Rapport Propriété Intellectuelle Royaume-Uni 2013/2014

IP
CRIME
REPORT2013/14

Contents
FOREWORD 3
EXECUTIVESUMMARY 4
REPORTOFEVIDENCE 7
CHAPTER1WHATISTHESCALEOFIPCRIMEINTHEUK? 9
INTRODUCTION 9
THEONLINEENVIRONMENT 10
CAMMERSANDRELEASEGROUPS 12
DEVELOPINGANDEMERGINGTECHNOLOGY 12
REPORTSFROMTHEPUBLICABOUTIPCRIME 13
ACCESSTOCOUNTERFEITANDCOPYRIGHT
INFRINGINGMATERIAL 17
WORKBYTRADINGSTANDARDS 17
PROCEEDSOFCRIMEACT 18
JUDICIALDISPOSALS 18
HARMCAUSEDBYIPCRIME 20
INTRODUCTION 20
ECONOMICHARM 20
CONSUMERS 20
FAKECIGARETTESANDTOBACCO 21
ELECTRONICEQUIPMENT 21
CARPARTS 22
AIRCRAFTPARTS 22
HEALTHCAREPRODUCTS 23
PRESCRIPTIONDRUGSANDMEDICINES 23
ALCOHOLANDFOODFRAUD 23
COMMUNITIES 24
LINKSTOSERIOUSORGANISEDCRIMEANDTHESERIOUS
ORGANISEDCRIMESTRATEGY 24
LINKSTOOTHERCRIMINALITY 25
CHAPTER2ACTIONBEINGTAKENTOTACKLEIPCRIME 27
SUBSECTION1:CHANGESTOTHEOPERATINGLANDSCAPE 27
CONSUMERLAWREFORMS 27
NEWPROTECTIONSFORREGISTEREDDESIGNS 27
THEFALSIFIEDMEDICINESDIRECTIVE 28
SERIOUSORGANISEDCRIMESTRATEGY 28
NOMINETREGISTRATIONPOLICYREVIEW 28
INTELLECTUALPROPERTYENTERPRISECOURT(IPEC)REFORMS 29
SUBSECTION2:NEWINITIATIVES 30
NATIONALCRIMEAGENCY(NCA) 30
PROCEEDSOFCRIMECENTRE(POCC) 30
POLICEINTELLECTUALPROPERTYCRIMEUNIT(PIPCU) 31
CAMPAIGNPOISE 31
ORDERING 32
MANUFACTURE 32
SHIPPING 32
IMPORTATION 32
TRANSPORT(INTHEDESTINATIONCOUNTRY) 32
REWORKING 32
WHOLESALESTORAGE/WAREHOUSE 33
RETAIL 33
SCOTTISHANTI-ILLICITTRADEGROUP 34
PRIMEMINISTERSADVISORONINTELLECTUALPROPERTY 35
TECHNOLOGYSTRATEGYBOARDFUNDING 35
INTERNATIONALIPENFORCEMENTSUMMIT 36
SUBSECTION3:COORDINATEDACTION 37
UKIPCRIMESTRATEGY20112015 37
UKIPCRIMESTRATEGYUPDATE 37
PIPCUPARTNERSHIPWORKINGANDSTAKEHOLDER
ENGAGEMENT 41
OPERATIONS 41
PREVENTIONANDDISRUPTION 42
THENATIONALTRADINGSTANDARDSBOARD 43
HERMAJESTYSREVENUEANDCUSTOMS(HMRC)AND
BORDERFORCE 43
OPERATIONOPSON 44
THEREALDEALCAMPAIGNFORFAKE-FREEMARKETS 44
NATIONALMARKETSGROUP 45
NOMINETDISPUTERESOLUTIONSERVICEANDIPRIGHTS 45
FOODSTANDARDSAGENCY(FSA) 46
ASSISTANCETOLOCALAUTHORITIES 47
HORSEMEATINCIDENT 47
THEINTERNATIONALFEDERATIONOFSPIRIT
PRODUCERS(IFSP) 47
OPERATIONLAUDERDALE 48
PUBLISHERSASSOCIATION 48
RUGBYWORLDCUP2015:RIGHTSPROTECTIONPROGRAM 48
UKINTERACTIVEENTERTAINMENT(UKIE) 50
PRSFORMUSIC 50
BRITISHRECORDEDMUSICINDUSTRY 51
THEPUBLISHERSASSOCIATION 52
MUSICINDUSTRYREMOVESOVER100MILLIONLINKS
FROMGOOGLE 52
PRISONSENTENCESFORMUSICCOUNTERFEITERS 52
FEDERATIONAGAINSTCOPYRIGHTTHEFT(FACT) 53
COLLABORATIVEWORKING 54
DOMAINSIGNOVERS 56
HOSTINGPROVIDERS 57
CLOSINGSITESVIAHOSTINGPROVIDERS 57
CLOSINGSITESVIADOMAINNAMEREGISTRIES 57
FACTSADVERTISINGSTRATEGY 58
MOBILEAPPS 59
MEDICINESANDHEALTHCAREPRODUCTS
REGULATORYAGENCY 60
OPERATIONALACTIVITY 60
OPERATIONPANGEAVI 60
OPERATIONPANGEA 60
SUBSECTION4:AWARENESS,EDUCATION&TRAINING 61
AWARENESSTHROUGHCAMPAIGNSAND
EDUCATIONATTHEIPO 61
SCOTTISHANTI-ILLICITTRADESUMMIT 62
FACT 62
BPISUPPORTSSAFERINTERNETDAY 63
TRAININGFORRECORDCOMPANIES 63
INDUSTRYTRUST 63
ELECTRONICSYSTEMSCOMMUNITY(ESCO) 63
NATIONALCAMPAIGNS 63
IPPROTECTEXPO 63
BORDERFORCECHRISTMASCAMPAIGN 64
CROWNPROSECUTIONSERVICE 64
INTERPOLRECOGNIZESWORLDIPDAY 64
SUBSECTION5:INTERNATIONAL 65
OPERATIONOPSONIIIFAKEALCOHOLANDFOOD 65
INTELLECTUALPROPERTYOFFICE 65
UKANDTAIWANSIGNMOUONINTELLECTUALPROPERTY 66
KENYAANTI-COUNTERFEITAGENCY 66
IPATTACHS 66
CHINA 66
JUDICIALENGAGEMENTWITHCHINA 67
INDIA 67
BRAZIL 68
CASESTUDYFORNATIONALIPCRIMEREPORTINDIA 68
FICCICOPYRIGHTENFORCEMENTTOOLKITLAUNCHEVENT 69
HERMAJESTYSREVENUEANDCUSTOMS(HMRC) 69
EUROPEANCOMMISSIONFOODFRAUDUNIT 69
THEEUROPEANOBSERVATORYONINFRINGEMENTSOF
INTELLECTUALPROPERTYRIGHTS 69
WIPOADVISORYCOMMITTEEONENFORCEMENT 70
CHAPTER3RESULTSOFTHE2013/14TRADING
STANDARDSSURVEY 71
INTRODUCTION 71
BRIEFSUMMARYOFFINDINGS 71
A.TYPESOFGOODSINVESTIGATED 72
B.LOCATIONOFCOUNTERFEITGOODSINVESTIGATIONS 73
C.PARTNERSHIPWORKING 74
D.LEVELSOFINFRINGEMENT 75
E.LEVELSOFIPENFORCEMENT 76
F.TRAINING 77
G.RESOURCES 77
H.PROACTIVEMONITORINGOFTHEINTERNET 78
I.LINKSTOOTHERCRIMINALITY 78
J.SOCIALMEDIA 79
K.REGIONALTRADINGSTANDARDSDATAANALYSIS 80
GLOSSARY 85
BIBLIOGRAPHY 87
IP CRIME ANNUAL REPORT 2013/14 2

Foreword
T
he 2014 IP Crime Report reects a busy year; there has been new
legislation to cover Designs, exciting new partnerships to tackle
online IP Crime and initiatives to raise consumer awareness of the
risksposedbycounterfeitproducts.
However,IPcriminalitycontinuestoevolveascriminalsndnewways
toexploitopportunitiesandenforcementagenciesndsmarterwaysto
catchthem.TheNationalCrimeAgencyrecognisesthethreatIPCrime
poses to UK economic growth and maintains it as a priority for its new
EconomicCrimeCommand.
ThisyearsIPCrimereportcontainsmanyexamplesofthenewtools
andtechniquesbeingadoptedtoaddressIPCrime,including:deregistering
domain names, the removal of payment services from sites selling
counterfeit/infringing products, working with advertising companies to
reduceadvertisingasarevenuesourceonsuchsites,andcourtblocking
ordersagainstInternetServiceProviders(ISPs)andmainstreamcriminalprosecutions.TheIPOIntelligence
hubispivotalinprovidingintelligenceandcoordinationbetweendifferentagenciesandtheindustry,however
thereisstillworktobedone.CurrentestimatesplacethecostofIPcriminalityintermsoflostprotsandtaxes
totheUKeconomytobeintheregionof1.3billionperyear.
IamextremelygratefultotheTradingStandardsauthoritiesthroughouttheUKforcompletingthisyears
IPOsIPcrimesurvey.TheresultspresentedinChapter3,give,forthersttime,acompletepictureofthe
importantworktheydo.ItalsodemonstratestheongoingcommitmentofTradingStandards,duringaperiod
ofsignicantreductionintheirresources,tocontinuetoprotectconsumers,withover80%conductingvarious
investigationsintocounterfeitingofonetypeoranother.
IamalsogratefulforthesupportoftheIPCrimeGroupmembersandIthankthemfortheircontributions
thisyear,aswellastheIPOfortheirprojectmanagementandcoordinationtoproducethisreport.Theirinput
providesabroadpictureofthecurrentsituationallowingcleardirectionfortheIPCrimeStrategyin2015.
EffectivepartnershipsacrossallsectorshaveneverbeenmorerelevantinensuringIPcriminalityisreduced,
andwiththatinmind,belowareafewofthekeyareasthathighlighttheworkthathastakenplace:
TheInternationalIntellectualPropertyEnforcementSummitinJunebroughttogetherseniordecision-
makersfromacrosstheworldtodiscusswaystotackleIPCrimeaswellastheappropriatestructures
neededtodealwithfuturethreatssuchas3Dprinting,cloudcomputingandmobiletechnology.
ACGmembersandTradingStandardsworkedtogethertoprotectconsumersunderOperationWatchand
bytacklingtheincreaseduseofFacebookandsocialmediaasaplatformforcounterfeitgoodstheywere
abletoprotectover650tradersthathadbeentargetedforIPcrime.
ThecuttingedgecollaborativeworkofthePoliceIntellectualPropertyCrimeUnit(PIPCU)withEuropol,
USAuthorities,Nominet,IndustryandBrandProtectionorganisationsunderOperationAtlantic,which
successfully suspended over 2500 websites that were selling counterfeit goods across Europe and the
USA.
We are going in the right direction and are focused on investing in educational programmes to increase
consumer awareness of IP threats, and how businesses can protect their rights effectively. In addition, the
workundertakenbyIPattachshasstrengthenedinternationalrelationshipsandincreasedunderstandingof
IPcrimeacrossborderswhileinvigoratingnewopportunitiesacrosstradeandindustry.
Over the next year the IP Crime Group will work with the new IP Minister, Baroness Neville-Rolfe, on a
ve-yearstrategy.TheIPCrimegroupwillplayakeypartindevelopingthestrategicdirectionforandwill
continue to use innovative ways to tackle the tangible threat Intellectual Property Crime presents to the
economicstabilityoftheUK.TheIPCrimeGroupiscommittedtomakingtheUKanattractivechoicefor
tradeandinvestment.
Giles York
Association of Chief Police Ofcers IP Crime Lead & Sussex Police Chief Constable

ExecutiveSummary
I
Pcrimeiswidespreadandcanbefoundeverywherefromtheinternettomarkets,oftenwithastronglink
toorganisedcrime.Itsbigbusiness,with10%ofglobaltradeestimatedtobeincounterfeitgoods.In2013
morethan$174millionworthofcounterfeitandillicittradegoodswereseizedbylawenforcementofcers
duringINTERPOLfacilitatedactionsacrosstheglobe.
Theitemsbeingcounterfeitedremainthesame,buttheyarendingnewroutestomarketandthelink
betweenIPcrimeandotherformsofcriminalityisgrowing,andmoreresourcesthaneverarebeinginvested
totackletheseissues.ItispriorityfortheUKGovernment,enforcementauthoritiesandprivateindustry
and, as the report shows, collaboration between these groups is yielding results locally, nationally and
internationally.
ThereportisproducedbytheUKIntellectualPropertyOfce(IPO)onbehalfoftheUKIPCrimeGroup
acohortofrepresentativesfromprivateindustry,lawenforcementagenciesandgovernmentdepartments.
The IP Crime Group was founded by the Intellectual Property Ofce in 2004 and it aims to ensure that
suitableeffortsarebeingputinplacetofullyunderstandthescopeandimpactofIPcrimeandhowitcan
beminimised.TheIPCrimeGroupiscurrentlychairedbySussexChiefConstableGilesYork,whoisalso
responsibleforIPcrimeataUKnationallevelfortheAssociationofChiefPoliceOfcers(ACPO).
TheannualIPCrimeReportprovidesanoverviewoftheprecedingyearinIPcrimeandtheactiontaken
totackleit.Itbringstogethercasestudies,surveydataandanalysisfromalloftheIPCrimeGroupmembers
to help us better understand the nature of IP crime today, and how it has changed. It also considers the
currentdriversandcharacteristicsofIPcrime,consumerbehaviorandtheroleoforganisedcrimeandthe
collaborativeandindividualactionsbeingdonetotackleit.
THEINTERNETASACATALYSTOFIPCRIME
Oneofthekeyfeaturesinthisyearsreportisthecontinuingtrendthattheinternetisamajorfacilitator
ofIPcrime,anditisutilizesnewandemergingplatformssuchassocialmediatoofferforsalecounterfeit
goodsandinfringingmaterial.
Inpreviousyears,themonitoringofIPcrimeonlinehasbeenbasedaroundauctionsitesandwebsite,but
thisyearthendingsindicatetherehasbeenashifttosocialmediaandthatthisisnowaleadlocationfor
investigatingIPcrime,particularlyforTradingStandards.In2013/14:
Saleofcounterfeitgoodsviasocialmediarose15%
Saleofcounterfeitgoodsviaonlineauctionsitesrose2%
69%oflocalauthoritiesinvestigatingIPcrimeusedsocialmediatodoso
65%oflocalauthoritiesinvestigatedauctionsitesand61%onotherwebsites
Itsborderlessnaturecreatesanopenplatformforofferingandaccessingcounterfeitgoods.Socialmedia
andauctionsitesplayanincreasingroleinenablingcounterfeitingandcopyrightinfringement.
Reportsfromindustryhighlightthistrendandtheactionbeingtakentotackleit.Forexample:
72millioninstancesofinfringingdigitalmaterialhavebeenremovedbytheUKMusicindustry(BPI)
Over1.6millionlinkstoinfringingbookstakendownbythePublishersAssociation(PA)
Over650,000itemsseizedbybrandsrepresentatives
TheUKlmindustry(FACT)receivedover5,000piecesofintelligenceconcerninglmrelatedpiracy.

COLLABORATIONMEANSWECANBETTERTACKLEIPCRIME
ANDITSLINKTOORGANISEDCRIME
Partnershipworkisessentialintacklingtheseissues.ThereissignicantevidencethatIPcrimeislinkedto
organisedcrime,includinghumantrafcking,illegaldrugsandmoneylaundering,makingthecoordination
ofenforcementactivities,strategicallyandtactically,vitallyimportant.
Extensivenationalandinternationalactivityandcollaborationhasalreadydeliveredresults.In2013/14:
$174millionofcounterfeititemsseizedduringINTERPOLrelatedactivitiesgloballyin2013
UKCustomsofcialsdetainedmorethan21,000consignmentsofIPinfringinggoodsatUKborders
ThePoliceIPCrimeUnithasalreadyinvestigatedmorethan29millionworthofIPcrimeandhas
suspended2,359domainnames.
Thesesuccessesareenabledbyamulti-agency,joined-upapproachtoworking.Thisincludeslegislation,
clearstrategies,educationcampaignsandinternationalcollaboration,aswellashowanincreasingnumber
ofagenciesareworkingtogether.ThisincludescollaborationbetweenorganisationsbothintheUKandin
Europe,suchasthePolice,TradingStandards,HMRC,IPO,BorderForce,EUROPOLandINTERPOL.
There are new resources to tackle IP Crime, including in the National Crime Agency and the Police
Intellectual Property Crime Unit (PIPCU) and the Proceeds of Crime Centre (POCC). Operation Poise
continues to provide a framework on tackling IP crime that other organisations are now utilising. This
includesanumbrellaEECcampaign,relatingtothethreatfromIntellectualPropertycrimetotheUK.All
ofthesearenewinitiativesdesignedtobolstertheeffectivenessandstrengthofactivitiestacklingIPcrime.
Existing projects to deal with infringement are now gathering pace including; work undertaken by the
National Markets Group, Nominets Dispute Resolution Service, Interpol and Europols Operation Opson,
LondonTradingStandardsAuthoritiesself-storageinitiativeOperationLauderdale,theRugbyWorldCup
2015rightsprotectionprogramme,IPProtectExpoandWIPOsWorldIPday.
Thelegallandscapehasalsochangedandwillallowalloftheseorganisationstofocusonsomeofthekey
areasofpotentialharm.TheintroductionoftheConsumerRightsBill2014hasbroughtenhancedfocuson
securingtherightsofconsumers,thefalsiedmedicinesdirective,theSeriousOrganisedCrimestrategy,a
reviewofNominetdomainregistrationpolicy,andreformstotheIPEnterpriseCourtallservetostrengthen
andmakeittougherforcounterfeitingandbreachofcopyrighttooccur.
Consumers also have a role to play. The law of supply and demand relates just as well to the world
of counterfeiting is does in the world of legitimate business; awareness campaigns are key to increasing
consumerunderstandingoftheharmcausedbypurchasingcounterfeititemsorillegallydownloadingmusic
andlm.Theaimistoeducateconsumersenoughthattheyreducethedemand.

NATIONALANDREGIONALIPCRIMETRENDS
TradingStandards,basedwithinlocalauthorities,haveadutytoprotectconsumersandacrossthecountry
aretherstlinesofdefenseintacklingcounterfeitgoodsincommunities.Theirday-to-dayworkisakey
indicator of the scale of IP crime. Each year, the Trading Standards IP Crime Survey, run by the IPO,
providesvaluableinsightintotrendsinIPcrime.
Thisyearthetop5counterfeititemsacrosstheUKareclothing,tobacco,alcohol,footwearandDVDs;
Overthepast5yearstherehavebeenreductionsininvestigationsintoDVDs,CDs,SoftwareandMP3
les,withincreasedinvestigationsintocigarettesandtobaccoandalcohol;
Otherproductsincludingclothing,watchesandjewelleryandtoyshaveremainedstatic;
However,thereareregionalvariations,indicatingproblemhotspotsacrossthecountry;
Cigarettes and tobacco are one of the most counterfeited products, ranking 1 or 2 in nearly every
regionoftheUK;
Counterfeitalcoholisasignicantproblemineveryregion;
Ordinaryshopsarewhereyoullmostlikelyndacounterfeitproduct,howevermarkets,auctionsites
andsocialmediaalsofeaturehighly;
ThereisalsoalinkbetweenIPcrimeoffencesineveryregion,aswellaslinkstoorganisedcrime,drug
dealingandmoneylaundering.
Over 90% of Trading Standards Authorities are working alongside the Police, over 80% alongside other
TradingStandardsAuthoritiesandover60%withHMRCandacrosstheUKhavepartneredwithatleast100
otheroganisationsandbrandstotackleIPCrimeinthepastyear.

Reportofevidence
INTRODUCTION
T
hisreportprovidesasituationalperspectiveofintellectualproperty(IP)crimeandtheworkbeingdone
totackleitintheUK,duringthescalyear2013/14.Theevidencehasbeencollatedfromtheday-to-
dayworkofmembersoftheIPCrimeGroup,sectorreports,studiesandsurveysandnewsreports.This
reportdoesnotattempttodeterminethetotalvalueofIPcrimeorassessthetotalscaleorimpact,rather
itspurposeistobringqualitativeinformationtogetherinoneplace.Thisreportfocusesondevelopments
acrosstheindustrywithregardtoIPcrimereduction,including:changesinlegislation,proactivestepsby
enforcementagencies,theenactingofeducationprogrammesandtheresultsofsurveys,suchastheIPOs
surveyofTradingStandardsAuthorities.
WHATISIPCRIME?
IP crime is the wilful use of someone elses trade mark or copyrighted work (usually in the course of a
business),withouttheproperauthorisationtodoso.ThelegislationgoverningthiscanbefoundintheTrade
MarksAct1994(TMA)andtheCopyrightDesignsandPatentsAct1988(CDPA),aswellasmorerecentActs
suchastheFraudAct2006andtheVideoRecordingAct2010.
Using someone elses IP usually falls into two categories trade mark infringement or copyright
infringement.Trademarkinfringementorcounterfeitingiswhereapersonproducesaproduct,suchasa
handbagoracarpartandclaimsthatismadebythegenuinemanufacturer,ortheownerofthetrademark.
Forittobecounterfeit,theunauthorisedtrademarkmustbepresentontheproduct.Acounterfeitproduct
isoftenreferredtoasafake.
Copyrightinfringement,oftenreferredtoaspiracyiswhereapersontakesthecopyrightedworksuch
asthetextfromanoveloramusicCDandmakesitavailableforotherstouse.Forexample,takingthe
latestCDalbumandmakingcopiesofitforsale,orallowingittobedownloadedovertheinternetwithout
the permission of the copyright owner. Counterfeiting and piracy are criminal offences with a maximum
sentenceofuptotenyearsinprison.
Counterfeit products are often found on sale in the types of places where you would nd the genuine
product,i.e.thehighstreet,online,markets,etc.Asageneralrulethough,theyarenotseenforsaleinwell
knownestablishmentsduetosafeguardswhichexistinthesupplychainsofthesestoresandtheirawareness
oftheadverseeffectsuchproductswouldhaveontheirbusiness.Duetothis,theinternetisthefavoured
choiceforIPcriminals.
Criminals who sell counterfeit goods are invariably aware of the consequences of their actions and
thereforetrytoensurethattheydonotraisesuspicionsoflawenforcementoranymemberofthepublic.
Wheregoodsareonshowinareassuchasmarketstheyarerarelyadvertisedascounterfeitorfake,however
inclosedenvironmentssuchasthoseofferedbyFacebookandonlineforumsthecriminalsaremuchmore
openabouttheproductstheyareselling,potentiallybecausetheyseeitaslowerintermsofbeingcaught.
Thishastheeffectoftakingthecriminalityundergroundandoutofthepublicdomain.Itisverymuchlike
thetradeinillegaldrugsyoullndthemifyouknowwheretogo.
Pirated material, however, such as digital music les, copied CDs and software, is seen as much more
publiclyacceptabletouseorenjoy.Thisispossiblybecausemanyconsumerslistentomusic,watchlmsand
readbooksonelectronicdevices,whichenablelesharingandeasydownloads.Muchoftheinfringementin
thiseldiscommittedonlinethroughstreaming,peer-to-peerlesharingandonsocialmedia.

WHATISTHEUKIPCRIMEGROUP?
TheIPCrimeGroupisacohortofrepresentativesfromtheprivatesector,lawenforcementagenciesand
governmentdepartments,allofwhomhaveanindividualroleintacklingIPcrimeintheUK.
TheUKIPCrimeGroupwasfoundedbytheIntellectualPropertyOfcein2004andiscurrentlychaired
by Sussex Chief Constable Giles York, who is also responsible for IP crime at a UK national level for the
AssociationofChiefPoliceOfcers(ACPO).
Membershipincludespolicymakersaswellasthosewhoareresponsibleforbordersecurity,thosewho
investigatecasesofIPcrimeincommunities,andthosewhorepresentbrandswhereintellectualproperty
isbeinginfringed.
Thegroupmeetseverytwomonthsto:
DiscussstrategicpolicyissuesinrelationtoIPcrime;
Identifystrategicprioritiesforcollaborativeaction;
Identifyanddistributegoodpractice;
RaiseawarenessofIPcrime;
Discussproductionofthisannualreport.

Chapter1WhatisthescaleofIPcrimein
theUK?
INTRODUCTION
T
heeconomicmodelofsupplyanddemandisasrelevantintheworldofIPcrimeasitisforlegitimate
business.Wherethereisaconsumerbasewillingtopurchaseafakeorcapableofbeingdeceivedinto
purchasingfakestherewillbeadesirebycriminalstoexploitthisopportunityandsupplythosegoods.
Sufcetosaythatineverysectortheriskofabrandedproductbeingcopiedandsoldastherealproductis
acontinualthreatofsignicantproportion.
Themanufacture,importation/transportandavailabilityofcounterfeitgoodsremainsatahighlevelinthe
UK;itisestimatedtocosttheeconomyatleast1.3billionperyearinlostprotsandtaxes
1
.Nearlyevery
productsectorfacesdailychallengestoprotectthevalueoftheirbrandagainsttheinuxofcheaperfakes
fromfoodandbatteries,tomakeupandcarpartsthereisafakeineverycitymarketandmanycitystreets.
The IPOs survey of Trading Standards (detailed in Chapter 3) gives detailed information on the types of
goodsbeinginvestigatedbyTradingStandards.MorethaneightoutoftenauthoritiesintheUKinvestigated
counterfeitclothing,cigarettesandtobaccoin2013-14;sevenoutoftenauthoritiesinvestigatedcounterfeit
alcohol;whileapproximatelysixoutoftenauthoritiesinvestigatingcounterfeitfootwearandpirateDVDs.
Itisdifculttogiveaprecisegureonthescaleoreffectofcounterfeiting.Oneofthereasonsisthatthere
isnostatutoryrecordingofoffencesbyUKenforcementagencies;howeverthereareagrowingnumberof
studiesthatseektoprovideinsightintoconsumerattitudes.AstudybytheOfceforHarmonizationinthe
Internal Market (OHIM) titled European Citizens and Intellectual Property: Perception, Awareness and
Behaviour,
2
polled 26,500 European consumers on their attitudes to intellectual property. It found that
19%ofUKcitizenssurveyedsaiditwasacceptabletopurchasecounterfeitproductswhenthecostofthe
originalwastoohigh.Ultimatelytherefore,beforeconsideringthepercentageofpeoplewhoaredeceived
intopurchasingcounterfeitgoods(e.g.incaseswheretheybelievetheyarepurchasingthegenuineproduct)
itmustberememberedthatnearly1in5peopleintheUKareopentoknowinglypurchasingfakes.
Each year the European Commission (EC) publishes a report detailing the number of detention cases
made across the EU. The latest version of this report, entitled Report on EU customs enforcement of
intellectualpropertyrights2013
3
showsthatin2013theUKwasresponsibleforthelargestnumberof
detention cases reported by any single EU member state and resulted in the interception of 3.3 million
articlessuspectedofbeingcounterfeit.Thisequatestoroughlyfourcounterfeitproductsforevery18-year-
oldlivingintheUK.Accordingtothesamereport,Chinaremainsthemostprominentsourcecountryfrom
whichcounterfeitproductsareenteringtheEU.In201319.2millionarticlesweredetainedwithavalue
ofover500million.OthersourcecountriesincludeHongKong,UnitedArabEmirates,TurkeyandIndia.
Inthenancialyear2013/14thecombinedworkofHMRCandUKBorderForceresultedinover26,000
casesofcounterfeitgoodsbeingdetectedanddetainedatUKborders.Ofthese,24,017casesoccurredin
postaltrafcand1,989casesinairandseacargo,fastparcelandvehicletrafc.
The range of counterfeit items is staggering. In the six months leading to Christmas 2013 UK Border
Forceseizedmorethan91,000counterfeitproductsatHeathrowrangingfromLouisVuittonbags,DrDre
headphonesandEsteeLaudercosmeticstoRolexandBvlgariwatches.Morethan30,000itemsdetainedat
Southamptondocksincluded580LouisVuittonbags,400LouisVuittonbrandedbelts,over22,000various
brandedsunglassesand2000itemsoffakejewellerywiththetotalvalueofgoodsestimatedat4.1million.
AtaCentralEnglandlocationBorderForceofcersdetainedvariouscounterfeitproductsincludingShure
Microphones, Callaway X-Hot Drivers, Armani Watches, Xbox Headphones, Ugg Boots and Martin Guitar
D45.
4
Itisimportanttobeawarethatcriminalsdonotlimitthemselvestoreplicatinggenuineproductsclosely
becauseitisthebrand,ratherthanthespecicproduct,thatholdsthetickettoanyprottheyareseeking.
Many of the brands above may not actually produce versions of the product being sold, but because the
brandissostrongcriminalsuseitasabadgeofauthenticity.Itisnotjustbrandsthatloseoutbecauseof
1 https://www.gov.uk/government/news/border-force-protects-uk-public-from-fake-goods-this-christmas
2 https://oami.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/documents/IPContributionStudy/25-11-2013/european_public_opinion_
study_web.pdf
3 http://ec.europa.eu/taxation_customs/resources/documents/customs/customs_controls/counterfeit_piracy/statistics/2014_ipr_statistics_en.pdf
4 https://www.gov.uk/government/news/border-force-protects-uk-public-from-fake-goods-this-christmas

counterfeit products, the artists that create lms, music and literature often see their works offered for
free,orforaloweramountontheinternet,oftenwithinhoursofthembeingreleased,orinsomecases,
even before they have been ofcially released. According to the British Recorded Music Industry around
4millionpeopleintheUKregularlyengageinlesharing
5
.AnOFCOMstudy,fundedbytheIntellectual
Property Ofce, found that 17% of internet users downloaded or streamed at least one item of infringing
contentduringtheyear
6
whichwasroughlyathirdofallconsumersofonlinecontent.Similarly,athirdof
allconsumersofonlinelmsinfringedatleastonce,whileaquarterofmusicconsumersinfringed.
AnotherstudybyMarkMonitorthatrecordsvisitstoillegallesharingsitesdiscoveredthatmorethan
10,000 suspicious sites offering illegal downloads or counterfeit goods received over 53 billion hits in 12
months,andthatonlyrelatedto22specicbrands.Thatisthesameaseverylivingpersonvisitingthesites
seventimesinoneyear.
7
Someindustryguresestimatethelosstothemusicindustrybecauseofglobalcopyrightinfringementto
bemorethan7billion.
8
THEONLINEENVIRONMENT
TheinternetplaysalargepartinfacilitatingIPcrime.Thisislargelybecausetheinternetisaborderless
digital superstructure that is utilised by almost 40% of the worlds population. It is estimated that there
areroughly2.8billionpeoplewithaccesstotheinternet,while90%oftheUKpopulation(57million)has
access.Theinternetisgenerallyuncensoredandunrestricted,meaningthatitisanopenshoptoanyone
wantingtoaccessvirtuallyanythinglegalornot.
Whether the internet is used as a shop window for the sale of counterfeit goods or is used to access
copyright infringing material there are, fortunately, a number of interventions available to enforcement
agencies and brand holders to tackle this threat. These can include: deregistering the domain name so
it is no longer available, removing payment services so that there is no longer a way for consumers to
pay for counterfeit/infringing products, working with advertising companies to stop advertising on illegal
websites(thusremovingincome),courtblockingorderscompellingInternetServiceProviders(ISPs)tostop
their customers gaining access to illegal websites, and arresting and charging those who are responsible.
Inaddition,someorganisationswhoinvestigateinfringingwebsitesusesoftwaretoidentifyillegalcontent.
WebsitelinksarethensenttosearchenginessuchasGooglewhoareabletoremovetheURLfromtheir
indexes, thus ensuring the content is no longer available through search results. During 2013-14 the
PublishersAssociationremoved1.6millionlinkstoinfringinge-booksandtheBPIremoved72millionlinks
toinfringingmaterial.
5 https://www.bpi.co.uk/assets/les/BPI_Digital_Music_Nation_2013.PDF
6 http://stakeholders.ofcom.org.uk/market-data-research/other/telecoms-research/high-volume-infringers/
7 https://www.markmonitor.com/
8 https://www.gov.uk/government/news/new-education-programme-launched-to-combat-online-piracy

