In 2007, Bush administration began negotiations on ACTA particularly to contain several developing countries engaged in piracy acts, and to protect the interests of leading US firms which lost their price competitiveness on account of counterfeiting. Incidentally, the ACTA effect will not be restricted to internet activities alone but extends to counterfeit pharmaceuticals, designer merchandise, music, movies, etc.

Surprisingly, the final draft will not have the endorsement of China, one of the largest counterfeit producers. Hence, looking back to past events on taking action against China in regards to infringements, the trade pact is expected to encounter similar stalemate while implementing a likely ratified deal. Participants in the negotiations included Australia, Canada, the European Union, represented by the European Commission, the European Union Presidency (Spain) and EU Member States, Japan, Korea, Mexico, Morocco, New Zealand, Singapore, Switzerland and the US.

Many ACTA dissidents blame the secretive or undemocratic nature of reaching the agreement by not revealing the details for public discussion. On the other hand, WIPO provides scope for public scrutiny with an added advantage of the inclusion of major counterfeiting countries in negotiations.

Meanwhile, the tech firms are understood to be apprehensive about ACTA’s secondary liability clause, which recommends the responsibility of copyright infringement behaviour of the user on the online service provider. The clause will possibly affect social networking sites, video-sharing sites and several other user-generated content sites including the online encyclopaedia, Wikipedia.

Last month, a statement signed by senior trade-union officials from New Zealand, Australia, Singapore and the US raised the question of intellectual property rights becoming an element in the free-trade negotiations. However that fear is put to rest by officials at the eighth round of ACTA negotiations calling the deal as a ‘standalone’ one, and would not tinker with FTAs.

According to sources, the draft will leave out three-strikes provision that would require border agents to search the contents of electronic devices. Experts term three-strikes a preposterous idea as it would virtually bring every transit cell to a standstill.

Toboc Trade News

The customs authorities across the 27 member states have seized 79mn diskettes of pirated DVDs and CDs which has been ironically the exact number of ‘total’ fake items seized in 2007. The seizures of DVDs have witnessed the highest growth at around staggering 2600 percent.

The EU officials said that they found some of the fake items such as toys contained highly toxic substances that could cause severe health hazards. The counterfeit goods including toys, medicines and electronic items do not meet the EU standards.

Cigarettes at 23 percent and clothing at 10 percent are other fake items seized. Fake cigarettes mainly from the UAE recorded a rise of 54 percent while Indonesia has been found to be the largest source of fake food and beverages.

Fake medicines including Viagra, anti-cholesterol, anti- osteoporosis and blood pressure stabilizers also showed 118 percent growth allegedly originating from India. Last month, the National Agency for Food and Drug Administration and Control (NAFDAC) of Nigeria had announced that a large consignment of fake anti-malarial generic pharmaceuticals labelled `Made in India’ were, in fact, found to have been produced in China. Therefore, it is not clear whether China has been responsible for the pharmaceuticals share of the EU counterfeit pie.

The Commission report stated that at the moment it had no mechanism to ascertain the value of counterfeit trade in the EU. However, the latest figures are excluding the losses to industry from pirated music or films traded over the Internet. The officials expressed satisfaction in containing the fake goods through seizures that has helped to stop some of the losses of legitimate trade.

Toboc Trade News