Counterfeiting Trademarks in Algeria
(Its Extent and the Measures to Fight It)
MALAK KARA [Maitre de Conférence]
[01, rue de noyon Beb el kantara constantine 25000 Algérie]
[00213541548313]
[malakkara494@gmail.com]
Résumé
La contrefaçon des marques en Algérie (Son étendue et les mesures pour la combattre)
Le monde a connu récemment la montée de la tendance rapide à imiter les marques qui ont un impact sur presque tous les secteurs. Non seulement ceci a des effets négatifs essentiellement sur le consommateur, mais elle provoque aussi des pertes colossales pour les propriétaires d'entreprises de marques authentiques.
Cet article vise à étudier l'ampleur de ce phénomène en Algérie et les mesures les plus importantes à prendre pour le combattre.
Mots-clés : la marque, la contrefaçon des marques, les marchés chaotiques, les douanes.
Classification JEL : M3, K14, R 23, K11 Abstract
Counterfeiting Trademarks in Algeria (Its Extent and the Measures to Fight It)
The world has recently witnessed the rise of the fast tendency of imitating trademarks that has an effect on almost all the sectors. Not only has it negative effects, on first and foremost, the consumer but causes colossal losses to the owners of genuine brands companies.
This article aims to study the extent of this phenomenon in Algeria and the most important measures to be taken to fight it.
Keywords: the trademark, Counterfeiting Trademarks Chaotic markets, the customs.
JEL classification: M3, K14,R 23,K11
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Introduction
The trend of imitating trademarks is regarded as one of the most prominent and harmful phenomena that affect negatively the worldwide trade in different proportions.
It is not only limited to one sector, but includes several ones: clothing, medicines, food, spare parts, household appliances, cosmetics, toys, etc...
Many factors helped the spread and development of this phenomenon in a lot of countries in different proportions, the most prominent ones might be:
- Globalisation of international commercial exchange - Easy movement of goods, funds and services - Globalisation of communication
- Growth of technology and its use in producing fake items which are too difficult to distinguish from the genuine products. Most of the imitated products have become carbon copies of the true products, whereas they were , in the past, known by their bad quality and packaging
Algeria is considered one of the most central countries that suffer from the imitation of commercial brands. According to the American USTR statistics of 2011, Algeria ranked third amongst the countries receiving imitated products in the world despite the efforts applied to fight this phenomenon since the first law related to counterfeiting became known in Algeria in 1966.
The Objective of the Study:
In this study, we aim to find out to what extent the phenomenon of counterfeiting goods in Algeria is taking place, and the measures to be taken to fight through what follows:
- The roots of the phenomenon of counterfeiting trademarks.
- The definition of the trademark.
- The concept of counterfeiting a trademark.
- Types of counterfeiting.
- The characteristics of trademarks.
- The effects of counterfeiting.
- The factors encouraging the growth of the phenomenon of counterfeiting trademarks in Algeria.
- The introduction of the counterfeit goods to Algeria.
- The extent of the phenomenon of counterfeiting trademarks in Algeria.
- The taken measures to fight this phenomenon.
- Conclusion and recommendations.
The Importance of the Study:
The study basically focuses on the importance of the subject, as we cannot neglect the seriousness and how dangerous the counterfeiting of trademarks is on both the local (in Algeria) and international levels.
The Problematic of the Study:
The problematic of the search sums up in the following: What are the most important reasons that caused the growth of the trademarks counterfeiting phenomenon in Algeria? And what are the most important measures taken to fight it?
The Theory of the Search:
In order to cover the different aspects and angles of the subject, we have set the following theories:
- The lack of the consumer’s awareness of the danger of counterfeit products has led the increase of demand which encourages the increasing of supply.
- There are different ways used by the counterfeit products importers to manipulate and cheat customs to get these goods across borders.
- The insufficiency of the customs measures to fight counterfeiting.
The Method of the Search:
To fulfil this study, we have proceeded to deal with two methods; the descriptive analytical method and the survey method in order to analyze the trademarks counterfeit phenomenon in Algeria and to display the various relative information and statistics.
1.The Origin of the Phenomenon of Counterfeiting Trademarks:
In fact, this phenomenon is not new , its roots went back to more than 2000 years, as proof of that, we mention the fake seal put on a roman wine bottle which is displayed in the counterfeit museum in Paris, France which is a counterfeit brand of an Italian wine which was being made in a region called Compania 1 .
We should mention the existence, at that time, of the Roman law (the Cornelia de Falsies Law) in the era of the tyrant Cornelius in 81 BC., which states:
the punishment of counterfeiting, changing, and dissolving silver and gold 2 . On May 16th, 1544, the Spanish king Charles Quint has stated a decree stipulating the punishment of counterfeiting by cutting the condemned person’s hand3.
In France, a decree was issued on June 23rd, 1857, it considers counterfeiting a punishable crime, and thanks to this decree the Intellectual Property Rights were admitted.
The counterfeiting phenomenon started spreading with the French Revolution which led the evolution of Intellectual Property Rights (1791-1793), in addition to the
1 G.Laval.D.Stoenes & M.Parons, the Counterfeiting (2009), « Can we stop this practice? » http//www.tpelacontrefacon.blogspot.com (consulted in 23 January 2012).
2 Michel Amandry , Roman provincial Coinage. (1992), « The irregular currencies», BNF, volume1, p1.
3Gilles Perrant.(2004), «the Counterfeiting» an article of the Expert journal, n 63, P5.
appearance of the Industrial Revolution in the United Kingdom that led the appearance of trademarks and brands along with their counterfeitingd4.
Counterfeiting spread vastly in the eighties as a result of the trademarks globalization between the developing and western countries.
Along with the growth of the BRIC countries economics (India, China, Brazil, Russia) in 2000, counterfeiting has reached the different industrial sectors, which was estimated approximately 7% of the international trade in 2005 5. Most counterfeit goods spread in the world i.e. 80% of them come from China in which counterfeiting reaches 15 to 30% of the industrial production i.e. 8% of the internal raw production and it employs nearly five million workers 6 .
2. Definition of Trademarks:
The decree Nr 03/06 dated on July 19th, 2003 was issued, it defines the trademark as “the mark is every symbol that can be represented by a line, especially words including persons’ names, letters and numbers, drawings, pictures and distinguished shapes of goods and their packaging, colours single or combined, which can all be used to distinguish goods or a natural or legal person’s services of providing goods or other services.”
3. Definition of Counterfeiting:
Counterfeiting is to make a mark exactly identical to the original mark even if the counterfeiter adds words or spelling, because counterfeiting reaches every element composing the mark regardless whether it is used or not 7 .
4 Monot Bleuzenn.(2009), « the Counterfeiting War», ed Ellipses, P36
5Pierre Delval.(2010), «The global counterfeit market», ed Cnrs, P 15.
6 Detibo Rossat.(2012), « China and counterfeiting, a long history», chronicles of china,P28 .
7 Bernard Pochon.(2007), «from creation to counterfeiting brands» ,ed puits fleuri, France, P14.
The word “counterfeit” is derived from the Latin word “Contrefaçere” which means reproducing or remaking something in counterfeiting.
As for the general meaning, this word means the fraud copying which damages the real owner of the original product 8.
According to the definition set by ( the National Committee of Anti- Counterfeiting): “The trademarks counterfeiting is considered an intentional and deliberate attempt to fraud and cheat consumers by copying and selling goods with brands exactly identical to the original brands, but they differ in quality making a poor quality products compared to the genuine ones.”
Counterfeiting can take different forms:
- Copying - Imitation - Piracy - Resemblance - Embezzlement
We can say that the counterfeiting trademarks affect goods at two levels:
- Counterfeiting the mark.
- Counterfeiting the model.
8 Gerard Cormu.(1997) , «legal vocabulary», ed University Press, France,p16 .
4. Types of Trademarks Counterfeiting:
There are three (3) types of trademarks counterfeiting:
4.1. Overall Counterfeiting or Copying:
It means counterfeiting the mark in everything: words, shapes, and colours, sizes…i.e. make an exact identical copy of the real mark.
4.2. Partial Counterfeiting:
It is the counterfeiting of a part or multiple parts of the mark like counterfeiting words or just drawings, for example: PUMA and FUMA.
4.3. Counterfeiting in Products Different than the Original Products:
That is using a trademark but putting it on a packaging of products different in nature than the products with the original trademarks, for example: counterfeiting the trademark (NIKE) and use it on children’s toys.
5. Their Characteristics:
The trademarks counterfeiting characteristics are shown in the following graph:
Graph (1): The trademarks counterfeiting characteristics
The plan was set up by the searcher We can explain this plan as follows: 9
- The Quality of the Product: Most of the time, the quality of the counterfeit product is poor compare d to original products.
- The Price of the Product: Most of the time, the counterfeit products are sold cheaply the fact that encourages their consumption.
