Professional Documents
Culture Documents
SUPPLY CHAIN
TOOLKIT 2014
CRIME GROUP
Contents
Foreword
1
Avoiding Trouble.......................................................................................... 5
1a Introduction ...........................................................................................................................5
1b Protecting your rights ............................................................................................................6
1c Protecting IP in your organisation..........................................................................................7
1d Creating a system of checks..................................................................................................8
1e Working with other people.....................................................................................................9
1f Packaging and product design...............................................................................................9
1g Manufacturing Partnerships and outsourcing.....................................................................10
Planning ahead......................................................................................................................11
Working with law enforcement authorities.............................................................................12
Preparing your legal case......................................................................................................14
Further reading............................................................................................. 19
Useful contacts............................................................................................ 21
8 Glossary........................................................................................................ 30
Foreword
The supply chain is the system of organisations, people, technology, activities, information and other resources
involved in moving a product or service from a supplier to their customer.
This supply chain toolkit is produced by the National IP Crime Group, which includes representatives from
government, industry and regulators. Members include trading standards, police, National Crime Agency (NCA)
and Customs.
We have produced this toolkit to help make people more aware of the growing risk from counterfeit goods getting
into business supply chains it also gives guidance on how to strengthen and protect your intellectual property (IP)
assets.
While it is mainly aimed at SMEs, we hope other businesses will also nd the information useful. It takes readers
through a step-by-step process to help them avoid problems. The steps cover areas relating to products, protecting
rights, ensuring partnerships and making sure employees and associates have a common respect for IP. There is
also advice on what to do when things go wrong.
We have included three examples covering different types of businesses and their role in the supply chain. We
would like to thank TNT, ghd and Astra Zeneca for their contribution to this publication.
IP Crime Group
1 Avoiding Trouble
1a Introduction
Have you considered what you would do if things
went wrong in your supply chain?
The cost of weak links in supply chains is too high
to ignore. It is essential that businesses realise the
importance of security and work together to keep the
supply chain strong.
Current problems
Throughout the world, intellectual property (IP)
laws have become increasingly important in
protecting creativity and innovation the drivers
of the knowledge-based economy (using peoples
knowledge to benet a business nancially). There
is a clear need for creators rights and brands to be
protected by continuing to make the very best of
creative opportunities.
Over the past ten years the sudden increase in IP
crime (counterfeiting and piracy) has created one
of the biggest problems facing many businesses
around the world. IP crime has spread from cottage
industries producing poor quality, counterfeit fashion
accessories and goods, to massive manufacturing
plants that can produce cheap copies of everything
from home entertainment products and electrical
appliances to medicines, car parts and household
goods. Sometimes, these cheap copies can be very
dangerous.
As more national borders open for trade, the
international threat grows the greater the
opportunities for legitimate businesses to invest
in developing countries, the greater the risk from
organised counterfeiting networks.
copyright;
performers rights.
Further advice
IP is a complicated area and covers a range of
different areas. For further information please see
the Intellectual Property Ofces website (www.gov.
uk).
The Intellectual Property Ofces Information Centre
offers general advice on all areas of IP and can
provide advice leaets and guides. (Tel: 0300 300
2000) A list of further reading can be found towards
the end of this booklet.
The Intellectual Property Ofce also has stands at
many exhibitions and events across the UK and they
offer training and workshops on IP issues.
Other organisations
Organisations such as Business Support, Business
Wales, Scottish Executive, Business Connect, Invest
Northern Ireland, National Endowment for Science,
Technology & the Arts (NESTA), and Innovation
Relay Centres (IRCs), may be able to offer advice
on making the most of your idea. Further contacts
can be seen at http://www.gov.uk.
1c Protecting IP in your
organisation
Do your colleagues know enough about IP and the
benets to your business of protecting IP?
For any organisation, raising and maintaining
awareness of issues relating to IP is vital. It will help
to avoid possible losses and protect employees.
You wouldnt employ someone without rst
explaining safety in the workplace. Protecting IP
is a vital part of your business, so you should also
take the time to explain it. You do not need to send
your employees on expensive training programmes
to make them aware of issues relating to IP. Often,
a basic level of awareness will be enough, and you
can achieve this with simple posters and workplace
seminars.
