The challenge of IP protection in online markets

The spectacular growth of e-commerce over the past decade - further accelerated by the Covid-19 pandemic - has brought previously undreamed opportunities within the reach of smaller companies.

However, there are also dangers for enterprises, of whatever size, who have previously not felt they needed to think hard about protecting their intangible rights.

The scale of this issue has been brought to light by a new study from the EUIPO and the OECD. This shows that e?commerce is becoming a key platform for consumers in developed countries to buy counterfeit goods.

According to data on detentions of counterfeit products, 56% of custom seizures at EU borders involve e-commerce.

Goods that are counterfeited have ranged from personal protective equipment to faulty toys, fake spare parts for vehicles and even medicines, demonstrating that this is far from being the victimless crime imagined by some.

The Covid-19 pandemic has intensified the problem of counterfeiting, with criminal networks reacting very quickly to the crisis and adapting their strategies

The bulk of online commerce worldwide is business-to-business, 82% of total value, with business-to-consumer accounting for the remaining 18% (2019).

In terms of seizures, China sits at the top and is the source for more than 75% of counterfeit goods, followed by Hong Kong at 5.7%, Turkey (5.6%) and Singapore (3.3%). When looking at custom seizures related to e-commerce, over 90% of them are shipped into the EU in small parcels.

The EUIPO is working hand in hand with a number of e-commerce marketplaces, rights holders and institutional partners to help tackle online infringements of intellectual property rights.

The Covid-19 pandemic has intensified the problem of counterfeiting, with criminal networks reacting very quickly to the crisis and adapting their strategies to take advantage of the shifting landscape.

The more we understand the threat from counterfeits, the more effective will be the action to counter this threat.

The return of IP crime as a so-called ‘EMPACT’ priority for the EU in the fight against international crime is a welcome move and the EUIPO is focusing on close cooperation with Europol and others to support operational actions within the limits of our mandate.

We will be using artificial intelligence to improve the customer experience and creating a blockchain authentication platform that will interconnect product “track and trace” solutions with the risk analysis systems of participating enforcement authorities and existing EUIPO tools.

Meanwhile the EU IPR Enforcement Portal is developing the full management of online Applications for Action, which facilitate the triggering of customs seizures.

All these efforts are aimed at creating a more joined-up and safer e-commerce system for businesses and consumers.