Caveat Emptor - Who Said Latin Was Dead?

Q. 1 What actions can companies and governments take to ensure that products can not be easily pirated? Be specific.

Nowadays fighting against counterfeits is too difficult because counterfeiters are using everything to fake expensive products and then sell them at lower prices.

Governments try to avoid counterfeits by using strict regulations against phony products, but there is no way to avoid a huge flow of law quality products that are faked.

We think that while producing some products the company should know its distribution channels very well, where and to whom the products are sold, and then control its network to avoid counterfeiting. For example when the company launches its product in one market it should be sure that there are no other products under the same trademark, and in case of existence of such products it should inform government to fight against counterfeiting. With such actions the company can protect its brand name and somehow reduce the counterfeit.

It was also mentioned in the case that the main havens of phony goods are China, India, South Korea, Malaysia, Taiwan, and Thailand. The main portion of counterfeits is produced in these nations, because of weak antipiracy regulations, even governments are operating in counterfeit actions. They do not protect organizations’ property rights. Using other company’s brand names, faking its products and selling them are common. Because these nations are supporters of counterfeiting, it is very important to reinforce antipiracy in these countries and not to let governments support such actions by controlling them strictly.

Companies in countries with strict antiparicy regulations are displeased because of unfair competition caused by counterfeiting. They should continue to lobby their governments and international organizations related to such affairs to force other nations into inducing stricter laws.

Meanwhile governments should take into account the bad affects of counterfeiting and try to assure and force other countries as possible to adopt fair regulations.

Q. 2 Do you think that the international business community is being too lax about the abuse of intellectual property rights? Are international companies simply afraid to speak out for fear of jeopardizing access to attractive markets?

U.S. Federal Patent Statute, World Trade Organization, United Nations, The Organization for Economic Cooperation and Development and The International Institute for the Unification of Private Law work to standardize rules of conduct in international business, including regulations about counterfeiting. Yet some areas of law need further progress across the world.

The main countries in creating phony goods are: China, India, South Korea, Malaysia, Taiwan, and Thailand. In these nations there are weak antipiracy regulations and at the same time economy is booming, so because of this, problem is expected to become more and more serious. In China government officials operate in many factories producing pirated goods, often criminals are connected with government, receiving legal protection from them.

Like trademark laws themselves, enforcement policies differ by country. The maximum penalty for trademark violation in Italy is 3 years in prison and a $4,000 fine; in Germany, it is 5 year and unlimited fine.

Some progress is occurring. The European Union, for example, opened a trademark protection office to police trademark infringement against firms that operate in any EU country.

International companies find themselves in difficult position when fighting piracy in countries with lax antipiracy rules because filing a lawsuit can damage its business relations there.

Q. 3 Increased digital communication may pose a threat to intellectual property because technology allows people to create perfect clones of original works. How do you think the Internet might affect intellectual-property laws?

Intellectual property is property that results from people’s intellectual talent and ability. It includes novels, graphic designs, computer software, etc.

Many legal systems protect property rights – legal rights to resources and any income they generate. It can be traded, sold or licensed in return for specific payments.

Intellectual property laws are designed to compensate people whose rights are violated.

Interne is added to counterfeiters, usual channels of distribution. As for honest business makers, Internet significantly reduces costs and obstacles for counterfeiters.

Technological advances are the cause of the extreme low cost of fakes – a fake CD can be made in a few seconds for less than one dollar.

Despite of restrict intellectual-property