- The Packaging and Labeling of the Product: Most of the time, the packaging is tight and well done, but when reading the label; we find misspellings in the company’s name, the brand…
9 Cnac et Inpi .(2006),« Counterfeiting, no, thanks », national mobilization campaign against counterfeiting, P1.
Counterfeiting trademarks
The Selling Place of the
Product The Packaging and
Labelling of the Product The Price of the
Product The quality of
the Product
- The Selling Place of the Product: Mostly, the counterfeit product is sold in the street and popular neighbourhoods.
6- The Effects of the Phenomenon of Counterfeiting Trademarks:
This phenomenon has negative effects on:
6.1 Companies:
The spread of the counterfeit goods has a negative effect on the companies producing the original goods; it causes a major loss for these companies on market scale because of the illegal competition from the counterfeiting companies for most individuals buy low priced goods without considering any quality standards.
In addition, this loss leads to increasing the unemployment ratio, for example:
During the last ten years, the unemployment situations in the EC were estimated approximately 100,000 situations, and 120,000 situations in U.S.A.
The poor quality of counterfeit products leads to:
Defaming the image of the original product’s brand.
The negative effect on the investing companies, the research, the advertising and the commercial development’s profitability.
6.2 Consumers:
The counterfeit products mostly make a major danger on consumers’ health (especially when it comes to pharmaceutical products, foodstuffs, vehicles spare parts…).
Generally, these effects could be presented in the following aspects:
- The negative effects on the consumers’ safety and health.
- The effect on the consumers’ psychological status.
- In addition to the fact that the consumer can not follow legal procedures that allow him to get back the money he lost purchasing this kind of products, or the compensation for the health damage that he could suffer from for life.
6.3 Local Economies and the World Trade Movement:
The growth of counterfeiting trademarks leads to the weakening of the industry and the investment sectors, it also affects the importation and exportation movement between the countries because it opens the door to the black market, smuggling and getting counterfeit products illegally into these countries.
Counterfeiting also has other negative effects such as:
- Shaking the trust in the local markets, the reputation of local industry and the investment environment, in addition to affecting the commercial agents of the original trademark.
- Affecting the public treasury because of tax evasion
7. The Factors Encouraging the Growth of the Trademarks Counterfeiting Phenomenon in Algeria:
We can sum up these factors in the following:
- Lack of knowledge of the relative laws to protecting cultural property and the consumers’ rights.
- Lack of the participation of the authorities specialized in the fight against fraud in the consumers’ awareness.
- The lack of the qualification of the expert agents in the suppression and fight against fraud.
- The lack of the control and revealing the counterfeit products equipments, also the absence of the relative laboratories.
- The absence of the coordination between the different authorities (police, customs, the legal system….).
- The lack of experience of the new economic operators, the lack of their knowledge regarding the world markets (for anyone can import any product).
- The spread of fraud among local producers who are producing adulterated products, For example, in October 2006, a network have been arrested in the state of Khenchla which produced the adulterated bleach as an imitation of the brand (Bref), of the company (HENKEL)10.
- The spread of the unauthorized markets as a secured place for the commercialization of the counterfeit products.
- The legal vacuum and lax of the control action.
- The low purchase ability of the consumer, the fact that leads him to buy counterfeit goods.
- Looking for the quick profit by avoiding the search, advertising and commercialization charges.
8-The Way that Counterfeit Goods Get into Algeria:
We can summarize them in the following plan:
10 Spa Henkel.(2007), «Counterfeiting in Algeria », International colloquium on counterfeiting, Hotel AURASI, Algiers, p10.
Graph (2): The way that counterfeit goods get into Algeria
The source: prepared by the researcher depending on
- A.BENHEMADI.( 2011), governor of the state of Bordj Bouaririj, a study day about the phenomenon of counterfeiting trademarks, ministry of Commerce, directorate of commerce of the state of Bordj Bouareridj, Algeria, p 5.
- An Interview conducted by the researcher with an Algerian importer of counterfeit goods.
There are two very common ways used by the Algerian importer to get counterfeit goods into Algeria:
The First Way:
The companies’ owners of major trademarks in the world, aiming to cut their expenses, produce a certain amount of their goods in the factories of countries such as: Indonesia, China… which have the necessary raw materials and cheap labor.
When these companies finish producing the ordered quantity of goods, they withdraw from these countries, but the factories’ owners keep producing the same goods with the same shape but with inferior quality because they use less expensive raw materials (production of counterfeit goods).
The Algerian importer presents a direct application to bring these counterfeit goods to Algeria.
The Second Way:
The Algerian importer goes to the counties’ factories that produce counterfeit goods, for example, there is a place in China called Chinghai where there are many factories specialized in producing only counterfeit goods, when he presents the shape of the goods that he wants to be manufactured such as cell phones, it only takes just about one hour to make five or six similar samples with different prices according to the material that it is made of.
