Trademark law, copyright law and the procedures under the Counterfeit Goods Act came under the spotlight in Bloemfontein last week. The Intellectual Property Action Group (IPACT), with the support of the US Embassy and Microsoft (SA), hosted another in the series of training workshops in the city for the region`s national prosecutors as part of their efforts to ensure strong enforcement of intellectual property law in SA.
"Counterfeiting and piracy have grown at an alarming rate in recent years," says David du Plessis, chairman of IPACT, and general manager of the Recording Industry of South Africa (RISA).
"While the general perception is that this area of crime is limited to entertainment products, it affects a vast product range - from medicines to aircraft and vehicle spare parts and includes 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 Service (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, 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 Tonia Papanikolaou, intellectual property legal expert at Bowman Gilfillan.
Chief prosecutor for the Bloemfontein cluster, Carel van der Merwe, says this field of criminal law has been neglected in the past but with the funding and input provided he believes the scope for prosecution can be improved.
"While the incidence of piracy in the area is an unknown, I do believe we have these activities happening. By being more au fait with the legislation I see our prosecutors working with effective policing to produce significant prosecutions in the future," says Van der Merwe.
"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 of 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 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 the follow-on to a similar series of IPACT workshops held for national prosecutors from Gauteng in September 2004 and trainer magistrates in November 2004. Speakers include David du Plessis, chairman of IPACT, Braam Schoeman from RISA, Marilyn Krige from Adams and Adams attorneys, Mohamed Khader from Spoor & Fisher Attorneys, Tonia Papanikolaou from Bowman Gilfillan Attorneys, Vanessa McPhee from DM Kisch Inc and Stephan le Roux, chairman of the Business Software Alliance.
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