In this issue

Editor`s Note.............................2

Press Picks................................2

Celebrity Speaks.......................3

ACIF’s Even t s . . . . . . . . . . . . . . 4

ACIF’s Even t s . . . . . . . . . . . . . . 5

Expert’s Opinion........................6

Market Watch............................7

Industry Fights Back...............8

Issue No. 3 July-September, 2006

Oxford University PressPakistan State OilPakistan Tobacco CompanyPepsi Cola InternationalPhilips Electrical IndustriesProctor & Gamble PakistanRafhan Best FoodsReckitt Benckiser PakistanTapal TeaUnilever Pakistan

Efroze Chemical IndustriesEnglish Biscuit ManufacturersHilal ConfectioneryICI PakistanJohnson & JohnsonMuzic UnlimitedNestle PakistanNational FoodsNovartisSystematic Education (Kaplan)

Pharma Pakistan

Amar NaseerAsmat SaleemRonald InayatDr. Shahzad Saleem

Counterfeiting and piracy are among the major issues of the contemporary world, which confront all nations. These unlawful activities affect cross-section of any society, including the producers of goods, consumers and the national exchequers.

The menace of counterfeiting and piracy is rampant in Pakistan, threatening legitimate industry and trade, and also depriving the national kitty of precious revenues. In commercial activities, the scale of production determines the cost and sale price of a product. When produced in bulk, the cost and, in turn, sale price of the product automatically comes down. If the sale price is low, experience tells, the products are patronised on a massive scale. Consequently, the producers earn more profits and the national exchequers get more revenues in the shape of taxes and duties. But, in view of the widespread piracy and lack of enforcement of Intellectual Property Rights (IPRs) in developing countries, like Pakistan, the producers are constrained to limit the production of their products, which deprives them of economies of scale. On the other hand, the unscrupulous players not only make illegitimate gains, they also hurt the genuine trade, cheat the consumers with substandard products, deprive the community of tax revenues much needed for public sector social services, and damage national repute.

As piracy affects one and all, it is an offence which needs our attention in terms of stricter laws and effective enforcement to curb this kind of crime. However, due to lack of awareness the illegal trade in counterfeits and look-alikes continues to flourish. There is a need to create mass awareness about the protection of all forms of Intellectual Property, including trade marks, copyrights and patents

Message from the Chairperson, ACIF Mrs. Ameena Saiyid, OBE

ACIF (Anti Counterfeit & Infringement Forum) is a unique industrial alliance in Pakistan, striving to raise awareness on protection of IPRs, in order to create level playing field for legitimate industry and better protection of the rights of consumers. The Forum will make all possible efforts to convince the stakeholders, including the concerned government quarters, to protect IPRs in all forms in the country

Press Picks

IPR PROTECTION & NATIONAL PROGRESS

Piracy, counterfeiting and trademark violations rank amongst the major issues confronting the global community today. These vices deprive the creative minds of a big chunk of their legitimate potential income and expose the communities to sub-standard products affecting the health and safety of consumers. If the works or products of the genius and creative minds are widely copied and pirated, they would get little return for their hard labour, while pirates fill their coffers. Further, these nefarious practices, if not checked, can hamper the intellectual growth of a society by retarding research, creativity, innovation and investment.

The extent of the worldwide counterfeiting and piracy of products is quite significant. In 1995, it was estimated that the worldwide trade in counterfeit and pirated goods amounted to 3% of world trade, which currently has swelled to 7% of the world trade. Especially in developing countries, the economies suffer from serious and massive violations of IP rights in the form of production, exportation and importation of pirated goods. These illegal activities affect the health and safety of consumers, cheat the governments in the form of evasion of taxes, and hamper the investment and employment climate.

To protect the interests of the legitimate industry as well as writers, inventors and creators and to ensure the overall scientific and socio-economic growth of their societies, almost all nations, including Pakistan, have framed IPR laws and established mechanisms for their enforcement. These laws are designed in a way so as to ensure that the creative, innovative and genius minds in a society get royalty on every piece of their creativity sold in the market on the one hand and on the other the consumers get genuine products. Ultimately, this process, as stated by Chairman IPO, Mr. Waseem Haqqi, generates healthy and sustained competition that fuels technological development.

