Socio-economic uncertainties fuel counterfeiting
 Globally,
over 750,000 jobs are lost annually due to counterfeiting and the costs
and negative effects of counterfeit products on all stakeholders were
broad and numerous, ranging from lost taxes, royalties and other
revenue, loss of goodwill and reputation, reduced incentive to
innovative and invest and lower employment, Director, Consumer Affairs
and Information, Chandrika Thilakaratne told a seminar on counterfeiting
organized by the American Chamber of Commerce (AmCham) at the Hilton
Colombo Residencies on Wednesday.
She said Sri Lanka should take steps to enforce strong civil and
criminal laws to protect Intellectual Property Rights (IPR) to safeguard
consumers and drive economic growth.
Counterfeiting is a global problem fuelled by socio-economic
variables such as poverty, ambivalent consumer attitudes towards IPR,
the involvement of criminal networks and easy-access to illegal goods,
she said.
A joint force has been set up to fight fakes and illegal trafficking
of counterfeit goods to the country, and a propaganda campaign ‘Stay
safe from fakes’ has been launched by Amcham Sri Lanka.
According to Thilakaratne, most of the illegal trafficking is in
pharmaceuticals and software.
The automobile and tobacco industries face grave threats and even the
government has been affected by the non-payment of taxes due to the
import of fake products.
She said that in the case of pharmaceuticals there is a real danger
of wrong and ineffective medicines being bought by the public. There is
also the danger of unsafe vaccinations as well. The revenue loss to the
country due to smuggled cigarettes is around Rs 2 billion annually.
Well-organised criminal gangs operate these businesses. This increases
the crime rate in the country as well.
Thilakaratne said that if a country has a poor record of
counteracting fakes it will discourage investment in the country. “It is
very important for countries such as ours to attract investors. It is
investors who create jobs and pass on skills and technology which we
stand to lose.”
Deputy Superintendent, Customs Customer Protection Unit, Ashorf
Samzudeen said, “Counterfeit seizure in Sri Lanka is around 8% annually.
It is a serious offence and we must work together in creating awareness
and demand for regulations to combat the counterfeit trade.
Senior Manager, Security and Administration, GlaxoSmithKline, Migara
Perera said, “Available research estimates that 25%-30% of the medicines
supplied to developing countries are either substandard or counterfeit.
Many forms of legitimate medicines have been counterfeited for a
multitude of reasons including the lack of overheads for quality control
and the ease of inserting these products into the distribution chain.”
General Manager, Associated Motorways, Prasantha Waidyaratne said
that the market for fake and sub-standard spares is a very large and was
a thriving venture. But the consumer, though he may think he is saving
money, is only putting his and his family’s lives at risk. Today, the
dependency on vehicular transport is at its peak. From goods to persons,
travelling is by vehicle. The danger of using fake spares is highlighted
by the number of road accidents that occur every day.
Compliance Manager, South East Asia and New markets, Microsoft Sri
Lanka, Aromi Silva said software piracy is another growing problem due
the general misconception that genuine software is very costly.
She said that pirated software adversely impacts new technology,
innovations and that the installation of pirated software is the main
reason for online fraud and cyber-crime, which is increasingly putting
businesses and Governments at risk.
Substandard and counterfeit goods pertaining to these industries are
a serious issue that impacts Sri Lanka - a developing economy.
Police spokesman, ASP Ruwan Gunasekera said, “The media wants to know
about crimes, wrongdoings and scandals, but the same publicity should be
given to operations carried out by law enforcement agencies against
trafficking of counterfeit goods, because this is the biggest obstacle
to the development of the country. RJ
|