The importer selects the appropriate type then he sets with the factory owner the quantity of the order, so they prepare it (including a large amount of the ordered goods) in just about four (4) hours.
We should mention that the order preparation is made in the same day, and most of the Algerian importers do not speak Chinese, they only communicate with the factories’ owner using signs.
The goods get into Algeria by manipulation and cheating, via the crossing points, the customs by entering the counterfeit goods with no trademark (as if they were ordinary goods), then the importer puts the trademark on them in special workshops in Algeria.
The importer also gives bribes to get the counterfeit goods with no world trademarks into Algeria.
Then the counterfeit goods get distributed in well known points of sale which are ready to receive these orders such as El-Eulma markets, Ain Fakroun, Tadjnanet, Atahtaha in Oran…
9-The Extent of the Trademarks Counterfeiting Phenomenon in Algeria:
The growth of the local or imported trademarks counterfeiting phenomenon is based on the openness towards the outer world and the liberalization of foreign trade in 1991, for counterfeiting trademarks has reached a big part of different products like fragrances and cosmetics, spare parts, cigarettes, and even medicines, these products are either made in Algeria or imported from abroad.
Table (1) shows the quality of the counterfeit goods available in Algerian markets:
Table (1). the quality of the counterfeit goods available in Algerian markets (2005-2012) Unit (%)
2012 2011
2010 2009
2008 2007
2006 2005
Counterfeit goods
21,66 64,02
86,68 10,92
- -
- -
sportsware
7,59 -
9,54 0,47
0,39 -
28 1
Household appliances
1,15 -
2,37 0,12
10,24 12,25
28 28
Spare parts
1,16 2,34
0,32 4,03
- 3,77 4
- hardware
59,01 30,74
- 29,74 81,85
30,86 18,5
1 cosmetics
8,59 2,09
1,9 2,09
1,95 13,45
19 2
electrical appliances
0,84 -
- 40,74 -
30,68 -
66 cigarettes
- -
- 0,59 5,57
8,99 2,5
2 foodstuffs
Source: - General Directorate of the National Security, Directorate of Judicial Police, the sub-department of Scientific and Technical Police. (2007): « A study of the phenomenon of counterfeiting and adulteration in industrial fields », Algiers, p13.
- The Directorate of fight against fraud. (2007), «counterfeiting in Algeria » , p4.
- General Directorate of Customs, directorate of the fight against fraud.
(2011) , «intervention modality of the customs administration in terms of suppression of counterfeiting», p22.
- Directorate of Customs Intelligence: Sub-Directorate of the fight against counterfeiting. (2013), Assessment of the activity of the fight against counterfeiting, P3.
We can put the table into the following graph:
Graph (3): The quality of the counterfeited goods available in the Algerian market (2005-2012)
Unity %
Based on the precedent chart and graph, we notice that the trade marks counterfeiting has reached different economical sectors in varying proportions in the period between 2005 and 2012.
Among the activities that got counterfeited in large proportions we find:
cosmetics (59.01%) in 2012, the cigarettes sector (66%) in 2005, and sportswear (86.68%) in 2010.
It should be mentioned that most of these counterfeit goods comes from abroad, the following graph states the most important countries producing the
counterfeit goods available in the Algerian market during the period between 2002 and 2005.
Graph (4): the countries producing the counterfeit goods available in Algeria (2002-2005)
SOURCE: the General Directorate of Customs.(2006), «Modalities of intervention in the fight against counterfeiting», Algiers, p20.
Based on the precedent graph, we notice that the country producing the most of the counterfeit goods is China (32%), then we find Taiwan, Turkey and Hong Kong in the same proportions (3%), as for France, India and Poland, they produce less than (1%).
The next table presents the most important countries producing counterfeit goods available in Algerian markets from 2007 to 2012 .
32
3 3 3 3 1 1 1
0 5 10 15 20 25 30 35
CHINE
EMIRATS ARABES UNIS
FORMOSE (TAI WAN)
HONG KONG
TURQUIE
FRANCE
INDE
POLOGNE
Table(2).The countries producing counterfeit goods available in Algerian markets from (2007-2012) Unity (%)
Source: - The Directorate General of Customs, Executive Officer of the fight against fraud. (2011) «intervention modality of the customs authorities concerning the repression of counterfeiting», Algiers, p22.
-Directorate of Customs Intelligence, Sub-Directorate of the fight against counterfeiting. (2013),«Assessment of the activity of the fight against counterfeiting», Algier,p2.
We notice from the precedent table that China is always ranking as first in the production of counterfeit goods available in Algerian markets (96.44%) in 2011.