Publishers Association Takedown Notices (year on year)

1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
Takedown
Notices
600,000
400,000
200,000
0
1,602,483
378,498
139,788
5,986 26,133
2009 2010 2011 2012 2013
Q1 Q2 Q3 Q4 Total Q1 Q2 Total
8,789 46,354 15,638 24,350 95,131 6,847 2,322 9,169
2,221,092 3,942,455 5,491,803 1,524,686 13,180,036 619,982 674,676 1,294,658
16,046 10,740 40,946 11,420 79,152 1,286 154 1,440
BPISeizureFigures
2013 2014
CDs
DigitalTracks
MusicDVDs
InDecember2013theUKsPoliceIntellectualPropertyCrimeUnit(PIPCU)collaboratedwithEuropol
and the U.S Homeland Security Investigations (HSI) and National Intellectual Property Rights (IPR)
Coordination Center as part of the project In Our Sites Transatlantic 3. On behalf of the UK, PIPCU
suspended90websites,whileEuropolMemberStates,Belgium,Denmark,France,Hungary,Romaniaand
Spainsuspendedafurther303.TheUSIPRCenteraccountedfor297domainnameseizuresintheUS.
In addition, between September 2013 and April 2014 more than 2,500 websites selling designer
counterfeitgoodsweresuspendedaspartoftheunitsOperationAshiko.TheoperationsawPIPCUworking
incollaborationwithalargenumberofwellknownbrands,brandprotectionorganisations,andtheco.uk
websiteregistryNominet.
ThesuspendedwebsitespurportedtoselldesignergoodsincludingUGGboots,GHDhairstraighteners,
Abercrombie, Hollister and Jack Wills clothing, Gucci products and Thomas Sabo jewellery. However,
onlineshopperswereleftshortchangedastheitemstheyreceivedwereinfactpoorqualityandsometimes
dangerous(due,forexample,tofaultyelectronics).Insomecasestheitemswereneverevendelivered.The
websiteswereestimatedtogeneratetensofmillionsofpoundsfororganisedcrimegroups.
TheAntiCounterfeitingGroup(ACG)reportsthattheuseofsocialmediaplatformssuchasFacebook
andTwittertoadvertiseandtradeincounterfeitgoodshasincreasedgreatlyoverthelastthreeyearswith
thousandsofitemsbeingmadeavailableonadailybasis.Facebooktradersopenlypublishalbumsontheir
pages which contain images of available counterfeit merchandise including, clothing, footwear, jewellery,
handbags,purses,music,games,lmsetc.,andwillengageinprivateandopenmessagingontheirFacebook
pageinordertoselltheseinfringingproducts.
Aswithlegitimateonlineenterprises,theseFacebooktradersuseahostofpaymentmethodsincluding

credit / debit card, Paypal, Postal Order and cash. This type of social network allows traders and their
customerstorecommendatradertootherfriendsandcontacts;asaresultmanytradershaveinexcessof
1000friendstowhomtheycanplytheirtrade.
InDecember2013,inordertoreducetheimpactofthiscriminalactivity,ACGand17ofitsmembers(all
well-knownhighstreetbrands)instigatedaFacebookinitiativenamedOperationWATCH,whichconsisted
oftwophases:
1.Intelligencecollection(brandsandTradingStandards)relatingtoscaleandscopeofproductcounterfeiting
onFacebookthisestablishedsome30,000individuallistingsandhundredsoftraderssellingcounterfeit
goodsonFacebook.
2.Followingtheintelligencecollectionphase,ACGanditsmemberscarriedoutadministrativetakedowns
of traders on Facebook this three day action resulted in 650 traders and 2500 listings being made
subjecttotakedownaction,i.e.theremovalofinfringingimagesandprolesfromFacebook.
Hailed as a success by enforcement, government and industry sectors, Operation WATCH gained
tremendousmomentumandawholerangeofactivitiestotacklecounterfeitingonSocialmediaareplanned
throughout2014/2015.
CAMMERSANDRELEASEGROUPS
WhiletheinternetisusedtofacilitateillegalbusinessesproteeringoutofIPcrime,itisalsousedtohost
lmsthathavebeenillegallyrecordedbycammersincinemas.Thisisnotalwaysdonefornancialreward,
butasabadgeofhonourinreleasegroups.
In 2013, a warrant was conducted in Derbyshire at the home address of a suspected encoder. He was
a member of a release group that was highly active in 2012. The police seized his computer equipment,
whichwasforensicallyexaminedbytheFederationAgainstCopyrightTheft(FACT).Theresultingforensic
evidenceconrmedthattheindividualwasinvolvedinencodinglmsandillegallyuploadingFACTmember
content online for onward distribution. It was also evident that the use of File Transfer Protocol (FTP)
serverswasprevalentamongthereleasegroupcommunitythisencoderwasinvolvedwith.Evidenceshowed
thathehadtheIPaddressandlogindetailsfor10FTPservers.TheFTPserversappearedtobeusedtostore
andshareinfringinglmcontentwithinaclose-knitcommunity.
DEVELOPINGANDEMERGINGTECHNOLOGY
ThedevelopmentofnewtechnologiescanhavebothapositiveandnegativeimpactonIPrights.Takefor
exampletheMP3playersthatcametothemarketbackinthelate1990s.Whiletheyopenedupawholenew
marketformusicians,theyalsoallowedillegalcopyingandsharingofmusictogrow.
TheInternationalIntellectualPropertyEnforcementSummit
9
,heldinJune2014,discussedthethreatof
9 Furtherdetailedinformationaboutthesummitiscontainedwithinchapter2
12 IP CRIME ANNUAL REPORT 2013/14

emerging technologies. The summit brought together senior decision makers from around the world to
LondontodiscusshowtotackleIPCrime.Includedindiscussionswereissuessuchas3Dprinting,cloud
computingandmobiletechnology.Itisnotpossibletoaccuratelyassesseveryfuturethreat,howeverwith
appropriatestructuresinplace,suchastheIPCrimeGroup,theUKwillbewellplacedtodealwithany
threatsastheyarise.
REPORTSFROMTHEPUBLICABOUTIPCRIME
The Intellectual Property Ofce, an executive agency of the Department for Business, Innovation and
Skills,hasanIntelligenceHubwhichcoordinatesandexchangescriminalintelligencebetweenintellectual
propertyenforcementagenciesandtheprivatesectorintheUKandoverseas.
During 2013/14 the hub received 2,423 reports from Crimestoppers an independent charity helping
lawenforcementtolocatecriminalsandsolvecrimes.Thisisanincreaseofapproximately25%fromthe
previousyearandshowsagrowingawarenessofIPcrimewithinthepublicdomain.
0
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1200
Crimestoppers Reports by most Prevalent Item
2013/14
2012/13
Optical
Media
Tobacco Clothing Alcohol Footwear Circumvention Cosmetics Handbags Software
2012-2013
2013-2014
%(+/-)
787 554 265 174 48 42 36 0 14
1024 680 195 102 64 47 33 22 22
30% 23% -26% -41% 33% 12% -8% N/A 57%
E-Games FileSharing Other Watches Headphones Electrical Jewellery Pharmaceuticals
2012-2013
2013-2014
%(+/-)
29 0 24 8 34 19 8 4
21 21 20 19 17 8 10 7
-28% N/A -17% 138% -50% -58% 25% 75%
The chart and gures above show a comparison between the number of reports received by the IPO
IntelligenceHubfromCrimestoppersbetween2012/13and2013/14,inrelationtothemostprevalentitem
mentionedineachreport.
This years gures remain consistent with those of the previous year in that optical media, tobacco,
clothingandalcoholareagainthetopfourmostcommonlyreporteditemsinCrimestoppersreports.

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Opticalmediacontinuestobethemostfrequentlyreportedcategoryofcounterfeititemsandhasrisen
from 787 reports in DATE to 1024 reports in 2014. The incidence of tobacco, footwear, circumvention,
software, watches, jewellery and pharmaceutical counterfeits have also increased this year, along with
handbags, which, in previous IP Crime reports, was recorded within the accessories category
10
. Despite
remaining high, the number of counterfeiting reports on clothing and alcohol has decreased along with
cosmetics,e-games,headphonesandelectricalitems.
Owingtotheprevalenceofnewandmorediversecounterfeititemsbeingreported,morecategories,such
aslesharinghavebeenaddedtothisyearsIPCrimeReport.
Crimestoppers Reports by Items Reported
1200
1000
800
600
400
200
AsaresultofchangesinthenationalIPlandscape(seeChapter2)andtheincreasingvarietyofcounterfeit
products reported, the IPO Intelligence Hub has changed the way in which it records data in order to
produceamorecompleteoverallpictureofIPcrimewithintheUK.Theabovechartshowsthenumberof
intelligencesubmissionsfromCrimestoppersbetweenApril2013andMarch2014inrelationtothenumber
oflogsthatrefertothesaleofanitemfromeachcategory.
11
10 Handbags,whichusedtofallundertheAccessoriescategory,arenowacceptedasbeingalargeenoughthreattohavetheirowncategory,whileOpticalMedia
hasbeenseparatedintoDVDsandCDs.
11 Thiscapturesthesaleofmultiplecategoriesofitemwithineachreport,whereaspreviouslyitwasonlypossibletoshowintelligencesubmissionsbymost
prevalentitemineachreport.

Crimestoppers Reports Shown by Monthly Submissions
400
350
300
250
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
2013/14
2012/13
150
100
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Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
2012-2013
2013-2014
%(+/-)
147 114 157 142 162 147 229 240 221 255 187 183
355 250 249 198 213 159 171 197 160 170 150 181
141% 119% 59% 39% 31% 8% -25% -18% -28% -33% -20% -1%
ThechartaboveshowsacomparisonofthemonthlybreakdownofIntelligencesubmissionsreceivedfrom
CrimestoppersrelatingtoIPcrimefor2013/14and2012/13.
FromApriltoSeptember2013-2014,Crimestopperssubmissionsincreasedeachmonthfromtheprevious
year,thoughthemonthlypercentageincreasefellfrom141%inAprilto8%inSeptember.Thefollowingsix
months from October to March the opposite happened and submissions were all less than those of the
previousyear,thoughtherewerenosubstantialdecreases.
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Crimestoppers Reports Received Shown by Location
2013/14
2012/13

Home
Online
Social
Shop
Online
Auction
Pub Workplace
Online
Website
LocalArea Market
2012-2013
2013-2014
%(+/-)
Business Vehicle Other Fair Border Cinema Festival SelfStorage
2012-2013
2013-2014
%(+/-)
309 523 373 121 96 114 99 129 88
739 604 368 124 84 84 78 73 58
139% 15% -1% 2% -13% -26% -21% -43% -34%
43 50 6 0 2 1 0 9
42 34 11 2 2 1 1 1
-2% -32% 83% N/A 0% 0% N/A -89%
Onlinesocialmedia(particularlyFacebook)continuestoincreaseasamarketplaceforcounterfeitgoods
andcounterfeitgoodsforsaleincreasedfromthepreviousyearby15%.However,thelargestincreaseand
mostcommonlocationreportedforthesaleofcounterfeitgoodsfor2013/14isthehomewith739reported
incidents(a139%increasefromthepreviousyear).Theprevalenceofcounterfeitingviaonlineauctions,
suchaseBay,hasalsoincreasedthoughonlyby2%andinterestinglywebsitesubmissionshavedecreased.
Many of the remaining locations such as pub, workplace, local area, market, vehicle, business and self
storage have had fewer submissions which indicate the marketplace is moving from the physical sale of
goodstotheonlinemarketplace.
Furtheranalysisofthenumberofreportscoveringsalesofcounterfeitgoodsathomerevealslinkswith
otherformsofcriminalitysuchasanti-socialbehaviour,andthesaleofdrugs.Thelargeincreaseinthese
reportsshowthatitisanissuenotonlyforconsumers,butforconcernedmembersofthepublicinrelation
toothercriminalityassociatedwithIPinthecommunity.
The increase in counterfeiting via online social media is a result of the change in the IP landscape in
whichwholesalersarebecomingincreasinglymoreaccessibleonlineforindividualtraderstobuyandsell
from.Itislikelythatmanyofthereportsrelatingtothesaleofcounterfeitgoodsfromthehomearealso
tradedonline.
Reports of counterfeit items relating to shops have only seen a 1% decrease in 2013/14 showing that
consumer concerns of IP infringing goods availability in shops remain high. However, reports of physical
goods at all other locations have decreased, indicating a move of counterfeit items from the physical
marketplacetotheonlineenvironment.


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Crimestoppers Submissions by Region of Crime
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The chart above shows Crimestopper intelligence reports of crime by region. The highest numbers of
submissionsarefromTradingStandardsNorthWest(TSNW)with388,followedbyYorkshire(YORKS)with
327,CentralEngland(CENTSA)with261andEastMidlands(TSEM)with256.London(LOTSA)isseventh
inthelistwith156submissions.
ACCESSTOCOUNTERFEITANDCOPYRIGHTINFRINGINGMATERIAL
AlthoughtheinformationaboveshowsthatsomemembersofthepubliccontactedCrimestoppersoutof
concernfromwhattheyhaddiscovered,thereisalsoasectionofthepopulationwhohaveentirelydifferent
views.
A survey by Price Waterhouse Cooper (PWC)
12
sampled 1,073 UK consumers on their attitudes and
familiaritywithcounterfeitgoods.While90%ofrespondentsbelievedthatcounterfeitingismorallywrong,
18%saidtheysometimesbuyfakealcoholand16%fakemedicines.Inaddition,92%ofrespondentsbelieve
thatfakeswereveryeasy/easytopurchaseintheUK.
WORKBYTRADINGSTANDARDS
Trading Standards play a critical role in protecting consumers from the threat of counterfeit products in
communities.AsanexampleoftheprevalenceofIPcrimeincommunitiesamonthlybreakdownofsome
ofthemostsignicantoperationsandseizuresin2013bySouthwarkTradingStandardswhichprioritises
anti-counterfeiting work in order to protect consumers and allow honest enterprises to thrive is listed
below:
April2013amarketstallatElephant&Castlewasvisitedandover700counterfeitNikeandUGG
items of footwear seized. The trader was prosecuted, pleaded not guilty but was convicted and a
forfeitureofallthegoodswasgranted.
April2013Southwarktradingstandardscarriedoutajointraidwiththepoliceonasuspecteddrug
dealer.Asaresultlargeamountofcounterfeitclothingandtobaccowereseized.Theprosecutionis
pendingacourthearing.
April 2013 Southwark trading standards visited a number of mobile phone shops in Rye Lane,
Peckham.Amongthemwasonepremisethatwassuspectedofsupplyingalltheothershops.Asaresult
over3,000counterfeitmobilephoneaccessorieswereseized.
12 http://www.pwc.co.uk/en_UK/uk/assets/pdf/anti-counterfeiting-consumer-survey-october-2013.pdf

May 2013 counterfeit Dr Dre headphones were seized in Camberwell. As a result of Southwarks
investigations the supplier was identied, and, after working with Tower Hamlets trading standards,
over1000counterfeitheadphonesweresubsequentlyseized.
June2013workingwiththeFederationAgainstCopyrightTheft(FACT)andthepoliceSouthwark
tradingstandardsraidedaDVDfactoryoperatingfromaatinPeckham.Onepersonwasarrestedand
over50,000counterfeitDVDswereseized.
June2013workingwithDHLandcolleaguesinWandsworth,Southwarktradingstandardsintercepted
multipleconsignmentsofcounterfeitgoods,destinedforaddressesinSouthwark.
July2013Southwarktradingstandardsmanagedtosecureaforfeitureorderonover250kgofloose
tobacco,seizedfromaatinPeckhamalongwithcounterfeitpackaging.7,000cashseizedfromthe
atunderPOCApowerswasalsosuccessfullyforfeited.
October2013workingwithpoliceofcerstargetingthetradeinstolenphones,Southwarktrading
standardsseizedover300counterfeitmobilephoneaccessories.Duringthesearchofcerslookingin
boxesofsuspectedcounterfeitheadphonesdiscoveredbrandnewiPhonesandiPads,whichhadbeen
obtainedbyfraudulentmeans(creditcardfraudandidentitytheft).
November2013aspartofafoodfraudinvestigation,Southwarkofcersseizedover600counterfeit
DVDsfromabutchersshop
January2014workingwithbenetfraudofcers,Southwarkofcersseizedover12,000counterfeit
cigarettesfromaat.
February2014workingwiththepolice,whowereinvestigatingasuspecteddrugsdealer,Southwark
seizedover50,000counterfeitcigarettes.
Theaboveinformationisjustasmallfractionofworkbyoneauthoritythereareover200authoritiesin
theUKcoveringanareaofover94,000squaremiles.Thisillustratesthescaleoftheproblem,particularly
asmanyofthesecasesfallunderthecategoryofseriousorganisedcrime.
PROCEEDSOFCRIMEACT
The Proceeds of Crime Act 2002 legislation provides enforcement agencies with the ability to conscate
theassetsofcriminalswheretheyhavebeenobtainedusingtheproceedsofcrime.Whiledataforthetotal
amountofconscatedmoneyisnotavailable,twocasesnotedbelowhighlightthesignicantsumsofmoney
thatcanbeconscatedinIPcrimecases.
Case1:InNovember2013BernardOToole
13
fromLiverpoolwascaughtwith38,000counterfeititemsafter
being stopped by police for driving while using his mobile phone. The counterfeit goods included Ralph
Laurentracksuits,plusbadgesandlabelsrequiredtomakecounterfeitUGGboots.Inadditionasignicant
manufacturingoperationwasfoundatOTooleshouseincludingsewingmachines,pressesandpackaging
materials.
AtChesterCrownCourtOToolewashandedaconscationorderof76,720.55undertheProceedsof
CrimeAct2002.Iftheamountisnotpaidhefacesa12-monthprisonterm.
Case2:InJanuary2014,NigelThomasofLlanelliwasorderedtopay71,000forhispartinasophisticated
DVDpiracyoperation.Hemadeover100,000fromcopyinglms,gamesandmusic.
JUDICIALDISPOSALS
Whereeducation,awarenessandwarningsarenotsuccessful,orthenatureoftheoffenceistooserious,
it is ultimately down to the UK law enforcement authorities and those willing to take private criminal
prosecutionstobringcriminalstojusticethroughthecourtsysteminEnglandandWales.
AccordingtotheMinistryOfJustice467peoplewerefoundguiltyofoffencesundertheTradeMarkAct
(TMA)and99undertheCopyrightDesignsandPatentsAct(CDPA)during2013/14,comparedwith506
and92thepreviousyear.ThenumberofpeoplecautionedforTMAoffenceswas14,comparedto16the
13 http://www.warrington.gov.uk/news/article/1156/ralph_lauren_counterfeiter_ordered_to_pay_%C2%A376_000

previous year. In addition, 14 people were cautioned for CDPA offences in 2013-14 compared to 16 the
previousyear.Thismeansthataround28peoplepermontharebeingcautionedorsentencedforIPcrime
offences.
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
TMA
Cautioned
CDPA
Cautioned
TMAFound
Guilty
CDPAFound
Guilty
18 59 120 194 187 187 201 118 66 55 38 39
13 55 171 202 247 177 180 79 45 41 16 14
329 399 503 749 920 884 913 801 662 487 506 467
71 84 100 160 249 362 478 563 366 97 92 99
Source: Ministry Of Justice (Data where IP offence was primary offence)
BelowaresomeexamplesfromSouthwarkTradingStandards,showingsomeofthecasesbehindthese
gures:
Case 1: Caroline Eruohwo-Adogbeji (34) of Old Kent Road, SE1 was sentenced to 263 days default
sentenceforfailingtopaytheremaining38,000ofa107,000proceedsofcrimeconscationorder.
TheorderwasgrantedlastJanuaryfollowingatwoyear-longinvestigationintothesaleofcounterfeit
GHDhairstraightenersoneBay.MsEruohwo-Adogbejiwillbereleasediftheoutstandingbalanceis
paid.
Case 2: Maxine Stonebridge (55) was ordered to pay a 50,709 proceeds of crime conscation
orderataCrownCourthearing.TheEastStreettraderwascaughtsellingcounterfeitgoodsbackin
2009 and was convicted for trade mark offences in February 2011. She was then ordered to pay a
45,000conscationorderbutfailedtodoso.MsStonebridgesubsequentlyappliedforaCerticate
ofInadequacybutthiswasdismissedandshehadtopaytheorder,plusinterest,orfacean18-month
imprisonmentdefaultsentence.
Case3:Areggaemusicinternettraderwassentencedtoeightmonthsinjailafterpleadingguiltyto
making,possessinganddistributingmusicinbreachofcopyrightandtrademarkslaws.DwayneMurray,
30,ofCamberwell,knownlocallyasPepsiMurray,hadtradedastheReggaeDoctoronhiswebsitefor
overveyears.Over4,000copiesofCDs,2,200copiesofDVDsand3,300counterfeitinlaysleeves
wereseizedduringaraidbytradingstandards,localPoliceandindustryinvestigatorsathisresidence
inJuly2010.TheraidfollowedtestpurchasesmadebyinvestigatorsfromtheBritishRecordedMusic
Industry(BPI).Thecounterfeitmusicretailedforapproximately3each,viadownloadorhardcopies
sent through the post. The haul also included four multi-burning towers, a laptop computer and a
computer tower unit, holding thousands of music les. The items were subject to a forfeiture and
destructionorder.
Case4:AtraderinRyeLanesindoormarketwassentencedtoeightweeksinprison,suspendedfor18
months,andgivenaCommunityOrderof200hoursofunpaidwork,afterpleadingguiltytooffencesrelating
tothesupplyofcounterfeitDVDs.MrRiccardoManseld(30),fromPeckham,pleadedguiltytooffences
undertheTradeMarksAct1994,Copyright,PatentsandDesignsAct1988andtheVideoRecordingsAct
1984.MrManseldwasalsoorderedtopay1,600contributiontowardstheCouncilsprosecutioncosts.
ThecasefollowedvisitsinSeptemberandNovember2012whenatotalof217pirateDVDswereseized
fromRMGames.TheDVDsconsistedofcopiesofthelatestblockbustermovies,stillonlyonshowatthe
cinemaatthetime.Alsosomepornographicmovieswerefoundthatshouldonlyhavebeenavailablefrom
licensedsexshops.Thecourtorderedtheirforfeitureanddestruction.Tradingstandardshadbeentipped
offbyakeeneyedPoliceCommunitySupportOfcer(PCSO)whohadseentheDVDsbeingsolddespite
thefactthatMrManseldhadpreviousconvictionsforsimilaroffencescommittedin2009.

Case5:Astallholdermustpayback50,000forsellingfakegoods.MichaelMissing(70),ofIngatestone,
Essex,wasorderedtopayback50,000followingaCrownCourthearing.MrMissingwasfoundselling
counterfeitRalphLaurenpoloshirtsandotherbrandeditemsinEastStreetMarketinOctober2010.
He had subsequently pleaded guilty to trade mark offences. Following this the Council launched an
investigation into his assets and nancial affairs under the Proceeds of Crime Act. The court then
determined how much criminal benet had been made and how much was available to be paid
back. The sum of 50,000 was agreed and Mr Missing was given 28 days to pay or face 18 months
imprisonmentasadefaultsentence.Hewasalsoned1,750andorderedtopay3,000towardsthe
councilsprosecutioncosts.
HARMCAUSEDBYIPCRIME
INTRODUCTION
IPcrimewasonceseenasvictimlessdeprivingthebrand-holderatmost,butthereisnodoubtthatbehind
thesceneslurksasophisticatedanddiversenetworkoforganisedcriminalsseekingtomakesignicantsums
ofmoney.EvidenceandintelligenceshowsthatcriminalsinvolvedinIPcrimearealsolikelytobeengagedin
othertypesofcriminalitysuchaspeopletrafcking,drugsmugglingandviolence.Criminalsarenotinterested
in harm caused to legitimate businesses or to the consumer. With IP crime, consumer rights are often
compromised,withthemostvulnerableinsocietybeingthehardesthit.Inextremecaseswholecommunities
canbeunderminedwhencriminalelementstakecontroloflocalmarketsresultingindegeneration,closureof
retailestablishments,lessinvestmentandhigherunemployment.
Harm caused by counterfeiting and copyright infringement falls within four key areas: 1) harm to the
economy,2)harmtoconsumers,3)harmtocommunitiesand4)thelinktoseriousorganisedcrime.
ECONOMICHARM
Withthevolumeofcounterfeitgoodsandcopyrightinfringingmaterialavailableitisnotsurprisingthatthis
negativelyimpactstheUKeconomy.Thisincludeslostjobs,losttaxesortheimpactonbusinessesthatare
unabletocompetewithcheapfakes.
Autodata,oneoftheleadingsuppliersoftechnicalinformationnotonlyacrosstheUKbutglobally,isakey
exampleofthevulnerabilityassociatedwithcounterfeiting.Theyhavevaluablecontractualarrangements
tosupplydatatothirdpartiesandemployover200staffattheirMaidenheadofce.Thesecontractsare
themainstayofAutodatasbusinesssoithasanobligationtoensurethattheillegalsupplyofcounterfeit
softwarecontaininglicensedinformationisacteduponquickly.
ItisdifculttomeasurethelossestoAutodataasmanyofthecounterfeitsellerscaughtdonotdealin
Autodataalone.However,giventhatalegitimatesubscriptioncostsaround750peryearwhilecounterfeit
software only costs in the region of 50 to 100, for every business using counterfeit Autodata software,
thereisapotentialthatthiscostsAutodata600eachtimeinlostsales.
EverytimeacounterfeititemiseitherproducedintheUKorenterstheUKthereisahighlikelihoodthat
it will not have been declared and appropriate taxes will not have been paid. A case in Northern Ireland
inJuly2013isagoodexampleofthisalmost2,500litresofillicitalcoholwerediscoveredinanalcohol
bottlingplantinCountyArmagh.Thealcohol,alongwithcounterfeitdutystampsandbottleswerethought
tohavecosttheUKeconomy26,450inlostdutyandtaxes.
14
CONSUMERS
Whenconsumersgototheirlocalsupermarket,outdoormarket,DIYstoreorshopontheinternettobuy
arecognisedelectrical,medicinal,makeup,householdorfoodbrandnameproductmostpeopletrustthat
theitemissafeforuse.However,manycounterfeitproductsbasedonpopularbrandsaremanufacturedto
meetthemostbasicvisualinspectionoftheconsumerseye,whileusingingredientsorcomponentsofpoor
quality,orthatarenotdesignedforthepurposeofthecounterfeitgoodtheyarebeingusedin.
14 http://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/counterfeit-alcohol-raises-concern-890058

AtamarketinManchester,IPinfringementwasprolicandsoingrainedintothetradersthatcoercive
actioninthelightofthefailureofthemarketoperatorstodealwiththeissueswastheonlysolution.Trading
Standards from both Manchester and Salford had grave concerns around the types of goods being sold,
particularlycounterfeitspirits,oftenmadeusingdangerousingredients,beingmadeaccessibletovulnerable
members of the community. The police had similar concerns, compounded by disproportionate levels of
drugcrime,whilemembersofthepublicmadenumerouscomplaintsabouttheaggressiveandintimidating
behaviourofthecounterfeitsellersandotherovertcriminalityconcentratinginthearea.
Therewasnoalternativebuttoclosethemarketdowncompletely.Traderswhohadpreviouslyoccupied
thesurroundingshopshadbeenforcedoutofbusinessowingtothedominationoftheareabycriminals,
leadingtoboarded-upshopsandageneraldeclineinamenity.Oncetheareawasnolongerknownforits
criminality,newbusinessbegantooccupytheshops.
FAKECIGARETTESANDTOBACCO
The negative health effects of smoking cigarettes are well
known, including the risk of cancer and other life limiting
illnesses. It is therefore a concern when millions of illegal
cigarettes enter the UK every year. The Local Government
Association
15
has stated that some counterfeit cigarettes
contain asbestos, mould, dust, dead ies, rat droppings and
human excrement. Many also contain much higher levels of
toxicingredientssuchastar,nicotine,carbonmonoxide,lead,
cadminium (sic) and arsenic than genuine brand-name
cigarettes. However, packets of fake cigarettes can be
purchasedforaslittleas3insomepartsofthecountry,which
is almost 50% cheaper than most genuine cigarette brands.
Worryingly,inasurveybyLondonCouncilssome40%ofsmokersadmittedbuyingfakes.
16
Apartfromthehealtheffects,thereisalsothebenettoorganisedcrimegroups.Thereisevidencetoshow
that these groups smuggle counterfeit cigarettes and tobacco into the marketplace through unrestricted
outlets.Inonecase,anindividualwholedagangwhichtriedtosmugglemorethan13millioncounterfeit
cigarettesintotheUKwasorderedtopay30,000withinsixmonthsorface14monthsinprison.Hewas
jailedforsix-and-a-halfyearsatMaidstoneCrownCourtfortryingtosmugglethecigarettesintoDoverand
Newhaven.ThegroupusedHGVsdisguisedtolookasthoughtheywerecarryingfrozenfood.Anestimated
2.7mofexcisedutyandVAThadnotbeenpaidonthecigarettes.
17
ELECTRONICEQUIPMENT
Whenpurchasinganelectricalapplianceitisgenerallyassumedthatit
has been quality assurance tested and is safe to use. Unfortunately,
however, many electronic items especially those sold online, can be
counterfeit.
Almost 80,000 potentially dangerous mobile phone chargers and
counterfeit toys were uncovered by trading standards ofcers, led by
Ealing Council, in raids over three days. More than 60 ofcers from
tradingstandardsteamsacross12LondonTradingStandardsAuthorities
(LoTSA), as well as Home Counties, Home Ofce Immigration
Enforcement Ofcers, Metropolitan Police, and HM Revenue and
Customs(HMRC)wereinvolved.
15 LGAPressReleaseAugust2014
16 http://www.local.gov.uk/media-releases/-/journal_content/56/10180/6464176/NEWS
17 http://www.bbc.co.uk/news/uk-scotland-south-scotland-22064749

During the raid, two hidden rooms containing thousands of counterfeit items were found, along with
10,000inasecretcabinet.Around600,000worthofstockwasalsoseizedfromabusiness,alongwith
40,000incashfromanotherthatwassuspectedofmoneylaundering.Onevehicleenteringthesitewas
searchedandfoundtocontainhundredsofcounterfeitmobilephonechargersandfrontscreensforiPhones.
Deathsfromfaultycounterfeititemsalsooccur.AppleIncwassoconcernedafterthedeathofaperson
usingafakeAppleiPhonechargerthattheybeganaswapscheme,initiallyintheUSA,andtheninAustralia,
CanadaandtheUK.Theexchangeschemealloweduserswhoboughtathirdpartychargingadapterfortheir
iPhonetotradeitinfortheofcialAppleversionforafeeof$10-$15dependingonthecountry.However,
theschemewasdisbandedafteronlyafewmonthsasthecostofprovidingthisservicewasbornebyApple
and ultimately cost the company a large sum of money. This is a good example of the knock-on impact
counterfeitgoodscanhaveonlegitimatebusinesses.
18
Theriskisnotjustwithcounterfeitphonechargers.AccordingtotheBritishElectrotechnicalandAllied
ManufacturersAssociation(BEAMA)around50millionworthofcounterfeitelectricalinstallationproducts
arebroughtintotheUKannuallywith90%originatingfromChina
19
.Todate,BEAMAhasbeenresponsible
forraidsonover250factoriesinChinaandhasdestroyed15millioncounterfeitproducts.
CARPARTS
Itispossibletondawiderangeofbrandnamecarparts,suchasBMWproducts,partsandaccessories
onlinethathavenothingtodowithBMW.Thesearelow-cost,low-qualitycounterfeits.Theproblemisthat
itisoftennexttoimpossibleforaregularconsumertodistinguishgenuineBMWpartsandproductsfrom
copiesuntilthecarisdrivenandbythenitmightbetoolate.
Members of the IP Crime Group,
through their investigative work to
tackle IP Crime, often see instances
where products may represent
signicant harm to those who buy
them.Wherethegenuineproducthas
a function that relies on proper
constructionoracriticalcomponent,fakescanbeverydangerous.BMWAutomobileshascarriedouttests
oncounterfeitcarpartswithalarmingresults.Theyfoundthatcounterfeitwheelrimsandtiresdidnotmeet
theminimumlegalsafetyrequirements,letaloneBMWsownhighstandardsofsafety.Thiscanbeseenin
theimagesabove.
AIRCRAFTPARTS
Whiletheabovedatashowsrelativelycommoncounterfeitgoods,thisisnotexclusivelythecase.Modern
day counterfeiting goes much further than a bottle of alcohol or a pair of sports shoes. ESCO, the UKs
Electronic Systems Community, reports that following an investigation in 2011, the U.S. Senate Armed
Services Committee found that 1,800 cases of suspected counterfeit components had been identied in
equipment including: the Boeing C-17 and Lockheed Martin C-130J transport planes, the Boeing CH-46
SeaKnighthelicopterandtheTheatreHigh-AltitudeAreaDefence(THAAD)missiledefencesystem.This
isfurtherevidencethatwherethereismoneytobemade,therearecriminalswillingtoriskexploitingthe
opportunity.ESCOassessesthatthereisathreattotheUKinthisareaandisworkingtosharebestpractice
andincreaserobustnessinelectronicsupplychains.
18 https://www.apple.com/uk/support/usbadapter-takeback/
19 Counterfeitingandnon-compliancebooklet2014

