Counterfeits from border marketplaces now in CTIA’s storages
(Report from 2nd quarter of 2014)
(Prague, September 12, 2014) During the 2nd quarter of 2014, in total 21,485 pieces of counterfeits were collected in 2,013 cases. If these products were sold, damage to owners of intellectual property rights would reach almost up to 24.5 million CZK. After decisions come into force, counterfeits will be destroyed or handed over to humanitarian purposes if applicable. Fines imposed in the evaluated period exceeded 2.5 million CZK. 75% of the products were counterfeits of textile goods, the rest consisted of imitations of audio- and video carriers, footwear and other leather products, watches as well as toys.
In the period from April 1 to June 30, 2014, in total 590 inspections were carried out within an inspection action focused on vendors’ compliance with prohibition to use unfair commercial practices (section 5 par. 2 of the Act No. 634/1992 Coll. on Consumer Protection), i.e. whether they violate intellectual property rights by offering, selling or storage of products or services. Inspections were carried out both individually and together with appropriate trade licensing offices or customs bodies.
Inspections aimed at counterfeits – 2nd quarter of 2014Inspectorate / Number of inspections / Inspections with findings / Detected breaches in %
Total / section 5 par. 2* / Total / section 5 par. 2*
Středočeský and Prague / 53 / 18 / 8 / 34.0% / 15.1%
Jihočeský and Vysočina / 102 / 101 / 12 / 99.0% / 11.7%
Plzeňský and Karlovarský / 201 / 176 / 87 / 87.6% / 43.3%
Ústecký and Liberecký / 122 / 105 / 46 / 86.1% / 37.7%
Královéhradecký and Pardubický / 30 / 27 / 18 / 90.0% / 60.0%
Jihomoravský and Zlínský / 13 / 13 / 9 / 100.0% / 69.2%
Moravskoslezský and Olomoucký / 69 / 50 / 23 / 725% / 333%
Total / 590 / 490 / 203 / 83.1% / 34.4%
*) number of inspections within which offering and selling counterfeits was detected (i.e. products infringing certain intellectual property rights and labelled with trade-marks) as stipulated as deceitful commercial practices in section 5 par. 2 of the Act No. 634/1992 Coll. on Consumer Protection
Inspectors detected violations of generally binding legal regulations in 490 cases (83.1% of 590 inspections). Sale of fakes, i.e. products infringing certain intellectual property rights, was proven to sellers in 203 cases, i.e. 34.4%.
Besides violations of the Act on Consumer Protection, in 68 cases breaches concerning product safety were detected, in 28 cases textile products were not labelled with information on material composition and in about 20 cases inspected persons infringed other laws.
Imposed measures and sanctions
Based on proven infringements of legal regulations, inspected entities were lawfully imposed 392 fines amounting to 2,654,000 CZK.
Collected products
During the 2nd quarter of 2014, besides sanction measures, in total 21,485 counterfeits were collected and stored away from inspected persons. The value calculated in the prices of originals would amount to 24,429,829 CZK. Products to be confiscated would subsequently be destroyed or used for humanitarian purposes if applicable.
Find below the share of individual types of products within counterfeits collected within the evaluated period:
Find below the share of selected trade-marks in the total number of collected counterfeits (trade-marks with less than 200 pieces are not displayed):
Conclusion
Deceitful commercial practices pursuit to the Act on Consumer Protection, including offering, selling and storage of products or provision of services infringing certain intellectual property rights, are accompanied with a number of other shortcomings and defects as the Czech Trade Inspection Authority discovered. Flaws most frequently concern violations of the Act on Consumer Protection, especially information obligations. Permanently high ratio of total findings (in total 83.1% in the 2nd quarter) as well as high number of counterfeits are the reasons to carry out further inspections focused on protection of certain intellectual property rights.
Contact: Spokesperson of the CTIA Phone: +420296366233
Mgr. Jiří Fröhlich Mobile: +420602105 376
E-mail: