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Abu Dhabi: A massive influx of counterfeit products is taking its toll on the established brands as the UAE government plans to reduce the impact of a Dh10 billion annual import of fake products into the country.
The UAE Ministry of Economy (MoE) and the Brand Owners Protection Group for the GCC and Yemen (BPG) on Sunday signed a memorandum of understanding (MoU) to protect intellectual property rights and on initiatives against commercial fraud and counterfeiting in the UAE.
Mohammad Ahmad Bin Abdul Aziz Al Shehi, undersecretary of the MoE, told reporters that the MoU will "enhance our position to fight counterfeiting and piracy."
Al Shehi said in 2006 the size of the parallel business in the UAE through counterfeited products was estimated at $2.7 billion (Dh10 billion), with clothing, software and hardware as its key components.
According to industry estimates, counterfeiting is one of the most dominant forms of intellectual property rights violation and has evolved into a big threat, accounting for more than 10 per cent of the world trade.
Estimates show that 35 per cent of software sold in the UAE is counterfeit. International estimates are higher at 38 per cent.
Losses arising from the problem rose to $94 million (Dh345 million) in the UAE in 2007 - a 52 per cent increase on the previous year's figure of $62 million, according to the annual survey conducted jointly by the Business Software Alliance (BSA) and global market research firm IDC.
International companies are estimated to be losing more than $60 billion a year because of copyright violation and violation in China.
"Nobody can eliminate it, we are trying to minimise it," said Al Shehi.
Sunday's MoU is part of a series of strategic initiatives of the MoE in this regard.
Al Shehi said the MoU aims to provide full legal and technical support to the ministry's agencies and partners, especially to inspectors belonging to the judicial police.
Under the terms of the MoU, the BPG will provide legal and technical training to MoE specialists, inspectors, employees, and officials of departments and law enforcement agencies.
BPG service providers will also cooperate with the ministry in providing the necessary legal support for law enforcement officials, such as legal analysis and studies.
It will promote a culture of IPR protection through visual, audio, and print campaigns; these would highlight the importance of IPR; its protection against abuse; and the negative effects of IPR crimes.
Growing losses
- In 2006, the size of the parallel business in the UAE through counterfeited products was estimated at $2.7 billion.
- Clothing, software and hardware are the key counterfeited items in the UAE.
- Counterfeiting accounts for more than 10 per cent of the world trade. International companies are estimated to be losing more than $60 billion a year because of copyrights violation, trademarks and patents in China.
- Estimates show that 35 per cent of software sold in the UAE is counterfeit. International estimates are higher at 38 per cent.
- Losses arising from counterfeited software rose to $94 million (Dh345 million) in the UAE in 2007 - a 52 per cent increase on the previous year's figure of $62 million, according to the annual survey conducted jointly by the Business Software Alliance and market research firm IDC.
Have you ever purchased a product and later found it to be a fake? Are you aware of the procedure to report sale of counterfeit products? How do you think such sales can be checked? Tell us at letter2editor@gulfnews.com or fill in the form below to send your comments.
Your comments
It is necessary to protect and safeguard the rights
maqbool
Dubai,u a e
Posted: July 07, 2008, 20:21
The present penalties and punishments are not enough to discourage the counterfeiters. To minimize the counterfeits to the maximum extent, the penalties should be high and the outlets selling counterfeits should be closed. I have personally seen trading shops continuing to sell fake electrical items though their were raided twice or more by the authorities. The penalties are almost negligible compared to the huge profits earned on the counterfeits. Electrical Counterfeits are especially very dangerous and are a big threat to lives of the people. Electrical counterfeiters should be dealt seriously with out mercy. The authorities should categorize electrical counterfeits as dangerous and potentially hazardous products.
Talaluddin
Dubai,UAE
Posted: July 07, 2008, 07:13
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