Intellectual Property laws and their enforcement directly benefit the writers, inventors and the legal producers, and contribute to the overall scientific and socio-economic growth of a nation by paving the way for the establishment of a competitive economy based on creation and transfer of technology, promotion of creativity and commercialisation of inventions. Protection of intellectual property is thus paramount for the economic development of a society because it safeguards creativity and translates new inventions/works into economic benefit.

However, the state of enforcement and protection of IPRs is deplorable in Pakistan. Every now and then, the media carries news reports regarding fake medicines and food items directly affecting every household. Piracy of books, CDs and DVDs is commonplace. According to an estimate, the government loses at least Rs. 10 billion annually in terms of direct and indirect taxes because of counterfeiting and trade mark infringement. In the IT sector alone thousands of jobs are lost annually, which is a major factor hampering the development of IT industry in Pakistan. Loss of national repute and confidence in Pakistani products is incalculable. It is high time for the nation to realize the benefits of protection of Intellectual Property Rights (IPRs) and create an environment condusive to creativity and innovation

SOFTWARE REPLICATORS BOOKED

Karachi Police booked five software replicators on the charges of producing/selling unlicensed computer programmes and for breaching the copyright law. Police confiscated about 20,000 CDs. Meanwhile, software piracy has increased to 86 % in Pakistan, placing it at number five among top 20 states with the highest piracy rates. Annual Piracy Study 2006, conducted by International Data Corporation and released by Business Software Alliance (BSA) stated that last year Pakistan had 82 % software piracy rate, standing at number 12 among top 20 software piracy countries. Globally, the study estimates, over the next four years, business and consumers will spend $ 300 billion on software purchases, while $ 200 billion worth of PC software is likely to be pirated. BSA restarted its enforcement activities from June 16th, after expiry of the extended grace period, aimed at taking action against companies infringing IP rights. Penalties for copyright law violations include: fines up to Rs. 200,000, confiscation of equipment used for duplicating and imprisonment up to three years. With the cooperation of official agencies like FIA, Police, Customs and IPO, BSA is trying to eliminate software piracy in Pakistan

INVESTMENT & IPR PROTECTION GO HAND-IN-HAND

Despite Pakistan's attempt to protect IPRs by amending laws and setting up a monitoring body - Intellectual Property Organisation (IPO) - counterfeiting, piracy of trademarks / patents and violation of copyrights go unchecked. Speaking at a seminar on Intellectual Property Rights and their Enforcement, organised by the Overseas Investors' Chamber of Commerce and Industry (OICCI), in collaboration with the Sindh Judicial Academy, in Karachi, on August 5th, representatives of multinational firms linked their investment plans with effective implementation of IPRs.

Hans Dewaele, Country Manager, Procter and Gamble and Chief of OICCI's sub-committee on IPR, said, counterfeiters work not for public welfare but rather fleece people in return for substandard products. ”IPRs protection is very unreliable in Pakistan, meaning only one thing that the society does not provide protection to creativity.” Quoting a study, he said around 8,900 jobs would be lost in next five years due to negative IPR environment. Stressing the need for hard penalties against IPR violators, Hans called for more power to police for investigating such cases.

Gold Leaf, the most popular cigarette brand of Pakistan Tobacco Company (PTC), has been a victim of counterfeiting for long. Not only substandard cigarettes, having the original brand name and trademark, are being traded but also duplicate packs are used to sell Naswar. Head of Business Development, PTC, Naveed Aftab Ahmad emphasised that a mechanism is needed to monitor the sale and to cut off the supply chain of substandard products, which costs the government a revenue loss of Rs. 10 billion annually. Attorney-at-Law Hasan Irfan Khan said, long duration of pending court appeals against IPR violators, emboldens them to continue with their illicit practices.

