The scope of IRP infringement in the automotive industry is vast, covering abuse of patents, trademarks, copyright and design rights, ranging from individual components to entire vehicles.

It is estimated that the worldwide turnover of fake automotive parts and components amounts to $12 billion a year, of which $3 billion is in the USA alone. This is significant, in an industry which is estimated to have yearly global sales in excess of $330 billion (MEMA).

In total, there are tax losses of €70 billion, representing 10% of the world-wide trade account for counterfeiting, with a turnover of €500 billion.

In Europe, turnover losses in the automotive industry are estimated at €1.5billion (VDA 1999)

Approximately 70,000 jobs in Germany are lost every year to the practice of counterfeiting and the damage to Germany economy is estimated at €29 billion.

The hot spots are in China, accounting for more than a third of infringements, particularly in Province Yonkany, Province Zhejiang. However, reports of abuse are also widespread in the Middle-East, Dubai, Turkey and Eastern Europe, with imports regularly channelled through Italy.

IPR: CLEPA’s involvement in EU IPR current projects

As part of the Industrial Policy strategy, the EU Commission has announced an Intellectual Property Rights and counterfeiting initiative, primarily focused on the proper enforcement of IPR within the EU internal market and in third countries.

Given that it is estimated that counterfeiting costs global automotive parts industry approx. $US 12 billion a year, of which $US 3 billion is in the USA alone (MEMA 2005), this is clearly a significant threat to our industry’s competitiveness and innovation.

The Commission has expressed its commitment to developing practical ways of supporting EU industry to limit this phenomenon, with particular emphasis on countering abuse in China. With this in mind, it has developed an EU Policy Framework as follows:

• Industrial Policy Communication (Oct. 2005)
• Lahti Summit Communication (Oct. 2006)
  • Community Patent and EPLA
  • 2007 Communication on IPR Strategy
• EU-US Action Strategy on IPR Enforcement (in which CLEPA is involved as a stakeholder in its consultations and meetings)

Current EU projects

• EU / China Trade Programme

CLEPA has been asked by EC, DG Enterprise & Industry to determine a set of subjects and to participate in a number of “roundtable events” between EU officials and Chinese regulators. Discussions will focus primarily on the harmonisation of standards, conformity assessment, accreditation; safety provisions and regulatory provisions, which are in the early stages of legislation in China.

It is anticipated that the first 'pilot' scheme will take place in April, dealing with regulations not yet firmed up by the Chinese e.g. some of the pending items on HDV safety or pedestrian protection. Subjects on e.g. CCC, tyre standards, etc, which are existing complaints in the Commission, these subjects are due to come later in the second half of the year.

We ask our members to register your interest now to secure your place at these “roundtable events” with the Chinese authorities. Further details regarding timetables and agendas shall be forwarded on. Participation is limited to a first-come-first-serve basis.

• IPR Enforcement Seminars, 2007

DG Trade and the National Patent offices run a series of one-day national language seminars, consisting of 50-100 SME participants in 2007. They were hosted by the European Information Centres with organising committees, including NPTOs, anti-counterfeiting groups and SMEs associations. The countries involved in the project were Sweden, Italy, Spain, Germany, UK, France, Czech Republic. Further details will follow.

• CHINA IPR Helpdesk

Small and medium sized enterprises face specific challenges in deciding whether and how to protect their innovations through the use of IPR, both in Europe and abroad. For example, SMEs which traditionally operated only in a European home market now increasingly find themselves needing to work with the Chinese in order to continue their business with larger firms which have already invested in China. Those SMEs who do not venture overseas may still find themselves facing counterfeit products imported into the European market. At the end of March 2008 a China IPR SMEs helpdesk will be set up to assist EU SMEs to both protect and enforce their IPRs in or relating to China. Services to be provided include:

1. A first line advice service, based in China, on IPR, and expert liaison services to the relevant government administrations, lawyers, or consultants for further follow up as appropriate;
2. Providing materials to be used for legal background support for EU SMEs;
3. Providing basic translation services for initial contacts;
4. Creating a network between firms and industry associations;
5. Providing materials trainers and training materials on China IPR;
6. Providing a multilingual web portal for IPR protection in China;
7. Monitor and select IPR cases.

Stakeholder workshop, Brussels 13.02.08

• CLEPA’s contribution is required on an EU Study on:

 “The effects of counterfeiting on EU industry and a review of the public and private IPR enforcement initiatives and resources”. The overall objective of this study is to provide a preliminary input for evaluating the impact of EU policy actions. It will serve to prepare Community actions and facilitate planned future discussions with Member States and EU industrial Associations, aimed at establishing best practices in support actions, in particular for SMEs, to tackle counterfeiting and other IPR abuses.

The study aims to assess IPR attitudes and strategies of EU SMEs in the EU automotive supply sector; the nature and extent of the IPR enforcement problems they face, originating from outside the EU, especially from China, and to identify good practices and countermeasures.

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