Collaborative action to face the growth of counterfeit products is deemed imperative, Nesma Nowar reports Product counterfeiting is a global phenomenon. For growing markets like Egypt, it is particularly detrimental. A recently published report by the Industrial Modernisation Centre (IMC) estimated trade volume in counterfeit products at LE30 billion during 2010 compared to LE21 billion in 2005. "The phenomenon has a direct negative impact on the economy. It causes losses estimated at billions in addition to the waste of innumerable job opportunities," said Mohamed Abu Shadi, head of the Internal Trade Sector at the Ministry of Trade and Industry during the annual conference of the Consumer Protection Agency, held in Cairo last week. According to Abu Shadi, although counterfeiting products in not a new trend, it has fiercely increased, not only in Egypt but also around the globe. The World Health Organisation (WHO) stated that counterfeiting in the field of pharmaceuticals ranges between 10 to 15 per cent and that 50 per cent of the pharmaceuticals purchased via the Internet is counterfeit. The spread of counterfeit products had led the United States to tackle the issue of copyright in the Uruguay Round of the General Agreement on Tariffs and Trade, the precursor to the World Trade Organisation regime. "This is a war and concerned government entities strongly need to cooperate and coordinate efforts to address the issue," Abu Shadi said. Notably, many of the new advancements have made counterfeiting products all the more easier; the wide use of technology, the turn of formerly socialist economic systems towards capitalism, consumer ignorance of their rights, and complicated governmental procedures and red tape that resulted in malpractice. The ministry's Internal Trade Sector, according to Abu Shadi, plays an important role in monitoring the market. Nevertheless, consumers have a role to play -- one they are failing to play. Abu Shadi revealed that the number of counterfeiting complaints received by the sector do not exceed 10,000 per year, which represents but 4.3 per cent of a total of 230,000 commercial complaints. Adli Abdel-Razek, head of the Information Sector at the Egyptian Customs Authority (ECA), stated that the ECA is working to adopt the latest systems in order to fight counterfeiting and to preserve copyright. "Egypt is a signatory in many agreements that require action to preserve copyrights," said Abdel-Razek, adding: "It is noteworthy to underline that Egypt ranks 27th worldwide in the facilitation of proceedings." Meanwhile, an electronic database for all international brands and firms is being established to make easier the fight against counterfeiting. Christopher Zimmermann of the World Customs Organisation (WCO) confirmed the importance of taking concrete measures against malpractice, adding that the WCO is ready to help the ECA in its fight. Mohamed Sultan, general manager at Procter & Gamble, estimated that counterfeit products represent at least 10 per cent of the market. "The easier the technology, the more possible the counterfeiting. This is why we need to move collaboratively and to coordinate efforts with NGOs and other consumer protection agencies."
