Supplementary memorandum submitted by
The Anti-Counterfeiting Group
I have the following additional evidence for
the Committee as undertaken at the oral evidence hearing.
1. Counterfeit Pharmaceuticals. As
we, and I suspect others, reported to the Committee, the pharmaceutical
industry is very concerned about making public any specific reports
of the conterfeiting of its products because of the nature of
the market. The pharmaceutical industry associations may be able
to provide a confidential memorandum. The case I cited to the
Committee involves the anti-ulcer drug Losec. A consignment
of fake versions of the drug was found in 1998. (Product and Image
Security Newsletter No. 26, September 1998). I attach further
extracts from various publications which details further mini-cases
studies of dangerous or health threatening fakes[4].
2. Major Criminal Activity. Serious
and organised criminal involvement in counterfeiting is widely
accepted by the Police, Customs and international regulatory authorities
such as Interpol and the Anti-Fraud Unit of the European Commission.
The Committee will recognise that serious and organised criminals—whatever
they are involved in—are very rarely caught and brought
to justice. It is very difficult to get legal proof of
involvement. However, there is enough circumstantial evidence
and there is enough implicit recognition of the existence of a
link for the ACG to be confident in citing. In particular the
European Union in its papers on: the Customs Regulation 3295/94;
the Green Paper "Combating Counterfeiting and Piracy in the
Single Market"—COM (98) 569 final; and "The Fight
Against Fraud Work Programme COM (98) 278 final, all acknowledge
the link with organised crime. The United Nations Economic Commission
for Europe in its deliberations on the Protection and Implementation
of Intellectual Property Rights for Promoting Investment [in Central
and Eastern Europe and the CSI]—Trade/1999/20, also acknowledged
the link.
In the UK the link is explicitly acknowledged
by the existence of a formal sub-committee on anti-counterfeiting
of the Metropolitan Police Joint Action Group on Organised Crime.
See also evidence to the House of Commons Home Affairs Committee
Inquiry into Organised Crime, 16 November (pp. 122, 129, 146,
148 and 208).
10 June 1999
4 Not printed. Back
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