Anti-counterfeit Measures, Economic Development and Vision 2030 19thjune 2012

7/31/2019 Anti-counterfeit Measures, Economic Development and Vision 2030 19thjune 2012

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ANTI-COUNTERFEITMEASURES, ECONOMIC

DEVELOPMENT AND VISION2030Presentation by Mr. Stephen Mallowah

Executive Director

Anti-Counterfeit AgencyAt the Red Court HotelJune 19, 2012


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INTRODUCTION

The Anti-Counterfeit Agency (ACA) came into operation in June 2010 after anenactment of the Anti-Counterfeit Act No.13 of 2008 by the Government ofKenya.

As a state corporation, the ACA has the mandate to enlighten and inform thepublic on matters relating to counterfeiting, combat trade and dealings ofcounterfeits, devise and promote training programs on the same, andcoordinate with national, regional and international organizations.


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INTRODUCTION Contd

Trade in counterfeit goods is a lucrative, growing andprofitable business.

The counterfeiters are well organized and they keepimproving the quality of packaging, making it difficultfor consumers and enforcement agents to distinguishbetween genuine and counterfeited goods.


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INTRODUCTION Contd

Acounterfeit is an imitation, usually one that is made with theintent of fraudulently passing it off as genuine.

Counterfeiting therefore has been a pain in the neck to

entrepreneurs, innovators and the public over the years.Counterfeiting and piracy of intellectual property are a globalconcern that denies Intellectual Property Rights owners theirdeserved benefits. This leads to massive losses to governments,manufacturers and consumers.


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SCOPE OF COUNTERFEITPRODUCTS

Certified Seeds

Cigarettes/ Alcoholic Beverages

Dry Cell Batteries

Cosmetics

Cooking fats and oils


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SCOPE OF COUNTERFEITPRODUCTS Cont.

Electronics/ Electrical Goods

Medicines/ Pharmaceuticals

Food Products & Drinks

Soaps and Detergents

Shoe Polish


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DRIVERS OF COUNTERFEITPRODUCTS

Advances inManufactur-

ingTechnology

Law ofGreed (LowRisks, HighReturns)

Lack ofModernTools toEnable

Detection

LowPolitical Will

to Help

IncreasedInternational

Trade


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ECONOMIC DEVELOPMENT

Protection of intellectual property rights (IPR) is an issue of high importanceand increasing priority for governments.

Its importance reflects the growing recognition of the key role that intellectualproperty (IP) plays in promoting innovation and growth on the one hand, and,on the other, increasing concern with the adverse effects that counterfeitingand piracy have on economies and society as a whole.

Strengthening IPRs systems could raise or lower economic growth, though therelationships would be complex and dependent on circumstances.


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ECONOMIC DEVELOPMENT

The IMF, the World Bank and otherinternational institutes have estimated thatthe parallel economy arising from tax

evasion, undeclared trade and othercriminal activities represents 15-20% ofglobal GDP. Worse, since the 1990s, illicit

trade has increased seven times fasterthan legal trade, with major consequencesfor the global economy.


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ECONOMIC DEVELOPMENTContd

In Kenya, the Kenya Association ofManufacturers estimates that thegovernment is losing revenue in form of

taxes amounting to Kshs.6 billion per year,while the private sector is experiencinglosses to the tune of Kshs. 30 billion insales per year due to counterfeit goods

alone. These statistics could be higher ifthe whole sector of the undergroundeconomy is taken into account.


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VISION 2030

As we are all aware, the Kenyan Government developed aninitiative to become an industrial nation by the year 2030.

Intellectual property remains a key competitive asset in Kenyasplans to achieve vision 2030 and the main backbone is throughinnovations which will revolutionalize the economy.

When there is protection of innovative ideas, the economicgrowth will be realized which will lead to creating businesses,jobs, and the improvement of the standards of living.


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VISION 2030 Contd

The Kenya Vision 2030 is built on three pillars:Economic, Social and Political pillar.

Under each of these pillars, there are adverse effectsby counterfeiting which, if not addressed, will makethe nation not to achieve its vision 2030 goals.


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SOCIAL EFFECTS


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SOCIAL EFFECTS


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SOCIAL EFFECTS Contd


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CONCLUSION

The Anti-Counterfeit Agency endeavorstherefore to approach the fight againstcounterfeits in a more inclusive way and

this shall be realize through collaborationswith other institutions like KIPI on IPRprotection who advocate for timely and

quality IPR adjudications.


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Thank You

Anti-counterfeit Measures, Economic Development and Vision 2030 19thjune 2012

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