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Evangelista Torricelli 195 - Office No.201 - San Borja - Lima - PERU

DETECTING COUNTERFEIT PRODUCTS IN PERU

ESTUDIO DELION Prestige-Experience-Success

Background

Two years ago, Estudio Delion had a meeting in the US with the lawyer for one of the world’s leading bearings manufacturers. With substantial experience of cases in the American market, he was keen to send people from the company to teach Peruvian customs employees the difference between an original product and a counterfeit by looking at codes, packing and other technical specifications.

On June 12, 2012, the company carried out this training collaboration with Estudio Delion.

Laws and Agreements against the counterfeiting

Free Trade Agreement against the products' counterfeit

By way of legal background, the Free Trade Agreement signed with the US and the creation for its implementation of Legislative Decree No. 1075 brought several innovations to the field of IP. It prescribed that all infringement actions concerning trademark rights must be resolved in a maximum of 180 working days, and more severe potential penalties for infringement were imposed, of up to $200,000.

Legislative Decree 1092 and the Resolution of the Peruvian Customs No. 043-2009/SUNAT/A

On February 4, 2009, Legislative Decree 1092 and the Resolution of the Peruvian Customs No. 043-2009/SUNAT/A was approved, to the effect that marks registered before the Peruvian Patents and Trademark Office (INDECOPI) can be recorded at the customs administration, which will monitor imports and exports, and send alerts to the original owners or their brand representatives if they suspect counterfeiting.

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Current situation

It is not longer just small manufacturers responsible, but complex networks of criminals who know the regulations and how to avoid them"

The global rolling bearings industry is worth an estimated $50 billion per year, employing about 150,000 people.

Counterfeits are found in high and complex technology products, and used goods are sometimes adapted, put in falsified packages and sold as new. When quality problems, such as accidents, can result in high liability claims. Likewise, the ‘grey’ market is a growing problem, especially when mixed with counterfeit and original products. The average value of fake products is between $200 billion and $600 billion per year.

The counterfeiting of rolling bearings has a significant impact on the global economy. Counterfeiters and seizures have grown enormously; it is no longer just small manufacturers responsible but complex networks of criminals who know the regulations and how to avoid them.

The World Bearing Association seized one million counterfeit products in China in 2010. In the US, Long Beach customs also have recorded significant seizures—more than 6,000 rolling bearing products were confiscated. In contrast, New York customs detected and seized five pallets at JFK airport from China.

How to Identify a counterfeit product?

A way to identify a counterfeit rolling bearing is an unusual package or a lack of company identification. The sending information does not match different types of products in one shipping, pallet configuration, or container load.

Finally, underlining the importance of IP enforcement is critical. Trademark rights are respected in a sound system, and transgressors are punished with a substantial fine. The market benefits because infringers don’t sell falsified products, so consumers and trademark owners are protected. Traders are discouraged from sending counterfeits when there is vigorous IP enforcement. Business owners must realize the importance of registering their trademarks and the value of infringement actions. Moreover, transgressors have to pay all the costs of an infringement action; the counterfeits are confiscated and destroyed, and the infringer’s name is recorded in the national registry of infringers.

Lilie C. Delion

Lilie C. Delion

Partner and International Manager

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ESTUDIO DELION

Prestige – Experience – Success