Chief Justice Sindh High Court, Sabihuddin Ahmed advised the companies intending to pursue cases against IPR violators to seek civil and criminal remedies to help create greater confidence among the people. Earlier, some speakers sought minimum fine of Rs. 50,000, 15 days imprisonment and invoking of both civil and criminal penalties against IPR violators. Others who spoke included President OICCI Salman Burni, Chairperson ACIF and Managing Director Oxford University Press Ameena Saiyid, Sharmeen Ali Khan and Shahid M. Qureshi

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P i r a t e s D o n ` t E v e n S p a r e F a r a z

elsewhere every year. Pirated editions of his works have been published in Hyderabad as well and a sizeable number of their copies were recovered from that town. Since he himself has no time to pursue piracy cases in the courts of law, Faraz has entrusted the task of tackling the piracy issue, through a formal agreement, to his publisher.

About payment of royalty to the authors, Faraz narrated the story of one of the leading Pakistani poets, who is now dead. Once, the poet went to his publishers and demanded the amount of royalty. This infuriated the publisher, who slapped the poet on his face instead of paying him the due amount of royalty.

One of the music companies of Pakistan produced records of Ghazals by Faraz after entering into a formal agreement with him. After expiry of the contract period, the company Amongst the leading contemporary Urdu poets of the current era,

prepared an album of those very Ghazals under a new and Ahmed Faraz holds a distinguished and unique position. His different name and started marketing it. Since the music simple style of poetry is marked by melody and lyricism, which company indulged in this act without renewing or revoking the take over the masses, who often start identifying themselves with previous agreement, Faraz sued the company and received his thoughts and message. In his works, there is grace, a rare 500,000 rupees in damages from it. sensitivity and an ineffable beauty about human relationships,

which make their appeal timeless and, in turn, ensure the poetry However, Faraz felt very bitter about his best-seller book Dard of Faraz to outlive him. Some people believe that the most Aashoob and told “Pledge” that he has suffered heavy losses on famous Ghazal of Faraz is, perhaps, the most famous Ghazal that book. The first two editions of Dard Aashoob were printed by sung by the legendary Pakistani maestro Mehdi Hassan too.Ahmed Nadeem Qasimi after obtaining permission from Faraz.

Ethnically Pukhtoon from the North Western Frontier Province, Afterwards, the book was published by another publishing house Ahmed Faraz has pursued studies in Persian and Urdu literature and Faraz had to face substantial losses on that count. For that at the University of Peshawar. Faraz is an outspoken political reason, he now prefers to get the amount of royalty in lump sum, activist, who has, at times, been jailed by the authoritarian which is generally less than what an author could fetch on the regimes for reciting anti-regime poems at Mushairas. He also had actual sale of books over a period of time.

to go into self-imposed exile in the 1980s. He worked as Director Faraz struggled, in his own way, to stem the piracy of his books. Pakistan National Centre and as Director General of the National He even prepared a case, but due to the apathetic attitude of the Book Foundation of Pakistan, from where he retired early this concerned official quarters, Faraz was not aware about the year. About his current poetry, he told the quarterly Pledge: progress in that case. However, he believed that the Ministry of “Now, I write only when I feel a strong urge from the inside.” Law and Pakistan Academy of Letters should prepare a policy for

Making a debut with “Tanha Tanha” and proceeding up to curbing the book piracy and arranging raids on the publishers as “Ghazal Ba'haana Karoon,” some 13 compilations in book form well as sellers of the pirated editions of books.of poetry by Faraz have so far hit the market. Though all of his books sell very well, but over 100 editions of his one book “Dard Some of the books by Faraz seem to be expensive. For instance, Aashoob” have been sold so far. Dard Aashoob was declared the the sale price of “Shehar Sukhan Aa'raasta” is Rs. 1250. He best book of the year 1966 and it also received the Adamji realized that this price was beyond the reach of the common man. Literary Award. Therefore, he took up the matter with his publishers, who argued

