EC Toughens Stance On IP Offences

by Ulrika Lomas, for LawAndTax-News.com, Brussels

28 April 2006

The European Commission announced on Wednesday that it has adopted a proposal for a directive to combat intellectual property offences which amends the proposal approved by it in July of last year.

The most recent proposal has been issued in response to a Court ruling of 13 September 2005 in Case C-176/03, according to which the criminal law provisions necessary for the effective implementation of Community law are a matter for Community law.

Accordingly, the proposal for a Council framework decision to strengthen the criminal law framework to combat intellectual property offences has been withdrawn, and its provisions incorporated into the amended proposal for a directive.

According to Commission Vice-President Franco Frattini, who is responsible for justice, freedom and security matters, the new provisions proposed by the Commission represent the criminal law dimension of the fight against counterfeiting and piracy in Europe.

The Commission stated that:

"Effective approximation of Member States’ criminal legislation in this field is the minimum needed to pursue together a major campaign aimed at eradicating these phenomena, which are causing serious harm to the economy. Nowadays, criminal organisations are focusing on these activities, which are often more lucrative than other forms of trafficking and on which the authorities do not crack down as much."

"Counterfeiters and pirates undermine legitimate businesses and pose a threat to innovation. What is more, in many cases the counterfeit goods are prejudicial to public health and safety."

The proposed measures are designed to bring Member States’ criminal legislation more closely into alignment and to improve European cooperation.

Under the directive, all intentional infringements of an intellectual property right on a commercial scale, including attempting, aiding and abetting such infringements, will be treated as criminal offences.

The minimum sentence is a term of four years’ imprisonment where the infringement is committed under the aegis of a criminal organisation or carries a serious risk to the health and safety of individuals.

The amount of the fine will likely be at least EUR100,000 or EUR300,000 where there is a link with a criminal organisation or any risk to health and safety. However, member states may choose to impose heavier penalties or fines.

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