The following are just some of the potential benets.
any drawings;
a witness signature;
1g Manufacturing Partnerships
and outsourcing
Building the foundations
Controlling distribution
Waste Management
10
Consider introducing:
11
The police;
Action Fraud;
Taking action
12
The police
Counterfeiting, piracy and the intentional copying of a
registered design are criminal offences and they carry
a maximum sentence of 10 years in prison, a ne,
or both. The police often work with trading standards
ofcers (TSOs) and Customs to ght counterfeiting
and piracy.
Under the Trade Marks Act 1994 and the Copyright,
Designs and Patents Act 1988, the police can ask
the court for warrants to enter and search homes and
businesses for evidence of infringement of IP rights.
TSOs, who cannot arrest criminals, will often ask the
police for help if they are searching premises and
they think they may face the risk of harm or violence.
Action Fraud
Action Fraud is the UKs national fraud and internet
crime reporting centre. It provides a central point of
contact for information about fraud and financially
motivated internet crime, including IP crime.
If youve been scammed, ripped off or conned, yoiu
can report it to Action Fraud and receive a police
crime reference number.
Trading standards
Trading standards usually has the largest role in
investigating and prosecuting counterfeiting and
piracy cases (except in Northern Ireland, where
the main authority is the Police Service of Northern
Ireland). Trading standards departments are part of
local government and have a legal duty to enforce
the Trade Marks Act 1994, Copyright, Designs and
Patents Act 1988 and a power to enforce under the
Registered Designs Act 1949. Under these acts,
TSOs can make test purchases and they have the
authority to enter premises to inspect and seize
goods and documents.
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order.
Give a statement about how securely the
evidence has been kept. (It would be best
to keep a written record showing when the
evidence was received.)
Be aware that anyone providing a witness
statement must be prepared to go to court if
they are asked to attend.
3 Examples of good
practice
3a ghd and TNT - successful
partnership working
ghd make hair straighteners and other hair-styling
products and were established in West Yorkshire in
2001. http://www.ghdhair.com
This is a very successful brand, with a robust
enforcement policy. It has experienced phenomenal
growth, from startup in 2001 to an estimated 150
million in 2010. It is a global brand, with operations
in 17 countries employing about 600 people
worldwide, so it operates a complex series of supply
chains.
ghd is an attractive and lucrative proposition for
counterfeiters for the following reasons:
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3c A pharmaceutical companys
view on working with HMRC to
tackle IP crime AstraZeneca
AstraZeneca is an international healthcare business
that researches, develops, manufactures and
markets prescription medicines, and supplies
healthcare services.
We are one of the worlds leading pharmaceutical
companies with sales of US $29.55 billion.
Our Global Security team investigates incidents,
monitors marketplaces for illegal trade and works
with law enforcement authorities. The team also
works with other parts of the business to help
maintain the strength of the supply chain. This work
includes assessing new technologies, our legal
powers and improvements to the supply chain,
and working to protect the public from counterfeit
medicines.
Any strategy to tackle IP crime should involve
working with Customs. Customs are the frontline
and are the authority that can best stop illegal
products from entering the marketplace in the rst
place, so it is best to get them involved in any
strategy as early as possible. The four main parts to
producing a strategy for working with customs are as
follows.
Training
countrys (or regions) customs authority is a handout that describes the usual, legal supply chain
into that country or region. The hand-out should
include details of agents and logistics providers,
points of entry (ports, airports and so on) and who
should receive the goods. You should also include
an example of one of your company invoices that
contains any unique coding details. This type of
information is not usually condential so you can
also say that if your client wants to use a different
type of invoice, it will be treated as suspicious.
Maintain an efficient system of
checks
If customs detain goods they believe are counterfeit,
they will send samples of the goods to your main
point of contact for you to check if they infringe your
IP rights. In the EU, you only have 10 days to carry
out your checks (although in special circumstances
you may be given an extra 10 days). So, it is
essential that you can carry out these checks quickly
and efficiently.
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Further Reading
MY Equip App
www.ipo.gov.uk/blogs/equip/how-to-identifybusiness-assets/
The success of your business depends on your
commitment to your business assets. What seems
unimportant today might be worth millions of pounds
in the future.