HEALTHCAREPRODUCTS
Intheillegaldrugstradeeachpersoninthesupplychainwhopassesthedrugon,eithertoanothersupplier
ortoauser,wantstomakeasmuchmoneyastheycan.Illegaldrugsareusuallysoldbyweight,soadding
weight can increase the value this is known as bulking. In drugs like cocaine, traces of many other
ingredients are often found, such as our, talc, and household chemicals, etc. The same is often true for
counterfeit healthcare products like toothpaste which, providing the look, smell and taste meet the
consumerssatisfaction,canbesimilarlybulkedoutwitharangeofingredients.
Health watchdogs seized counterfeit condoms, which were found to be lubricated with industrial hand
cleaner (typically used by mechanics to remove engine oil)
20
by the Medicines and Healthcare products
Regulatory Agency (MHRA) while working with Trading Standards. This kind of nding naturally raises
concernsaboutotherelementsoftheproduct;inthiscase,thelikelihoodthatitwouldnotbeeffectiveat
controllingthespreadofSTIsorpreventingpregnancy.
PRESCRIPTIONDRUGSANDMEDICINES
CounterfeitdrugsandmedicinesposeathreattotheUKconsumer,as
wellastotheeconomyinlostrevenue.Ina2013PWC
21
survey,16%of
respondentsstatedthattheysometimespurchasecounterfeitmedicines
foranumberofreasons:becausetheyaretooembarrassedtoseetheir
GP, the genuine medicine is unavailable or not licensed in the UK, or
becauseitcostslessthanagenuineproduct.
On an international scale, The International Police Agency
(INTERPOL)statedthataglobaleffortisrequiredtocombatthethreat
offakedrugsandannouncedadealwiththepharmaceuticalindustryto
crackdownonfakedrugs.Aspartoftheagreement,twenty-nineoftheworldsbiggestdrugcompanieswill
provide4.5meuros($5.9m;3.9m)overthenextthreeyearstohelptheresponsetotheproblem.
Christopher Viehbacher, the chief executive of French drug maker Sano, said: In the case of drug
counterfeiting,itcanmeanthedifferencebetweenlifeanddeathforapatient.Itisestimatedthat10%of
medicinesarefakeandthesegurescangoupto50%,particularlyinsomepoorercountries.
22
ALCOHOLANDFOODFRAUD
Many people do not realise alcohol can be counterfeit. However, there is a worrying trade in counterfeit
alcoholwhichwhendrunk,hasthepotentialtobefatal.
Genuine alcohol is made using ethanol a substance that is safe to drink in moderation. However,
criminals commonly use cheaper substitutes such as methanol and isopropanol (the chemicals used in
cleaninguids,nailpolishremover,andcarscreenwash).Theeffectofingestingsuchchemicalscanrange
fromsickness,abdominalpainanddrowsinesstotemporaryorpermanentblindness,comaorevendeath.
ThedevastatingimpactofcounterfeitalcoholwasseenintheCzechRepublicin2012where46peopledied
asaresultoffakevodkalacedwithmethanolthatwassoldtolow-incomefamilies.
23
Closertohome,intheUKamanwasarrestedaftermorethan37,000gallons(169,000litres)ofillicit
alcoholwasseizedinwhatwasclaimedtobethelargesthaulofitskindinWales.HMRevenueandCustoms
(HMRC)ofcerssaidthecounterfeitalcoholwasworthabout300,000inlostdutyandtaxesandtherewas
enoughtolleight40ftcontainers
24
.Inanothercase,HMRevenueandCustomsseizedmorethan13,000
litresofcounterfeitalcoholatCairnryanPort,enoughfakevodkatoll162bathtubs.Accordingtoareport
byPWC
25
some15millionlitresofillegallyproducedalcoholhasbeenseizedbyHMRCsince2005enough
tolloversixOlympic-sizeswimmingpools.
20 http://www.mirror.co.uk/news/uk-news/fake-condoms-chinese-counterfeiters-are-boot-legging-1453876
22 http://www.bbc.co.uk/news/business-21757035
23 https://www.drinkaware.co.uk/check-the-facts/effects-on-your-safety/the-dangers-of-fake-alcohol
24 http://www.bbc.co.uk/news/uk-wales-south-east-wales-26678351

TheWelshHeadsofTradingStandards(WHoTS)IntellectualPropertyGroupweresuccessfulinobtaining
a15,000grantfromtheUKIntellectualPropertyOfcetocarryoutaprojectrelatingtocounterfeit,illicit
andnon-dutypaidalcoholbeingsoldwithinsmallindependentretailersandwholesalersoperatingwithin
theWHoTSregion.
Alltwenty-twoauthoritieswithintheWHoTSregionwereinvitedtoparticipateintheproject,whichran
from September 2012 to March 2013. Each authority examined intelligence to establish which premises
theywouldinspect.Itwastheauthoritysdiscretionastothenumberofproductsexamined.
Nineteenauthoritiesparticipatedintheprojectwhichresultedin280visitstosmallindependentretailers
and wholesalers whereby 13,244 bottles of alcohol were examined for compliance, with an average of
697productsexaminedperparticipatingauthority.Uponexamination11,623productswerefoundtobe
compliantaccountingfor88%ofallproductsexamined,while12%(1623)ofallproductsexaminedwere
seizedfornon-compliance.Outofthe280Inspectionscarriedoutincaseswherenon-compliantstock
was identied it has resulted in 17 Trading Standards investigations and six referrals to HMRC. Trading
Standardsseizedapproximately15,086worthofcounterfeit,illicitandnon-dutypaidalcoholduringthe
courseoftheproject.
Foodfraudandcounterfeitfoodisalsoagrowingproblem.Thedifferencebetweenfraudandcounterfeit
involvestrademarkinfringement.Allcasesofcounterfeitinvolvefraud,butnotallfraudiscounterfeit.For
example,acheapvegetableoilthathasbeencolouredandsoldashighqualityoliveoilisdenedasfraud
because there is no trade mark infringement. However, if that olive oil was then sold in the bottles of a
genuinesupplierofoliveoilthenthatwouldbecounterfeitsimilartoalcoholbecausetherewouldbea
trademarkinfringement.
A case of food counterfeiting involved a shopkeeper in South Wales who purchased cheap chocolate
andwrappeditinthepaperofawell-knownbrandandsoldataninatedprice.On1stNovember2013
NewportmagistratesheardhowtheSweet66candystoreinCwmbranhaddupedconsumersintobelieving
thechocolatehesoldwasWonka-brandedchocolatebars.Hehadusedthebrandwrapperbutthechocolate
itselfhadnotbeenmanufacturedbythetrademarkholder,Nestle.Duetothisthechocolatedidnotmeet
a number of key consumer protection food labelling laws. The shopkeeper was ned 400 for criminal
breachesandaskedtoalsopayacontributionof1000towardstheprosecutioncostsoftheinvestigation.
Seizuresoffoodfraudproductsoftenincludejam,honey,riceandmeat.
COMMUNITIES
Tryingtopricematchorsellgoodscheaperthanyourcompetitorisanessentialpartofhealthybusiness.
Unfortunately, when legitimate retailers are forced to compete with illegitimate counterfeit retailers that
undercutgenuineprices,particularlyoverthelongterm,thiscanresultintheinabilityoflegitimatetraders
tostayinbusiness.
LINKSTOSERIOUSORGANISEDCRIMEANDTHESERIOUS
ORGANISEDCRIMESTRATEGY
Thereissignicantevidencethatorganisedcriminalsareinvolvedinintellectualpropertycrimeandthat
someofthosecriminalsarealsoinvolvedinarangeofotherseriouscrimes,includinghumantrafcking,
selling illegal drugs and money laundering. The level of organisation within these groups should not be
undermined.Criminalsinvolvedinordering,manufacturing,transporting,reworking,marketingandselling
counterfeit products or making money through making copyright infringing works available online are
clearlyabletoengageincomplexpartnerships.
OnOctober7th2013theNationalCrimeAgency(NCA)wascreated.ItreplacedtheSeriousOrganised
CrimeAgency(SOCA)andotheragenciesinvolvedinghtingseriouscrimeintheUK.Itisa24/7operational
crime-ghtingagency,employingaround4,800ofcerswithspecialistcapabilitiestoundertakeandsupport
operations,coveringabroadrangeofcomplexareas.
TheUKalsohasaSeriousandOrganisedCrimeStrategy,whichsetsoutkeygovernmentactionsaimed
atreducingorganisedcrime.Themainfocusistopreventingpeoplegettinginvolvedinorganisedcrimeand

tostrengthentheUKsprotectionandresponsestoit.Itfollowsthesame4PsstructureoftheCONTEST
counter terrorism strategy: Pursue, Prevent, Protect and Prepare. The strategy commits to Pursue those
engaged in organised crime; to Prevent people from engaging in serious and organised crime; to Protect
individualsandbusinessesagainstseriousandorganisedcrime;andtoPreparesothattheimpactofserious
andorganisedcriminalityisreducedwhenitdoestakeplace.
InaDecember2013,anOrganisedCrimeGroupMapping(OCGM)report,notedthat41OCGsarelinked
toIPC,anearsix-foldincreasefromthepreviousquarteraggregation.Thiscanbeattributedtoimproved
reportingfrompartneragencies.
Thesaleofcounterfeitgoodsandmedicineshasalsobecomeanimportantprot-machineforAsiancrime
syndicates, accounting for about one-third of the value of regional transnational organised crime ows,
accordingtotheUNOfceonDrugsandCrime.ResearchersestimatethatChinaproducesthevastmajority
offakeconsumerproducts(someofwhicharecounterfeitsoflegitimateUK-producedgoods)andalarge
shareoffraudulentmedicines(oftentargetedatconsumermarketsinAfricaandSouthEastAsia).Other
countrieswhereIPCisknowntobeanissueaffectingtheUKincludeIndia(pharmaceuticals),Russiaand
Ukraine(digitalIPcopying)andPolandandtheUAE(counterfeittobacco).
AccordingtotheIPOssurveyofTradingStandardssome25%ofrespondingauthoritiessaidtheyhadseen
linksbetweenIPcrimeandorganisedcrime.
LINKSTOOTHERCRIMINALITY
InMarch2014asaresultofaninvestigationbetweenBMWandSouthGloucestershireTradingStandards,
a man was jailed for 20 months after he had sold over 20,000 counterfeit car accessories, 75% of which
wereBMWbranded.Thiscriminalityisestimatedtohavenettedtheindividualover400,000inincome.
Additionallytothis,theindividualwasshowntohavefalselyclaimedover46,000inbenetsoverathree-
year period. This aspect is important because it illustrates a potential link between what is seemingly a
small scale operation, and benet fraud an indictable criminal offence. The IPOs IP Crime Survey of
TradingStandardsidentiedbenetfraudasthemainothercriminalitylinkedtoIPcrime,withsome57%
ofrespondingauthoritiesidentifyingalink.FiguresfromtheDepartmentofworkandpensionsestimatethat
benetfraudisthoughttohavecosttaxpayers1.2bnin2012/13.

Chapter2Actionbeingtakentotackle
IPcrime
T
he membership of the IP Crime Group falls neatly within three distinct areas private industry,
governmentandenforcementagencies.Eachareahasamotivationfortakingactionagainstcriminals
behindthetradeincounterfeitandcopyrightinfringingmaterial.Forprivateindustry,theirlivelihoods
dependonbeingfairlyrecompensedfortheircreativity.Forthegovernment,itisimportantthattheUKis
agoodplacetodobusinessandinvest.Itisalsoimportantthatjobsareprotectedthrougharobustlegal
framework. For enforcement agencies, the damage serious and organised crime can do to communities
meansthatIPcrimemustbeapriority.
This chapter showcases the diverse amount of action being taken to tackle IP crime, from changes in
legislationtoseizuresofcounterfeitgoodsandthecreationofeducationalprogrammes.
SUBSECTION1:CHANGESTOTHEOPERATINGLANDSCAPE
CONSUMERLAWREFORMS
TheConsumerRightsBill
1
wasintroducedintoParliamenton23January2014.TheBillformspartofthe
Governmentswiderconsumerlawreforms,whichrepresentthemostfundamentalchangetoUKconsumer
rightsinmorethanageneration,generatinganestimatedquantiednetbenettotheUKeconomyof4
billionovertenyears.
TheBillstreamlineskeyconsumerrightscoveringcontractsforgoods,services,digitalcontentandthelaw
relatingtounfairtermsinconsumercontractsinoneplace.Inrelationtoenforcement,theBillwillsimplify
consumerlawinvestigatorypowersintoagenericset,andclarifythelawsothattradingstandardsofcers
can operate across local authority boundaries more efciently. In addition to consolidating these powers,
safeguardshavealsobeenaddedtotheBill,suchastherequirementforenforcerstogivebusinesses48hours
written notice of routine visits, unless there are good reasons for them to be unannounced. To ensure the
enforcersabilitytotackleroguetradersisnotdiminished,theBillprovidesanumberofexemptionstogiving
notice,forexample,wherethereisreasonablesuspicionofabreachorgivingnoticewoulddefeatthepurpose
ofthevisit.TheBillalsocontainsthepowerforenforcerstoobservethecarryingonofabusinessandtocarry
outtestpurchases,whichcanbeexercisedwithoutgivingnotice.
Inaddition,theBillwillgivepublicenforcersofconsumerlawgreaterexibilitytogetthebestoutcome
forconsumerswhohavebeenthevictimsofabreachofconsumerlaw.TheBillwillamendtheEnterprise
Acttoallowpublicenforcerstoseekarangeofenhancedconsumermeasures(ECMs)inthecivilcourts.
The ECMs will allow public enforcers to seek orders in the civil courts aimed at one or more of the
following:redressforconsumerswhohavesufferedloss,reducingthechanceofthebusinessreoffending,
and/orgivingconsumersmoreinformationaboutthebreachofthelawtoenablethemtoexercisegreater
choiceinthemarket.Itisexpectedthatoncethesemeasuresareinplacetheycouldbeusedinaround250
to300casesayear.TheBillisnotexpectedtobecomelawuntil2015.
NEWPROTECTIONSFORREGISTEREDDESIGNS
Following the Hargreaves Review of IP and Growth in 2010, the Government has introduced wide range
ofreformstotheIPlegalframeworktoensureitistforthedigitalageandcanrespondtothemodern
businessenvironment.
AspartofthistheGovernmenthasintroducedanewcriminalsanctionfortheintentionalcopyingofa
UKorEUregistereddesign,givingregistereddesignsthesamelevelofprotectionastrademarksandpatents.
TheGovernmentbelievesthiscriminaloffencewillhelpreducethescaleofunlawfuldesigncopyinginthe
UKbyhelpingtobetterpunishanddeterseriousanddeliberateinfringement.
This change was introduced by the Intellectual Property Act, which completed its passage through
ParliamentinMay2014.Thecriminalsanctioncameintoforceon1October2014.
1 https://www.gov.uk/government/policies/providing-better-information-and-protection-for-consumers/supporting-pages/consumer-bill-of-rights

THEFALSIFIEDMEDICINESDIRECTIVE
TheFalsiedMedicinesDirective2011/62EUwasintroducedspecicallytocombatthethreatoffalsied
medicinespenetratingsupplychainsacrosstheEU.
TheFalsiedMedicinesDirective2011/62EUdealswithvariousissuesconcerningfalsiedmedicinesin
thelegalandillegalsupplychains.ThersttrancheofthelegislationwasimplementedintheUKinAugust
2013andprovideslegislativeprovisioninrespectof:
Extraobligationsonwholesaledealers;
ExtendingtheexistinglicensingrequirementstoexportersofmedicinesexportingtononEEAcountries
(includingimportersthatimportmedicinalproductsforthatpurpose);
Providingnewobligations,inparticular,reportinganysuspectedfalsiedmedicines;
Requiringtheregistrationof:
Brokersofnishedmedicines;and
Manufacturers,importersanddistributorsofactivesubstances(ASs)importedintotheEuropean
EconomicArea(EEA)foruseinthemanufactureofauthorisedmedicinalproducts.
FurtherprovisionsinrespectofdistancesellingofmedicineswillbespeciedinanImplementingAct.
SERIOUSORGANISEDCRIMESTRATEGY
The UK Government has adopted a strategy for taking action where there are clear links between the
sale of fakes and serious organised crime. The Serious and Organised Crime Strategy
2
sets out how the
Governmentwilltakeactionateveryopportunitytopreventpeoplegettinginvolvedinorganisedcrimeas
wellastostrengthenourprotectionagainstitandresponsestoit,asmentionedinChapter1,thisstrategy
follows the same structure of the counter terrorism strategy: Pursue, Prevent, Protect, and Prepare. The
strategycommitstoPursuethoseengagedinorganisedcrime;toPreventpeoplefromengaginginserious
and organised crime; to Protect individuals and businesses against serious and organised crime; and to
Preparesothattheimpactofseriousandorganisedcriminalityisreducedwhenitdoestakeplace.
NOMINETREGISTRATIONPOLICYREVIEW
Nominet,bestknownforitsmanagementofthe.ukdomainnamespace,launchedareviewinSeptember
2013ofitsregistrationpolicyfor.ukdomainnames.
ThereviewwasindependentlychairedbyLordMacdonaldQC,formerDirectorofPublicProsecutions.
NominetpublishedLordMacdonaldsreportinJanuary2014alongsideanannouncementthattheBoard
unanimously agreed to implement all recommended changes. In the main, these centred on preventing
theregistrationofdomainnamesthatappeartosignalorencourageserioussexualoffences.Thereports
conclusionsalsoconrmedthatNominetshouldplaynoroleinpolicingwebsitecontent.Ifdomainnames
signalcriminalcontentandtheyarebroughttoNominetsattention,inkeepingwithcurrentpolicyitwill
refer these cases to the police for further action. However, Nominet will make it clearer in its terms and
conditionsthattheuseofa.ukdomainnameforcriminalpurposesisnotpermittedandanyaccountused
inthiswaywillbesuspendedorderegistered.Nominetstermsandconditionsweresubsequentlyupdated
inApril2014toreectthereportsrecommendations.
Changes to Nominets Registrar Contract approved in January 2014 also make clear that Nominets
registrarsareexpectedtocomplywiththelawfulrequestsofUKPublicLawEnforcementAgencies.
TherevisedtermsandconditionspublishedbyNominetexpresslyprohibitany.ukdomainsbeingused
to carry out criminal activity. It means that Nominet can quickly suspend a domain name when alerted
to its use for criminal activity by the police or other law enforcement agencies, such as National Crime
Agency,ChildExploitationandOnlineProtectionCentre(CEOP)ortheMedicinesandHealthcareProducts
RegulatoryAgency(MHRA).
Under the new terms and conditions, law enforcement agencies will be able to provide Nominet with
notication that specied domains are being used for criminal activity. Nominet will check each domain
beforetakingaction,ensuringthatnoadministrativeerrorshavecausedthosedomainstobeincorrectly
2 https://www.gov.uk/government/publications/serious-organised-crime-strategy

agged,e.g.thatthedomainnameiscurrentlyinuse,andthatthedomainnamehasnotbeentransferred
orcancelledbetweentheoriginationoftherequestandthepointofsuspension.
Followingthis,Nominetwillnotifyandworkwithitsregistrarsintheusualwaytosuspendthedomain
namesinquestion.
Between6April2013and5April2014Nominetreceived1934noticationsfromarangeofpubliclaw
enforcementagenciesofwhich1111includedsomeformofIPinfringement.
Notications of criminality relating to intellectual property are grouped into the following categories
(frequentlymorethanone)asseeninthechartbelow.
Nominet Criminal Notifications
49
1
11 14
1 1
375
1380
Advance Fee Fraud
Fraud
Phishing
Supply of controlled drugs
Supply of counterfeit goods
Supply of illegal pharmaceuticals
Supply of illegal
veterinary pharmaceuticals
Unauthorised ticket sales
INTELLECTUALPROPERTYENTERPRISECOURT(IPEC)REFORMS
TheIPEnterpriseCourthasundergoneadramatictransformationsince2010.Thereformsoverthepast
fewyearshavemadeiteasierandcheapertoresolveIPdisputesandtheyarehelpingbusinesses,especially
SMEs,toaccessjusticeataproportionatecosttowhatisatstake.

Thekeyreformsincluded:
a small claims track for copyright, trade mark and unregistered design claims with a value of up to
10,000;
ascaleofrecoverablecostscappedat50,000;
adamagescapof500,000;
streamlinedproceduresandhearingswithatimelimitcappedattwodays;
therenaming,in2013,ofthePatentsCountyCourttotheIPEnterpriseCourtinordertobetterreect
itsjurisdiction,whichcoversallIPrights.
FollowingtheGovernmentsreforms,therehasbeenasubstantialincreaseinIPECcases:from89cases
in2010,to162casesin2012.
SUBSECTION2:NEWINITIATIVES
AscriminalsbehindIPcrimediversify,changeandadaptsodoIPCrimeGroupmembersintheirefforts
tondnewwaysofaddressingtheissue.Thissectionhighlightssomemajornewinitiativesoverthepast
year.
NATIONALCRIMEAGENCY(NCA)
On7October2013theNationalCrimeAgency(NCA)wascreated,whichreplacedtheSeriousOrganised
CrimeAgency(SOCA)andotheragenciesinvolvedinghtingseriouscrimeintheUK.TheNCAisa24/7
operationalcrime-ghtingagency,employingaround4,800ofcerswithspecialistcapabilitiesinvolvedwith
undertakingandsupportingoperationsandcoveringabroadrangeofcomplexareas,including:
preventingserious,organisedandcomplexcrime;
strengtheningUKborders;
ghtingfraudandcybercrime;
protectingchildrenandyoungpeoplefromsexualabuseandexploitation;
respondingtoabroadrangeofcomplexandnationalthreatsandrisks.
The Economic Crime Command (ECC) of the NCA leads a coordinated multi-agency response that
aims to undermine criminal intention as well as educate and empower those who are most susceptible
to attack. That means sharing intelligence and knowledge and working across all sectors and partners to
disrupt and dismantle criminal intent wherever possible. The ECC also works with the Commands Civil
RecoveryandTax(CRT)teamtoseizeassetsandrewards,aswellasdetainanynancialenablersinvolved
inIPcrime
ThemissionoftheNCAistoleadtheUKsghttocutseriousandorganisedcrime.Forthersttime
a single agency has the mandate and power to bring the full weight of law enforcement to bear in terms
ofreducingseriousandorganisedcrimeintheUK.TheNCAstates,Wewantthepublictotrustus,and
criminalstofearus.NCAIntelligence-ledoperationalactivitylooksto:
prosecuteanddisruptpeopleengagedinseriousandorganisedcrime(Pursue);
preventpeoplefrombecominginvolvedinseriousandorganisedcrime(Prevent);
increaseprotectionagainstseriousandorganisedcrime(Protect);and
reducetheimpactofseriousandorganisedcrimewhereittakesplace(Prepare).
The NCA tackles serious and organised criminals in areas that have previously had a particularly
fragmentedresponse,suchasIntellectualPropertycrime,throughintelligence-ledinvestigations,andwill,
forthersttime,alignitsownanditspartnersoperationalactivitytoensurethatefcientandeffective
activitiesareconductedtocombatorganisedcrimeandseriouscrime.
PROCEEDSOFCRIMECENTRE(POCC)
Money is central to virtually all organised crime. It is not only a reward of crime, but also a driver with
proceedsfundingfuturecriminalactivity.
ThevalueofassetsduetocriminalactivityincludingIPcrimerecoveredin2012/13was153mwitha
totalinexcessof1.2bnsincethesincetheenactmentoftheProceedsofCrimeAct2002.

TheProceedsofCrimeCentrehasastatutoryfunctionasRegulatorunderthePart1Section3Proceedsof
CrimeAct2002(PoCA)totrain,accreditandmonitorFinancialInvestigators.POCCrunsandmaintainsthe
FinancialInvestigationSupportSystem(FISS),whichsupportsFinancialInvestigators.ThePOCCisalso
responsiblefortheJointAssetsRecoveryDatabase(JARD),whichcontainsallthenancialdatarelatingto
assetrecovery.TheseguresaresubmittedtotheHomeOfceandHMTreasury,andareusedtocalculate
incentivisation gures under the Asset Recovery Incentivisation Scheme. The Criminal Finances Team
is comprised of Financial Investigators and staff with expertise in all aspects of nancial crime including
money laundering. The team carry out investigations, provide advice to partners, and provide nancial
investigationsupporttotheCrownProsecutionServiceandtheHMCourts&TribunalsServiceregarding
theenforcementofConscationOrders.
The Proceeds of Crime Act 2002 provides the ability for nancial investors to assess whether
a person has benetted from a criminal act. It allows nancial investigators to apply to the
Crown Court for investigative orders to obtain nancial evidence in support of a prosecution.
The Proceeds of Crime Act also caters for the recovery of any criminal benet through a conscation
process,aswellasenablingacompensationregime.Therearevarioustoolsthatcanbeusedbynancial
investigators under this legislation including investigative orders, cash seizures, conscation orders and
civilrecovery.
POLICEINTELLECTUALPROPERTYCRIMEUNIT(PIPCU)
The Police Intellectual Property Crime Unit (PIPCU) launched in September 2013 is a specialist police
unitdedicatedtoprotectingUKindustriesthatproducelegitimate,highquality,physicalgoodsanddigital
contentfromintellectualpropertycrime,withaparticularfocusononlinecrime.
The unit is currently funded by The Intellectual Property Ofce and based at the Economic Crime
Directorate(ECD)attheCityofLondonPolice,thenationalpoliceleadforfraud.
PIPCU is a 21-person team consisting of detectives, police staff investigators, analysts, researchers, an
education ofcer and a communications ofcer. The team also has the added skills and expertise from
two secondees; a Senior Intelligence Ofcer from the Intellectual Property Ofce (IPO) and an Internet
InvestigatorfromtheBritishRecordedMusicIndustry(BPI).
CAMPAIGNPOISE
TheIPOcreatedthisframeworktoconsiderhowenforcementactivitiescouldbetargeted todisruptthe
lifecycle of counterfeit and pirated goods, both directly and through the intermediaries criminals use to
protfromtheillegaltrade.
Thestagesinthislifecycleare:
Ordering
Manufacture
Shipping
Importation
Transport(inthedestinationcountry)
Reworking
Wholesalestorage/warehouse
Retail
Eachstageisunderpinnedbymoneylaundering.TheframeworkwasadoptedbytheSeriousandOrganised
Crime Agency IP tasking group and detailed analysis of each stage was undertaken using 3-D mapping
techniques using intelligence from industry, law enforcement and government Operational progress has
beenmadeinanumberofthestages.

ORDERING
Getting access to counterfeit goods has been facilitated by the Internet and efforts are being made to
understandthevariousmethodsthatcriminaluse. Thereisawholerangesomeovertandstraightforward,
otherstakingcaretohidethecriminalityandusingdifferentterritoriestomovegoods.Howcriminalsdeal
withthatstageofthelifecycleisanimportantpartofPoisesothatdisruptiontacticscanbedeveloped.
The international operation In Our Sites co-ordinated in Europe by Europol and delivered in the UK
byPIPCUdemonstratedtheuseofInternetdomainsandpaymentservicesasnecessaryintermediariesby
criminalsandpointsofdisruptionforenforcement.ThisstageofPoisealsoseekstounderstandhowthe
mostprolictradersincounterfeitbegintheprocessbyexamininghowtheyplaceordersfortheirgoods.
DuringOperationWainscoat,membersoftheSouthEasternRegionalOrganisedCrimeUnitdiscovered
thesuspectswereusingsocialmessagingasthemediumfororderingtheirillegalgoods.
MANUFACTURE
IPR infringing goods are manufactured and distributed all over the world. Through engagement with UK
BorderForce,intelligencehasbeendevelopedonnumerouscountriesandsuppliers.Onenationwillingto
workwiththeUKtodevelopactionagainstmanufactureofcounterfeitproductsisChina.Followingvisits
in 2013, a delegation of members of the IPO, NCA and City of London Police met with members of the
MinistryofPublicSecurityinChina.Agreementwasreachedonthefuturesharingofoperationalactivity.
Asaresult,intelligencewasdevelopedbytheIPOtofurthercriminalenquiriesinChina;thishasallowed
police and trading standards ofcers to arrest offenders and seize considerable amounts of IPR offending
goods.Thisprosecutionisongoing.TheobjectiveistocontinueworkwiththeChineseauthoritiestostem
theproductionandowofIPinfringinggoodsintotheUK
SHIPPING
Interaction with the Border Force has allowed a greater understanding of shipping. Despite conicting
priorities, Border Force is able to seize huge quantities of IPR infringing goods each year. In 2014 whilst
workingwithpoliceinEnglandonanongoinginlandinvestigation,membersoftheIPOIntelligencehub
identiedshipmentsenroutetotheUKsuspect.BorderForcewasalertedandseizedtwofurthercontainers
fullofvarioustypesofcounterfeitgoods.Futureworkwillfocusontheintermediaryservicesinvolvedinthe
shippingprocesssuchasFreightForwarders,ShippingAgentsandtheShippingInsuranceIndustry.
IMPORTATION
ThechallengeofstemmingthetradeinIPRinfringinggoodscomingintotheUKistheresponsibilityofthe
BorderForce.2013/14hasseenagreatercollaborationbetweentheBorderForceandtheIPOtosupport
activity.AnalysisintotheservicesneededtosecuretheentryofgoodsintotheUKandtheirsubsequent
distributionincludesworkwithtransportationcompanies,shippingagentsandonpostalpackagesandsmall
parcels,thecourierrmsinvolved.
TRANSPORT(INTHEDESTINATIONCOUNTRY)
FollowingacomplainttotheUKIPObyabrand,intelligencewasdevelopedforactionbytheSouthEast
RegionalOrganisedCrimeUnit(SEROCU).OperationWainscoat,(mentionedabove)identiedacriminal
networkintheUKbeingsuppliedbyaBritishfreighthandlingcompany.Followingactionagainstacourier
companyactingaspartofthesupplychain,resultinginseizureofcashandassetsofover75k,acompany
director was arrested. In September 2014, she pleaded guilty to IP offences and will be sentenced in
November2014.
REWORKING
Thisisaverychallengingareatoinvestigate.Theimportationofgoodsandlabellingseparatelycanmean
that they do not necessarily infringe IPR until they are reworked into a single commodity. A number of
enforcementinitiativesidentiedreworkingacrosstheUKthataresubjecttoprosecutions.Inoneinstance,

35,000emptycounterfeitvodkabottleswereseizedatDover.Iflled,thetradeonthesebottleswouldhave
resultedinalosstotheTreasuryinexciseandVATofalmost500,000.Analysisofthisareawillseekto
establishhowcriminalssettingupre-workingfacilitiesbuyorrentthepremises,howtheypayforutilities,
whotheyemployandhowtheysourcemanpower,howtheypresentthemselvestodifferentauthorities,for
example as legitimate companies and what professional enablers such as solicitors and accountants they
mayuse.
WHOLESALESTORAGE/WAREHOUSE
Signicant steps in ensuring the integrity of the self storage industry have been made by a project co-
ordinatedbyLOTSAandfundedinitiallybyIPO.Itwasfoundthatsomeself-storagefacilitieswerebeing
misusedtostorecounterfeitgoodsandasanactualpointofselling.Discussionswereheldwiththeindustry
trade body and succeeded in agreement to a code of practice aimed at reducing such criminal use and
makingenforcementactioneasierwhenitisnecessary.
Warehousesdifferfromself-storageinthattheytendtobelargerandhaveexclusiveaccessratherthan
public. In various raids, including Operation Loft, substantial quantities of counterfeit goods have been
seizedsuchaswinesandspirits.Poiseseekstoexaminehowthesefacilitiesareoperatedandmaintained
throughtheintermediaryservicesneeded
RETAIL
TraditionallytheretailpartofthesupplychainisinopenmarketswhereTradingStandardsarethelead
enforcement agency. Considerable work has gone on through them and the National Markets Group to
undermine the illegal trade, directly through enforcement at the point of sale, but increasingly through
intermediaries,suchasthemarketoperators,landownersandancillarysuppliers.Forexample,inBrentand
Harrow,Wembleymarketposedseriouscounterfeitingproblems.TheTradingStandardsdepartmentfound
thatthemarketoperatedonlandbelongingtoadevelopmentcompanythatwasbuildinganewshopping
mallandpointedoutthethreattheillegalmarketposed.Subsequentlythecontractforthemarkettouse
thelandwaswithdrawnanditclosed.
TheindustryfundedRealDealschemeprovidessupportandguidanceformarketoperatorstorunfake
free markets and in some signicant cases they have become self-policing and even proved to increase
tradewhencounterfeitersnolongeroperatethere.
Onlineretailhasnowbecomenormalandconsumerscanbuydirectlyfromabroadorviaintermediaries
calledfacilitationhouses.TheprinciplesandinterventionsdevelopedunderthePIPCUwherepayments
servicesanddomainregistrationcanbewithdrawnarebeingusedtodisruptthistypeofactivityandare
particularlyusefulwheretheillegalsiteoperatorisoutsideofUKjurisdiction.
Otheronlineforumsaredevelopingintoretailenvironments,forexample,Facebookandworkisbeing
donewithTradingStandards,Policeandindustrytounderstandthisanddevelopwaysofreducingcriminality
throughthatmedium.
The concept of ach of the stages has been recognised by OHIM as an effective method of tackling IP
crimeonawiderscaleandmostimportantlyrecognisesthedifferentwaysinwhichIPcrimeisathreat.,
whetherthatistoconsumersbywayofdangerousgoods,tocommunitiesbywayofcriminalisinglocalities
ordeterringlegitimatebusinessesfromoperating,orthrougheconomicharmtorightsholders,legitimate
tradersandGovernmentrevenuesorthroughtheinvolvementofseriousandorganisedcrime.

