendency to approve the sale of counterfeit The “infringers” are justified! Raise awareness among authorities of the importance and possibility of fight against counterfeit -Loss of revenues -Protection of consumer a.o.

7. Legislation National legislation in line with EU regulation? Nevertheless: most Balkan countries are a part of the Trade Related Aspects of Intellectual Property Right Protection Agreement (TRIPS) (!)

8. Legislation Border enforcement Market Surveillance Police

9. Border Enforcement Border enforcement: most important tool to prevent the circulation of counterfeited goods Has to be a quick and simple procedure Right Owner submits a Customs Application  Should be less formal (POA not notarized and apostle in all countries separately); they sign indemnity letter anyhow

10. Border Enforcement Simple: counterfeit goods =infringement Therefore long court procedures should be avoided!! Why go to court; counterpart rarely challenges counterfeit nature Effect: more costs, legal, storage…a.o. For budgetary reasons, right owners drop cases when they are long and costly

11. Border Enforcement Simplified procedure applied:? Macedonia : Yes Serbia: No Albania : Yes, not applied yet Montenegro: No, practically Yes Bosnia and Herzegovina : No

12. Border enforcement Improvement: Art 6 (EC 2003/1383) All costs………. “All costs” should be all customs costs, not all storage and destruction costs!

13. Market surveillance More difficult to act when the counterfeited goods are on the market Important for the right owners to have the infringing goods immediately removed and ultimately destroyed; if not the case, no interest. Different approach in the Balkan countries

14. Market Surveillance National legislation; -Law of Market Inspectorate -Law on Industrial Property Right -Law on Consumer Protection -Criminal Law In common: Trips Agreement

15. Improvement Acting on request or ex-officio? Needed; manpower and training  React and the right owners can assist in training and can assist the officers or inspectors during a raid Have the goods seized and destroyed  React could assist in storage and destruction

16. ACTA New initiative ACTA (Anti Counterfeiting Trade Agreement.) more protection for the right owners  Business Perspective; Strict criminal enforcement; administrative and civil enforcement cannot substitute criminal enforcement. Harmonizing at international level criminal sanctions against counterfeiting and piracy

17. ACTA Encourage judicial authorities to impose higher penalties to deter future infringement Ensure the ability of law enforcement officials with the authority to act ex officio to seize (materials, evidence etc) and impose sanction/ penalty like imprisonment

18. ACTA Destruction, removal from channels of commerce; costs of storage and destruction on right holders should be eliminated Provide prompt and reasonable access by right holders to relevant documents and information on counterfeiters and pirates to use in conducting private investigations, filling complaints o.a.

19. Conclusion Avoid long procedures, Avoid storage costs (possible solution, own storage, React can assist) Destruction (uniformed way, recycling) Cross border information

20. Thank you SNB REACT BALKAN Ms. Eli Mufisovski Dame Gruev nr 1 Skopje - Macedonia Tel +389 2 3228 244 Fax + 389 2 3298 007 emufisovski@snbreact.org emufisovski@snbreact.org reactbalkan@snbreact.com