Counterfeiting goods is a $200 billion (£122.5bn) industry, accounting for seven per cent of the world's trade, says the International Chamber of Commerce (ICC). But loopholes in the current law have been highlighted in a recent court ruling.     

In July, HM Revenue & Customs (HMRC) seized a batch of 400 fake mobile handsets, batteries, manuals, boxes and hands free kits with Nokia branding. Nokia requested HMRC to confiscate the batch but the request was refused.

Under the Counterfeit Goods Regulation, the authorities can only confiscate counterfeit goods if there is evidence the products will be sold in the EU market. In this case, there was no such evidence.

Mr Justice Kitchin's ruling on July 24 supported HMRC's actions. But at least the judge was apologetic, indicating changes to the current regulation need to be made.

 "I recognise that this result is not satisfactory. I can only hope it provokes a review of the adequacy of the measures available to combat the international trade in fake goods by preventing their trans-shipment through Member States," he stated.

Trademark law firm Withers & Rogers attorney Tania Clark suggests the ruling will now open a floodgate for counterfeiters who will be using the UK as a "safe passage" for fake handsets.

Fakes are thriving The number of handsets and accessories being replicated and entering the EU market will rise significantly by next January because of these loopholes in the current Counterfeit Goods Regulation, lack of Government interest and the public's appetite for counterfeit products, the Global Anti-Counterfeiting Group (GACG) claims.

Chairman John Anderson argues the fake phone industry is thriving, helped by flaws in UK regulation. "Little things are overlooked in current law. For example, if a stamp hasn't been stamped in the right place on a document the criminals are let off. The ICC says counterfeiting is worth $200 billion globally a year; I think it's at least five times that figure. Counterfeiting is a huge black market and a huge source of income for criminals."

Source: Mobile News