This is the success story of a government that, by facilitating the adoption of equitable trade standards for protecting intellectual property online managed to durably decrease counterfeiting on online platforms. The solutions described in the following paragraphs are royalty free, and available for any business wishing to participate in better protecting its consumers, developing a more secure and reliable digital environment, promoting a more balanced cooperation between trademarks owners and internet companies, and ultimately building greater respect for IP on the internet…
A necessary response to a serious issue for consumers and businesses alike
In 2008, the French government made the fight against online counterfeiting the top priority of its national intellectual property policy agenda. The situation back then was critical: online sales of fake products dramatically increased and triggered waves of complaints from aggrieved consumers, litigation cases between brand owners and e-commerce platforms and damaged the public image of e-commerce.
The key issue at stake was how to stop online sales of counterfeit products without harming the booming business of e-commerce and which concrete measures could be most successful. The French government initiated a dialogue between e-commerce platforms and IPR holders. After 9 months of consultations and negotiations led by the President of the National Anti-Counterfeiting Committee (CNAC), and supported by the French Industrial Property Office (INPI), an arrangement was found between the major e-commerce platforms and over 500 French and international brands. The charter provided a set of preventive measures and reactive procedures, to be implemented through a continuous cooperation between the parties.
Filtering as the key for efficient detection
First, technical detection tools (filters) based on information provided by IPR holders were set up by e-commerce platforms. These tools include key words showing the counterfeit nature of the products offered for sale, identity verifications, an identification of dubious offers, an analysis of sellers’ profiles and behaviours and detection of repeat offenders.
The charter also provides reactive measures in order to take action against counterfeiters. Rights holders can use a simplified notice and takedown procedure. Sanctions against sellers of counterfeit goods can include a 6-month suspension or closing of their accounts, plus measures to prevent re-registration. Sellers must also prove the authenticity of the products or the authorisation of the IP rights holders.
In the following 18 months, the parties implemented anti-counterfeiting mechanisms and exchanged information to experiment. The first results were very encouraging.
Immediate and inspiring results
The volume of online fake products significantly decreased or simply disappeared, and so did the number of claims.
A direct and solid dialogue is now established between stakeholders and government, with a proven capacity to constantly adapt the tools at hand. An annual assessment of this mechanism regularly highlights the positive impact of these solutions. This soft law providing efficient preventive tools became a standard in France. The French ‘‘Charter of confidence’’ is also widely promoted abroad as an example of good practice. It inspired a similar initiative adopted at the European Union level in 2011. In 2012, two more agreements were signed in France between IPR owners and free little ads platforms, plus with postal operators.
In France and in Europe, the challenge is now to widen the scope of this type of cooperation by including other intermediaries such as advertising service providers, payment services and shippers.
Paving the road for better IPR enforcement online in China
It is crucial to tackle the problem before it is too big. The Chinese central government is currently encouraging local police and administrative enforcement authorities to become more active in monitoring and investigating online counterfeiting.
Together with large French companies, the French authorities are developing contacts with the major Chinese e-commerce platforms, social media platforms and search engines in order to offer assistance for implementing filters and improving notice and takedown procedures. Detecting obvious and recurring fakes is technically possible and useful for both sides. For instance, collaboration with e-commerce platforms consist in the identification of trends by the right owners, and setting up of proactive measures by the platforms as to prevent future ads following similar trends from being published in the future. A step by step approach based on mutual trust and win-win spirit will build conviction that filtering is a necessary and efficient tool to reduce IPR infringements and deter counterfeiters.
In China as well, detection tools could soon become the new standard for another successful experience. But to achieve this goal, the cooperation of companies is necessary and more international brands owners should integrate this requirement in their dialogue with internet companies. Only by working all together we can ensure IPR are respected online. United we stand!
“The system of filters is also suitable for geographical indications, especially for well-known names which are misused gigantically by online sellers to designate products not coming from the region thus damaging the image of the quality of GI products”
WANG Wei, Director of the Champagne Bureau in China
