DTI cracks whip on 2010 fakes

Cape Town - Between April and October this year, the Office of Company and Intellectual Property Enforcement (OCIPE) received what was called an overwhelming 80 intellectual property complaints, according to the deputy trade and industry minister Rob Davies. He added that 44 search and seizure operations were conducted during this period, resulting in the impounding of several products, mostly relating to the entertainment industry.

"In a period of just eight months, the local entertainment industry has lost R1.7m in revenue, and a further R1.1m through the sale of other counterfeit products, such as cigarettes and cosmetics," Davies told a conference of judges and magistrates, called by his department to discuss the counterfeiting problem.

"These figures refer only to operations conducted by the OCIPE and exclude seizures made by other law enforcement agencies, including the National Prosecutions Authority, South African Revenue Service, and the Police Service."

He told the conference on Thursday evening that the counterfeit industry in South Africa is growing at an alarming rate, with most products now being manufactured here in South Africa.

"I have argued that counterfeit goods trading produces no real benefits for our economy, and in fact imposes considerable costs on workers and the community," the deputy minister said.

"Indeed, the losses incurred are estimated as running to R26m a year. Moreover, we need, to recognise that laxity in the enforcement of intellectual property laws could have considerable reputational consequences, particularly as we prepare ourselves for the hosting of the 2010 Fifa World Cup."

Davies also stressed the reputational risks posed by the influx of imitation goods, particularly given the government's emphasis on promoting genuine, locally produced products during the 2010 Fifa World Cup, to boost the country's economic growth.

- I-Net Bridge