We also notice a significant increase in the counterfeit goods production proportion in the United Arab Emirates, as it was estimated 0.45% in 2011 and it reached 59.15% in 2012.
China Emirates Turkey
Italy France Korea
Japan Hong Kong India Indonesia
47,71 8,57
- - 14,3 0,23 -
- - -
2007
64,28 -
_ 7,69
- 5,71 7,69 -
7,69 2008
72,72 3,03
6,06 14,28 6,06
- - 3,03 -
- 2009
94,04 0,45
2,98 -
1,67 -
- 0,63 -
- 2010
96,44 -
3,56 -
- - - - - -
2011
33,52 59,15
6,96 -
- 1,04 -
- 0,66 -
2012
20
16
3 3 2 1 1 1
0 5 10 15 20 25
EMIRATS ARABES UNIS CHINE HONG KONG TURQUIE FORMOSE (TAI WAN) INDE FRANCE POLOGNE
Graph (5). Represents the source of the counterfeit goods imported to Algeria during the period between 2002-2005.
Graph (5): The source of the counterfeit goods imported to Algeria 2002- 2005
Source: Directorate General of Customs, op.cit, p20.
We notice from the precedent graph that the United Arab Emirates ranks as the first importer of counterfeit goods into Algeria in the proportion of 20 % then comes China in the proportion of 16%.
The next table presents the source of the imported counterfeit goods into Algeria (2007-2012)
Table (3). The source of the imported counterfeit goods into Algeria (2007-2012) Unity (%)
China Emirates Turkey
Italy France Korea
Tunisia H.
Kong Indonesia
26,32 34,21
7,89 -
10,5 7.14 -
10,53 -
2007
35,71 14,28
- 14,28 7,14
2.63 -
7,41 7,14
2008
60,60 18,18
3,03 -
6,06 -
- 3,03 -
2009
75,40 2,91
2,98 0,79 -
0.67 -
20,63 -
2010
96,44 -
3,56 -
- - -
- -
2011
30,30 60,42
6,96 -
- - 0,64 -
- 2012
Source:- Directorate-General of Customs, towards the fight against fraud, op.cit, p22.
- Customs Intelligence Directorate, op.cit, p3.
From the precedent table, we can conclude that China and the United Arab Emirates are the two first countries in the importation of counterfeit good into Algeria, the importation proportion from China has reached 96.44% in 2011, that is a very high percentage which imply a large embarking upon the Algerian importers applications on this country, then it decreases in 2012 to 30.30%, while the proportion of importation from the United Arab Emirates has increased from 2.91% to 60.42% in 2012, which imply a large embarking upon applying for importation from this country by the Algerian importers.
10. The Measures Taken Against this Phenomenon:
Aiming to fight the counterfeiting of brands in Algeria, several national organizations have taken the necessary procedures such as:
10.1. In Legislations and Laws:
The official journals are considered as the most important legal sources which have taken into concern the enactment of strict laws and decrees against
counterfeiting brands phenomenon in Algeria, we mention hereunder the most important ones:
- The legislative Decree Nr. 93-17 dated Jumada 23rd, 1414 corresponding to December 7th, 1993 related to the protection of inventions, including articles 12, 13 and 14.
As for articles: 31 to 34, they are related to the penalties for the misdemeanor of counterfeiting such as:
- Imprisonment from One to Six months.
- An estimated fine from 40,000 AD to 400,000 AD.
The issuance of law 04/02 dated on June 23rd, 2004 which determines the applied rules on the commercial practices in order to define rules, verbal principles and the commercial practices integrity between economical agents themselves and between them and the consumers, in that scale, the article 26 forbids all commercial practices in violation of the clean commercial norms, it explicitly considers that counterfeiting a trademark of a competitor economical agent or its products or services in the pursuance of stealing its consumers is a dishonest competition, the perpetrator of this violation is subject to penal sanctions in addition to the possibility of the seizure of the goods, gear and equipment used in the commission of the violation, taking into account the rights of others with good faith, the seizure is proceeded according to a minutes whether it was an actual seizure or a moral one if the perpetrator could not present these goods for one reason or another, so the competent judge is the one who makes the decision of the seizure or lifting the hand as could the regional governor, basing on the suggestion of the state director in charge of commerce to follow the resolution of taking the measures of the administrative closure of shops for a period of time not exceeding 30 days, this decision can be recourse in the court of law.
The legislative decree No. 09-03 issued on Safar 29th, 1430 corresponding to February 25th, 2009 related to the protection of consumers and suppression of fraud.
As for the following stated penalties and violations in this legislation:
-Imprisonment for 5 years.
