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Piracy legislation under the spotlight


Johannesburg, 04 May 2005

The Intellectual Property Action Group`s educational programme to facilitate a better legal understanding of piracy laws will focus on national prosecutors in Cape Town and surrounding districts today.

With the support of the US Embassy and Microsoft (SA), IPACT is to host a workshop focusing on trademark law, copyright law as well as the procedures under the Counterfeit Goods Act from a prosecution perspective in their drive to ensure the proper enforcement of intellectual property law in SA.

"Counterfeiting and piracy has grown at an alarming rate in recent years," says David du Plessis, Chairperson of IPACT, and general manager of the Recording Industry of South Africa (RISA).

"This area of crime is neglected and often considered frivolous since it impacts entertainment products most significantly. The reality is that piracy has a vast impact: across medical products to aircraft and vehicle spare parts, clothing, music, CDs and computer software - all having significant impact on these companies and a knock-on effect to our economy."

The South African Revenue Services (SARS) reports that in the last year it seized in excess of R380 million worth of counterfeited goods. This amount relates only to products that were seized at border posts and does not include pirated products sold illegally in the marketplace.

The South African Federation Against Copyright Theft (SAFACT) reported a total of 285 000 DVDs were seized in 200 police raids and 60 seizures by Customs within the six-month period of January to July 2004. On the apparel side of things, Nike`s last report in 2002 was that over R45 million of counterfeit goods were seized.

"According to an IDC study, a 10% reduction in SA`s 34% software piracy rate by 2006 could add R12.8 billion to the economy, create more than 3 300 high wage jobs and generate more than R784 million in new tax revenues," said Quentin Boshoff, intellectual property legal expert at Bowman Gilfillan.

"Pirates and counterfeiters threaten many legitimate jobs in both the US and SA. Global pirates are stealing the creations, brands and inventions of citizens in our country and yours," notes Alan Tousignant, First Secretary of the US Embassy in Pretoria. In the spirit of the US intellectual property initiative known as "STOP!" -- the "Strategy Targeting Organised Piracy", the US Embassy views these workshops as an opportunity to work together to better protect our innovative industries and our overall economic, cultural and social interests related to intellectual property rights.

"We believe these types of intellectual exchanges are in line with providing an effective prosecution service which is prompt, vigorous, fearless and in public interest," says Advocate Trish Matzke, Deputy Director with the National Prosecution Service.

"Investigation and prosecution in these matters are often time-consuming and often it`s the detail that makes the prosecution win out."

Mark Reynolds of Microsoft South Africa believes the successful prosecution and strong sentencing coming from the commercial crimes courts lately is a good indication that the collaboration between government and industry is paying off. He cites two recent prosecutions, that of the sentencing of Craig Marnoch (aka Rebel Software) who received three years in prison for trading in counterfeit Microsoft products and infringing Microsoft`s copyright, and Marcus Mocke (aka Future Games) whose plea bargain led to an eight-year imprisonment sentence or a R400 000 fine, of which R375 000 and/or six years was suspended for five years. In each case the courts have handed down severe sentences - even for first time offenders.

"SA`s fight against counterfeiting and piracy can only be successful if all stakeholders involved play an active role," says the chairman of the Business Software Alliance (BSA), Stephan le Roux. "As a collective we are making an impact on the local piracy and counterfeit goods `industry` and we continue to play a role in recognising the gravity of the situation."

These training workshops are a follow-on to a similar series of IPACT workshops held for National Prosecutors and Trainer Magistrates from Gauteng province in September 2004 and November 2004 respectively and national prosecutors in Kimberley, Bloemfontein, Polokwane and Nelspruit during March this year. Speakers include Braam Schoeman from RISA, Kelly Thompson from Adams and Adams attorneys, Mohamed Khader from Spoor & Fisher Attorneys and Tonia Papanikolaou from Bowman Gilfillan Attorneys.

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