SCOTTISHANTI-ILLICITTRADEGROUP
SincetheformationofPoliceScotlandon1April2013,asignicant
amountoftangibleprogresshasbeenmadeinrelationtointellectual
property crime. Across Scotland, 2013/14 has seen a signicant
positive shift in how key public, private and third sector relevant
partners disrupt and tackle those involved in illicit trade,
counterfeitingandpiracy.
To take into account increases in the sale of illicit tobacco,
alcohol and medicines, the Scottish Intellectual Property Crime
GroupchangeditsnameandbecametheScottishAntiIllicitTrade
Group,membershipofwhichmirrorsthemainIntellectualProperty
Crime Group in London and comprises statutory bodies including
HMRC, DWP, Trading Standards Scotland and representatives from
trade associations and industry brand protection units as well as
Crimestoppers.OnbehalfoftheScottishBusinessResilienceCentre,
theGroupischairedbyaPoliceScotlandrepresentativefromSafer
Communities Prevention & Intervention located within the new
Scottish Crime Campus and provides key strategic coordination in
tacklingillicittradeacrossScotland.Developmentofprocessesand
structureshavefocusedactivity,allowingkeyissuestobeaddressedaswellasraisingawarenessofillicit
trade,counterfeitandpiracythroughouttheyear.
ThestrategicaimoftheScottishAntiIllicitTradeGroupistoreducethescale,impactandcostofIllicit
TradeinScotlandandhasthreestrategicobjectivesnamely:PREVENTIONTostrengthencollaborative
approaches to prevention; INTELLIGENCE To strengthen collaborative approaches to information and
intelligencegatheringanddissemination;andENFORCEMENTTostrengthencollaborativeapproachesto
investigatingandprosecutingthoseinvolvedinillicittradeinScotland.
In 2013/14 three presentations on illicit trade were provided to the Scottish Serious Organised Crime
Taskforce, which includes the Scottish Justice Minister, Police Scotland Chief Constable, Lord Advocate,
andtheSolicitorGeneral,amongothers.
The greatest success came in the formation of a virtual illicit trade hub. Launched by the Scottish
JusticeMinisterandattractingmediacoveragefromnationalTVandpress,thehubaimstocreateatangible
multi-agencyapproachtopreventionwork,whichincludesgatheringintelligenceandthenactingonthisto
conductenforcementworkatwhichpointanyintelligenceispassedontotheIntellectualPropertyOfce.
In recognition of progress made by the Scottish Anti Illicit Trade Group, Jenny Mara MSP lodged a
parliamentary motion
3
in which she requested that Parliament recognises the impact of illicit trade on
businessesinScotland,whichincludesbringingcrimeintocommunities;understandsthatsuchtradecan
belinkedtoseriousorganisedcrime;andsupportsandendorseswhatitseesastheoutstandingworkofthe
ScottishAntiIllicitTradeGroupintakingtheleadintheghtagainstsuchcriminalactivity.TheMotion
achievedcrosspartysupportfrom27MSPs.
FocusingonPrevention,IntelligenceandEnforcement,somenotablesuccessesbytheScottishAntiIllicit
TradeGroupinclude:
Prevention IntroductionofTheRealDealtoseveralmarketsandcarbootsinScotland.Therewerealso
severalpubliceventsaimedatraisingawarenessofIPcrimeincludingastandattheGirlsDayOutevent
where,overthecourseofaweekend,19,000attendeesprovidedacaptiveaudiencetorepresentativesfrom
PoliceScotland,MHRA,EsteeLauderandHunter.Nationalmediacoveragewasachieved,whichhelpedto
raiseawarenessofIPcrime.
IntelligenceTradingStandardsScotlandhavebeenabletodevelopandtakeownershipforIntelligence,
whichhasseenalikeforlikeincreaseinlogssubmittedviatheMEMEXdatabaseandanincreaseinlogs
submittedfromScotlandtotheIntellectualPropertyOfce,of378%.
3 (MotionS4M-08767:JennyMarra,NorthEastScotland,ScottishLabour,DateLodged:14/01/2014)


Enforcement An increase in quality intelligence has resulted in the development of more detailed
problemproles,whichinturnhasincreasedeffectivenessofenforcementactivity.Forexample,inmulti-
agencyoperations,over2.5millioninillicit,counterfeitedandpiratedgoodswereseizedfromtheBarras
MarketareainGlasgowaheadofthe2014CommonwealthGames;26individualswerearrestedcomprising
ofover80charges..Onemalewhowaspreviouslysubjecttoa20,000POCAseizuresubsequentlyhada
further30,000ofrecentlypurchasedtobaccoseizedandwassubjecttoa360,000restrainingorder.
Inthecomingyear,astestamenttotheprogressachievedbytheScottishAntiIllicitTradeGroup,Police
Scotlandhaveratiedtacklingcounterfeitandillicittradeasastrategicpriorityfortheyear2014/2015.
PRIMEMINISTERSADVISORONINTELLECTUALPROPERTY
Jenny Mara, MSP
In September 2013, the Prime Minister appointed Mike
Weatherley MP as his special advisor on Intellectual
Property, with particular focus on online copyright
infringement.
MrWeatherley,whohasabackgroundinthemusicand
lmindustries,hasmetwithawiderangeofstakeholders
fromacrosstherightsholderandanti-piracycommunities
and has lent his support to key enforcement policy
initiatives.
Mr Weatherley has published discussion papers on
search engines and illegal websites which prot from
advertising which have been widely welcomed. These
independent reports are an important contribution to copyright enforcement policy discussions and
highlightMrWeatherleystirelesseffortstoensurethattheUKscreativeindustriescontinuetothriveand
prosper.
Mr Weatherley also founded Rock the House, a Parliamentary live music competition which aims to
highlightIPrightsofunsignedandupandcomingmusicians;andhighlighttheimportanceoflivemusic
venuestolocalcommunities.
TECHNOLOGYSTRATEGYBOARDFUNDING
TheIPOranacompetitionwiththeTechnologyStrategyBoard(TSB)in2012/2013toseeksolutionsonhow
newtechnologycanassistthegrowthoflegitimatemarkets,whilereducingtheaccessibilityofinfringing
productsonline.
The two successful winners of Phases I and II were the University of Surrey for their proposal on the
feasibilityofcomparativewatermarkingtechnologyandwhiteBULLETfortheirproposaltofurtherdevelop
theirIPonlineriskassessment.InDecember2013,furtherPhaseIIIfundingwasmadeavailableforboth
providingtheywereabletomeetthecriteriasetbytheselectionpanel.
The panel considered that whiteBULLETs technology was at a commercially advanced stage, and as a
result did not award them phase II funding. Based on the principal that any further support was to help
projectsreachcommercialisationitwasfelttheyhadalreadyachievedthisandsofailedtomeettherequired
criteriaforfurtherfunding.
The University of Surreys proposal was based on further development of comparative watermarking
technology.Theywereawardedfundstocontinuethisworkandseekindustrypartnerstohelpcommercialise
theirtechnology.Itwasfeltastheyhadtakenthestepsandapproachedindustrytogaugeinterestandhad
receivedsomepositivefeedbackfurtherfundingwasappropriatefortheawardtobegranted.

INTERNATIONALIPENFORCEMENTSUMMIT
TheSummitbroughttogetherseniorleadersfromtheglobal
IP and enforcement community for two days of sharing
knowledge, discussion, innovation and identifying future
challenges.Theeventwasajointinitiativedevelopedwith
theEuropeanCommissionandtheOfceforHarmonization
in the Internal Market (OHIM) and was hosted by the UK
Intellectual Property in Central Hall Westminster, London
on11-12June2014.
Over 300 delegates attended, including: senior UK and
international politicians; representatives from national
IP ofces and institutions; multinational companies and
brands; IP enforcement policy and operational professions
includingcustoms,EuropolandInterpol;andUKandinternationalpressandmediarepresentatives.
The programme included presentations on IP in the online environment, customs and enforcement in
Europe and across the world, and the coordination, tools and techniques to tackle IP infringement. The
onlineenvironmentformedakeyelementoftheprogramme,alongwiththetransportationanddistribution
ofinfringinggoodsandtheworkofcustoms.AswellascharacterisingthenatureofIPmanagement,with
itsnuancedandbalancedapproachestopotentiallydivisivesubjects,thesummitcrystallisedtheneedfor
compromise and collaboration in challenging the acute issues facing the global international intellectual
propertysystem.
Twenty nine keynote speeches, nine breakout sessions, countless bilateral meetings and informal
networkingopportunitieswerepackedintothetwodaysinWestminsterHall.Speakersweredrawnfrom
business, government, enforcement and IP authorities across key markets, presenting their view of the
internationalIPenforcementchallengesandmeasuresneededtotackleIPcrimeinanageofglobaltrade
and digital economies. Speakers included: The US Ambassador to the UK, Matthew Barzun, former US
Senator Chris Dodd, chair of the Motion Picture Association of America, Paul Polman, CEO of Unilever,
RobWainwrightofEuropol,FrancisGurryofWIPO,KunioMikuriyafromWCO,VinceCable,UKSecretary
ofStateforBusiness,InnovationandSkills,andMikeWeatherly,theIPAdvisortotheUKPrimeMinister.
Itwasagreedthatintellectualpropertyisfundamentaltotheknowledgeeconomy.Therefore,IPcrime
representsaseriousthreattoglobaleconomicdevelopment.Thedigitalrevolutionprovidesopportunities
foreconomicgrowth,butalsoforincreasinglysophisticatedcriminalstrategies.
Keyhighlightsincluded:
theneedforincreasingcollaborationataninternationallevel,withpartnershipbeingkeytodealing
withthechallengesoftodayandtomorrow;
tolookatevolvingbusinessstrategies;and
educatingconsumers,IPusersandlawenforcement.
The summit provided a chance for representations from all sides of the debate to establish greater
understanding, form new partnerships, share best practice and maximise the benets of an effective
enforcement regime. There was also space around the formal agenda for networking and relationship
building. This was especially true at the Summit evening Dinner: Nearly 170 attended the dinner at the
ScienceMuseum,intheappropriateMakingtheModernWorldgalleryandheardPlcidoDomingogivehis
viewontheimportanceofIPfromacreatorsperspective.
Peoplewerealsolisteningbeyondthehallviatheliveonlinestreaming,withnearly3,000hitsfrom58
countries.Thisincludedactivityonsocialmedia:theTwitterwallatthevenueprovedpopularandduring
the summit there were close to two thousand tweets using the hashtag #IPSummit14, with a potential
reach of nearly 12 million. Coverage in the conventional print media was positive and on message, and
spreadacrossseveralnationalpapersandinternationalnewsnetworks,aswellaslocalandmorespecialist
publications.
The summit website, hosted by the OHIM Observatory, offered additional materials and content. As

wellashostingtheprogrammeforthesummit,thewebsitealsocontainsallthelegacyinformation,such
as a highlights video and the Summit Report of Proceedings. The Report of Proceedings, published this
September,givesanoverviewandsetsoutthekeyhighlightsfromtheevent.
SUBSECTION3:COORDINATEDACTION
Thecoordinationofenforcementactivities,bothstrategicallyandtactically,isvitallyimportanttotackle
theissuesofcounterfeitingandpiracy.ThisisespeciallyimportantwithintheUKwheretheenforcement
landscape is so diverse. The sharing of best practice, tools, techniques, intelligence and resources has
provedtobeeffective.ThismethodofworkingisincreasinglybeingusedduetothenatureofIPcrimeand
thetransferofgoodsonlinewheretherearenonationalborders.
UKIPCRIMESTRATEGY20112015
4
AkeytoolusedtocoordinateactivitieswithintheUKistheUKIPCrimeStrategy.PublishedinAugust2011,
this Government strategy paper set out ve-year objectives, and was based upon the previous strategies
from 2004 and 2006. The 2013 Taylor Wessing Global IP Index rated the UK as a top performer in the
worldforcompetivenessintrademarkandcopyright,reectingthesignicantprogressthathasbeenmade
againsttheobjectivesoftheIPCrimeStrategy.
TheIPCrimeStrategy2011isacrossGovernmentStrategywhichsetsouttheframeworkforUKaction
fortacklingIPcrime,includingrolesandresponsibilitiesindeliveringitandsomenewareaforaction.
TheUKIPCrimeStrategy2011focuseson:
developingcost-effective,evidence-ledandcrediblemeasurementsofIPcrimeanditsimpact
engagingandco-ordinatingresourcesconcernedwithIPcrime
seekingmoreefcientandeffectivemeansofworkingtogetherandworkingmoresmartly
buildingwithindustrybetterandmoresophisticatedpreventivemeasuresaimednotjustatprosecution,
butdisruptingthemeansbywhichcriminalscommitandbenetfromIPcrime,leadingtoareduction
inharm
integratedIPcrimeenforcementwithotherareasofcriminality,contributionandbenettingfrombest
practiceandspecicallyengagewithOrganisedCrimeMappingtechniques
continuing the excellent work at international levels to enhance legitimate trade and disrupt illegal
conduct
UKIPCRIMESTRATEGYUPDATE
1. Enforcementagenciesworkingtogethertoshareintelligenceandresourceswitheachotherand
industrytotackleIPcrimeatlocal,regionalandinternationallevels.
TheenforcementlandscapehasundergonesignicantchangesincetheIPCrimeStrategywaspublished.
In 2013 the National Crime Agency became a legal entity, the National Trading Standards Board was
formed,theEuropeanDirectiveonborderdetentionschangedto608/2013andanewCustomsdatabase,
COPIS, was introduced and an IPO nanced online IP police unit PIPCU was launched.. The National
FraudIntelligenceUnitalsoacquiredActionFraudtheportalforpublicreporting,whilstConsumerDirect
migratedtotheCitizensAdviceBureau.
TheGovernmentAgencyIntelligenceNetwork(GAIN)providescoverageacrosstheUKandIPcrimeis
discussedateachmeeting.LikewiseRegionalOrganisedCrimeUnits(ROCUs)havebeenformedacrossthe
UKinordertotacklecross-borderseriousandorganisedcrimeissues.
TheadoptionofProjectPoiseasaframeworkfordealingwithcounterfeitingandpiracyintheUKand
Europehasprovidedthemeanstojoin-upIPenforcementatboththelocalandgloballevel.Progresstodate
hasbeenachivedbydevelopingrelationshipswithsourcecountriessuchasChinawheretheIPO,police,
NCA,HMRCandBorderForcehaveseenconsiderableprogressresultinginanumberofjointinvestigations.
RelationshipswiththeUnitedStatesIPReportingCentrehavealsobeendeveloped.Inaddition,theUKis
closelyinvolvedinEuropolsIPworkandsupportsInterpolinitsfareasternwork,whileplayingaprominent
4 http://www.ipo.gov.uk/ipcrimestrategy2011.pdf

roleinoperationalactivitylikeOpson,whichistacklescounterfeitfood.
IPCrimeispartofthenewlyissuedHomeOfceStrategyforSeriousandOrganisedCrimeplacingIPO
attheheartofcollaboration,coordinationandintelligencesharingbetweenthepublicandprivatesector.
Tothisend,IPOproducesamonthlyanalysisforBorderForceandHMRC,andwhichisadaptedforinland
intervention by Trading Standards and the police. The ow of intelligence has proven to be consistently
goodandfurtherenhancementstoincludetheharvestofintelligencefrominlandenforcementactivityto
promotebetterborderinterventionsandupstreamdisruptionopportunitiesisplanned.
In Scotland, IPO attention to date has focused on the Barras market in Glasgow in the run-up to the
CommonwealthGames.TheScottishAnti-IllicitTradeGroupprovidedthenexusforexchangeofintelligence
across a wide range of agencies and the outcome was a detailed, accurate and purposeful intelligence
assessment jointly badged between IPO and Trading Standards. The outcome is that for the rst time,
Barrasmarketisfake-free.IllicitTradeisnowaperformancemeasureforPoliceScotlandandtheowof
intelligence,whichsupportsawiderangeofinterventions,continues.
There are still some areas of uncertainty about intelligence exchange within the UK, but solutions are
activelybeingsoughtbyallparties.
2. Developanactionplanontacklingcounterfeitingandcriminalpiracyonline.
ThemostsignicantdevelopmentsintheonlineIParenahavebeentheformationofthePoliceIntellectual
PropertyUnit(PIPCU)withintheCityofLondonPoliceandtheNationalTradingStandardsBoard(NTSB)
e-crimeunit.
In PIPCU, the techniques of disruption through intermediary facilitators and enablers are, for the rst
time,beingconductedunderoneroof.Thepolice,actingasgatekeeperhaveestablishedaprocessbywhich
evidence gathered by rights holders must meet the criteria that would allow them to pursue a criminal
investigationwithaviewtoprosecution.Throughaprogressiveseriesofcontactwithsiteoperatorsengaged
inIPcrimeandusingrestorativejusticeprinciples,thesiteoperatorsaregiventheopportunitytorefrain
from continuing to commit criminal IP offences. Some have complied; however, those who refuse are at
risk of having their payment services and domain registration removed. For criminal site operators, the
PIPCUproduceanInfringingWebsiteList(IWL)whichisavailabletotheinternetadvertisingindustryso
thatcompanieshavetheopportunitytoensuretheiradvertisementsarenotplacedontheseonlinesites.
Thenumberofsitesaffectedisrelativelysmall,andtheinitiativesbyPIPCUhavehelpedtoensurethisby
codifyingthetacticsoftenutilisedbyIPcriminals.
AtthesametimeotherinitiativesthatformpartoftheUKframeworkofprotectingIPfromillegaluseare
beingintroduced.TheCreativeContentprojectisanagreementbetweenrightsholdersandInternetService
Providers (ISPs) to notify subscribers of suspected IP infringement while introducing a comprehensive
education and awareness campaign aimed at consumers. Other developments are also being considered
suchasSearchEngineengagementtoreducethereturnofillegalIPsites.
NTSBe-crimehasaconsumerfocusandtheemergenceofsocialmediaplatformssuchasFacebookas
amarketplacewherecounterfeitsaretradedisafastgrowingissue.Incomparisontoothermarketplaces,
onlinesocialmediaplatformssuchasFacebookprompthigherlevelsofconsumercomplaints,incomparison
tootheronlinemarketplacessuchaseBayandAmazon.
The UK Government has signed an MOU with AliBaba and Taibao, the largest China-based online
marketplaces,whichwillenabletheremovalofcounterfeitproductsfromtheplatforms.
Thesesignicantdevelopmentsarepartoftheprogressiveclaricationofthemenuofinterventionsthat
formaproportionatesystemofprotectionwhileenhancingconsumerknowledgeandawarenessandaccess
tomaterialthatbenetssociety.
3. Facilitate discussion and information on how technology can better be used to prevent
counterfeitingandpiracy.
As previously discussed, in 2013 the IPO ran a competition in partnership with the Technology Strategy
Board, to seek innovative solutions to tackle online IP infringement. One of the successful projects,

whiteBullet,isdevelopingasystemofassessingIPinfringementonline.Thisisanimportantstepindeveloping
criteriathatstandardisetheassessmentandmeasurementofonlineIPinfringementandalongwithother
commercialinitiativesandwilladdtotheevidenced-baseforproportionate,effectiveinterventiontoreduce
IPcrime
PIPCU, in addition to generating the IWL, have worked with partners to introduce their own website
banner directing visitors attention to the sites criminality and provides information aimed at informing
consumersaboutIPissues.
IPOiscommissioningresearchintoIPinfringementthroughsocialmediaplatformssothattherecanbe
amoreinformeddiscussiononhowtomanageissuesinthesenewenvironments.
4. IPOtopublishandmaintainclearinformationontherespectiverolesandactivitiesofagencies
andgovernmentdepartments.
TheIPOhasproducedaschematicforalltheenforcementagenciesandprivatesectorbodiesengagedinIP
enforcementandpolicy.
The IP crime Group continues to provide direct access to the various government agencies concerned
with IP policy, with the bi-monthly input from government agencies proving to be a valuable asset for
stakeholders.
5. IPOtopromotethepoolingofinformation,toolsandtrainingonIPcrime.
AswellasmaintainingaccesstogoodpracticeintheUK,theIPOiscloselyinvolvedinOHIMinitiatives,
particularlytheidenticationanddisseminationofinformation,toolsandtraining.TheUKhasledworkshops
onknowledgebuildingrunbyEuropolandOHIM,andensuredtheattendanceofTradingStandardsatthese
internationalforumsforthersttime.
TheIPtrainingforTradingStandardsofcersandindustryrepresentativescontinuetoprovideeffective
traininginIPcrimelawandpractice.ItissupportedbytheIPO,theAllianceforIPandPRSforMusic.
6. ImprovedialoguebetweenthosewhoholdIPrelatedintelligencetoimprovecoordination.
ThePIPCUhascreatedafocalpointforindustrytosubmitevidencesuitableforpoliceintervention.While
thispresentschallengesintermsoftheresourcesandcapabilityofvariousrightsholders(tomeetstandards
whichwouldsupportacriminalprosecution),theworkundertakenbytheunitcoversanimpressiverange
of commodities in both the physical and digital content areas, indicating that improved coordination is
takingplace.
ThecreationoftheNCAhasmeantthattheSeriousOrganisedCrimeAgency(SOCA)groupthatworked
solelytotheOperationPoiseagendahasnotimmediatelybeenreconvenedbyNCA,howeverbutthisand
otherstructuresarebeingreorganised.WorkonOperationPoisehascontinuedandaseriesofforumsthat
havetakenplaceatboththelocalandinternationallevelisdeliveringcoordinatedaction
LocalTradingStandardsintheEastMidlands,NorthWestandelsewherehaveformedIPgroupsidentifying
commonproblemsandthreatsandaretakingcollectiveactionsupportedbyintelligenceproductsfromthe
IPO.
TheGAINnetworkshaveinitiatedIPoperationsinWales,theMidlandsandtheSouthEast.
HMRCandIPOhaveproposedaprojectforthemselves,TradingStandardsandBorderForcetocapitalise
ontheharvestingintelligencethatwillbenetindividualagenciesobjectivesonIP.
The National Fraud Intelligence Bureau is developing bespoke systems to collect intelligence on fraud
andeconomiccrime.IPispartofthatremitandthekeystakeholdersincludetheIPOalongwiththeother
enforcementagenciesconcernedwithIPcrime,aswellasrightsholdersandindustry.
TheNTSBhascreatedaNationalIntelligenceHubandIPisoneoftheirareasofbusiness.TheIPOhas
alsomigrateditsdatatoMEMEX,theintelligencesystemusedbyTradingStandards,enablingdirectaccess
toIPOintelligencebytheNTSB.
Discussionsarealsoongoingataseniorlevelacrossallstakeholderorganisationstodevelopthestructures
reectingthechanginglandscapeinTradingStandards.

7. Push forward operational successes and use threat assessments and alerts to mainstream
innovativetacticsfortacklingIPcrime.
TheIPO/OHIMSummitonIPenforcementhashadanimpressivereachthroughavarietyofmediachannels
and placed the subject of IP crime rmly on the agenda in the UK as well as Europe and further aeld.
Theoutcomesofthesummithaveprovidedcleardirectionforbetterandmoreeffectivecoordinationand
thisisbeingachievedinareassuchascustomscollaboration,relationshipswithkeysourcecountriesand
coordinationacrossdifferentinstitutions(suchasOHIM,Europol,Interpol,DGTaxud).
The IP crime Report continues to form a valuable source of material for a range of strategic threat
assessmentsonIP.
TheIPOIntelligencehasfocusedattentiononprojectsrequestedbyTradingStandardsandthepolice.As
aresult,21problemproleswerecommissionedtodealwithIPissuesacrosstheUKwhichhasresultedin
operationalactivity.
TheIPOandNTSBhavecontinuedtodevelopotherprojectsaimedatreducingIPcrime.Forexample,
theSelfStorageProject(furtherdetailsbelow)andintheNorthWestandprojecthelpingtoreduceIPcrime
intheworkplace.
The UKs participation by both the Government and industry in OHIM Working Groups is maximising
thepotentialtosharesuccessandidentifyopportunitiesfortacklingIPCrime.TheUKframeworkofPoise
createdbyIPOandadoptedintheUKbyNCAhasnow,beenextendedthroughOHIMasaframeworkfor
futureIPenforcementinitiatives.
8. UseIPattachstoencourageeffectiveenforcementinotherjurisdictions.
InChinatheIPattachhasbeeninstrumentalindevelopingrelationshipsthatservetosupportandprotect
UK business operating there as well as extending the reach of law enforcement to reduce the ow of
counterfeitandpiratedgoodsintotheUK.
Greatprogresshasbeenmadeondevelopingrightsgranting,andcivilandadministrativerecourseand
therehavebeenexchange-visitsbyjudges,policeandadministrators.
InIndia,theattachhasworkedwithindustryandthepolicetocreateabespoketrainingpackageforlaw
enforcementofcerstohelpcreateamoreeffectiveIPenforcementcapability.
InSouthEastAsia,relationshipbuildinghasidentiedkeyprioritiesinVietnam,IndonesiaandSingapore.
AdevelopmentplanhasbeenplannedforIndonesiaandtheattachhasengagedwithauthoritiesacrossthe
regionthroughInterpolandwithsupportfromtheIPOIntelligenceHub.
InBrazil,attentionhasbeenpaidtothelegalframeworkofIPcrimeandactivesupporthasbeengivento
theauthoritiesintherunuptotheWorldCupandfortheupcomingOlympics.
TheattachshavebecomeanessentialpartoftheIPcommunitiesintheirrespectivecountriesandarea
vitalresourceforUKbusinessesoperatingintheircountries.
9. Supportregionalcoordinationoftradingstandardswork.
In2013/14theNTSBappointed12RegionalIntelligenceOfcers,andtheIPOhoststrainingdaysatvarious
locationsthroughouttheUK.ThisisessentialsinceRIAsaretherstpointofcontactforthedissemination
ofintelligenceproductssuchasthePortsSeizureanalysis.
TheTSCoordinatoratIPOhasattendedandsupportedalltheregionalIPgroupsformedinformallyacross
TradingStandardsandprovidedarangeofintelligenceproductstomeettheirspecicneeds.
10.DevelopcommonmethodologyforassessingscaleandimpactofIPcrime.
The IPO Economic Research team commissioned
5
a formal paper on the measurement criteria of IP
criminalitythat,whencompleted,willprovidecrediblemeasuresofscaleandharm.
5 https://www.gov.uk/government/uploads/system/uploads/attachment_data/le/325020/IP_Measuring_Infringement.pdf

11.Improveevaluationofconsumerawarenesscampaignstohelpshapeeffectiveaction.
PartofthePIPCUobjectivesaretopromoteawarenesscampaignsonIPIssuesandaspeciallyemployed
ofceisworkingwithIPO,DCMSandindustrytocoordinatethesecampaigns.
The Government Strategy for Serious and Organised Crime articulates action under the headings of
PreventProtectPrepareandPursue.ThroughthecoordinatedworkofIPOandNCAacrossthepublic
andprivatesectors,contributionstoPreventareasubstantialpartofthecontributiononIPreduction.
PIPCUPARTNERSHIPWORKINGANDSTAKEHOLDERENGAGEMENT
SincelaunchinginSeptember2013,PIPCUhasbeenbuildingworkingrelationshipswithindustryandlaw
enforcementpartnersacrosstheglobetodeveloppartnershipworkingwithacoordinatedapproach,aswell
asworkingwithawiderangeofrightsholders,tradebodiesandbrands.
Asdiscussedpreviously,inDecember2013,PIPCUspreventionanddisruptionteamcollaboratedwith
EuropolandtheHomelandSecurityInvestigations(HSI)NationalIntellectualPropertyRightsCenter(IPR
Center)aspartoftheprojectInOurSitesTransatlantic3.OnbehalfoftheUK,PIPCUsuspended90
websites,withEuropolMemberStates,Belgium,Denmark,France,Hungary,RomaniaandSpainsuspending
afurther303.TheUSIPRCenterconducted297domainnameseizuresintheUS.
Atthebeginningof2014,PIPCU,alongwiththeIPOandtheNationalCrimeAgency(NCA),travelledto
BeijingandShanghaitodiscussfutureengagementandinformationsharingwithChinaspoliceandsecurity
authority,theMinistryofPublicSecurity(MPS),theShanghaiPublicSecurityBureau(PSB)andtheGeneral
AdministrationofChinaCustoms.Thevisitwasagreatsuccess,withbetterlinksdevelopedbetweenthe
UK and China as well as establishing a mutual agreement for exchanging and sharing intelligence. Since
thevisit,ofcialsfromtheMPShavebeentotheUKandmetwithPIPCU,IPOandtheNCAtosharebest
practiceandtodiscussfurtherfuturecollaboration.
PIPCUiscommittedtokeepingstakeholdersengagedandinformedofitsworkandlatestdevelopments.A
bi-monthlynewsletterhasbeendeveloped,thePIPCUUpdate,toprovidestakeholderswiththelatestnews,
insightsandstatsfromtheunit,whichhasbeengreatlyreceivedbythestakeholders.
In addition, PIPCU hosts quarterly meetings to foster closer working relationships with stakeholders.
Thesesessionsprovidepartnerswithinformationontheunitsenforcementanddisruptionactivityaswell
aseducationandpreventionwork.ThemeetingsallowstakeholderstoaskPIPCUquestionsregardingIP
crimeandtoraiseanyqueriestheymayhaveregardingIPissuesfacingtheindustry
PIPCU also launched its own dedicated twitter account, @CityPolicePIPCU, in May 2014. This social
media platform allows the unit to engage with partners and existing stakeholders as well as with other
lawenforcementunits,potentialstakeholders,themediaandpublic.PIPCUusestheirTwitteraccountto
providerealtimeupdatesontheunitsactivityaswellasinsightsoncollaborationwithpartners,information
onhowbusinessescanworkwithPIPCU,preventativeadviceandthelatestindustrynews.
OPERATIONS
PIPCUmarkeditslaunchinSeptember2013witharaidonaBirminghamproperty,whichsawhundredsof
DVDsworthanestimated40,000seizedandthearrestoftwosuspects.Sincethentheunithasexecuted
warrantsacrosstheUKwhichhasresultedinasignicantnumberofarrestsandisinvestigatinginexcess
of30,000,000worthofIntellectualProperty(IP)crime.
An example of one of the units most successful operations saw a suspected organised criminal group,
believedtobeimportingandsellingawiderangeofcounterfeitfashiongoods,dismantledinMarch2014.
The investigation was launched by PIPCU following a referral from an international law enforcement
partnerandresultedintwomenbeingarrestedandonemanbeinginterviewed.Theoperationwasajoint
effortbetweentheunitandtheIPOandNCA,withsupportfromTradingStandardsandbrandprotection
ofcersfromthebrandsbelievedtobeaffected.Thesuspectshomesweresearchedandalargenumberof
fakegoodsbelievedtobeworthhundredsofthousandsofpoundswereseizedfromtheirhomesandtwo
storagecontainers.ThecounterfeititemsseizedincludedUGGgloves,highendcosmetics,sunglasses,teeth
whiteningkitsande-cigaretterells.