IP Healthcheck Series
A suite of booklets and online tools for businesses
which have been developed to help you identify
your intellectual assets and advise you how best to
exploit and protect them.
Resolving IP Disputes
www.ipo.gov.uk/resolvingipdisputes.pdf
Non-Disclosure Agreements/Confidentiality
Disclosure Agreements
www.ipo.gov.uk/nda.pdf
Agreeing a price for intellectual property rights
www.ipo.gov.uk/iprpricebooklet.pdf
Online IP Healthcheck
www.ipo.gov.uk/iphealthcheck
A free online diagnostic software tool. On
completing a questionnaire, the IP Healthcheck
produces a confidential report identifying areas a
business may need to focus on, or where they may
be weak, and helps them plan to make the most of
their intellectual assets.
IP Insight
www.ipo.gov.uk/news/ipinsight.htm
IP Insight is a monthly E-newsletter bringing you
the latest developments in IP news, views from the
Intellectual Property Office and IP professionals, IP
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Further resources
Business advisors
www.ipo.gov.uk/whyuse/business/business-support.
htm
There are networks of business advisors in England,
Northern Ireland, Scotland and Wales offering advice
to businesses of all sizes.
Business events
www.ipo.gov.uk/whyuse/events/events-calendar.htm
There are numerous events throughout the UK and
abroad, facilitated by the Intellectual Property Office,
which have an intellectual property or business
focus. These events offer delegates advice and
information about the benefits businesses gain from
understanding, using and protecting their intellectual
property. The calendar is updated regularly so keep
checking it to see whats new.
European Patent Office (EPO)
www.epo.org/learning-events/materials/inventorshandbook.html
The purpose of this Inventors Handbook is to
provide you with basic guidance on all the key
stages of turning an invention into a commercial
product.
European project - IPeuropAware
www.innovaccess.eu/home.html
Provides assistance to SMEs and other stake
holders in IP issues. InnovAccess provides SMEs
with direct access to national and EU resources and
general IP issues.
The Office for harmonization in the Internal
Market (OHIM)
www.oami.europa.eu/ohimportal/en
OHIM is the European Union agency responsible for
managing two important vehicles for the protection
of creativity and innovation - the Community trade
mark and the registered Community design.
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Useful contacts UK
The IP Crime Group
E-Mail: ipcrimegroup@ipo.gov.uk
The Anti-Counterfeiting Group (ACG)
Phone: 01494 449 165
Website: www.a-cg.com
Alliance for Intellectual Property
Phone: 020 7803 1324
Website: www.allianceagainstiptheft.co.uk
The Department for Business, Innovation and
Skills (BIS)
Phone: 020 7215 5000
E-mail: enquiries@bis.gsi.gov.uk
CrimeStoppers
Call anonymously with information about crime
Phone: 0800 555 111
Website: www.crimestoppers-uk.org
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Useful contacts
international
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Annex A
(b)
(c)
Section 92(1) (a), (b), (c), (2) and (3) offences are
all hybrid offences, for which a maximum sentence
of 10 years imprisonment and or an unlimited fine
are available by way of penalty on indictment. See
Section 92(2) and (3) for other possible offences.
Section 92 (2) A person commits an offence who
with a view to gain for himself or another, or with
intent to cause loss to another, and without the
consent of the proprietor:
(a)
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(b)
(c)
(a)
(b)
(c)
(d)
(b)
iv. distributes; or
(e)
Section 107(1) (c), (d) (i), (d) (ii), and (d) (iii) above
are purely summary offences for which a maximum
sentence of three months and/or a ne of 5,000
are available by way of penalty. See Section 107 for
other possible offences.
Publications
Books
DVDs - music, lm, computer software and
games
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(a)
(b)
(a)
(a)
(b)
(b)
(c)
(c)
(d)
(b)
25
(a)
v. distributes, or
(b)
Section 198(1) (a), (b) and (d) (iii) above are hybrid
offences for which a maximum sentence of ten
years imprisonment and/or an unlimited fine are
available by way of penalty on indictment. The
other offences under Section 198 carry a mixture of
sentences.