-Fines between 200,000 AD to 1,000,000 AD according to the type of the penalty.
10.2. In Customs:
The customs execute several interventions that allowed them to seize a significant amount of counterfeit goods across the different Algerian harbours as demonstrated in the following graph:
Graph (6). The customs interventions across the different Algerian harbours (2005-2006)
Source: Directorate General of Customs.(2006), «Intervention methods in the fight against counterfeiting», Algiers, p2.
Based on the previous graph, we notice that Algiers and Skikda harbours rank first when it comes to the customs intervention operations in 2005 -2006, then we find Oran and Moustaganem harbours and then we find Tebbesa.
The following table presents the amount of interventions executed by the customs across the Algerian territory from 2007 to 2012:
Table (4). The customs interventions across the Algerian territory (2007- 2012)
2012 2011
2010 2009
2008 2007
Year
47 26
58 09
07 06
Algiers
- 03
- 02
03 Oran
06 03
15 05
12 21
Constantine
- -
01 Tebessa
- -
- 02
Setif
- -
02 Elisée
01 02
- Annaba
Source: - Directorate-General of Customs: towards the fight against fraud, op.cit, p24.
-Customs Intelligence Directorate, op.cit, p5.
We conclude from this table that the customs have executed a significant number of interventions at Algiers Harbour and Constantine airport during the period between 2007-2012, which indicates the importance of these two areas in receiving a great amount of counterfeit goods.
The sharp surveillance of the customs spread all over the harbours has allowed them to seize a significant quantity of counterfeit goods, as demonstrated in the following graph:
Graph (7). The quantity of the seized counterfeit goods by the customs (2003-2012)
Source: Directorate General of Customs, Executive Office of the fight against fraud, op.cit, p26.
-Customs Intelligence Directorate, op.cit, p5.
According to graph (7), the quantity of seized goods was 2,278,341 in 2007, and then it decreased to 1,131,946 in 2012, the fact that indicates the amount of the efforts made by the customs.
As for the legal frame, the customs directorate has adapted the customs law effective since 1977, especially in the fields of disputes, fiscal collection, fight against counterfeiting, marine police,...
The customs have also concluded partnership conventions with trademarks companies to intensify information exchange in this field and to train customs agents, such as 11:
11 KARA Malak. (2010), « the Problematic of the unofficial Economy in Algeria with displaying and comparing experiences of: Mexico, Tunisia and Senegal». Ph.D. thesis in Economical Sciences, Management and Economical Sciences Faculty, Mentouri University, Constantine, P206.
- The convention of May 5th, 2007 with British American Tobacco.
- The convention of June 18th, 2007 with Unilever.
- On December 11th, 2007, the General Directorate of Customs signed a convention with the International (Philip Morris) in order to further expansion in the field of information, training and the coordination in the fight against smuggling and counterfeiting especially in the cigarettes products.
- On October 8th, 2007, the signing of a convention contract with (Nestlé), on October 10th of the same year, the signing of a convention contract with the National Enterprise Manufacturing Taps, Knives and Nails (BCR).
- During 2012, the customs agents have received several trainings to be able to know the techniques that help to identify the counterfeit goods such as: BIC. Colgate, HP, Bourgeois, Epson .
- The construction of the (rubrique contrefaçon) the counterfeiting section site by the General Directorate of Customs which aims to sensitize the consumer about the trademarks, taxes and types of counterfeit goods available on the Algerian markets.
Despite the efforts made by the Customs fighting counterfeiting and copying trademarks and brands, we still notice that this phenomenon is very spread in Algerian markets, the funny thing is the consumers desire to buy them convinced that they are counterfeited without any consideration to the negative aspects caused by these products, we always ask the same question: Where are the authorities and how are they facing this situation? Considering the last declaration
of executives in taxes and customs when they affirmed that despite the recruitment of other customs agents as their number increased from 14,000 to 20,000, and the acquisition of giant mobile Scanners which cost approximately 30
billion Centimes per scanner, the situation has not changed as counterfeit goods enter the Algerian harbours by large amounts 12.
According the Finance Ministry, the importation proportions of goods which are actually searched by the customs does not exceed a rate between 8% and 10%
:approximately 90% of Algeria’s imported goods is not controlled by the customs! This ministry suggests opening a green path special for the exemption of the big importing companies (known of their respect of laws and their good external business) allowing them to pass right through the direct customs search of their containers in the harbour, as long as they get searched and controlled later on as a sudden control in their factories 13.
The question that asks itself is: who guarantees the honesty of these enterprises? And will this procedure ease the customs task? Or will it open the door in front of more manipulations and doctrinaires?