Another signicant operation for the unit took place in May 2013 and involved detectives from PIPCU
arrestingamanandawomanfollowinganinvestigationintoasuspectedcounterfeitCDoperationbelieved
tobemakingtensofthousandsofpounds.ThepairwerearrestedonsuspicionofsellingillegallycopiedCDs
includinghitsfromUSartistBeyonceandUKartistsPalomaFaith,PaoloNutiniandEmbrace.
PREVENTIONANDDISRUPTION
The work of PIPCUs Prevention and Disruption section has been highly successful. Between September
2013andApril2014morethan2,500websitessellingdesignercounterfeitgoodsweresuspendedaspartof
theunitsOperationAshiko.TheoperationsawPIPCUworkingincollaborationwithalargenumberofwell
knownbrands,brandprotectionorganisationsandco.ukwebsiteregistry,Nominet.
The suspended websites purported to sell well-known designer goods including UGG boots, GHD hair
straighteners,Abercrombie,HollisterandJackWillsclothing,GucciproductsandThomasSabojewellery.
However,onlineshopperswereleftshortchangedastheitemstheyreceivedwereinfactpoorqualityand
sometimesdangerouscounterfeitgoods,orinsomecasestheitemswereneverevendelivered.Thewebsites
wereestimatedtobegeneratingtensofmillionsofpoundsfororganisedcriminalgangs.
ThisoperationwaspublicisedinconjunctionwithWorldIPDayandreceivedsignicantmediainterest
especiallyinthenationalpress,whichsuccessfullyraisedtheproleoftheunit.Presscoverageincludeda
liveinterviewwithDCIAndyFyfeonBBCRadioLondonandfeaturesintheGuardian,theTimes,theBBC
website,aswellasmorethan20piecesinthetradepress.
OperationCreativeisanothersuccessfulelementofthePreventionandDisruptionsection.Ofciallylaunched
in April 2014, this ground-breaking initiative is designed to disrupt and prevent websites from providing
unauthorisedaccesstocopyrightedcontent,inpartnershipwiththecreativeandadvertisingindustries.
ItisauniquepartnershipbetweentheCityofLondonPoliceandtheUKadvertisingindustry,whichis
representedbytheInternetAdvertisingBureauUK(IABUK),theIncorporatedSocietyofBritishAdvertisers
(ISBA)andtheInstituteofPractitionersinAdvertising(IPA),aswellasrightsholdersrepresentedbythe
FederationAgainstCopyrightTheft(FACT),theBritishRecordedMusicIndustry(BPI),theInternational
FederationofthePhonographicIndustry(IFPI)andthePublishersAssociation(PA).
AspartofOperationCreative,rightsholdersinthecreativeindustriesareaskedtoidentifyandreport
copyrightinfringingwebsitestoPIPCU,andtoprovideadetailedpackageofevidenceindicatinghowthe
siteisinvolvedinillegalcopyrightinfringement.OfcersfromPIPCUthenevaluatethewebsitesandverify
whether they are infringing copyright. In the event that a website is conrmed as providing copyright
infringingcontent,thesiteowneriscontactedbyofcersatPIPCUandofferedtheopportunitytoengage
withthepolice,tocorrecttheirbehaviour,andtooperatelegitimately.
Ifwebsiteownersfailtocomplyandengagewiththepolice,thenavarietyofothertacticaloptionsmay
beusedincluding:contactingthedomainregistrartoseeksuspensionofthesite,advertreplacementand,
asmentionedpreviouslyinthisreport,disruptingadvertisingrevenuethroughtheuseofaddingthesiteto
anInfringingWebsiteList(IWL).
TheIWL,therstofitskindintheUKtobedeveloped,isanonlineportalcontaininganup-to-datelistof
copyrightinfringingsites,identiedandevidencedbythecreativeindustriesandveriedbytheCityofLondon
Policeunit.ItisavailabletothepartnersofOperationCreativeandthoseinvolvedinthesaleandtradingof
digitaladvertising.TheaimoftheIWListhatadvertisers,agenciesandotherintermediariescanvoluntarily
decidetoceaseadvertplacementontheseillegalwebsiteswhichinturndisruptsthesitesadvertisingrevenue.
DisruptingadvertisingisavitalpartofOperationCreative,asadvertisingisakeygeneratorofcriminal
protsforwebsitesprovidingaccesstoinfringingcontent.ArecentreportbytheDigitalCitizensAlliance
estimatedthatin2013alonepiracywebsitesgenerated$227millionfromadvertising.
Operation Creatives success was evident within weeks of launch, as a major torrent sharing website
voluntarily closed down and nearly 100 digital advertising organisations signed up to the IWL. The work
ofOperationCreativehasbeenofinteresttothemediaandbetweenOctober2013andApril2014itwas
reportedinboththenationalandtradepapersresultinginmorethan120pressarticlesandsignicantly
raisingtheproleoftheunitanditswork.

THENATIONALTRADINGSTANDARDSBOARD
TheNTSBsroleisabouttacklingregionalandnationalconsumerdetrimentandhasatotalbudgetof13
million.However,basedon2010gures,over90%oftradingstandardsworkisstillfundedanddeliveredat
thelocallevelvialocalauthoritybudgets.
TheNTSBNationalTaskingGroup(NTG)alongwithregionalpartnersassessesandidentieslevel2and
level3investigationsandprovidessupporttoLocalTradingStandards.Anumberofsuccessfulinvestigations
acrossthecountryhavebeentaskedtoRegionalScambusterTeamsandLocalAuthorities.Thenextstagein
thedevelopmentoftheNTSBistofocusonbuildingintelligencecapability,unravellinglinksinthecriminal
supplychain,joiningwithpartnersandtakingenforcementactionhigherupthesupplychain.
ExamplesofthebreadthofIPworkundertakenbyTradingStandardsinclude:
AninvestigationledbyStaffordshireTradingStandardsinvolving20PoliceOfcersandrepresentatives
from FACT, achieved great success with over 40,000 suspected counterfeit items seized with an
estimatedretailvalueof5m.
TwooperationshavebeensupportedforthelasttwoyearsinEaling.Themulti-agencyenforcement
withthemutualsupportof12otherLocalAuthoritieshastargetedsignicantareasofillegaltrading
standards activity in high prole trading estates. The enforcement included intellectual property
offending.Non-compliancerateshaveimprovedfrom70%to40%.
IntheNorthEastRegion,twokeyoperationswhichincorporatedanumberofFacebooktradersresulted
ingoodsvaluedat12Kbeingseized.AnotheroperationledbyGloucesterTradingStandards,resulted
intwoarrestswithcounterfeitDVDsandvehicleservicerecordbooksvaluedat21Krecovered.
Plymouth Trading Standards and the South West Scambusters Team conducted Proceeds of Crime
Actinvestigationswhichinvolvedthedistributionofcounterfeitclothingandtheimportationofrazor
bladesandtoothbrushes.
IntheNorthWestanoperationusingProceedsofCrimeActinvolvedtheimportandsaleofcounterfeit/
unsafegoods.Warrantswereexecuted,goodsseizedandanumberofarrestsweremade.Duringthe
operation evidence was gathered to enable prosecution of offenders for importation of counterfeit
goods.
InWalesTradingStandardsandpoliceexecutedasearchwarrantonaneBaytraderandseizedalarge
quantityofgarments,printingapparatusandacomputer.23,000nancialtransactionswereidentied,
whichequatestoguresintheregionof230k.
HERMAJESTYSREVENUEANDCUSTOMS(HMRC)ANDBORDERFORCE
HerMajestysRevenueandCustoms(HMRC)andBorderForcecontinuetoworkcloselytogethertotacklethe
threatsposedbycrossbordermovementsofIPinfringinggoods.Inthenancialyear2013/14,theirsuccesses
includedover26,000casesinwhichIPinfringinggoodsweredetained.Ofthese,24,017casesweredetected
anddetainedinpostaltrafcand1,989casesinairandseacargo,fastparcelandvehicletrafc.
Asinpreviousyears,thetypesofgoodsdetainedrangefromclothingandfootweartoelectricalappliances
and luxury goods. These detentions do not include counterfeit tobacco and alcohol products, which are
seizedunderExciselegislationonthegroundsofrevenueevasion.
TheresponseofHMRCandBorderForcetotacklingIPcrimealsoextendstocoordinationwithinland
agenciesandlawenforcementbodies,suchastheIntellectualPropertyOfce(IPO),TradingStandards,the
FoodStandardsAgencyandUKpoliceforces.
Totackleillicitmedicines,HMRC,BorderForce,andtheMedicinesandHealthcareproductsRegulatory
Agency 33 (MHRA) participated in Operation Pangea, an annual Interpol coordinated initiative designed
toseizeillicitmedicines.Duringaweeklongoperationinautumn2013,nearly3.25milliondosesofillicit
medicine from 1,666 parcels were seized by MHRA at the UK border at a number of key locations. The
intelligence derived from Operation Pangea was then used by MHRA to investigate and disrupt inland
distributionnetworksforillicitmedicineswithintheUK.

OPERATIONOPSON
The third year of the Europol/Interpol initiative on fake and illicit food received added impetus by the
recognitionintheUKoftheadulterationofbeefproductswithhorsemeat.ThiswasmanagedbyOPSON
partners at the UKs Food Standards Agency (FSA) and resulted in an increased public concern over the
potentialforfoodtobecompromised.
The intention for 2013 was to raise awareness in the UK of the risk posed by food crime, in the form
offakeandsubstandardfood.TheIPOhavebeeninvolvedinoperationOPSONsince2011,andleadthe
UKintacklingfoodcrime.WorkingwiththeFSA,thestrategicrecommendationsoftheOPSONIIdebrief
identiedtheneedtodevelopawiderresponsethanjustenforcement;to:
1. Enhance police cooperation on food counterfeiting and food related crime, nationally and
internationally;
2. EnsurethatinternationaloperationsintofoodcounterfeitingandfoodrelatedcrimesuchasOPSON
aredeployedregularly;
3. Createapermanentworkinggrouponfoodcounterfeitingandfoodrelatedcrime;
4. Implementintelligencegatheringandsharinginthiscrimearea,andharmonisethewayinformation
isgathered,ensuringminimumglobalstandards;
5. Createmulti-agencyandspecialisedtaskforcestoinvestigatefoodcounterfeitingandfoodrelated
crimeinmemberstates;
6. Enhancing cooperation with the private sector (food industry, farmers, associations of producers,
distributorsetc)andacademia;
7. Buildcapacityofmemberstateslawenforcementthroughspecialisedtrainingprogrammes;
8. Raiseawarenessthroughnationalandinternationalmeetings,conferencesandforums;and
9. Identify fund raising opportunities to support law enforcement initiatives into food counterfeiting
andfood-relatedcrime(ledbyInterpol).
TheoperationcommencedwithaplanningconferencehostedattheIPOsmainofceinNewport,Wales.
ThemeetinghearddetailsoftheCzechmethanolpoisoningthatclaimed46deathswhenfakevodkawas
soldtolow-incomefamilies.Theconferencealsoincludedinputsontheriskstothefoodsupplychain,the
horsemeatissueandtheroleofEuropolandInterpolinrespondingtofoodcrime.
The booklet produced by the IPO following the planning conference was circulated to over 30,000
recipientsacrosstheUKandbeyond.Thiswasasaresultofmakinguseoftheindustrycontactsthatwere
abletocirculatethereportviatheirownmailinglists.
TheawarenessraisingalsoincludedarequesttotheUKBorderForcetobecomefullyinvolvedinOPSON.
Thiswasacceptedasabusinessasusualagreement.Duringtheoperationalactivity,highlightspastseizures
included:
17,000litresoffakevodkaimportedfromNorthernIrelandseizedinScotland;
22TonnesofricemislabelledasBasmati;
5arrestsand34,000cashseizedinanoperationinvolvingtheUK,Italy,SpainandFrance.
TheplanningforOPSONIVhascommenced,thisyear36countrieswillbeinvolvedandtheUKIPOhas
engagedwithcolleaguesintheRepublicofIrelandtoconsiderajointresponsetothethreatofcounterfeit
vodka.
In2013theUKGovernmentcommissionedareviewontheintegrityoffoodsupplynetworks.Theauthor,
ProfessorChrisElliotconsideredtheneedforafoodcrimeunitwithintheFSA,andsuchaunitwouldbein
abetterpositiontoleadOPSONonbehalfoftheUK.Thereportisstillbeingconsidered.
THEREALDEALCAMPAIGNFORFAKE-FREEMARKETS
Foundedin2009bytheIndustryTrustforIPAwareness,theRealDealCampaignforFake-FreeMarketsis
across-sector,partnershipinitiativefocusedonreducingthevolumeandimpactofcounterfeitproductsat
UKmarketsandcarbootfairs.
The Real Deals emphasis on preventative, collaborative strategies compliments the intelligence-led
enforcementworkoftheNationalMarketGroupforIPProtection.Byforsteringcloserworkingrelationships

betweenmarketoperatorsandlocaltradingstandardsservices,theRealDeal schemeoffers benets and

solutionstoarangeofstakeholders.Forexample:
Itprovideslocalauthoritieswithacost-effective,preventativestrategy,whichrecognisesandrewards
marketandcarbootvenuesthatarecommittedtokeepingtheirvenuesfreefromcounterfeitandother
illicitproducts.
Itgivesmarketandcarbootfairoperatorsapracticalframeworkandsetofprocedurestoensurethat
anywould-betradersinillicitgoodscannotgetafootholdintheirvenues.
ItenablesIPrightsownersandlocaltradingstandardsservicestotargetresourcesmoreeffectivelyon
venuesatwhichcounterfeitingisproblematic.
Itensuresalevelplayingeldforlegitimatemarkettradersandlocalbusinessessothattheyarenot
competingagainsttradersinfakegoods.
Itoffersconsumersarecognisablesymbolforfair-tradingandfake-freemarketshopping.
The Industry Trust for IP Awareness has always
provided the majority of funds for Real Deal campaigns.
In 2014, this was combined with funding from
organisations such as the Anti Counterfeiting Group
(ACG) and BPI and Trading Standards, as well as brands
suchasCathKidston,JackWills,PRS,ThePremierLeague
andTMEye.
The Teenage Market and Stockport MBC sign the Real Deal
charter
NATIONALMARKETSGROUP
The UK National Markets Group (NMG) includes law enforcement agencies that are focused on ensuring
marketsandcarbootfairsarefreefromfakegoodsandotherillicitproducts.TheNMGfacilitatesjoined-up
working, intelligence sharing, best practice and a coordinated enforcement approach to markets and car
bootfairswherethesaleofinfringingproductisaproblem.
TheBarrasmarketinGlasgowhaslongoccupiedapositionasoneofthemostcorruptmarketsinthe
UK.BeforetheCommonwealthGameswereheldinJuly2013,aminiNMGwasformedinScotlandlead
by Police Scotland. It included brand holders, Trading Standards, Intellectual Property Ofce and other
Government agencies (HMRC/DWP). There was a wide range of infringing brand products being sold at
theMarket.However,duetocontinuedpolicevisitsandactiontheamountofillegalactivityhasdropped
topracticallyzero.TheNMGisalsoplanningfurtherlong-termaction.Thegroupactionsareeffectivein
dealingwiththeimmediateproblemofillicittraderssellingcounterfeitgoods.
TheNMGalsoworksintandemwiththeRealDealtoensurethereissupportforlegitimatebusinessestobe
sustainedandthelocalcommunitytoourish.TheRealDealislookingtoachieveover400market/carboot
fairssignupsbytheendof2014,andasalwaysthereisclosecoordinationbetweentheNMGandtheRealDeal.
Forexample,BristolfruitmarketandBlackbushemarkethaveimproveddramaticallyduetoNMGandTrading
StandardspressureontheownersandwillbeaskedtosignuptotheRealDeal.Othermarkets,mainlyinthe
Londonarea,havebeenclearedofcounterfeitsellersandhavesubsequentlysigneduptotheRealDeal.
TherearestilloverhalfadozenmarketsandcarbootfairsthatcausesubstantialproblemstoTrading
Standards and brand holders. However the NMG has various actions planned in conjunction with the
authoritiesandthisisbeingdrivenbytheenforcementsub-groupchairedbytheIPO.
NOMINETDISPUTERESOLUTIONSERVICEANDIPRIGHTS
Nominets Dispute Resolution Service (DRS) offers an efcient and transparent method of resolving
disputesrelatingto.ukdomainnames.UsingtheDRS,Nominetseekstosettle.ukdomainnamedisputes
throughmediationand,wherethisisnotpossible,throughanindependentexpertdecision.Inordertobe
able to make a complaint through the DRS, the complaining party needs to have rights (such as a trade
mark)inanamewhichisthesameorsimilartothedomainname.Theyalsoneedtobeabletoprove,on

thebalanceofprobabilities,thatthedomainnamebeingreportedfallsunderabusiveregistrationinline
withDRSPolicy.
In2013,674caseswereledtotheDRS(downfrom818in2012).Thegreatmajorityofrespondentswere
fromtheUK(497),followedbytheUnitedStates(38),China(30),SaintKittsandNevis(16),andGermany
(8).
Of these 674 cases: approximately 26.3% of cases were resolved by summary decision of an appointed
expert,12.9%throughmediation,12.2%bytheparties,and12.5%byafulldecision.Theremainderwerenot
resolvedastheywerewithdrawn,thefeewasnotpaid,orthecomplaintwasotherwiseinvalid.
Theaveragelengthofmediatedcaseswas49daysandthefulldecisioncasestook,onaverage,87days.
Thislengthoftimehasdroppedinrecentyearsarisingfromtheintroductionofnewwaystostreamlinethe
DRSprocessandsupportfromexpertstoreducetheamountoftimetakenoncases.
FOODSTANDARDSAGENCY(FSA)
TheFoodStandardsAgency(FSA)isresponsibleforfoodsafetyandfoodhygieneacrosstheUK,protecting
the publics health and consumer interests in relation to food. The FSA work with local authorities to
enforcefoodsafetyregulationsanddeployFSAstafftoworkinUKmeatplantstocheckthatregulationsare
beingmet.
TheFSAworkcloselywithlocalauthorityfoodlawenforcementofcers,othergovernmentdepartments
(OGDs) and the industry to identify, raise awareness and swiftly remove illicit (counterfeit, fake or duty
evaded)alcoholicproductsfromthemarket.Thisjoined-upapproachhashelpedprotectconsumersfrom
purchasingsubstandardproductsandconsumingpotentiallylethalproducts.TheFSAsFoodFraudUnithas
establishedworkinglinkswiththeGovernmentAgencyIntelligenceNetwork(GAIN),theNationalCrime
Agency,andtherecentlyformedEUFoodFraudUnit,basedinBrussels.
The FSAs Food Fraud Team receive and disseminate food fraud related intelligence to and from local
authoritiesforinvestigationatalocallevel,andtoOGDsviachannelssuchasGAINtheNTSBandtheNFIB
(NationalFraudIntelligenceBureau).Duetothis,overthelastyeartherehasbeenanincreaseintheamount
ofintelligencereceivedfromOGDs,thepublicandwhistleblowers.In2013,14%oftheintelligencereports
theFSAreceivedrelatedtocounterfeit,fakeordutyevadedalcoholicproducts.In2013,theFoodFraud
teamhandledarecord134casesoriginatingfromwhistleblowers,asignicant65%increaseonthe81cases
in2012.Byoperatingthesewhistleblowingproceduresthefraudteamensureappropriateinvestigationsand
enforcementactionsaretakenatalocallevelwhileprotectingtheidentityoftheinformant.
Analysis of the intelligence allows the FSAs Food Fraud team to identify potential links and patterns
betweenreports.Theysharethisintelligenceandanalysiswiththefoodlawenforcementcommunity.Specic
reportsmaybehandledinternallyorpassedtoindividualenforcementofcersforinvestigation. Intelligence
received is also used (subject to its handling code) to produce a monthly brief aimed at local authority
food law enforcement ofcers. The brief raises awareness of intelligence concerning potentially cross-
border/nationalfoodfraudrelatedissuesandrequeststhatnewintelligenceorintelligencethathasnotbeen
disseminatedbesharedwiththeFSA.
TheFoodFraudDatabase(FFDB)KeyPoints:
TheFFDBisanimportantresourcefordetectingemergingpatternsoffraudulentactivity.
Intelligenceisreceivedfromavarietyofsources,includingLocalAuthorities(LA),consumers,industry,
othergovernmentdepartmentsandotherenforcementbodies.
The FFDB is useful for LAs seeking information to assist with their investigations into food fraud
incidents
Therewere1435reportsenteredintheFFDBbetween1April2013and31March2014.Ofthose,141
relatedtocounterfeitalcohol.
TheFSAencouragesthereportingofsuspectedfoodfraud,andthisisreectedintheincreasednumber
ofintelligencereportstheFSAhavereceived.Since2007,theamountofintelligencereceivedandrecorded
in the Food Fraud database has risen from 49 reports in 2007 to 1435 in 2014. However, the increase

in reported cases may reect, either partly or fully, an increase in food crime awareness rather than an
increaseinactualcasesoffoodcrime.
ASSISTANCETOLOCALAUTHORITIES
Local authorities can apply for nancial support for their food law enforcement work through the FSA
FightingFund. DecisionsonthenatureandextentofAgencynancialsupportaremadeonacase-by-case
basis. In2013theFSAreceived17applications,ofwhichfundstotalingjustover615,000wereawarded
tolocalauthoritiesinEngland,Scotland,WalesandNorthernIreland.Grantstotalingnearly297,000were
awardedto14localauthorities.
The FSA also provide access to expertise from their Food Fraud Advisory Unit (FFAU) members. The
FFAUofferadvicetothoseLAsundertaking,orabouttoundertake,foodfraudrelatedinvestigations.The
units 17 members provide advice over the telephone or at meetings. LAs requesting advice from FFAU
memberswillcontinuetoleadinvestigationsintofoodcrime.
HORSEMEATINCIDENT
In2013,itwasdiscoveredthathorsemeatwasbeingusedinanumberofprocessedmeatproducts.Oneof
theprincipalthemeswithregardtothisndingistheneedforamorecoordinatedandproactiveapproach
tofoodcrimeandmoredenedrolesforcentralgovernment,localauthoritiesandthefoodindustryinthis
area. InresponsetotheserecommendationstheFSAcontinuestodevelopitscapabilityinrelationtofood
fraud, working closely with other Government Departments, local authorities and industry to detect and
deterfoodfraud.
TheFSAisbuildinganenhancedintelligencegatheringnetworktoincreasetheopportunitytocapture
andactonintelligencewhichmaybeindicativeoffuturerisksaswellasproducingstrategicandtactical
assessmentstosharewithrelevantenforcementagencies.
THEINTERNATIONALFEDERATIONOFSPIRITPRODUCERS(IFSP)
The International Federation of Spirits Producers Ltd (IFSP) is a UK-registered, not-for-prot company
funded and governed by the major international spirits producing companies (Bacardi, Beam Suntory,
BrownForman,Cuervo,Diageo,EdringtonGroup,MoetHennessy,PernodRicardandRemyCointreau).Its
purposeistocombatthecounterfeitingofspiritbrandsanditiscurrentlyactiveinaround30countries,
mostlyinAsia,EasternEuropeandCentralAmerica.
TheroleofIFSPistosupportlawenforcementagenciestocombatcriminalactivity,byprovidingtraining,
informationandtechnicalexpertise.IntheUKinthepastyear,IFSPhascontinuedtoworkcloselywiththe
police,HMRC,TradingStandards,andtheIPO,supportinganumberofsuccessfuloperationsandinitiatives.
Inspectionsandtestingofproductsatretailpremises(bothshopsandpubs/bars)in2013supportedthe
viewthatthevastmajorityofspiritssoldandconsumedintheUKaregenuine.
MostIFSPbrandsseizedbylawenforcementduringthelastyearweregenuineduty-divertedproducts
withcounterfeitrearlabels,withoneseizureof9,030dutydivertedbottlesaccountingforover90%oftotal
seizuresnotiedtoIFSP.
During 2013, IFSP made visits, most often with Trading Standards, to 232 retail premises in London,
Buckinghamshire,WestMidlands,EastYorkshire,SouthYorkshire,LancashireandGlasgow.Intotal,3,259
bottles were inspected, 634 were seized, of which 445 were duty evaded and 189 counterfeit (including
non-IFSPbrands).
InJuly2013,acounterfeitmanufacturingsitewasraidedinNorthernIrelandandfoundtoberelling
branded vodka bottles, mainly for the Irish market, although some counterfeit UK duty stamps were
also seized. HMRC and the Police Service of Northern Ireland (PSNI) searched an agricultural shed in
the Crossmaglen area of South Armagh and discovered a counterfeit spirit production site. They seized
suspectedillicitspiritalongwithcounterfeitUKandRepublicofIrelanddutystamps,counterfeitlabelsand
emptybrandedvodkabottles.
InNovember2013,therstofanew-stylecounterfeitbrandedvodkaglassbottlewasfoundinLeytonstone,

London.InApril2014,alorryloadofemptybottlesofthesametypewasstoppedfromenteringtheUKby
theUKBorderForceatDover.ThismayindicatethatthereisacriminalgroupintheUKwhichhasalready
beguntoproduce100%counterfeits(bottles,caps,labels,spirit),orissettingitselfuptodoso.
Aswellasprovidingtrainingregionallytomixedgroupsoflawenforcementofcers,IFSPcontinuesto
support multi-agency initiatives during the year, such as Operation CONDOR. Operation CONDOR is a
Metropolitan Police London-wide operation targeting all aspects of licensing and is supported by Trading
Standards,HMRCandUKBorderForce.
In terms of international initiatives with a relevance to the UK, IFSP contributed to Europol-Interpol
OperationOPSON,whichhasbeenrunannuallysince2011andwhichIFSPhasbeeninvolvedwithfrom
the outset. OPSON III, which targeted counterfeit and substandard foodstuffs including spirits, ran from
December2013toJanuary2014.TheUKwasoneof33countriestoparticipate(11ofwhichIFSPhasa
permanentpresence).
OPERATIONLAUDERDALE
London Trading Standards Authorities (LoTSA) identied that self-storage units were being increasingly
connectedtothesupplychainofcounterfeitgoods,whichwerebeingdetainedorseizedin,orenrouteto,
selfstoragefacilities.Theincreasedprominenceofstoragefacilitiesandeaseofrentalmakesthemaprime
resourceforillegaltradersandanareathatdemandedattentionfromTradingStandards.
InSeptember2012,LondonBoroughofWandsworthTradingStandardsonbehalfoftheLoTSAIntellectual
Property Group obtained funding from the Intellectual Property Ofce (IPO) which was administered in
partnership with the National Trading Standard Board (NTSB). The funding was aimed at innovative IP
projectsandenforcementthatwouldaddasignicantbenettoalocalarea.
PUBLISHERSASSOCIATION
ThePublishersAssociation(PA)hasseenasignicantdecreaseinthepresenceofinfringingdigitalbooks
oneBayUKsincebeginningitsmultiprongedanti-counterfeitingpartnershipwiththeonlinemarketplace.
Inademonstrationofitscommitmenttoghtingpiracy,eBayhascreatedlistingpoliciesthatarespecicto
theneedsofthemodernbookindustry.
Thismeansthateverytitlemustbeidentiedinalistingwheremultipledigitalbooksarebeingsold. The
PAhasalsoembarkedonaregularreviewandreportinitiativetoensurethatsellerswhoarenotadhering
tothesepoliciesarebroughttoeBaysattention.Thisfocusoneducatingsellers,removinginfringinglistings,
andaddressinglistingswhichviolateeBaysdigitalbookspolicieshasledtoaneareradicationofinfringing
digitalbooksoneBaysmarketplaceintheUK.
RUGBYWORLDCUP2015:RIGHTSPROTECTIONPROGRAM
TheUnitedKingdomhasbeenpriviligedtohostanumberofgreatsportingeventsoverthepastfewyears
includingthe2010RyderCup,theUCITrackCyclingWorldCup,theLondon2012OlympicandParalympic
Games,the2014CommonwealthGamesandtheupcomingRugbyWorldCupin2015.
TheInternationalRugbyBoard(IRB)isthegoverningbodyforworldrugbyandtheowneroftheRugby
World Cup tournament. The IRB has established a wholly-owned subsidiary, Rugby World Cup Limited
(RWCL), to oversee tournament delivery and rights associated with the tournament. In turn, RWCL has
procuredInternationalManagementGroup(IMG)todelivertheTournamentsCommercialProgramme,
whichincludesdeliveringarobustRightsProtectionProgramme(RPP).
Staging the Rugby World Cup is a major undertaking which requires signicant nancial investment
and will be dependent on the support RWCL receives from its ofcial sponsors, suppliers, licensees,
broadcasters, travel and hospitality agents (together, known as commercial partners). In return for their
signicantnancialcontributions,thecommercialpartnersaregrantedcertainexclusiverightstoassociate
themselveswiththeTournamentandtouseTournamentrelatedintellectualproperty(e.g.RWCLregistered
trade marks) in their advertising campaigns and promotions. In this context, a considerable part of the
revenueraisedforthedevelopmentofthesportofRugbyUnionisgeneratedthroughtheofcialTournament

