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Prison and increased fines proposed for EU
Date 2006-05-10
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Intellectual property infringers could face four years in prison and fines of up to ¢æ300,000 under European Commission proposals aimed at aligning EU countries' criminal laws
Intellectual property infringers could face four years in prison and fines of up to ¢æ300,000 under European Commission proposals aimed at aligning EU countries' criminal laws.
The Commission hopes the new measures, which it proposed on April 26, will improve European cooperation in the fight against piracy and counterfeiting.
In 2004 EU Customs seizures at the EU's external borders increased by almost 1000% compared to 1998, with Customs today seizing more than 100 million fake products a year. An increasing number of fakes include household, rather than luxury, items such as toothpaste, coffee and even roses, raising health and safety concerns. In 2004 counterfeit foodstuffs, drinks and alcohol seizures increased by 200% compared with 2003.
Under the proposed measures the minimum sentence for infringers operating as part of a criminal organization or producing products posing health and safety risks to consumers will be four years in prison. Minimum fines will be between ¢æ100,000 and ¢æ300,000, though the Commission leaves it up to member states to impose heavier penalties.
The proposal foresees changing EU countries' criminal laws subjecting all intentional IP infringements of a commercial scale to the new criminal offence rules.
The proposal follows the EU's Enforcement Directive, which member states will have to implement into their national laws by April 29. The Enforcement Directive deals with civil enforcement, rewriting countries' civil procedural codes to provide uniform IP enforcement across the EU. In its original proposal, the Commission included criminal sanctions in the Enforcement Directive which, despite protests by the Commission, were later taken out following months of protests by some member states and civil rights groups.
Last week's proposals for a separate criminal sanctions law were drafted by Commission Vice-President Franco Frattini, who is responsible for justice, freedom and security matters. To become law they will now have to pass through to adoption by the European Parliament and the Council of Ministers.
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