European Commission reports on MoU on the sale of counterfeit goods

Last week, the European Commission released its first report evaluating the effectiveness of the Memorandum of Understanding (MoU) on the sale of Counterfeit Goods via the Internet. The MoU, signed by some 33 e-commerce platforms and major brand owners in May 2011, aims at establishing a code of practice in the fight against the sale of counterfeit goods over the Internet while enhancing collaboration among its signatories. It focuses on disrupting the supply side of the counterfeit market in order to efficiently eliminate the online availability of counterfeit goods.

Yesterday (April 22), the Commission shared, in the context of the Stakeholders Dialogue, its evaluation of the MoU’s ability to reduce the online sale of counterfeit goods. In its report, the Commission states that it will look to extend the membership of the MoU over the next two years, to include new Internet platforms, distributors, right owners and trade associations.

The report states that the sale of counterfeit goods over the internet is damaging and harmful to all legitimate stakeholders, including Internet Platforms and intellectual property rights owners and, most importantly, consumers. Online counterfeiting is a dynamic phenomenon, which is constantly changing and adapts to break into new business models. Illicit counterfeiting businesses are sophisticated; they react to anti-counterfeiting protection strategies.