The EU Commission recommends “measures to combat counterfeiting and improve the enforcement of intellectual property rights” in a 30-page document. The aim is to promote cooperation between rights holders, service providers and law enforcement authorities both online and offline. Both proven procedures and instruments such as digital product passports and database technology such as blockchain should be used to improve the traceability of supply chains.
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Records in a blockchain about the manufacturing and distribution route of a product “are immutable and transparent,” says the recommendation. They documented “every transaction and movement of a product.” They could be “presented as evidence in accordance with national procedural law” and expose counterfeiting.
The Commission also proposes automated content detection systems using machine learning “to detect counterfeit and pirated products online.” It also wants to engage with stakeholders to address “potential challenges to trademark and design protection in virtual worlds” such as the Metaverse.
According to the paper, artificial intelligence (AI) can not only make it easier to prosecute infringements of intellectual property rights, but also poses challenges for the economy, for example around copyright and the protection of secrets. Industry representatives and experts should therefore help create a checklist for small and medium-sized companies to “provide insights and guidelines on how to use AI systems without endangering their intangible assets”. The Commission recommends that member states set up a central contact point “for issues relating to the enforcement of intellectual property rights”, optimize the exchange of information in legal proceedings and ensure adequate compensation for damages. The appeal is being made to fellow activists to become accredited as “trusted whistleblowers” under the Digital Services Act (DSA) so that their reports of illegal content are given priority.
Maximum penalties for organized crime should increase
In addition, the EU Commission is pushing to adapt procedures to combat new counterfeiting practices and to address hot topics such as the fight against “mirror websites” with infringing content, for example through “dynamic” injunctions that constantly pursue the goal. On the one hand, mechanisms for alternative dispute resolution should be promoted; on the other hand, the Commission is bringing into play a “reassessment and possible increase in the maximum penalties for serious crimes” in intellectual property law. To date, there has been no EU-wide harmonized approach to criminal sanctions in the fight against organized crime in this area.
According to the proposals, market surveillance authorities should be able to detect counterfeits more easily and take more targeted action against them. The Commission has in mind “methods for faster, more cost-effective and more environmentally friendly storage and disposal of counterfeits”. Education about the importance of intellectual property rights should be anchored in national school and university curricula.
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