website(www.rugbyworldcup.com)whichisownedandoperatedbyRWCLandwhichisasubstantialand
valuablecommercialassetofRWCL.ToensurethesuccessandviabilityoftheTournamentandthefuture
growthanddevelopmentofthesportofRugbyUnionasawhole,RWCLisobligedtoprotectagainstany
unauthoriseduseofitsintellectualproperty.
Andaleeb Basunia (formerly a Brand Protection Lawyer at The London 2012 Olympic and Paralympic
Games)hasbeenmanagingtheRPPatIMGonbehalfofRWCLsinceJanuary2014,workingcloselywith
theIRBLegalAffairsDepartment,theLegalTeamatEnglandRugby2015Limitedandthetournamnents
organisingcommitteeknownasER2015.SomeoftheRPPmattersthattheRPPTeamarecurrentlyfocusing
on,include:
a. explainingtherationaleandimportanceofhavinganRPPtorelevantaudiences;
b. educatingenforcementbodiesaboutRWCLslegalrights;
c. educatingthegeneralpublicoftheimportancetoonlybuyofcialticketsfromauthorisedchannels
andofcialmerchandise;and
d. developing relationships with UK enforcement authorities in relation to combating tournament
relatedIPcrime.
CooperationwithTradingStandards:TheRPPTeamarecurrentlyworkingwithvariousLocalAuthorities
(within and outside of London, hosting Tournament venues) to establish a robust RPP Operational Plan
fortournament-time.TheRPPTeamisaimingtorolloutaneducationandawarenesscampaigntothose
Local Authorities in Q4 of 2014. One aspect of this campaign includes equipping Trading Standards to
differentiatebetweenofcialTournamentproducts,whicharevalidlyusingTournamenttrademarksand/
orcopyrightedmaterial,andthosethatarenot.ItisanticipatedthatthiscooperationwillinvolvetheRPP
Teamprovidingrelevanttrainingand/orinformationtoTradingStandardsaroundidentifyingRugbyWorld
Cup2015OfcialLicenseesandtheirofcialproductsandmakingavailablerelevantinformationrelating
toauthenticgoodsandpremiums,includinganti-counterfeitdevices(suchastheofcialRugbyWorldCup
hologram,wovenlabelsandhandtags).
To date, the RPP Team has come across one instance of Tournament related counterfeit product, the
investigationofwhichwassuccessfullyledbyTheHighlandsCouncil,Scotland.TheRPPTeamanticipates
thatlevelsofTournamentrelatedcounterfeitproductandambushmarketingactivitywillpotentiallyseea
markedincreaseaftertheoneyeartogomarkthisAutumn.ThisiswhenER2015willstartaheightened
promotionalcampaign.
Cooperation with Customs authorities: As part of the RPP, and in particular its anti-counterfeiting
initiative, RWCL has led Customs Notications with various customs authorities (including France and
theUnitedKingdom)toprotectgoodswhicharevalidlyusingRugbyWorldCuptrademarksandcopyright
material.TheRPPTeamhasestablishedcontactswithseniorofcialsfromHMRevenueandCustomsand
BorderForceandisalsoaimingtorolloutaneducationandawarenesscampaigntoallmajorports/airports
inQ4of2014.
Cooperation with the Police Intellectual Property Crime Unit (PIPCU): The RPP Team has recently
made contact with PIPCU and is looking to work with PIPCU with a view to combat Tournament related
ticketing crime and the sale of tickets by entities that have not been authorised by RWCL to do so. The
jointmessagefromtheRPPTeamisthatconsumersshouldonlybuytournamentticketsfromcompanies
authorised to do so by RWCL in the event that a consumer purchases a ticket from an unauthorised
channel, there is a possibility that the consumer will be refused entry to the corresponding tournament
match.
In addition to the above, the RPP Manager has also been liaising with various other organisations and
enforcement personnel throughout the UK, including the UK Intellectual Property Ofce, LoTSA, ACG
andtheIPCrimeGroup.Theaimistoseektheirsupportineducatingthegeneralpublic,consumers,and
the global Rugby Community (through a variety of media) about the importance of only buying ofcial
tournamentmerchandiseandtournamentticketsviaofcial(authorised)tournamentsaleschannels.
AsuccessfulRPPstrategyinandaroundthetournamentwillonlybepossiblewiththesupportthatthe
tournament will receive from intellectual property organisations and enforcement personnel seeking to

combatIPcrime.Thissupportwillbeinvaluable.Withtheoneyeartogomarkonlyafewmonthsaway
now, there is no doubt the UKs excitement in the tournament will start to increase. As seen during the
London2012OlympicGames,thelikelihoodisthatcounterfeitersandambushmarketerswillexploitthis
excitement,resultinginanincreaseintheavailabilityoftournamentrelatedcounterfeitproductsandthe
prevalenceofambushmarketingactivityandtournamentrelatedIPcrime.RWCLvaluestherelationships
developed with intellectual property organisations and enforcement personnel across the UK and is
incrediblygratefulforallthesupportithasreceivedtodate.
UKINTERACTIVEENTERTAINMENT(UKIE)
UKIEinvestigationsresultedinanumberofconvictionsandcounterfeitdevicesanddiscsbeingdestroyed
withastreetvalueoftensofthousandspounds.
Item(s) seized Result of prosecution
1,647DS, 41 Wii & 160 PSP
computer les. 12 R4 cards.
23,000 + wii, 360 & PS2 disks
Approx 600 XBOX 360, 300 Wii
and 100 PS1 discs seized.
R4s & Emulators seizure was
actually cds & hard drives no
circumvention devices.
360 disks
100s of 360 disks
12 Nintendo Game Boy colour
mobile phone covers seized
amongst a large quantity of
other infringing covers.
360 disks
100s of 360 disks
Loaded R4s & Roms
Caseconcluded(19thDecember2013)200hoursCommunityPunishmentOrder,
Costs7825,ConscationOrder69,104.34.
Sixmonthstopayor18mthsimprisonmentondefault.Seizeditemsforfeited&
destroyed.
Bouzadisunknown,defendantwasNigelThomas.23,000discs,PCs,burnersand
10Kseized.DefendantappearedinSwanseaCCJanuary2014sentencedto
eightmonthsimprisonmentand80Kassetrecovery.
Sentencedto100hoursCommunityPunishmentOrder&600innesandcosts.
Sentencedto9monthsimprisonmentandasuspended12monthssentenceand
orderedtoenrolonaThinkingSkillsprogramme.DestructionOrderongoods
seized.
Suspectcautioned
Thissubjectwascautionedforcopyrightandtrademarkoffences
NoFurtherActionasownershipofbusinesschanged.Allgoodsdestroyed.
Cautionedforcopyrightoffences.Theother5defendantswillbesummonsfor
conspiracytodefraudregardingaReleaseGroup
ThissubjectappearedatPortsmouthCrownCourtandpleadedguiltytoseven
countsundertheCDPAandtencountsofpossessingextremepornographic
images.Hewassentencedtotwomonthsimprisonmentoneachcountsuspended
fortwoyears.Hewasorderedtocompletea12monthSupervisionOrderandto
pay1575costs
TradingStandardstooknolegalaction.Propertyseizedwasdestroyedandthe
traderbannedfromNorthWealdmarket.
PRSFORMUSIC
During 2013, PRS for Music developed a semi-automated search technology to locate links to infringing
copiesofmusicalworksmadeavailableonline.Usingthistechnology,in2013alonePRSforMusicwasable
tosuccessfullyremove73,333les,embodying2,339,118infringedmusicalworkswith99.48%oftheles
successfullyremoved.
PRS for Music continues is currently working to develop a technology solution called Trafc Lights,
whichhelpstheconsumerdifferentiatebetweenlegalandillegalcopyrightcontentonlinebeforeengaging
with a website. This will better allow consumers to make informed choices about where to obtain legal
content.TheTrafcLightagreentickorredcross,dependingonwhetherthecontentislegalornot
willappearnexttothenameofthesiteorviaapop-upwhentheconsumerlinksto,directlyaccesses,or
searchesforasite.Itwouldapplytoallsites,whetherhostedintheUKorelsewhere.

ResearchpublishedbyOFCOMinSeptember2013foundthat24%ofthosewhoaccessillegalservices
wouldbeencouragedtostopifitwasclearthecontentonasitewasnotlegal.OFCOMalsofoundthat15%
ofpeoplesaidtheywerenotatallcondentintermsofwhatisandisnotlegal.
However,researchpublishedinOctober2013bythePremierLeagueandAllianceforIPfoundthat56%
ofinternetusersfeelthatitiseasytoknowwhetherasitesofferofgoodsorserviceswaslegal.Thissame
researchalsofoundthatinthepresenceofauthoritativebanking/paymentbrandssuchasPayPal,Visaor
MasterCardmade71%ofpeoplefeltcondentabouttheauthenticityofasitesoffer.Thislastndingisof
concerngiventhattheuseofPayPalorVisaarealsofoundonwebsitessellingillegalcontent.Thisclearly
demonstratestheneedforTrafcLightsandotherinitiativesaimedatdealingwiththisproblem.
The activities of PRS for Musics dedicated Anti-Piracy Unit continue to complement and support the
different licensing businesses of the organisation. In light of the continued growth in online licensing
revenue above all other licensing streams, in 2013 there was an increased focus on infringements made
availableonline.In2012,PRSforMusicdevelopedautomatedsearchtechnologytolocatelinkstoinfringing
copiesofmusicalworks,andin2013therewasanincreasedfocusoninfringementsmadeavailableonline.
Toavoidcrossoverwithworkbyotheronlineanti-piracyoperationsinthemusicindustry,PRSforMusic
focusesonparticularcategoriesofmusicalworks(e.g.Asianrepertoireandkaraoke)whichreceiveminimal
ornorepresentationelsewhereintheUK.
In conjunction with local Trading Standards departments, PRS for Music also undertook various
investigationsin2013relatingtocounterfeitingofphysicalproducts,complementingthelicensingofthe
recorded media market and leading to a number of successful outcomes. For example, following a joint
investigationinWestYorkshire,anindividualhasbeenprosecutedforofferingmonthlyupdatesoftop-40
musicalbumsthroughtheuseofaninternetforum.TheindividualsresidencewasraidedbyWestYorkshire
Joint Services Trading Standard and PRS for Music, and was charged with duplicating equipment and
considerablequantitiesofillicitproductwereseized.Theindividualwasconvictedandreceivedaneight-
monthimmediatecustodialsentenceandfacesongoingPOCAproceedings.Therewasalsoadeprivation
orderformostoftheevidence.
In a second investigation, again in conjunction with West Yorkshire Joint Services Trading Standards
Department, an unlicensed internet radio station was addressed by personal intervention of a Trading
StandardsOfcerandamemberofthePRSforMusicAnti-PiracyUnitwhovisitedtheoperatorathishome
address.Immediatelythereaftertheillegitimatestationclosed.
PRS for Music works closely with PIPCU. The rst referral by PRS for Music in November 2013 led to
one of the units rst raids on premises and resulted in an arrest being made. This investigation focused
onanindividualwhohadcreatedawebsitewhichofferedillegallycopiedmusicandlms,whichwouldbe
recordedonDVDsanddispatchedbyposttothecustomer.Emailswerealsosenttocustomerstodiscourage
furtheruptakeoftheservice.
PRSforMusichasalsomadereferralstoPIPCUsOperationCreative,andhassuppliedevidencetothe
prescribedstandards,asrequiredbythePolicetosupporttheinitiative.
BRITISHRECORDEDMUSICINDUSTRY
In2013,theeffortsofthecreativeindustriestofrustratetheenablersofpiracysawBPIapplyforHighCourt
blockingordersagainst21infringingwebsites.
The success highlighted that websites that infringe on a large scale cannot hide behind notice and
takedownpoliciesthatareeffectivelywindow-dressingandimpracticaltoaddresslarge-scaleinfringement

THEPUBLISHERSASSOCIATION
Publishers Association Takedown Notices (year on year)
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
Takedown
Notices
600,000
400,000
200,000
0
1,602,483
378,498
139,788
5,986 26,133
2009 2010 2011 2012 2013
MUSICINDUSTRYREMOVESOVER100MILLIONLINKSFROMGOOGLE
InJanuary2014,thecombinedAnti-PiracyunitsoftheBPIandRIAA(USA)senttheir100millionthlink
between them to Google since the initiative was launched in June 2011. This is a huge milestone in an
initiativethatseekstocleanupcopyrightinfringinglinksinsearchresultsinthehopethatconsumerscan
bedirectedtolegitimatesourcesofdigitalmedia.
The initiative continues to partner with the BPI. As of April 14, 2014, 72,227,049 infringing links
(beginningin2009)havebeensubmittedtoGoogle,whiletheRIAAhassubmitted46,098,929.
Bespoke software and automated crawling tools created in-house by the BPI search for members
repertoireacrossmorethan400knowninfringingsitesandgenerateURLswhicharesenttoGoogleasa
DMCANoticeforremovalwithinfourhoursofreceipt.Thisachievementfollowscooperationbetweenthe
BPIandGoogletoincreasethedailylimitonthenumberofillegalresultsthatcanberemovedandtowards
reducingtheappearanceofadvertisementsonillegalsites.Themusicorganisationalsocontinuestopress
searchcompaniestoensurethatlegalsitesappearhigherthaninfringingsitesinsearchresults.
PRISONSENTENCESFORMUSICCOUNTERFEITERS
Following a number of investigations around the UK supported by the BPIs Regional Investigators, jail
sentences were handed down to several individuals involved in the trade of counterfeit music CDs and
DVDs.
LesterHawkesakaTheWizardsentencedto3yrsand10months
In July 2013, a Lancashire man was jailed for counterfeit DVD, CD and MP3 production, which yielded
almosthalfamillionpounds.Hiswife,PaulineHawkes,53,ofthesameaddress,alsoreceivedasentenceof
21monthssuspendedfortwoyears.
ThecouplesoldcounterfeitCDs,DVDsandmp3sandmadeintheregionofaround460kinveyears
whilelivinginafourbedroomdetachedhousepaidforbystatebenetsandclaimingover74kinhouse
andcounciltaxbenetandincomesupport.
TheresultfollowedaninvestigationbytheNorthWestRegionalAssetRecoveryTeam(NWRART).The
NWARTisaregionalunitissupportedbyBPIandFACTinvestigators,andplaysacriticalroleinreducing
crimethroughassetrecovery.

14monthsentenceformusiccounterfeiter
November 2013, Darren Clapham of Rotherham was sentenced to 14 months imprisonment at Shefeld
Crown Court after he pleaded guilty to making and distributing copied music discs which he sold via a
number of lists circulated to his customer base. A warrant had been served on his home in December
2012whereavastamountofmastersandready-madephysicaldiscswereseizedalongwithcomputerand
copyingequipment.
Onlinedistributorsentencedto18thmonths
InDecember2013,KeithTamkinfromBognorRegisreceivedaprisonsentenceafteradmittingpossession
ofoneofthelargesteverhaulsofhi-techequipmentforuseincopyrighttheft,everfoundintheUK.
Whenraided,thepoliceandBPIinvestigatorsdiscoveredmorethan100computerharddrivescrammed
fullwiththousandsofdigitaltitlesplusapproximately150,000physicalCDsandDVDs.Healsohadavast
libraryofmastertitlesreadyfordistributiontoanextensiveclientdatabase.
52-year old Tamkin admitted offences of distributing counterfeit CDs and preloaded hard drives full of
music.Healsopleadedguiltytomoneylaunderingtothevalueof140,000.Inhissummingup,JudgeHHJ
Frasersaid,Some people wrongly think that copyright offences are victimless crimes. The reality is they
are theft from the copyright holders.
FEDERATIONAGAINSTCOPYRIGHTTHEFT(FACT)
Thetheft,copyinganddistributionofcopyrightedlm,televisionandsportscontentcontinuestohavea
detrimentalimpactontheaudio-visualindustryandthewidereconomy.Italsoamassessignicantnancial
gainforthecriminalsinvolved.Newreleaselmsrecordedfromcinemas,goodqualityripsoftelevisionand
lmcontent,andstreamingoflivesportingeventsareinhighdemand.
FACTsroleinsuccessfullydetectingandtargetingthoseinvolvedinsuchcrimesrequirestheabilityto
foreseeandreacttodevelopmentsintechnology.Criminalsareoftenthepioneersofthesedevelopments
andarequicktotakeadvantageoftheever-changinglandscapetocreatemethodstoprotfromdelivering
stolencontenttoawiderglobalaudience.
FACTsworkprotectingitsmembersintellectualpropertynowfocusespredominantlyonillegallyacquired
contentaccessedthroughwebsitesthatofferdirectdownloads,lesharingorstreaming.FACTssuccessesinthe
pastyearshowthebenetsofintelligenceled,targetedactionsagainstcriminalwebsitesandthepeoplebehind
them.FACTalsohelpstoguideconsumerstolegitimateentertainmentsourcesonline,incinemasandonTV.
Socialnetworkingwebsitesarenowanintegralpartofmodernlife.Currently,thereareover1.3billion
activeusersonFacebook,whichoffersanonlineplatformforIPcriminalssellingitemssuchasillegalDVDs
in addition to their presence on direct sale websites and auction websites like eBay. These methods are
replacingthetraditionalhardgoodssalesmethods:streetsellersandmarketplaces.Inthepastyearthere
has been a shift within the online counterfeit hard goods market from DVD-Rs manufactured within the
UKtoveryhighqualitypresseddiscsimportedintotheUK.TheseDVDsaregenerallysoldviadirectsale
websitesandauctionwebsites.
Theinternethasopenedupgreatopportunitiesforcriminalstomakemoneyfromthetheftanddistribution
ofcopyrightinfringingcontent.Forsportscoverage,themethodsusedtoillegallyaccesslivebroadcastsare
movingawayfromthetraditionalcontrolwordsharingnetworkstowardsstreamingwebsitesandillegally
pre-conguredIPTVboxes.Forlms,recordinginacinemaremainstheprimarysourceandthematerialis
uploadedonline.Theinternethasprovidedaplatformwherebyglobalkudoscanbeachievedbyreleasing
popularlmortelevisioncontentthatisdeemedtobeofhighquality.ReleaseGroupsalsooftenrunprivate
websitesthatareaccessedexclusivelybyregisteredmembers.
Further opportunities arise around the transfer and storage of audio-visual content. This is typically
administeredbylehostingservicessuchasFTPsitesandcyberlockers,whichprovideillegalrevenuefor
thoserunningthem.Signicantnancialgain,generatedthroughsellingadvertisingspace,isalsomadeby
websiteownerswhoprovidefreepublicaccesstocopyrightinfringingcontent.Manylegitimatecompanies
andbrandownersunwittinglyprovidethisrevenue.

SomeofFACTssuccessesin2013/14include:
117piratewebsitessitesshutdown;
7allegedUKreleasegroupmembersarrested;
10furtherpiratewebsitesblockedintheUKfollowingHighCourtorders;
2UKcamcordsdetectedbothsuspectsarrested;
30cinemastaffrewardedwithover16,000forpreventingrecordings;
FirsteverUKconvictionforstreaminglivefootballmatchesovertheinternet;
Over200brandsnowcontactedsince2011theiradsappearedonpiratewebsites;and
Over5,000individualpiecesofintelligencereceivedandreviewedbyFACT.
COLLABORATIVEWORKING
FACTrecognisesthatcollaborativeworkingiskeytoachievingsuccessfuloutcomesagainstthosecopying,
distributing and selling pirated content. Working to the same standards as law enforcement in the UK,
FACTs Intelligence and Investigations teams analyse and use intelligence from a range of sources. They
thenusethisintelligencetoinformalltacticaldecisionsthatmayleadtothecreationofapackagetobe
passedtolawenforcementforpotentialaction.
FACTalsoworkscloselywithawiderangeofenforcementbodiesincludingTradingStandards,Police,
Border Agency and the National Crime Agency in the UK and Interpol, Europol, ICE/DHS and others
globally,havingsignedMemorandumofUnderstandings(MOUs)withmanyofthemtoallowthesharingof
intelligence.
TheGAINnetworkisalsohighlyvaluedandhasprovedveryusefulinallowingFACTtomakecontactwith
agenciesandpartnersregionallyacrosstheUKintermsofprovidingrelevantintelligence.Thisnetworking
alsomeansthatagenciesareabletotakeonseriouscriminalityintheirregionsthatmayhavebeenunknown
tothem.ThebreadthoforganisationsrepresentedintheGAINforumsiscreatinginvaluableinformation
sharingresourcesthatwillbenetallthoseworkinginIP.
In 2013 FACT targeted the owners of 14 live sports streaming websites. As shown below, over three-
quarters of these sites were offering live streams of Premier League matches. The vast majority of these
streamsweresharingcoveragefromaSkySportsorBTSportchannel.
Live sports streaming
0
2
4
6
8
10
12
Sky BT Sport Setanta ESPN Premier
League
Formula 1 Rugby Pay Per
View Events
Film Other TV
channels
2
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1
3

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Content owner/Source

ThecasestudiesbelowareexamplesofFACTinvestigations.
Casestudy1Abtsportshd.com
InOctober2013,FACTbecameawareofthelivesportsstreamingwebsitewww.btsportshd.com.Thesite
was providing streamed access to all the BT Sport and Sky Sports channels. The website was hosted in
theNetherlandsandhadaUKAlexarankingof6,363.FACTcontactedtheDutchISPregardingthissites
copyrightinfringingactivity,andtheyeventuallyremovedthesitefromtheirservers.Thedomainwaslater
signedovertoBT.
Casestudyashsportstreams.com
InOctober2013,thecreatorofawebsitethatillegallyscreenedlivePremiershipfootballmatcheswashanded
atwo-yearprisonsentenceatShefeldCrownCourt.KevinBroughtondevelopedandranashsportstreams.
comfromhishomeinShefeld.Hehadanestimated10,000customers,whoeachpaidasubscriptionfee
ofupto29.99aseasontowatchPremiershipfootballmatchesviahiswebsite.MrBroughtonwasillegally
relayingmatchesthatwerebeingbroadcastbyBSkyB.Theinvestigationconcludedthatheprovidedfalse
identitydetailstoSkyandtookoutanumberofsubscriptionswiththeintentionofinfringingthecompanys
intellectualpropertyrights.Bothoffencesweresufcientforhimtobechargedwithfraudandcopyright
offences.
FinancialinvestigatorsfromtheEastMidlandsRegionalAssetRecoveryTeam(EMRART)foundevidence
that subscriptions to the site had yielded more than 500,000 between early 2010 and August 2012.
Followinghissentence,EMRARTisseekingtorecovertheassetsthatMrBroughtonaccumulatedthrough
hiscriminalactivity.
Casestudybitscores.com
InDecember2012,thedomainoftheillegalsportsstreamingwebsite,bitscores.com,wassignedoverto
FACT.Sincethisdate,anyvisitorstothedomainhavebeenpresentedwithaFACTnoticeofinfringement,
thentwelvesecondslaterredirectedtothecontentmap.com(shownhere).TheContentMapisawebsite
designedtoshowcasethewealthoflegalservicesavailabletoconsumers,acrosslms,television,eBooks,
music,gamesandsports.
12seconds
During2013,over4,000visitorstoTheContentMapwebsitewereredirectedfrombitscores.com.Over70%
ofthesevisitorswerenewtothecontentmap.com.
CasestudyFTPserversandReleaseGroups
In 2013, a warrant was conducted in Derbyshire at the home address of a suspected encoder. He was a
member of a Release Group that was highly active in 2012. The police seized his computer equipment,
whichwasforensicallyexaminedbyFACT.Theresultingforensicevidenceconrmedthatthismalewas
involvedinencodinglmsandillegallyuploadingFACTmembercontentonlineforonwarddistribution.It

isalsoevidentthattheuseofFTPserverswasprevalentamongtheReleaseGroupcommunitythisencoder
wasinvolvedwith.EvidenceshowedthathehadtheIPaddressandlogindetailsfor10FTPservers.The
FTPserversappearedtobeusedtostoreandshareinfringinglmcontentwithinaclose-knitcommunity.
In 2013, FACT sent over 100,000 takedown requests to cyberlocker websites hosting FACT member
content.Thisismorethaneighttimesasmanyasthepreviousyear.Theoverallcomplianceratestandsat
99%,demonstratingthisisaneffectivestrategyagainstcyberlockerwebsites.
DOMAINSIGNOVERS
In 2013, FACT successfully completed 24 domain signovers, 18 of which were private (member-only)
copyright infringing websites. In each instance, a FACT investigator made a home visit to the website
operator, who signed a cease and desist letter passing ownership of the website domain over to FACT.
Uponcompletion,visitorstothesewebsitesareredirectedtoaFACTnoticeofinfringementwhichafter12
secondsautomaticallythenredirectstoeitherFindAnyFilm.com orTheContentMap.com.Thesewebsites
allow the visitor to locate legitimate sources of content that the removed website previously provided,
whetheritbemovies,televisionshows,sportscoverage,music,videogamesoreBooks.
Theseprivatewebsitedomainsignoverstookonaveragelessthan4.5monthstocomplete
6
.Halfofthese
signoverstooklessthantwomonthstocomplete.
However, the length of time taken to achieve a domain signover is irrelevant unless it is effective at
combatingthepiracythatthetargetwebsitefacilitates.
CasestudyImpactofdomainsignovers
strikersden.co.uk This private torrent tracker website came to FACTs attention in 2013. Copyright
infringingtorrentlesofthelatestlmandTVshowswerebeingdistributedonthesite.Thesitewaseven
foundtobeofferinglmtitlespriortotheiravailabilityinUKcinemas.
Within a month the internet investigation revealed the identity of the website owner and a FACT
investigatormadeapersonalvisittothesiteowner,whosignedoverthedomain.Areplacementwebsite
wassoonsetupbytheowner.However,thisnewwebsitedidnothostorlinktoanycopyrightinfringing
content,showingtheactionwaseffective.Thenewsitewasmerelyusedforplayinggames,hostingquizzes
andasageneralonlinecommunity.
dragon-torrents.biz ThiswasanotherprivatetorrenttrackerwebsitethatcametoFACTsattentionin
2012.ThiswebsitewashometoaReleaseGroupknownasDragonTorrentsReleaseGroup(DTRG),which
washighlyactivein2012theirreleaseswereexclusivelyformemberspriortopublicrelease.Thewebsites
torrentsweresubdividedintocategories,includingMP3s,PS3titles,TVepisodes,Blu-raytitles,camsand
categoriesforspecicReleaseGroups.Thesiteevenofferedsometorrentsforlmtitlesthat,atthattime,
hadnotyetbeenscreenedinUKcinemas.
Aftertheinternetinvestigationuncoveredtheidentityofthewebsiteoperator,aFACTinvestigatormade
apersonalvisitandcompletedadomainsignover.Areplacementwebsite,thephoenix.name,wassetupby
theownerwithinamonth,stillprovidingtorrentsforFACTmembercontent.Thisdomainwaslatersubject
toanotherdomainsignoverbyFACTin2013.
FACTdomainsignoversarealsohelpingonlineconsumersofillegitimatecontentndlegitimatemeans
ofobtainingcontentviaFindAnyFilm.com.During2013,over21,000peopleattemptingtoaccesswebsites
signedovertoFACTwereredirectedtoFindAnyFilm.com.Onaverage,thesevisitorsstayedonthesitefor
oneminuteandvisitedtwopageswithinthesite.85%oftheseFindAnyFilm.comvisitorshadnotpreviously
visitedthesite.
6 TimeperiodisfromtherstproposalofadomainsignoverstrategytothesignoverofthedomaintoFACT.


HOSTINGPROVIDERS
United States 30%
Unknown 29%
United Kingdom 14%
Germany 6%
Netherlands 4%
France 3%
Canada 2%
Other Rest of the World 3%
Other
Europe 9%
Infringing content websites by country
Fromthestatisticsdisplayedinthepiechart(left),
itcanbeseenthatonly14%ofwebsitesinvestigated
byFACTarehostedintheUK.Whileitispossibleto
contact the hosts of these websites, there still
remains a considerable number of copyright
infringingwebsitesthatarehostedoffshoreandnot
within the jurisdiction of the UK. Analysis has
shownthatthethreekeycountriesinwhichcontent
ishostedaretheUK,theUSAandCanada.
However, Investigating servers located offshore
can cause specic problems for FACTs law
enforcement partners. In order to complete a
full investigation into an offshore server, a law
enforcementagencymustliaisewithitscounterpart
in the country where the server is located. The
difculties of obtaining evidence from other
countriesarewellknown.
CLOSINGSITESVIAHOSTINGPROVIDERS
In 2013, FACT closed a website after approaching the hosting provider on 63 occasions. Although this
can be a very effective strategy, in most instances the website is swiftly transferred onto servers owned
byanotherISP,oftenlocatedoutsidetheUK.However,intheseinstances,theprocessusuallyinvolvesa
disruptiveperiodoftimewherebythewebsiteisofine,duringwhichuserswilloftenndanalternative
service,thusnegativelyaffectingthewebsitespopularity.
Casestudynordic-tv.com
In2012,FACTbecameawareofalinkingwebsitepopularintheNordiccountries,buthostedintheUK,
nordic-tv.com. At the time, its global Alexa ranking was 204,757. The website offered links to copyright
infringingstreamsofFACTmemberlmtitles.TwodaysafterareportwassenttotheUK-basedhosting
providerrequestingtheremovalofthiswebsite,thewebsitewassuspendedfromtheservers.Thewebsite
returnedfourdayslater,thistimehostedintheUSAwithanewprovider,howeveritsAlexarankingshowed
amassivedropinpopularity.
CLOSINGSITESVIADOMAINNAMEREGISTRIES
Anotheroptionfortacklingcopyrightinfringingwebsitesistoexploretheaccuracyoftheirregistrationwith
thedomainnameregistry.Anyinaccuraciesinawebsitesregistration,suchasafalsenameorfalseaddress,
canprovidethegroundsforadomainnameregistrytodeletethesite.
Nominetisthe.ukdomainnameregistryintheUK.Therearehundredsofothersacrosstheworld.For
example,theInternetCorporationforAssignedNamesandNumbers(ICANN)isanon-protorganisation
whichhasaglobalresponsibilityforthecoordinationoftheinternetssystemsofuniqueidentiers.ICANN
can be approached in a similar way as FACT in terms of reporting registration inaccuracies. At the very
least,thisactioncanresultinrefreshedWHOISdetails,whichmayprovidefurtheravenuesofenquiry.
CasestudyNominetapproach
Leech.org.ukwasalinkingwebsitethatprovidedlinkstothirdpartycyberlockersfromwhereFACTmember
contentcouldbeillegallydownloaded.ThesitehadthefacilitytoacceptdonationsfromPayPal.FACTsent
thesiteoperatorsaceaseanddesistnotice,towhichnoresponsewasreceived.Asthiswasa.ukdomain,
contactwasalsomadewithNominetUKwithregardstoregistrationofleech.org.uk.Thewebsitehadbeen
incorrectlyregisteredasanon-tradingentityandasaresultthedomainregistryshutthewebsitedown.

FACTSADVERTISINGSTRATEGY
Websiteownersarepredominantlymotivatedbythesignicantnancialgainthataninfringingwebsitecan
generate. In the majority of cases, the placement of advertisements on such sites provides the operators
withthesolerevenuetoallowthewebsitetofunctionprotably.Duetothisreason,theadvertisingsectoris
viewedbyContentProtectionOrganisations(CPO)asanavenueforcriminalswishingtooperateinfringing
websites.
Brand owner response to Advertising Strategy
0
20
40
60
80
100
120
140
NEGATIVE
No reply from brand
or refusal to co-operate
POSITIVE
Ads removed and brands
advertising procedures altered
2011 2012 2013
N
u
m
b
e
r

o
f

B
r
a
n
d
s

17%
83%
4%
33%
96% 67%
Year
Surfthechannel.com is a prime example of a copyright infringing website nanced from the huge
advertisingrevenuesitwasabletogenerate.
In January 2011, FACT devised a strategy to deal with these issues. The rst stage of the Advertising
Strategy was to identify the leading UK companies and/or brands whose advertisements were displayed
oncopyrightinfringingwebsitesidentiedduringthecourseofFACTinvestigations.Thesebrandowners
werethencontactedandscreengrabsoftheiradvertisementsappearingoncopyrightinfringingwebsites
weresenttothem.Owingtothecomplexnatureoftheonlineadvertisingindustry,themajorityofthese
companies were unaware their advertising was appearing on these websites and, wanting to collaborate,
appreciatedFACTsintervention.
40
N
u
m
b
e
r

o
f

b
r
a
n
d
s

35
30
25
20
15
10
5
0
37
13
4 3 4
1 1 0 1
2 3 4 5 6 7 8 9 10
Number of times FACT contacted a brand regarding their adverts appearing on infringing websites
Theabovetableshowstheresponsefrombrandownersovertherstthreeyearsofthisstrategy.Inthis

strategic period, two-thirds of brand holders responded positively and had their advertisements removed
fromtheinfringingwebsites.
Thedesiredoutcomeofthisrststageisthatthebrandownerswillnotjustremovetheiradvertisements
from the one identied website, but they will also alert their marketing processes and liaise with the
advertising companies they work with to ensure responsible placement of future online advertisements.
FACThascontacted215differentbrandsregardingtheiradvertisementsappearingononeormorecopyright
infringing websites. 70% of these brands have only had to be contacted once. Table 5 displays how often
brandsreappearinFACTsAdvertisingStrategyandthereforeindicatethatmanybrandshavenotsuitably
adjustedtheiradvertisementprocessestoensuretheyonlyappearonlegitimatewebsites.
Forthebrandownerswhohavehadtobecontactedrepeatedlyregardingadvertsplacedonwebsitesthat
infringeFACTsmemberscontent,alternativeactionisclearlynecessary.ThesuccessofFACTsAdvertising
Strategyhasbeenwidelyrecognisedbythecontentprotectionindustryandlawenforcement.Thisinstigated
ajointinitiative,calledOperationCreative,betweenUKlawenforcementagencies,theadvertisingindustry,
FACTandothercontentprotectionindustriestotargetthefundingofinfringingwebsites.OperationCreative
commencedinMay2013,whichaccountsforwhyfarfewerbrandswerecontacteddirectlybyFACTduring
2013.
MOBILEAPPS
Withtheever-risingpopularityofmobiledevices(smartphonesandtablets),coupledwiththeintroduction
of 4G, the industry has seen a signicant increase in the use of mobile applications to access copyright
infringinglm,televisionandsportscontent.
Otherwiseknownasapps,thesesoftwareapplicationsprovidetheuserwithaneasy-to-usegraphicaluser
interface(GUI).Manyoftheapplicationsuseexistingwebsitesandstreamstoprovideuserswithaccessto
illegalcontent.
Owing to the nature of the apps, it is highly likely that they only act as a conduit to access illegal
contentheldinaremotelocation.Thismeansthatthetakedownmayonlyhaveaneffectontheprimary
access point and not the actual host of the content, therefore adding another layer to the enforcement
process.
According to the rm Research and Markets, over 46 billion apps were downloaded in 2012. These
applicationsgeneratedanestimated$12billioninworldwiderevenuesfromsales,advertisingandin-app
purchases.ResearchandMarketsalsoestimatedthenumberofappstobedownloadedin2013woulddouble
to83billionandgenerateover$20billion.
Appsclearlyrepresentafastgrowingandlucrativemarket.Owingtothescaleofthemarket,enforcement
hasbecomeaseriousareaforconcern.Thisisexacerbatedbythefactthatmanyappsonlyactasfacilitators
toaccessillegalcontentasopposedtobeingdirecthosts.
CasestudySportsstreamingapp
In January 2014, FACT discovered a copyright infringing app called Glaxy TV. This app was found to be
linkedtoadomaincalledDesistreams.tv,whichhostedstreamsofBTSportandSkySportscontent.While
theappitselfwasnothostingthecontent,itwasactingasafacilitator,allowinguserstodirectlyaccessthe
contentheldonDesistreams.tv.Withinamonth,FACThadthisappremovedfromtheGooglePlayStore.
CasestudyPresseddiscimportations
InMarch2013,theUKBorderAgency(UKBA)informedFACTthattheyhadintercepted114counterfeit
DVDsenteringtheUKfromHongKong.ThesepresseddiscsbasedonFACTmembercontentwereaddressed
toanamedpersoninSouthEastLondon.TheUKBArevealedthatinthepastsixmonthsthisaddresshad
receivedatotalof45shipments,alloriginatingfromHongKongandChina.
CommunicationbyFACTwiththeUKcourierresponsiblefordeliveringthesepackagesrevealedthatthe
cumulativeweightofthedeliverieswasinexcessofonetonne.
TheFACTIntelligenceUnitdiscoveredthatanindividualnanciallyconnectedtotheLondondelivery

addresswasthedirectorofacompanyregisteredtothesameaddress.Opensourceresearchrevealedan
eBaysellerusingthiscompanyname.(seebelow).
ThiseBaysellerofferedavastvarietyofDVDs
and TV series box sets. The selling history
revealed they had sold over 7,000 items in the
pasttwoyears,withpositivefeedbackfrom99.5%
oftheircustomers.Withanaveragecostperitem
of approximately 15, this eBay seller made in
excessof100,000.
In December 2013, search warrants were
conducted at all the identied addresses. The
company director was arrested and a total of
7,500 pressed disc DVDs and box sets were
seized.
MEDICINESANDHEALTHCAREPRODUCTSREGULATORYAGENCY
The MHRA faces formidable challenges with the increasing availability of medicines and medical devices
beingsuppliedillegallythroughwebsitesparticularlythosehostedoutsidetheUKandEU.
There have been cases in the UK where individuals have purchased medicines online that have led to
severeadversereactionsandevendeath.Asaconsequence,theMHRAissuesregularwarningstothepublic
toexertextremecautioniftheychoosetobuymedicinesinthisway.
InordertomonitormedicinesbeingsoldonlinetheMHRAworkswithInternetServiceProviders(ISPS)to
close offending websites. Further action involves the police, Interpol, Border Force, payment providers
(banksandcreditcards)anddistributors(suchasParcelForce)todisruptillegaltrading.
Inthepast12months:
UKDomains(DotUK) 760SitesSuspended.
NonUKDomains(gTLDs) 2032SitesSuspended
OPERATIONALACTIVITY
The MHRA is the regulatory authority for medicines and medical
devicesintheUKbutisalsotheenforcementarm.Designatedofcers
havepowersofentryandinspection.
A number of operations have been conducted in the past 12
months,mainlyrelatingtotheillegaldistributionofmedicinesthat
arenotlicensedfortheEuropeanmarket.Thisincludesawiderange
of products from erectile dysfunction medication to slimming pills
andhairlosstreatments.Thediscoveryofillegalmanufacturingand/
ordiverted/stolenproductshasresultedinpremisesbeingvisitedand
productsseized.
OPERATIONPANGEAVI
Coordinated by INTERPOL and carried out in 99 countries across the globe, Operation Pangea VI was
conductedbetween18and25June2013andresultedintheseizureof26.8millionworthofmedicines
worldwide.
OPERATIONPANGEA
Arecord12.2millionoffakeandunlicensedmedicineswereseizedintheUKaspartofOperationPangea
anannualinternationalinitiativetargetingtheillegalonlinetradinginmedicines.
9,610illegalonlinewebsitesthatweresellingcounterfeitandunlicensedmedicineswerealsocloseddown
orsuspendedthroughdomainnameorpaymentfacilityremovaland58peoplewerearrestedworldwide.

MHRA ofcers, with assistance from the Home Ofce UK Border Force and local police, also raided
addresses in the UK and 3.7 million doses of unlicensed medicines worth approximately 12.2 million,
including97,500dosesofcounterfeitpillsworth525,000wereseized.ThetypesofmedicinestheMHRA
foundwerethoseforslimming,hairlossanderectiledysfunction.
1.) Op CARTER 18th June. Investigators visited two addresses in the Stockport area regarding the
online supply of a slimming product containing the active ingredient Sibutramine. An inspection of the
subjectshomeaddressledtoalockupoperatedbythesuspectsboyfriend,wherehewaspowdercoating
alloywheels.Itwasalsowherethesuspectsstockwaskeptandwherethepackingandpostingtookplace.
Approximately12,000stockwasseized.RadioOneNewsbeatandtheDailyMirrorcoveredthestory.
2.) OpREAGAN19thJune.InvestigatorsvisitedaprivateaddressinBirminghamregardingtheonline
supplyofanunlicensedhairlossproductcontaining16%Minoxidil.Licensedversionsoftheproductcontain
5%.Thesubjectkepthisstockinhisbedroomwhereinvestigatorsseizedapproximately2,000worthof
products.TheinspectionwaslmedbytheBBCFakeBritainprogramme.
3.) Op KENNEDY 21st June. Investigators visited an apartment in Kings Langley regarding the online
supplyofvariouserectiledysfunctiongenericunlicensedmedicines.Thesubjectadmittedsettingupthe
website and posting out medicines to customers. Ofcers seized approximately 900 worth of stock and
closedthewebsite.AreporterandcameramanfromtheEveningStandardattendedtheinspection.
SUBSECTION4:AWARENESS,EDUCATION&TRAINING
Whiletargetingthosesupplyingcounterfeitgoodsandcopyrightinfringingmaterialisonewayofdealing
withthethreatofIPcriminality,itisalsoimportanttoraiseawarenessoftheproblem:toeducatethose
whoareresponsibleforsellingandbuyingandtotrainprofessionalstorecogniseandprosecuteoffenders.
IPCrimeGroupmembershavebeentakinganactiveroleinthisareasince2013.
AWARENESSTHROUGHCAMPAIGNSANDEDUCATIONATTHEIPO
InresponsetocallstodomoretoraiseawarenessofIP,particularlyinrelationtocopyrightwithinthemusic
industry,theIPOdeliveredamajornationalcampaigntoencouragegreaterrespectforintellectualproperty.
Thetargetwastosecuremediamessagingwhichwouldreachatleastfourmillionconsumers.
The campaign consisted of a series of highly targeted projects, focusing on key age groups and run in
partnershipwithindustrygroups.Thecampaignwassupportedbyregionalpublicityactivityintheform
of a small booth called the Karaoke Shower where people were invited to sing in the booth and post
lmsoftheirperformanceonsocialmedia.Itincludedmessagesaroundthevalueofmusic;theemotional
connectionpeoplehavetosongs;andthesharingofmusic,combinedwithinformationaboutthevalueof
copyrightinensuringthecontinuedsuccessofBritishmusic.
TheKaraokeshowerLivetourlaunchedinNovember2013attheMusicShowinManchesterwhereover
420 participants took the opportunity to sing. The next venue was at the Houses of Parliament for Mike
WeatherlyMPsRocktheHouseEvent,whereBrianMayenteredtheshowertosingWeWillRockYou.
ThenationalcampaignculminatedonFebruary5th2014withthelaunchofMusicIncamajorproject
withUKMusic.Agamemadeavailableviaadownloadableappallowsplayerstoselectandmanageartists,
andtrytoghtpiracytomakemoney.Itreceivedatremendousamountofpositivepublicityandaurryof
socialmediaengagement,ledbyMusicIncspokespersonOritseWilliamsofJLS.
Since its launch, the game app has attracted over 100,000 unique players averaging 18 minutes game
playtime.Importantlythegameisalsodemonstratingbehaviouralchangesamongstplayers,withpositive
decisionsrelatingtopiracybeingmadeby76.2%ofplayers.
7
Thecombinedeffectofallthecampaignrelatedactivitytranslatesintoareachof14.7million.
7 Derivedfromanalysisofin-gamedata

SCOTTISHANTI-ILLICITTRADESUMMIT
Heldon6and7MarchatMurrayeldStadium,Edinburgh,theScottishAntiIllicit
Trade Group, in conjunction with the Scottish Business Resilience Centre and
UnderwritersLaboratories(UL),hostedadayandahalfsummitbringingtogether
200 delegates from the public, private and voluntary sectors. Opened by the
Cabinet Secretary for Justice, Mr Kenny MacAskill, speakers included
representationfromInterpol,EuropolandUSHomelandSecurity,upandcoming
youngentrepreneurs,CrownOfceandScottishYouthParliament.Youthwasa
keythemeandtomakeanimpact,childrenfromalocaltheatregroupactedasif
they worked in a sweatshop while other actors mingled with delegates offering
themcounterfeititems.
Dayonefocusedonfourkeythemes:1)Film/Music/SocialMedia,2)Foodand
Drink,3)Fashionand4)HealthandSports.OndaytwotherewereworkshopsonPrevention,Intelligence
andEnforcementwhichwereverywellattendedandgeneratedbothdebateand,moreimportantly,some
actions. ThesummitclosedwithaspeechbyDeputyChiefConstableIainLivingstone,PoliceScotland.
It is anticipated the summit will act as a catalyst for future development which includes: a focus on
further strengthening the collaborative approaches to Prevention, Intelligence and Enforcement; seeking
maximisedopportunitiesunderSchedule4Lifestyleoffences;increasedactionagainstonlineactivity;plus
thedevelopmentofdatacaptureforillicittrade,counterfeitingandpiracyseizuresacrossScotland.
FACT
Since2006FACThasengagedinpreventativemeasures,oneofwhichistheeducationofcinemaemployees
andthepoliceinrelationtotherisksposedbycammerstothelmindustry.Assuch,FACTsTheatrical
Investigatorprovidesatrainingprogrammetocinemastaff,outliningtherisks,precautionarymeasuresto
beputinplace,andactiontotakeintheeventofasuspectedincident.In2013,44trainingsessionswere
heldatcinemasacrosstheUKforalmost1,500staff.
Thistrainingprogrammerunsalongsidearewardscheme,operatedinpartnershipwiththeFDA,which
offersanancialincentivetocinemaemployeeswhoidentifyanddealappropriatelywithasuspect.In2013,
fteenemployeesfrom12UKcinemaswererecognisedbythisrewardscheme,collectivelyreceivingover
15,000fortheireffortsinpreventinglmcrime.
ItisimportantforFACTtomonitorthenumberof
Actiontakenbycinemastaff
suspected camming incidents identied and the
subsequentactionstakenbycinemastaffandpolice.
63%
70%
55%
2011/12
In 2013, FACT recorded 73 such incidents. The
2012/13
Suspectdetails chart(left)showsthatforthemajorityofsuspected
2013/14
obtained
illegalrecordings,cinemastaffintheUKwillcallthe
police,obtainthesuspectsdetails,andexaminethe
recording device for infringing content. This
indicates that cinema management in the UK take
thethreatofcammingseriously.
Device
examined
68%
93%
76%
Police
called
55%
65%
57%
0% 50% 100%

BPISUPPORTSSAFERINTERNETDAY
BPIactivelyparticipatedinandsupportedSaferInternetDay2014,whichthisyearledwiththethemeof
LetsCreateABetterInternetTogether.Theinitiativededicatedsignicantresourcetoeducatingchildren
andteenagersaboutonlinerightsandresponsibilities.
In2013/14theBPIsupportedanumberofonlineactivitiesledbyChildnetInternationalandspoketoa
groupof13to18year-oldVolunteerPoliceCadetsonthesubjectofdigitalmusicandhowtostaysafeonline.
TRAININGFORRECORDCOMPANIES
BPIheldanumberoftrainingsessionsformembersandinterestedrecordlabelsonthesubjectofprotecting
artists repertoire. In addition, the BPIs Anti-Piracy Unit spoke at a number of public events to raise
awarenessofthestepsthatcouldbetakenbyindustrytoprotectcontentandpromoteBritishmusic.
INDUSTRYTRUST
Industry Trust, which helps promote the role of copyright in the creation of lm and television content,
continuestodeliveronbehalfoftheaudio-visualsectorwithitsMomentsWorthPayingFormultimedia
campaign, inspiring audiences to value content and increasing their engagement with legal services.
Collaborating with some of the highest prole lm releases in the UK in 2014 including Anchorman 2,
MuppetsMostWanted,Spider-Man2andPostmanPat,thenumberofcinemagoersexposedtothetrailers
wasestimatedtobe36.9m(mediavalue3.75m)andtheestimatednumberpeopleexposedtotheoutdoor
posterswasestimatedtobe378m(mediavalue5.7m).
300,000monthlyvisitstoFindAnyFilm.com,a5foldincreaseon2012.
InpartnershipwithBBFC,theTrustsresearchfoundthatoverathirdofparentswereunabletospot
piratewebsitesformusic,lmandTVcontent.TheTrustdriveseducationthatshowshowtoaccess
legalcontentthroughFindAnyFilm.com
ELECTRONICSYSTEMSCOMMUNITY(ESCO)
ESCO continues to work with several key industry bodies, both in the UK and overseas, to develop best
practice and increase the robustness of the electronics supply chain in combating the inltration of
counterfeits.TheESCOAntiCounterfeitForumwebsite,providesfree-to-accessonlinedirectoriesthatlist
solution providers, international standards and other best practice, publications, research, seminars and
othereventsaswellasreportingcasesofcounterfeitpartsandrelevantnewsstories.ESCOnowhasover
600registeredbusinessusersandreceivesmorethan2,000visitspermonth.
NATIONALCAMPAIGNS
IPPROTECTEXPO
The third annual IP Protect Expo took place at the Business Design Centre in Islington, London on the
11thand12thofMarch2014andbroughttogetherIPrightsownersandexpertsfromacrosstheworld.The
event which was hosted by the Anti-Counterfeiting Group (ACG) at www.a-cg.org featured 40 exhibitors
andattracted500visitorsovertwodayswith36%representingIPrightsownersand31%representinglaw
enforcement,governmentandindustryassociations.
Byactivelybringingtogetherallthoseinvolvedintheprotectionofintellectualpropertynationallyand
internationally,IPProtectExpoprovidesaplatformfortheeducationandnetworkingoflawenforcement
ofcers,brandsandexpertsintheeld.In2013/14,ContinuedProfessionalDevelopmentforsolicitorswas
introducedinadditontoaspecialemphasiswasplacedonSMEsunderstandingIPanditsprotection.Gary
TownleyfromtheIntellectualPropertyOfcegaveapresentationtitledGeneratingvaluefromyourcreative
ideas a special session for small and medium sized companies (SMEs). This was a joint presentation
alongwithMatthewLumbfromTangleTeezerandClaireLyonsfromOtterboxtospecicallyofferhelpand
guidancetoSMEs.
The IP Protect Expo featured stands from a range of law enforcement bodies including the Trading

Standards Institute, Police Scotland, PIPCU (City of London Police-Intellectual Crime Unit) and Border
Force.Thelocationofthelawenforcementandbrandsexhibitionprovidedaperfectopportunityformaking
new acquaintances and seeing familiar faces. This space also enabled ACG to conduct their London IP
TrainingDayinsidetheExpogivingbrandownersachancetotrainlawenforcementwithhands-onexamples
ofcounterfeitproducts.Theexhibitiongavesuppliers,associationsandtheUKGovernmentanopportunity
to showcase their products and services. Exhibitors included ACG, BASCAP, the Intellectual Property
Ofce, The Alliance, Interpol and a host of experts including providers of security labels, investigations,
casemanagementsystemsandinternetbrandprotectionservices.
IPProtectExpoisrecognisedasoneoftheindustrysleadingforumstonetwork.Toenhanceopportunities
forlawenforcementinparticular,exhibitionspaceandnetworkingfacilitiesweremadeavailableandHewlett-
Packardsponsoredanexclusivedrinksreceptionforthepurposeofpromotingpublic-privatepartnershipin
protectingintellectualpropertytowhichbrandsandlawenforcementwereinvited.
Amulti-trackseminarprogrammefocusedonthepracticalandoperationalaspectsofIPprotection.The
programmeconsistedofahighproportionofcasestudiesbybrandsandinvolvedagenciesincludingInterpol,
theIntellectualPropertyOfceandPIPCU.Brands,includingNintendo,Hewlett-Packard,HunterBootand
Beiersdof, shared their stories of IP protection and representatives from global associations such as the
IACCaswellasfromQualityBrandsinChina(QBPC),whichofferedamultitudeoflearningopportunities
forattendees.
BORDERFORCECHRISTMASCAMPAIGN
InNovember2013BorderForceparticipatedinaChristmascounterfeitawarenessraisingcampaignwithits
partnersHMRC,TradingStandardsandtheIntellectualPropertyOfce.Thepurposeofthecampaignwas
toraiseawarenessaroundthethreatposedbyIPinfringinggoodstothegeneralpublic,withafocusonboth
healthandsafetyissuesandlinkstoorganisedcrime.Legitimatebusinessesimpactedbytheimportation
ofcounterfeitgoodssuchasBurberryandBMWGroupwerealsoengagedtoprovideinformationtosupport
thecampaign.TheexerciseprovedsuccessfulinhighlightingthevariousrisksofIPinfringinggoods,andit
isplannedthattheinitiativewillberunagaininDecember2014.
CROWNPROSECUTIONSERVICE
The Intellectual Property e-learning toolkit, launched in 2011, continues to be a useful resource for UK
prosecutors.ThisjointinitiativebetweentheIPOandtheCPSraisescurrentCPSprosecutorsawarenessof
intellectualpropertycrime.Althoughnolongerpartofmandatorytraining,almost1000ofCPSprosecutors
haveusedittodeveloptheirskills.
During the nancial year 2013-2014 CPS prosecutors were able to advise on, and where appropriate,
prosecute, 265 offences under the Trade Marks Act 1994, 84 offences under the Copyright Designs and
PatentsAct1988,and20offencesundertheLondonOlympicsGamesandParalympicGamesAct2006.
OtherintellectualpropertyoffenceswereprosecutedusingtheFraudAct2006.
INTERPOLRECOGNIZESWORLDIPDAY
Theimportanceofintellectualproperty(IP)totheworldseconomyisrecognisedbyWorldIPDay,
8
which
fallson26Aprileachyear.
ThroughitsTrafckinginIllicitGoodsandCounterfeitingprogramme,INTERPOLhasforyearsfacilitated
andsupportedpoliceandlawenforcementagenciesworldwideintheghtagainstIPrelatedcrimes.
IndoingsoINTERPOLhassupportedthepoliceamongitsmembercountriesindismantlingcountless
internationalcriminalenterprises,whosemainobjectivewastoexploittheIPrightsofotherstoachieve
signicantnancialgains.
In 2013 alone, due to intelligence by INTERPOL, more than USD 174 million counterfeit and illicitly
tradedproductswereseizedbylawenforcementofcersacrossthegloberesultingininvestigativeactions
againstsome6,000individuals.
8 http://www.interpol.int/News-and-media/News/2014/N2014-070

Such highly sophisticated crime groups operate on a national and international level, and IP crime is
knowntoimpactuponmanyotherareasofcriminalactivity,suchasmoneylaundering,drugcartels,and
thenancingofhumantrafcking.
SUBSECTION5:INTERNATIONAL
IP crime is not bound by borders or territories. It is important that in order to prevent and deal with IP
crime,internationaldialogueisaforemostconsideration.Thefollowingsubsectionshowshowprogresshas
beenmadethroughinternationaloperations,theUKsattachprogrammeandthecontinuingcooperation
ofinternationalpartners.
OPERATIONOPSONIIIFAKEALCOHOLANDFOOD
Theintentionfor2013wastoraiseawarenessintheUKoftheriskposedbyfoodcrime,intheformoffake
and substandard food. The IPO have been involved in OPSON since 2011, and lead on behalf of the UK.
WorkingwiththeFoodStandardsAgency,thestrategicrecommendationsoftheOPSONIIdebriefidentied
theneedtodevelopawiderresponsethanjustenforcement.Thegoalisto:
1. Enhance police cooperation on food counterfeiting and food related crime, nationally and
internationally;
2. EnsurethatinternationaloperationsintofoodcounterfeitingandfoodrelatedcrimesuchasOPSON
aredeployedregularly;
3. Createapermanentworkinggrouponfoodcounterfeitingandfoodrelatedcrime;
4. Implementintelligencegatheringandsharinginthiscrimearea,andharmonisethewayinformation
isgathered,ensuringminimumglobalstandards;
5. Createmulti-agencyandspecialisedtaskforcestoinvestigatefoodcounterfeitingandfoodrelated
crimeinmemberstates;
6. Enhance cooperation with the private sector (food industry, farmers, associations of producers,
distributorsetc)andacademia;
7. Buildcapacityofmemberstateslawenforcementthroughspecialisedtrainingprogrammes;
8. Raiseawarenessthroughnationalandinternationalmeetings,conferencesandforums;and
9. Identifyfundraisingopportunitiestosupportlawenforcementinitiativesintofoodcounterfeitingand
food-relatedcrime(ledbyInterpolleading).
The activity commenced with a planning conference hosted at the IPOs main ofce in Newport. The
meetinghearddetailsoftheCzechmethanolpoisoningthatclaimed46deathswhenfakevodkawassold,in
themaintolowincomefamilies.Theconferencealsoincludedinputsontheriskstothefoodsupplychain,
thehorsemeatissueandtheroleofEuropolandInterpol.
ThebookletproducedbytheIPOfollowingtheeventwascirculatedtoover30,000recipientsacrossthe
UKandbeyond.Thiswasasaresultofmakinguseoftheindustrycontactswhowereabletocirculatethe
reportviatheirownmailinglists.
TheawarenessraisingalsoincludedarequesttotheUKBorderForcetobecomefullyinvolvedinOPSON.
Thiswasacceptedasabusinessasusualagreement.Duringthe2013operationalactivity,highlightsofthe
seizuresincluded:
17,000litresoffakevodkaseizedinScotlandbeingimportedfromNorthernIreland;
22TonnesofricedescribedasBasmati;and
5arrestsand34,000cashseizedinanoperationinvolvingtheUK,Italy,SpainandFrance.
TheplanningforOPSONIVhascommenced.Thisyear36countrieswillbeinvolvedandtheUKIPOhas
engagedwithcolleaguesintheRepublicofIrelandtoconsiderajointresponsetothethreatofcounterfeitvodka.
INTELLECTUALPROPERTYOFFICE
TheIPOwasactiveontheinternationalstageduring2013/14,exchangingviewsonenforcementwiththe
thenUSIPEnforcementCoordinator,VictoriaEspinel,andotherIPauthoritiesintheUSandCanada,as
well as hosting ofcials from the European Commission. The IPO also met with several delegations from

variouscountriestoexplaintheUKenforcementlandscape.RepresentativesfromtheIPOalsoattendedthe
7thGlobalCongressonCounterfeitingandPiracyinIstanbulinApril2014.
UKANDTAIWANSIGNMOUONINTELLECTUALPROPERTY
InSeptember2013theBritishTrade&CulturalOfceinTaiwanandtheTaipeiRepresentativeOfceinthe
UKsignedaMemorandumofUnderstanding(MoU)onIntellectualProperty.UndertheMoUtheTaiwanIPO
andtheUKIPOagreedtoincreaseinformationsharingandcooperation,includingwithregardtointernet
piracy.
UK and Taiwan sign MOU on Intellectual Property (Mr Chris Wood,
Director of BTCO and Ms Wang Mei-Hua, Director General of Taiwans
Intellectual Property Ofce)
KENYAANTI-COUNTERFEITAGENCY
January 2014 saw the visit to the IPO of a delegation from the Kenya Anti-Counterfeit Agency (ACA)
9
.
As the ACA is a relatively new organisation it started its operations in June 2010 part of their visit
wastolearnfromamoreestablishedIPenforcementregime,particularlytheUKsexperiencesintackling
IPcrime.
Anecdotal evidence indicates that the private sector in Kenya loses over half a billion US$ annually
throughcounterfeiting,whiletheKenyanGovernmentlosesoutonoverUS$200mannuallyintaxrevenues.
Mostcounterfeitsareimported,andthemajorityarebelievedtocomefromChina.
TheACAmetwithrepresentativesfromtheIPOsenforcementteam,HerMajestysRevenueandCustoms
(HMRC),theNationalCrimeAgency(NCA),NationalTradingStandardsBoard(NTSB),thePoliceIntellectual
PropertyCrimeUnit(PIPCU),andtheMedicinesandHealthcareproductsRegulatoryAgency(MHRA).
Issuesdiscussedincluded:
the coordinated approach to IP enforcement between government agencies, law enforcement and
industryintheUK;
theroleofdifferentagenciesinintelligencegatheringandhowtheUKagenciesshareintelligence;and
tacklingcounterfeitcurrencyandfalsiedmedicines.
In a separate meeting with the Federation Against Copyright Theft (FACT) the delegation heard how
industryplaysitspartininvestigatingIPinfringement.
IPATTACHS
IPrightsareincreasinglyseenasanimportanttoolforenablingUKgrowththroughtradeandinvestment
in leading overseas markets and global emerging economies. However, IP can be a technically complex
issue and overseas IP regimes can be difcult for businesses, particularly for SMEs to navigate and
successfully enforce their IP rights. To help address these important needs the IPO has specialist IP
attachs active in some of the most important and challenging international markets: China, India and
Brazil.
CHINA
InChina,thefocusofIPOattach,TomDuke,hasbeentoworktobuildanddevelopcontactsandnetworks
across government and law enforcement. Data shows that China was the main source of suspected IP
infringinggoodsdetainedbycustomsauthoritiesintheEUin2012.Thereforetheapproachhasbeento
workwithChineseauthoritiestotackleinfringinggoodsatthesourcebeforetheyentertheUK,following
9 http://www.aca.go.ke/

the model of Operation Poise. Through a series of meetings and visits including UK representation at
Interpols capacity building seminar on trafcking in illicit goods and counterfeiting in September 2013,
visitstoBeijingandShanghai,andareturnvisittotheUKbyMPSofcialsinMarch2014contactshave
been built and opportunities identied for intelligence sharing. This networking is helping to establish a
resilientandproductiveprocessthatisreducingtheproductionandsupplyofcounterfeitsinChinadestined
fortheUK.Thesenetworksarealsohelpingwithinvestigationsofjointcriminalactivitythatisoccurringin
boththeUKandChina.UnderthePoisemodelthepolice,NCA,HMRCandIPOareallworkingincomplete
coordinationandcooperation.
An example of how this is beginning to pay dividends can be seen in Mays recent arrest of a British
national in Shanghai
10
by Chinese police, and three arrests by police in Liverpool, as a result of a joint
operationbypoliceinShanghaiandtheUKintotheactivityofacounterfeitsmugglingring.
JUDICIALENGAGEMENTWITHCHINA
TheIPOisworkingwithChinatosupportreformstotheChinesejudicialsystemandstrengthenthelinks
betweentheUKandChinesejudiciary.InAugust2013MrJusticeBirssvisitedChinatoexchangeknowledge
andviewsoninteriminjunctions.HeparticipatedinaworkshoponthissubjectattheSupremePeoplesCourt
inBeijing,andmetwithspecialistIPjudgesandIPexpertsfromtheprivatesectorinBeijingandShanghai.In
HongKongheparticipatedinaseminarattheHongKongIntellectualPropertyDepartment,spokeaboutthe
PatentsCountyCourtatHongKongUniversity,andmetjudgesattheHongKongCourtofAppeal.
A return visit took place in March 2014, when a
delegation of Chinese judges and academics visited
London. The judges engaged in detailed workshops
with their UK counterparts which covered a wide
range of subjects including the structure of the IP
court system in England and Wales, interim
injunctionsanddamagescalculationsincivilIPtrials.
The delegation also met the UK IP Minister, who
emphasisedtheimportanceofUK-Chinacooperation
onIP.
Delegation of Chinese judges, academics and senior
lawyers visiting UK in March 2014.
INDIA
In India, Anshika Jha, the IPO attach, has been supporting Indian trade bodies to develop enforcement
tools to tackle counterfeiting and piracy. This includes a study on piracy in the publishing sector and a
toolkitforpoliceandcustomsofcials.
The IPO recently supported a Confederation of Indian
Industry(CII)studyofthemonetaryimpactofcounterfeiting
andpiracyonthepublishingsectorinIndia.Thisistherst
study undertaken in India to quantify piracy in the
publishingindustryusingeconometricandotherquantitative
methods.
The ndings reveal that in 2011-12, the publishing
industry faced losses in the region of INR 83,340 million
(approx 834 million). This is more than double the losses
it faced in 2007-08 (INR 38,850 million, or approx 388
million).
CII 1st roundtable on impact on copyright
infringement
10 http://www.telegraph.co.uk/news/worldnews/asia/china/10829770/China-arrests-British-knockoff-dealer-behind-2.85m-scam.html