Elements of Offence
Section 296ZB(1) A person commits an offence if he:
(a)
(b)
(c)
26
iv. possesses, or
(d)
(b)
(b)
(c)
Section 2
Section 6
(d)
Section 7
Making or supplying articles for use in fraud. The
defendant must make, adapt, supply or offer to
supply any article knowing that it is designed or
adapted for use in the course of or in connection
with fraud, or intending it to be used to commit, or
assist in the commission of, fraud. This section could
extend to counterfeit goods or the manufacture or
supply of chipping or copying equipment.
Section 8
Extends the meaning of article for the purposes of
section 6 and 7 so as to include any program or data
held in electronic form.
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Annex B
At A Glance A Guide To Offences
A full list of potential offences can be seen at http://www.ipo.gov.uk/ipenforce/ipenforce-resources/ipenforceoffenceguide.htm (including offences under the Video Recordings Act 2010 and the Fraud Act 2006)
Statute
Offence
Section
Sentence
summary
Indictment
92
10 years &/or ne
Copyright, Designs
and Patents Act 1988
107(1)(a)
10 years &/or ne
107(1)(b)
10 years &/or ne
107(1)(c)
n/a
107(1)(d) (i)-(iii)
n/a
107(1)(d)(iv)
10 years &/or ne
107(1)(e)
10 years &/or ne
107(2)
n/a
107(2A)
2 years &/or ne
107(3)
n/a
198(1)(a)+(b)
198(1)(c)
n/a
198(1)(d)(i)+(ii)
n/a
198(1)(d)(iii)
198(1A)
198(2)
n/a
296Z(B)
297
5,000
n/a
Unauthorised decoders
297A
35ZA(1)
Registered Designs
Act 1949
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Register Your
Rights
-register
-licences
Customers
-make checks
-know your markets
-monitor buying
patterns
-contracts
-market surveillance
Manufacturing &
Outsourcing
-design; not easily
copied
-materials sourcing;
keep control
-packaging/labelling;
strong & distinct
-distribution; keep
control
Employees
Partners
-use of licences
-use of agreements
Avoiding Trouble
-Mystery Shopping
-use research teams
-make checks on customers
& distributors
-use of contracts
When things
go wrong
Civil Remedies
Criminal Remedies
-plan ahead
-set aside some budget
-consider legal action
-restrain & seize orders
-injunctions
-plan ahead
-set aside some budget
-identify relevant enforcers, UK & abroad
-sharing information
-provide contact point for enforcers
-provide expert evidence
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Glossary
Act: a law made by Parliament (Act of Parliament).
Afdavit: written statement of fact made on oath
and signed in the presence of an authorised person
(e.g. a solicitor). Now called a Statement of Truth.
AstraZeneca: develops, manufactures, and
sells pharmaceuticals to treat disorders in the
gastrointestinal, cardiac and vascular, neurological
and psychiatric, infection, respiratory, pathological
inammation and oncology areas.
Berne Convention for the Protection of Literary
And Artistic Works: is an international agreement
about copyright, which was rst accepted in Berne,
Switzerland in 1886.
Breach of the peace: whenever a person causes
harm or appears likely to cause harm to persons
or property, or acts in a manner, the natural
consequence of which, is to provoke others to
violence.
Cease and desist notice: is a legal term used
primarily in the United States which essentially
means to halt or to end an action (cease) and to
refrain from doing it again in the future (desist).
Chain of evidence: refers to the chronological
documentation, and/or paper trail, showing the
seizure, custody, control, transfer, analysis, and
disposition of evidence, physical or electronic.
Companies House: An executive agency of the
Department for Business, Innovation and Skills
(BIS) and registers all limited companies in England,
Scotland and Wales under the Companies Act
1985 and the updating legislation contained in the
Companies Act 1989.
Condentiality Agreement: also known as a
nondisclosure agreement or NDA. It is a legal
agreement which is used where the owner
of condential information wishes to disclose
information to another party(either an individual
or a company) usually in the course of business
negotiations, and wishes the information to remain
condential.
Copyright, Designs & Patents Act (CDPA)
1988: an act which governs UK copyright laws,
created an unregistered design right and contained
modications to the law on patents and registered
designs.
Consolidation: the mergers or acquisitions of many
smaller companies into much larger ones.
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