24 Communication on Protection of Intellectual
Property Rights in the EU
| Committee's assessment
| Politically important |
| Committee's decision | Cleared from scrutiny; draw to the attention of the Business, Innovation and Skills
|
| Document details | Communication from the Commission on enforcement of intellectual property rights in the EU.
(36194), 11533/14, COM(14) 392
|
| Legal base | Not applicable
|
| Department | Business, Innovation and Skills
|
Summary and Committee's conclusions
24.1 Intellectual property rights (IPRs) are very
significant to the EU economy. It has been estimated that IPR-intensive
sectors account for around 39% of EU GDP.[109]
It has also been estimated that the EU loses about eight billion
euros of its GDP a year to counterfeiting and piracy.[110]
The importance of IP as a key driver for growth and innovation
was reaffirmed at the March 2014 European Council.
24.2 This Communication sets out a 10 point plan
of actions to be taken over the next two years. Three of the actions
could lead to EU legislative action — in respect of IPR
enforcement procedures for SMEs, both generally and by means of
a small claims procedure, and possible expansion of chargeback
schemes.
24.3 The protection and enforcement of intellectual
property rights (IPRs) in the EU is very important to UK economic
interests. This 10 point action plan complements the Communication
of the enforcement and protection of IPRs in third countries,
reported at Chapter 26. It sets out non-legislative actions to
be taken by the Commission, EU agencies, Member States and stakeholders
to counter infringements of IPRs. The effectiveness of such action
should be revealed in the proposed biennial reports from the Commission
covering the impact of the EU's IPR enforcement policy.
24.4 We note that three of the proposed actions
could lead to further EU legislative action. For this reason and
because of its intrinsic importance we draw this Report to the
attention of the Business, Innovation and Skills Select Committee.
Full details of the documents:
Communication from the Commission to the European Parliament,
the Council and the European Economic and Social Committee: Towards
a renewed consensus on the enforcement of Intellectual Property
Rights: an EU Action Plan: (36194), 11533/14, COM(14) 392.
Background
24.5 The Communication from the Commission sets out,
by way of background, the economic importance of IPRs. It also
seeks to demonstrate the prevalence of infringements and their
connection with organised crime, whilst recognising that countermeasures
should be proportionate and minimise the risk of stifling innovation,
restricting fundamental freedoms or encouraging anti-competitive
practices. It sets out a 10 point action plan whose objective
is to "arrive at a renewed consensus on how Intellectual
Property Rights are exercised, and in a manner that fully involves
all relevant stakeholders".
24.6 The action plan comprises:
· Developing and launching a new generation
of targeted communication campaigns by the European Observatory
on Infringements of Intellectual Property Rights and national
authorities to raise awareness amongst citizens on the impact
of commercial-scale IP infringements and thereby helping firms
that produce legitimate goods and services;
· Launching a wide debate on applying due
diligence in supply chains. Drawing on its outcome, develop a
EU due diligence scheme, initially for voluntary take up;
· Agreeing a voluntary Memoranda of Understanding
for stakeholders to address the profits of commercial scale IP
infringements in the online environment;
· Analysing existing national initiatives
seeking to improve IP civil enforcement procedures for SMEs in
respect of small claims procedures and consider possible action
in this field;
· Reviewing nationally financed schemes
for assisting SMEs to enforce their IP rights with a view to possible
future action;
· Consulting stakeholders on chargeback
schemes[111] which
aim to tackle commercial-scale online IP infringement;
· Establishing a Member State Expert Group
on IP Enforcement, where Member States can share best practice
on the work within the EU of all their enforcement authorities
and be informed on the delivery of the Action Plan;
· Supporting the Observatory in developing
a comprehensive set of sectoral IP enforcement training programmes
for Member State authorities in the context of the single market;
· Compiling a Commission guide on best practice
to help public authorities avoid purchasing counterfeit products;
and
· Publishing a biennial report, 'IP in the
EU economy', for more effective monitoring of the impact of the
EU's IP enforcement policy.
The Government's View
24.7 The Minister indicates that the Communication
is part of a three-pronged approach to protecting and enforcing
IPRs, alongside the recently published Strategy on the protection
and enforcement of IPRs in third countries (which sets out actions
to enhance IPR standards and stem trade in IPR infringing goods
in third countries, and is considered at Chapter 26 of this Report),
and the existing EU Customs Action Plan (which has a specific
focus on border enforcement and developing deeper cooperation
between customs authorities in the EU and in third countries).
The overall aim is to stimulate growth and employment and reduce
the incentives for the many commercial-scale IP infringers that
undermine the EU economy.
24.8 She indicates that the Government welcomes this
Communication and the Action Plan presented by the Commission.
By focusing on commercial-scale IPR infringing activity the Commission
rightly highlights the economic harm caused by IPR infringement.
IPR crime has long been a problem in the world of physical goods,
but with the growing use of the internet, online IPR crime is
now an increasing threat to the UK's economy. The creative industries
alone are worth more than £36 billion a year and employ more
than 1.5 million people. Technological advances which offer both
great benefits and significant changes to society at large, mean
that online IP infringement is a growing threat to businesses
and consumers in the form of both piracy and counterfeiting.
24.9 A UK IPR Crime Strategy 2011 provides the framework
within which the UK Government takes forward its work on tackling
IPR crime. It outlines the need for intelligence-led enforcement,
coordinated working and the sharing of best practice, and the
need for an effective legal framework. The UK is at the forefront
of attempts to tackle IPR infringement, as recognised in international
rankings of national IPR environments, and the Government is already
undertaking initiatives similar to a number of the actions set
out in the plan.
24.10 The Minister draws attention to the fact that,
whilst the Commission is responsible for taking forward the Action
Plan, some actions will require input from Member States and stakeholders.
This input will however be voluntary. A number of the actions
are already underway, for example the sectoral IP enforcement
training programmes being managed by the European Observatory
on Infringements of Intellectual Property Rights, and the awareness
raising campaigns, which again are being led by the Observatory.
The Government is working with other Member States and the Observatory
on these actions. The Government looks forward to sharing its
experience of developing the initiatives mentioned above with
the Commission in the coming months.
24.11 She also points out that the actions set out
in this Communication do not have any budgetary impact over and
above that already foreseen in the official programming of the
Commission.
Previous Committee Reports
None.
109 Intellectual property rights intensive industries:
contribution to economic performance and employment in the European
Union, Industry-Level Analysis Report, Joint project between the
European Patent Office and the Office for Harmonisation in the
Internal Market, Munich and Alicante, 2013. Back
110
CEBR, The impact of counterfeiting on four main sectors in the
European Union, Centre for Economic and Business Research, London,
2000. Back
111
Certain credit and debit card providers permit consumers to contest
and not pay for a service or product that they would not have
wished to purchase had they known it was not genuine. Back
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