The IPO also supported the Copyright Enforcement Toolkit, developed by the Federation of Indian
ChambersofCommerceandIndustry(FICCI)toraiseIPawarenessamongpoliceandcustomsofcersin
India.TheToolkitwaslaunchedbytheDelhiPoliceCommissioneratanIPEnforcersRoundtableon29
April2014andreceivedwidespreadmediacoverageinIndia.
11
TheaimisfortheToolkittobeaneasy-to-useguide
forlocalpoliceandcustomsofcialstacklingcopyright
infringement issues in India. Following positive
feedback from police and customs ofcials in initial
trainingsessionsinMumbaiandDelhi,theToolkitwill
beusedinallfuturetrainingsessionsdeliveredbythe
FICCI.
FICCI copyright enforcement toolkit launch event
BRAZIL
AspartofongoingworktosharetheUKsexperiencesofhostingtheLondon2012Olympics,SheilaAlves,
theIPOsattachinBrazil,ranajointprojectwithBrazilianAuthoritiestodiscussIPissuesaheadofthe
recentlycompletedBrazilWorldCup(2014)andupcomingRioOlympics(2016).Threeeventstookplace
in February 2014 (two in Rio de Janeiro and one in Brasilia) hosted by former members of the Brand
ProtectionteamoftheLondonOrganisingCommitteeoftheOlympicandParalympicGames(LOCOG).
Theeventsimpartedagreatdealofknowledgeabout
whatisrequiredtodeliveralargesportingeventthat
is compliant with the requirements of the governing
bodiesandimportantly,alsohowtoprotectconsumers
fromcounterfeitproductsofallvarietiesrangingfrom
substandard merchandise to counterfeit tickets.
SharingtheexperienceofLondon2012sprotectionof
the Olympic brand should encourage Brazil to
champion a constructive approach to IP rights not
only for the upcoming Olympic games, but also to
demonstrate the benets that a long-term well-
functioningIPregimecanbring.
Discussions regarding the challenges Brazil may face
in relation to IP crime during major sporting events
CASESTUDYFORNATIONALIPCRIMEREPORTINDIA
TheIPOhassupportedtheFederationofIndianChambersofCommerceandIndustry(FICCI)toproduce
aCopyrightEnforcementToolkittoraiseIPawarenessamongpoliceandcustomsofcersinIndia.The
ToolkitwaspreparedandcommentedonbyIndianindustryandenforcementofcialsandlaunchedbythe
Delhi Police Commissioner at the IP enforcers Roundtable on 29 April 2013. The launch received wide
mediacoverageinIndia.
12
The Toolkit was used in training sessions for customs ofcials in India at the FICCI Customs Training
ProgrammeinMumbaion27FebruaryandinDelhion30April.Followingpositivefeedbackfrompoliceand
customsofcials,theToolkitwillbeusedinallfuturetrainingsessionsdeliveredbytheFICCI.
11 http://www.business-standard.com/article/pti-stories/police-to-protect-intellectual-property-rights-114042901225_1.html,http://theindianawaaz.com/index.
php?option=com_content&view=article&id=18033&catid=26
12 http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/bassi-for-intellectual-property-rights/article5961629.ece,

FICCICOPYRIGHTENFORCEMENTTOOLKITLAUNCHEVENT
In2014,theIPOsupportedtheConfederationofIndianIndustry(CII)toconductastudyofthemonetary
impact of counterfeiting and piracy on the publishing sector in India, and to present formal evidence-
backed recommendations to the Indian government. CII held roundtables for industry and government
representativestodiscusskeyissueson7February2014and15April2014.Thereportandrecommendations
areintheprocessofbeingnalisedwereformallypresentedtotheIndiangovernmentbytheendofMay
2014.
HERMAJESTYSREVENUEANDCUSTOMS(HMRC)
Following HMRCs active involvement in negotiations at the EU level, the new EU IP Rights Customs
EnforcementRegulation(608/2013)wasformallyadoptedbytheCouncilofEUministersinJuly2013.The
Regulationofciallycameintoforceon1January2014andisbeingsuccessfullyimplementedbyHMRC
and Border Force. Part of this implementation has involved the role out of a new European Commission
administeredITsystemforloggingapplicationsforcustomsaction(ApplicationForAction)andrecording
thedetailsofgoodsdetainedbynationalauthorities.HMRChassuccessfullyadoptedthisnewsystemand
hasworkedcloselywiththeEuropeanCommissiontohelpaddressanumberofongoingtechnicalissues.
HMRCandBorderForcehasalsoengagedwiththeEuropeanCommissionandcustomsrepresentatives
fromotherEUmemberstatesonthedevelopmentofanewEU-Chinaactionplanforcustomscooperation.
The EU-China Action Plan sits under the broader EU Intellectual Property Rights Action Plan and was
originally signed in 2009. Having expired in 2012, HMRC, Border Force and their EU partners have this
yearsuccessfullyagreedthetermsofanewactionplanwhichwillnowrunupuntil2017.Theproposed
actionplanwillformallyextendthenetworkofUKportsandairportsexchangingdataoninfringementswith
China,allowingforamoreinternationallycoordinatedapproachtoIPrightsenforcementattheUKborder.
EUROPEANCOMMISSIONFOODFRAUDUNIT
In2013theEuropeanCommissionestablishedaFoodFraudUnit,tobetterprotectconsumersfromfood
fraud. The Unit has established a network of contacts to facilitate sharing of intelligence across member
statesandtosupportbilateralinvestigations.WithintheUKtheFoodStandardsAgencyisthenominated
contactpointandcanshareintelligenceorraiserequestswithothermemberstatesonbehalfofanyUK
organisation.
13
THEEUROPEANOBSERVATORYONINFRINGEMENTSOFINTELLECTUAL
PROPERTYRIGHTS
The European Observatory on Infringements of Intellectual Property Rights (commonly known as the
Observatory)bringstogetherawiderangeofstakeholderswhousetheirtechnicalskills,experienceand
knowledgetoprotectandpromoteIPrightsandsupportthosedirectlyengagedinenforcement.
InJune2012,theObservatorywasentrustedtotheOfceforHarmonzationintheInternalMarket(OHIM),
and2013markeditsrstfullyearofoperationwithinOHIM.DuringthisperiodtheObservatorycontinued
togrow,developanddeliveranumberofkeyproducts.ThroughtheObservatorywebsite
14
stakeholderscan
now access reports and studies on IP and infringement; access tools such as the Enforcement Database
tohelpthemrecognisecounterfeitgoods;andaccessarepositoryofawarenesscampaignsandeducational
informationproducedbystakeholders.
TheMultiannualPlanfor2014-2018
15
willguidetheworkoftheObservatoryoverthecomingyears.
13 ForfurtherinformationcontacttheFSAviafoodfraud@foodstandards.gsi.gov.uk
14 https://oami.europa.eu/ohimportal/en/web/observatory/home
15 https://oami.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/documents/about_us/observatory_multiannual_plan_en.pdf

WIPOADVISORYCOMMITTEEONENFORCEMENT
Theninthsession
16
ofWIPOsAdvisoryCommitteeonEnforcement(ACE)tookplacefromthe3rdto5thof
March2014.Overthreedays,MemberStatesandexpertsgave22presentationsontwotopics:alternative
dispute resolution; and preventive actions, measures or successful experiences to complement ongoing
enforcement measures to tackle counterfeiting and piracy. This included some interesting examples of
awarenessraisingcampaignsindifferentcountries,aswellasexperiencesofpreventivemeasuresincluding
new business models, supply chain security, and initiatives specic to the online environment. The UK
presenteditsexperienceoftacklingonlineIPinfringement,whichwaswellreceived.Forthersttimean
exhibitiononpreventiveactionstocomplementongoingenforcementmeasureswasorganisedalongsidethe
meeting.NineMemberStatesandaregionalorganisationpresentedtheirnationalandregionalawareness-
raisingactivities.ThisincludedtheUKsTreasureIsland
17
campaigntoencouragegreaterrespectforIP,
withtheMusicIncappandKaraokeShowerattractingparticularattention.
16 http://www.wipo.int/meetings/en/details.jsp?meeting_id=30137
17 http://www.ipo.gov.uk/treasure-island.htm

Chapter3Resultsofthe2013/14Trading
StandardsSurvey
INTRODUCTION
The2013/14IPCrimeSurveyofTradingStandardswaslaunchedon1April2014andranuntil30April
2014. The results contained within this chapter provide detailed information on the scale of IP crime,
including the type and location of counterfeit goods investigated, as well as the resources and training
dedicatedbyauthoritiesintheireffortstoaddressthecriminality.Thischapteralsooffersananalysisof
timetrendsbycomparing,wherepossible,thisyearssurveyresponsestoannualdatafromprevioussurveys
overthepastveyears.
Atotalof210responseswerereceivedfromauthoritiesrepresenting12geographicalregionsintheUnited
Kingdom.Forthersttime,100%ofTradingStandardsAuthoritiesrespondedtotheSurvey,allowingfora
trulyUKwideperspectiveoftheirwork.
Thechartsandanalysisthatfollowillustratethemostfrequentanswersgivenbyparticipatingauthorities
and,wherepossible,iscomparedyear-on-yeartotheresultsofprevioussurveys.
Whilesomecategoriesofcounterfeititemsmayappeartobereducedinprevalencecomparedto2012/13,
thiscanbepartiallyattributedtothelargeincreaseinauthoritiesrespondingtothisyearssurvey,including
thosewhodonotroutinelyinvestigatecounterfeitgoods,thusdilutingtheoccurrencedata.Inaddition,not
everyquestionofthesurveyreceivedafullresponserate.Wherethisisthecase,theproportionofresponses
hasbeenanalysed.
BRIEFSUMMARYOFFINDINGS
Themostinvestigatedcounterfeitproductsareclothing,cigarettes/tobaccoandalcohol;
Mostinvestigationsarecarriedoutinordinaryshops,onsocialmediaandauctionsites/websites;
ThetopthreecrimeslinkedtoIPcrimearebenetfraud,moneylaunderingandorganisedcriminal
networks;
Over 90% of Trading Standards Authorities work alongside the police, over 80% alongside other TS
Authorities,andover60%withHMRC,althoughthishasreducedbyaround20percentagepointsover
thepastthreeyears;
Collectively, across all industry bodies, 67% of authorities are working with the Anti Counterfeiting
group,48%withFACTand39%withIFSP,althoughthishasreducedby14percentagepointsoverthe
pastthreeyears.Moreauthoritiesareinvestigatingorganisedcriminalnetworksintheirownareathan
lastyear.Lessareinvestigatingcross-authorityornational/internationalcrimenetworks;
Only 26% of authorities (as compared to 69% last year) cited the need for increased levels of law
enforcement. Excluding Northern Ireland the average number of days spent tackling IP crime by
Trading Standards decreased from 111 last year to 95 this year; this amounts to 16 days in each
authority,a14%decreaseoverall;
Lessproactivemonitoringofauctionsitesandotheronlinemarketsitesisbeingundertakencompared
tolastyear;howevertherehasbeenanincreaseinthemonitoringofsocialmedia.

A.TYPESOFGOODSINVESTIGATED
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B.LOCATIONOFCOUNTERFEITGOODSINVESTIGATIONS
Thetable,shownbelow,illustrateshowthelocationofinvestigationsintoinfringingproductshaschanged
since2012/13.
COMPARISON OF THE TOP 10 LOCATIONS OF INVESTIGATIONS
2012/13 2013/14
1
2
3
4
5
6
7
8
9
10
OrdinaryShops OrdinaryShops()
Auctionsites/websites SocialMedia()
Websites Auctionsites/websites()
SocialMedia Websites()
PrivateResidences PrivateResidences()
OutdoorMarkets OutdoorMarkets()
CarbootSales CarbootSales()
OntheStreet OntheStreet()
Factories/industrialunits Pubs/Clubs()
Pubs/Clubs Factories/industrialunits()
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
O
r
d
in
a
r
y

S
h
o
p
s
S
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ia
l
M
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ia
A
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S
it
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it
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r

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t
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/

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ie
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In
d
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U
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it
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O
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r

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e
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ls

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ic

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K

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r
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h
ip
p
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g

P
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p

S
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ir
p
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Locations
Locations of I P crime investigated by T rading Standards
2009/10
2010/11
2011/12
2012/13
2013/14

74 IP CRIME ANNUAL REPORT 2013/14
C.PARTNERSHIPWORKING
Thetable,shownbelow,illustratesthemainpartnersthatTradingStandardshasworkedwithoverthepast
threeyears.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
P
o
lic
e
O
t
h
e
r
T
r
a
d
in
g

S
t
a
n
d
a
r
d
s
A
u
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h
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r
it
ie
s
H
e
r

M
a
je
s
t
y
'
s
R
e
v
e
n
u
e

a
n
d

C
u
s
t
o
m
s
S
c
a
m
b
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s
t
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r
s
D
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p
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m
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t

f
o
r

W
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k

a
n
d

P
e
n
s
io
n
s
IP
O

In
t
e
llig
e
n
c
e

H
u
b

B
o
r
d
e
r

F
o
r
c
e
N
T
S
B

N
a
t
io
n
a
l
In
t
e
llig
e
n
c
e

H
u
b
F
o
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d

S
t
a
n
d
a
r
d
s
A
g
e
n
c
y
U
K

Im
m
ig
r
a
t
io
n

S
e
r
v
ic
e
D
r
iv
e
r

a
n
d

V
e
h
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le

L
ic
e
n
s
in
g
A
g
e
n
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y
G
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v
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n
m
e
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t
A
g
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ie
s
In
t
e
llig
e
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c
e

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t
w
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s
M
e
d
ic
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e
s

a
n
d

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e
a
lt
h
c
a
r
e
P
r
o
d
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c
t
s

R
e
g
u
la
t
o
r
y
A
g
e
n
c
y

R
e
g
io
n
a
l A
s
s
e
t

R
e
c
o
v
e
r
y
T
e
a
m
s
N
a
t
io
n
a
l
F
r
a
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d

In
t
e
llig
e
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c
e

B
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r
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a
u
N
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n
a
l
C
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im
e
A
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e
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(
S
O
C
A

p
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e

2
0
1
3
/
1
4
)

V
e
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a
n
d

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p
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r
a
t
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r
S
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r
v
ic
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s
A
g
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n
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y
H
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m
e

O
f
f
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e
P
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lic
e

In
t
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lle
c
t
u
a
l
P
r
o
p
e
r
t
y

C
r
im
e

U
n
it

P
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f

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h
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r
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t
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e
s

r
e
s
p
o
n
d
e
d

Partner
W ork with Public Sector Partner Organisations
2011/12
2012/13
2013/14
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No
P
e
r
c
e
n
t
a
g
e

Response
Trading Standards Authorities engaged in Regional IP Groups during 2013/14

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
A
n
t
i
C
o
u
n
t
e
r
f
e
it
in
g
G
r
o
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p
F
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d
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r
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n
A
g
a
in
s
t
C
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p
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ig
h
t

T
h
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f
t
In
t
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l
F
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d
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f

S
p
ir
it
s

P
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r
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r
B
r
it
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h

R
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d
M
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s
ic

In
d
u
s
t
r
y

(
B
P
I)

R
E
A
C
T
U
K

In
t
e
r
a
c
t
iv
e

E
n
t
e
r
t
a
in
m
e
n
t
F
e
d
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a
t
io
n
A
g
a
in
s
t
S
o
f
t
w
a
r
e

T
h
e
f
t
P
R
S

f
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r

M
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s
ic
In
t
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r
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io
n
a
l
F
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ic

In
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B
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llia
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a
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D
r
in
k

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r
a
t
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n
P
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b
lis
h
e
r
s
A
s
s
o
c
ia
t
io
n

P
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f

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o
r
i
t
i
e
s

r
e
s
p
o
n
d
e
d

Industry Body
W ork with Industry Bodies
2011/12
2012/13
2013/14
D.LEVELSOFINFRINGEMENT
The bar chart, shown below, illustrates the location of investigations into Organised Criminal Networks
(OCGs).
Location of Organised Criminal Network Investigations
50%
45%
40%
P
e
r
c
e
n
t
a
g
e

o
f

a
u
t
h
o
r
i
t
i
e
s

r
e
s
p
o
n
d
e
d
35%
30%
25%
20%
15%
10%
5%
0%
Level 1 - Local
(i.e. to your Authority)
Level 2 - Cross-Authority Level 3 - National / International Not Known
2011/12
2012/13
2013/14
Level

E.LEVELSOFIPENFORCEMENT
The line graph, shown below, illustrates enforcement of IP rights over the past ve years by Trading
Standardsauthorities.
Annual Comparison of Overall enforcement activity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009/10 2010/11 2011/12 2012/13 2013/14
Increased or Stayed the same
P
e
r
c
e
n
t
a
g
e

o
f

a
u
t
h
o
r
i
t
i
e
s

w
h
o
s
e

e
n
f
o
r
c
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m
e
n
r
t

a
c
t
i
v
i
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y

i
n
c
r
e
a
s
e
d

o
f

s
t
a
y
e
d

t
h
e

s
a
m
e

Year
Increase or Decrease in Regional Enforcement compared to 2012/13
30
N
u
m
b
e
r

o
f

a
u
t
h
o
r
i
t
i
e
s

25
20
15
10
5
0
Same
Decrease
Increase
North London Scotland East Wales South South East North Central Yorks and East Northern
West England West England East England Humber Midlands Ireland*
Region
* Please Note: Northern Ireland consisted of one response from the Department for Enterprise, Trade and Investment.

F.TRAINING
Thebarchart,shownbelow,illustratestheextenttowhichauthoritieshavereceivedordeliveredIPrelated
trainingoverthepastthreeyears.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Received training Delivered training Both Not known None
2011/12
2012/13
2013/14
Intellectual Property Training
P
e
r
c
e
n
t
a
g
e

r
e
s
p
o
n
d
i
n
g

t
o

q
u
e
s
t
i
o
n

Training
G.RESOURCES
Thebarchart,shownbelow,illustratesthetotalandaveragenumberofstaffdaysdedicatedtotacklingIP
Crimeoverthepastthreeyears.
Total and average of staff days dedicated to tackling IP Crime
25000
140
20000 120
100
2011/12 2012/13 2013/14
T
o
t
a
l

n
u
m
b
e
r

o
f

d
a
y
s

A
v
e
r
a
g
e

n
u
m
b
e
r

o
f

d
a
y
s

Total No. of staff days approx
Average Number
15000
80
10000 60
40
5000
20
0 0
Year

H.PROACTIVEMONITORINGOFTHEINTERNET
Thebarchart,shownbelow,illustratesthepercentageofproactivemonitoringofonlinelocationsbyTrading
Standardsauthorities.
Proactivemonitoring
100%
90%
80%
P
e
r
c
e
n
t
a
g
e
o
f
a
u
t
h
o
r
i
t
i
e
s
r
e
s
p
o
n
d
i
n
g
70%
60%
50%
40%
30%
20%
10%
0%
Auctionsites Otheronline
marketsites
peer-to-peer
uploading
SocialMedia Notknown None
2011/12
2012/13
2013/14
Area
I.LINKSTOOTHERCRIMINALITY
The bar chart, shown below, illustrates the main criminality that Trading Standards authorities have
identiedasbeinglinkedtoIPCrime
Linkstoothercriminality
100%
90%
80%
Weapon Benefit Money Organised Drug Violence Loan People Drug Prostitution Illegal
P
e
r
c
e
n
t
a
g
e
o
f
a
u
t
h
o
r
i
t
i
e
s
r
e
s
p
o
n
d
e
d
70%
60%
50%
40%
30%
20%
10%
0%
2011/12
2012/13
2013/14
Fraud Laundering Criminal Dealing Sharking Trafficking Smuggling Gambling Smuggling
Networks
Typeofcriminality

J.SOCIALMEDIA
The bar chart, shown below, illustrates how Trading Standards are being informed about Social Media
infringements.
Route of complaints about infringement on Social Media
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Direct from the public or businesses Citizens Advice Bureau Other Enforcement Agency
A
u
t
h
o
r
i
t
i
e
s

r
e
c
e
i
v
i
n
g

c
o
m
p
l
a
i
n
t
s

t
h
r
o
u
g
h

e
a
c
h

r
o
u
t
e
2013/14
Route of complaint

K.REGIONALTRADING
STANDARDSDATA
ANALYSIS
The map shows top 5 products
investigatedbyTSregion
1.Cigarettes&Tobacco
2.Clothing
3.Alcohol
4.Footwear
5.Watches&Jewellery
1.Clothing
3.Footwear
4.Watches&Jewellery
5.Alcohol
1.Alcohol
3.Clothing
4.DVDs
5.Footwear
2.Alcohol
3.Clothing
4.FakeLabels&Packaging
5.Footwear
1.Clothing
3.DVDs
4.Toiletries&Cosmetics
5.Watches&Jewellery
1.Alcohol
3.Clothing
4.DVDs
5.ElectricalGoods
1.Alcohol
2.Clothing
4.DVDs
5.ElectricalGoods
2.Clothing
3.ElectricalGoods
4.DVDs
5.Footwear
1.Clothing
2.Alcohol
4.Footwear
5.DVDs
1.Clothing
3.Alcohol
4.DVDs
5.Footwear
1.Alcohol
2.Clothing
4.Footwear
5.DVDs

Theinformationbelowshowsregionaldata.
SCOTLAND 1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
NORTH EAST 1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
YORKSHIRE
AND HUMBER
1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
EAST
MIDLANDS
1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
Cigarettes&
Tobacco(79%)*
Clothing
(73%)
Alcohol
(61%)
Footwear
(61%)
Watches&
Jewellery(55%)
OrdinaryShops SocialMedia Websites AuctionSites
Outdoor
Markets
BenetFraud
Organised
Criminal
Networks
DrugDealing Prostitution
Money
Laundering
Clothing
(92%)
Cigarettes&
Tobacco(83%)
Footwear
(67%)
Watches&
Jewellery(58%)
Alcohol
(50%)
OrdinaryShops AuctionSites SocialMedia
Outdoor
Markets
Private
Residences
BenetFraud
Money
Laundering
Organised
Criminal
Networks
DrugDealing Violence
Alcohol
(70%)
Cigarettes&
Tobacco(70%)
Clothing
(70%)
DVDs
(50%)
Footwear
(40%)
AuctionSites Websites OrdinaryShops SocialMedia CarBootSales
BenetFraud DrugDealing DrugSmuggling
Money
Laundering
People
Trafcking
Cigarettes&
Tobacco(90%)
Alcohol
(70%)
Clothing
(70%)
FakeLabels&
Packaging(60%)
Footwear
(60%)
Outdoor
Markets
OrdinaryShops AuctionSites Websites SocialMedia
BenetFraud
Money
Laundering
DrugDealing
Organised
Criminal
Networks
Violence
* Refers to % of authorities investigating

WALES 1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
LONDON 1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
NORTH WEST 1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
SOUTH EAST 1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
Alcohol
(92%)
Cigarettes&
Tobacco(88%)
Clothing
(88%)
DVDs
(79%)
ElectricalGoods
(67%)
OrdinaryShops
Private
Residences
SocialMedia AuctionSites
Outdoor
Markets
BenetFraud
Money
Laundering
Organised
Criminal
Networks
DrugDealing LoanSharking
Alcohol
(97%)
Clothing
(88%)
Cigarettes&
Tobacco(81%)
DVDs
(69%)
ElectricalGoods
(66%)
OrdinaryShops AuctionSites
Private
Residences
Websites SocialMedia
BenetFraud
Money
Laundering
DrugDealing
Organised
Criminal
Networks
IllegalGambling
Clothing
(95%)
Cigarettes&
Tobacco(86%)
Alcohol
(77%)
DVDs
(59%)
Footwear
(59%)
OrdinaryShops AuctionSites SocialMedia
Private
Residences
Websites
BenetFraud
Money
Laundering
Organised
Criminal
Networks
DrugDealing DrugSmuggling
Clothing
(96%)
Cigarettes&
Tobacco(79%)
DVDs
(58%)
Toiletries&
Cosmetics(54%)
Watches&
Jewellery(54%)
OrdinaryShops Websites AuctionSites
Outdoor
Markets
SocialMedia
BenetFraud
Money
Laundering
Organised
Criminal
Networks
DrugDealing
People
Trafcking

CENTRAL
ENGLAND
1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
EAST ENGLAND 1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
SOUTH WEST 1 2 3 4 5
Top5products
investigated
Top5locationsof
investigations
Top5linkswith
othercriminality
Alcohol
(94%)
Clothing
(88%)
Cigarettes&
Tobacco(75%)
Footwear
(63%)
DVDs
(56%)
OrdinaryShops AuctionSites SocialMedia Websites
Outdoor
Markets
BenetFraud
Money
Laundering
DrugDealing
Organised
Criminal
Networks
Prostitution
Clothing
(100%)
Alcohol
(80%)
Cigarettes&
Tobacco(80%)
Footwear
(80%)
DVDs
(50%)
SocialMedia AuctionSites OrdinaryShops
Outdoor
Markets
Websites
BenetFraud
Money
Laundering
DrugDealing Violence
Organised
Criminal
Networks
Cigarettes&
Tobacco(93%)
Clothing
(73%)
ElectricalGoods
(67%)
DVDs
(60%)
Footwear
(60%)
OrdinaryShops SocialMedia
Private
Residences
Websites AuctionSites
Money
Laundering
BenetFraud DrugDealing LoanSharking
Organised
Criminal
Networks

BecauseIPCrimeisinvestigatedbyonlyoneauthorityinNorthernIreland,theDepartmentofEnterprise,
TradeandInvestment(DETI),itisnotpossibletorankoccurrencesonprevalence.Theoveralldataislisted
below:
Northern Ireland
Average number
of staff days
50 100% 50
DuetotheabsenceofdatacoveringNorthernIrelanditisnotpossibletorankoccurrencesonprevalence.
Theoveralldataislistedbelow:
COUNTERFEITANDPIRATEPRODUCTSINVESTIGATED
Alcohol 100%
CDs 100%
Cigarettes/Tobacco 100%
Clothing 100%
ComputerGames 100%
DVDs 100%
ElectricalGoods 100%
Footwear 100%
Software 100%
Toiletries/Cosmetics 100%
Watches,Jewellery 100%
LOCATIONSINVESTIGATED
Other(pleasespecify) 100%
Carbootsales 100%
Factoriesandindustrialunits 100%
Ordinaryshops 100%
Otherworkplaces 100%
Privateresidences 100%
Socialmedia 100%
LINKSTOOTHERCRIME
Benetfraud 100%
DrugDealing 100%

Glossary
Alliance for IP
TheAllianceforIntellectual
Property
ACPO
AssociationofChiefPolice
Ofcers
ACG
TheAnti-CounterfeitingGroup
AFI
AccreditedFinancialInvestigator
BASCAP
TheBusinessActiontoStop
Counterfeiting&Piracy
BBC
BritishBroadcastingCorporation
BEAMA
TheBritishElectrotechnicaland
AlliedManufacturersAssociation
BIS
TheDepartmentofBusiness,
InnovationandSkills
BPI
TheBritishRecordedMusic
Industry
BSA
BusinessSoftwareAlliance
BVA
BritishVideoAssociation
CD
Compactdisc
CDRs
Compactdiscrecordableformat
CDPA
TheCopyright,Designsand
PatentsAct1988
CENTSA
CentralEnglandTrading
StandardsAuthorities
CPS
CrownProsecutionService
COG
Componentobsolescencegroup
The Commission
EuropeanCommission
DCATS
DiplomainConsumerAffairs
andTradingStandards
DCMS
DepartmentforCulture,Media
andSport
DVD
Digitalversatiledisc
DVDr
ADVDrecordableformat
DVLA
DriverandVehicleLicensing
Agency
DWP
DepartmentforWorkand
Pensions
ECC
EconomicCrimeCommand
sECC
ShadowEconomicCrime
Command
EETSA
EastofEnglandTrading
StandardsAssociation
eGame
Electronicgame
EU
TheEuropeanUnion
FACT
TheFederationAgainst
CopyrightTheft
FASTIiS
TheFederationAgainstSoftware
TheftInvestorsinSoftware
FI
Financialinvestigator
FSA
TheFoodStandardsAgency
GAO
USGovernmentAccountability
Ofce
GHD
Goodhairday
gTLD
generictopleveldomain
HMRC
HerMajestysRevenue&
Customs
HQ
Headquarters
The Hub
IntellectualPropertyOfces
IntelligenceHub
ICANN
TheInternetCorporationfor
namesandnumbers
IFPI
InternationalFederationofthe
PhonographicIndustry
IFSP
InternationalFederationof
SpiritsProducers
IP
IntellectualProperty
IPC
IntellectualPropertyCrime
IPID
ThenationalIPcrime
IntelligenceDatabase
IPO
IntellectualPropertyOfce
IPOP
TheIntellectualPropertyOnline
Protectiongroup
IPR
IntellectualPropertyRight
ISP
InternetServiceProvider
JARD
JointAssetsRecoveryDatabase
LOCOG
TheLondonOrganising
CommitteeoftheOlympicand
ParalympicGamesLimited
LOTSA
TheLondonTradingStandards
AuthoritiesGroup
Met Police
MetropolitanPoliceService
MHRA
MedicinesandHealthcare
productsRegulatoryAgency
MOU
MemorandumofUnderstanding
NTSECC
NationalTradingStandards
E-CrimeCentre
NCA
NationalCrimeAgency
NETSA
NorthEast[ofEngland]Trading
StandardsAssociation
NHS
NationalHealthService
NIM
NationalIntelligenceModel
NMG
NationalMarketsGroup
NTSB
NationalTradingStandards
Board

The Observatory
TheEuropeanObservatoryon
counterfeitingandpiracy
ODA
OlympicDeliveryAuthority
OGDs
Othergovernmentdepartments
OECD
OrganisationforEconomicCo-
operationandDevelopment
OFT
TheOfceofFairTrading
OHIM
TheOfceforHarmonizationin
theInternalMarket
P2P
Peer-to-peer
PA
ThePublishersAssociation
PACE
PoliceandCriminalEvidence
Act1984
PC
Personalcomputer
PDDRP
Postdelegationdispute
resolutionprocedure
PLS
PublishersLicensingSociety
PoCA
ProceedsofCrimeAct2002
POCC
ProceedsofCrimeCentre
The Portal
ThePublishersAssociations
CopyrightInfringementPortal
P2P
Peer-to-peer
POCA
ProceedsOfCrimeAct
PPA
ProfessionalPublishers
Association
PIPCU
PoliceIntellectualProperty
CrimeUnit
PSNI
PoliceServiceofNorthern
Ireland
PS
PoliceScotland
RART
RegionalAssetRecoveryTeam
The Report
IPCrimeReport2013/14
SAITG
ScottishAntiIllicitTradeGroup
SBRC
ScottishBusinessResilience
Centre
SCOTSS
TheSocietyofChiefOfcersof
TradingStandardsinScotland
SMEs
Smallandmediumenterprises
SOCA
TheSeriousOrganisedCrime
Agency
SWERCOTS
TradingStandardsPartnership
fortheSouthWestofEngland
TMA
TradeMarksAct1994
TS
Tradingstandards
TSEM
TradingStandardsEastMidlands
TSB
TechnologyStrategyBoard
TSI
TradingStandardsInstitute
TSNW
TradingStandardsNorthWest
[ofEngland]
TSSE
TradingStandardsSouthEast[of
England]
UK
UnitedKingdom
UKBA
UKBorderAgency
UKBF
UKBorderForce
UKEA
TheUKElectronicsAlliance
UKIE
TheAssociationforUK
InteractiveEntertainment
URL
UniformResourceLocator
URS
UniformRapidService
US
UnitedStatesofAmerica
USD
USDollar
VAT
ValueAddedTax
VOSA
VehicleandOperatorServices
Agency
WHO
WorldHealthOrganization
WHOTS
WalesHeadsofTrading
Standards
WYTS
WestYorkshireTrading
Standards
YORKS/HUMB
YorkshireandtheHumber
TradingStandardsGroup

Bibliography
BPIDigitalMusicNation2013TheBritishRecordedMusicIndustry
An Ofce for Harmonisation in the Internal Markets (OHIM) study, European Citizens and Intellectual
Property: Perception, Awareness and Behaviour
OnlineCopyrightInfringementTrackerWave42013preparedforOfcombyKantarMedia
TrafcReport:OnlinePiracyandCounterfeitingMarkMonitor
CounterfeitgoodsintheUK:ConsumerSurveyPriceWaterhouseCooper
Counterfeitingandnon-compliancebooklet2014
ConsumerBillofRightsBIS
HargreavesIndependentReviewofIntellectualPropertyandGrowth
SeriousOrganisedCrimeStrategyHomeOfce
IPcrimeStrategy2011-2015IntellectualPropertyOfce
WIPOAdvisoryCommitteeonEnforcement
IPCrimeGroup2014
ThisreportisapublicationoftheIPCrimeGroup
Anyenquiriesrelatingtoitspublicationshouldbesentto:
IPCrimeGroupSecretariat,ConceptHouse,CardiffRoad,NewportNP108QQ
@
ipcrimegroup@ipo.gov.uk
@ipcrimegroup

Rapport Propriété Intellectuelle Royaume-Uni 2013/2014

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Publishers Association Takedown Notices (year on year)

IP CRIME ANNUAL REPORT 2013/14 17

IP CRIME ANNUAL REPORT 2013/14 35

betweenmarketoperatorsandlocaltradingstandardsservices,theRealDeal schemeoffers benets and

IP CRIME ANNUAL REPORT 2013/14 57

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