10.3. In the Ministry of Commerce:
In the frame of the fight against counterfeiting trademarks, the Ministry of Commerce took several measures, such as14 :
- Creating a department to control and suppress commercial fraud.
- Creating a Training and Qualifying Center for the inspection agents.
- Establishing a laboratory - equipped with modern materials- to check the product’s content.
- Recruiting about 1,500 College Executive skilled in the control field in order to improve the control agents’ abilities.
12 Boukhemkhem Abd Elmounim.(2009), «the Ministry of Finance admits facing the Specialised Parliament Committee: 90% of Algeria’s importations are controlled by customs», El Khabar newspaper, Issue 5809,p2.
13 Boukhemkhem Abd Elmounim.(2009), Ibid.
14 KARA Malak. (2010), Op cit, p207.
- Setting a programme that allows the expansion of the control field especially in the areas which lack control and surveillance.
- The Ministry of Commerce deals with the complaints related to counterfeiting as demonstrated in the following table:
Table (4): Complaints, related to counterfeiting, treated by the Ministry of Commerce 2004-2010
Complaints treated by the central management of the Ministry of Commerce
The identity of the presenters of complaints related to counterfeiting The nature of the
complainer
(manufacturer or importer)
The source of the products subject to complaints related to counterfeiting
Number of complaints 496
The owner of the trademark himself or a client law firm 81
% The
complainer manufacturer 52
% An imported counterfeited product 62
%
Complaints related to counterfeiting 119
Algerian or foreign governmental departments 10
% The
complainer importer 48
% A local counterfeited product 33
%
Proportions of the Complaints related to counterfeiting compared to the total number 25
% Other sources 09
%
- -
counterfeited product with an unknown source 05
%
Source: Sufian Frisch, Directorate of trade control and suppression of fraud,( 2011) , «The role of the Ministry of Commerce in the fight against counterfeiting», a study day on the phenomenon of imitation brands, the Ministry of Commerce, Directorate of trade control and suppression of fraud, State Bordj Bou Arreridj, Algeria.
The mentioned complaints in the previous table have been analysed by the central Administration of the Ministry of Commerce, 82% of them have been investigated, as for the rest they could not because of some items lacking in the presented complaints, like: 15
- Complaints of the importer in which he doesn’t indicate that he is a representative of the imported brand, or he doesn’t indicate that he committed or registered the brand.
- The complainer presents a complaint without any information on the dealers who counterfeited his product, or the markets in which it is available.
- A complaint presented by any organization with an unknown brand owner, or with no brand representative.
As for the results of the investigations in the complaints related to counterfeiting between 2004 and 2010, they were as follows: 16
- A set of investigated complaints resulted to the seizure of counterfeit goods, and a judicial follow-up against the owner and distributers of these products.
- Another set of complaints did not result to any measures taken because:
The product (subject of the complaint) could not be found on the market.
The accused company could not be found at the declared address.
Finding out that the complainer does not have a committing or registration application for the brand.
Finding out that there is a difference between the brands unlike the claims of the complainer.
15 Sufian Frisch, Directorate of trade control and suppression of fraud,( 2011) ,Opcit.
16Sufian Frisch, Ibid.
10.4. Security Services:
Establishing the Scientific Police Central Laboratory, which played a major role in identifying counterfeit through the experiments performed on the suspected goods, during these last years (starting from 2008) it performed about 55 experiments17 .
Conclusion and Recommendations:
At the end, we can say that counterfeiting is problem which affects everyone, and fighting it requires big efforts that need to be made and shared by:
- The consumer: by overcoming the idea of looking for the cheap product without considering its quality and consequently overlooking the disadvantages of the counterfeit goods, which proves the first theory that says: the lack of the consumers’
awareness of the counterfeit goods danger has led to the increase of its demand which increases its supply.
- The importer: by overcoming the idea of the quick profit and using every possible way to fraud the customs and cheat them in order to pass counterfeit goods without considering their possible damages on the consumer which sometimes lead to his death, and that proves the second theory that says: there are different ways used by importers of counterfeit goods to cheat the customs in order to enter these goods across the borders.
- The concerned authorities: by collaborating and coordinating their efforts and departments: customs, security, Ministry of Commerce, .... in order to get more positive results while fighting counterfeiting, and that proves the third theory that says: there are some imperfections in the taken measures by the concerned authorities in the fight against counterfeiting.
On this basis, we can suggest some recommendations such as:
- 17 Chafai Bachir, the Regional Battalion Commander of the National Gendarmerie.( 2010), «the criminality of counterfeiting trademarks», Bordj Bouariridj, Algeria,p4.
- Emphasizing on the importance of the international collaboration in the fight against counterfeiting and intensify the exchange of the related information.
- The necessity of controlling markets by the concerned authorities routinely to prevent dealing and selling counterfeit goods.
- Intensify the training programmes of the government employees specialized in fighting against commercial fraud and counterfeiting.
- The necessity to intensify the adoption of the sensitizing programmes campaigns in order to identify the counterfeiting dangers and to increase the awareness among consumers.
- Setting purposeful strategic plans to protect the intellectual property rights and trademarks, and to stop the commercial fraud and counterfeit.
- Strict control on the counterfeit products especially in the medicines and foodstuffs fields to protect the consumers’’ health and safety.
- The necessity to apply very strict penalties on the importers and distributers of counterfeit goods.
- Strict control on the imported goods in order to decrease the importation of fake goods and benefiting from the other countries experiences in this field.
- Creating a committee to fight counterfeiting such as the National Committee to Fight Counterfeiting (NCFC) in France, which works in honesty and rigor in order to activate and toughen the rules and regulations related to fighting counterfeiting.
- The owner of the trademark is the party the most concerned of protecting his trademark and the first step to do that is its registration.
- REFERENCES:
1- Books :
- Bernard Pochon.(2007), «from creation to counterfeiting brands» ,ed puits fleuri, France, P14.
- Monot Bleuzenn.(2009), « the Counterfeiting War», ed Ellipses, P36.
- Pierre Delval.(2010), «The global counterfeit market», ed Cnrs, P 15.
- Gerard Cormu.(1997) ,«legal vocabulary», ed University Press, France,p16 .
2- Newspaper articles:
- Boukhemkhem Abd Elmounim.(2009), «the Ministry of Finance admits facing the Specialised Parliament Committee: 90% of Algeria’s importations are controlled by customs», El Khabar newspaper, Issue 5809,p2.
- Detibo Rossat.(2012), « China and counterfeiting, a long history», chronicles of china, P28 .
- Gilles Perrant.(2004), «the Counterfeiting» an article of the Expert journal, n 63, P5.
- Michel Amandry , Roman provincial Coinage. (1992), «The irregular currencies», BNF, volume1, p1.
-Cnac and Inpi .(2006),« Counterfeiting, no, thanks », national mobilization campaign against counterfeiting, P1.
3- Articles published in conference proceedings and study days:
- Chafai Bachir, the Regional Battalion Commander of the National Gendarmerie.( 2010), «the criminality of counterfeiting trademarks», Bordj Bouariridj, Algeria, p4.
- Directorate of Customs Intelligence, Sub-Directorate of the fight against counterfeiting.(2013),«Assessment of the activity of the fight against counterfeiting», Algier,p2.
- Sufian Frisch, Directorate of trade control and suppression of fraud, (2011) , «The role of the Ministry of Commerce in the fight against counterfeiting», a study day on the phenomenon of imitation brands, the Ministry of Commerce, Directorate of trade control and suppression of fraud, State Bordj Bou Arreridj, Algeria, p7.
-Spa Henkel.(2007),«Counterfeiting in Algeria »,International colloquium on counterfeiting, Hotel AURASI, Algiers, p10.
4- Doctoral thesis:
- KARA Malak. (2010), « the Problematic of the unofficial Economy in Algeria with displaying and comparing experiences of: Mexico, Tunisia and Senegal».
Ph.D. thesis in Economical Sciences, Management and Economical Sciences Faculty, Mentouri University, Constantine, P206&p 207.
5- Internet reference:
- G.Laval.D.Stoenes & M.Parons, the Counterfeiting (2009), « Can we stop this practice? », http//www.tpelacontrefacon.blogspot.com (consulted in 23 January 2012).
List of paintings:
- Table (1). the quality of the counterfeit goods available in Algerian markets (2005-2012).
-Table(2).The countries producing counterfeit goods available in Algerian markets from (2007-2012).
- Table (3). The source of the imported counterfeit goods into Algeria (2007- 2012)
-Table (4). The customs interventions across the Algerian territory (2007-2012).
List of figures:
- Graph (1): The trademarks counterfeiting characteristics - Graph (2): The way that counterfeit goods get into Algeria
- Graph (3): The quality of the counterfeited goods available in the Algerian market (2005-2012)
- Graph (4): the countries producing the counterfeit goods available in Algeria (2002-2005)
- Graph (5): The source of the counterfeit goods imported to Algeria 2002- 2005
- Graph (6). The customs interventions across the different Algerian harbours (2005-2006)
- Graph (7). The quantity of the seized counterfeit goods by the customs (2003-2012)