that the sale price of the books is linked to the printing and other For the publication and sale of his books, Faraz tried many related overhead expenses which is difficult to reduce in a society publishing houses, but he finally opted for Dost Publications, i.e. where pirated books are sold, limiting the sale of genuine books.Worldmate. Dost Publications is printing and marketing his

books for the last 15 years. They regularly pay him the royalty on The film industry uses many of the Ghazals by Faraz. Often, TV his books on the 3rd of every month and in case of a holiday on channels also telecast his Ghazals. Even most of the singers pick that date on the following day, irrespective of the number of up Ghazals by Faraz for singing. In case of films and TV, copies of a book sold during a month. according to Faraz, they pay the royalty only once though they

should be paying it on the basis of the number of times the The books of Faraz are well received in the market. He gets, Ghazals are telecast. Most of the singers render compositions of every month, a handsome amount in royalty, much more than his Ghazals without obtaining permission from him. Faraz many other poets and writers of Pakistan get on their books. informed “Pledge” that he asked two of the singers not to sing his When pressed to indicate the exact monthly amount of the Ghazals, not only due to non-payment of the royalty but because royalty, Faraz said: Despite piracy, I get some Rs. 50,000 to Rs. those singers were also out of tune. 60,000 per month, in royalty, on the collection of my poetry

works. Faraz believes, payment of royalty to artists, writers and poets

Many pirated editions of his books are published in India and will encourage a creative climate in the country

Book Pirates Inflict Heavy Losses On AHMED FARAZ

The “ANTI COUNTERFEIT & INFRINGEMENT FORUM” counterfeiters and pirates. Counterfeiting and trademark (ACIF) pursued an aggressive campaign to raise awareness on the infringement is affecting the consumers in the form of sub-protection of Intellectual Property Rights (IPRs). In this standard products, adulterated food items and fake medicines. connection, three major events were sponsored by ACIF. Piracy hampers industrial activity, investment and talent

development on the one hand and results in job losses on the other.

IPR ENFORCEMENTINTERACTION WITH MEDIA

On June 21, 2006, ACIF organised a workshop on “Enforcement of IPRs,” which was attended by Registrar of Trademarks, Strict anti-counterfeiting measures can attract huge FDI besides Controller of Patents and Police officials. Addressing the lending a new strength to the local industry. The business of workshop, CCPO Karachi Mr. Niaz Siddiqui, who was the chief manufacturing counterfeited items of renowned brands not only guest, asserted the need for a strong and well-protected IP regime hurts the interests of consumers but also deprives the national for competing globally and for generating economic activity in all exchequer annually of over 10 billion rupees in revenues. In an spheres of life. informal meeting with the media, in Lahore, on July 27, 2006

ACIF informed the journalists that Pakistani writers, musicians CPLC and Consumer Rights Council (CRC) Chief, Mr. and producers of TV programmes and movies were suffering Sharfuddin Memon said, the industry, police and CRC should losses of millions of rupees every year due to piracy of their work together to create awareness on consumer rights and to works. The sale and purchase of pirated books and optical discs protect the consumers from substandard products and exploiters. (CDs) was not serving the interest of the nation as it badly affected

the reputation of a nation on international level. It was The speakers observed that the aim of the workshop was to raise competition, not the counterfeiting, that could lead to reduction in awareness regarding rampant infringement of trademarks and the price of quality products to reasonable levels. In this context, copyrights and widespread sale of fake and pirated products. example of Pakistani motorcycle industry was cited, where an Inadequate enforcement of IPRs is resulting in gains to intense competition led to a decline in prices.unscrupulous elements, while it is causing losses in billions to the government due to evasion of duties and taxes by the The speakers lamented that bureaucratic apathy and negligence

A C I F ’ s E v e n t s I P R s & P a k i s t a n

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Representatives of ACIF member companies with Mr. Niaz Siddiqui, CCPO, Karachi.

ACIF on the MarchACIF on the MarchAmar Naseer - Secretary, ACIF

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A C I F ’ s E v e n t s I P R s & P a k i s t a n

Mr. Yasin Tahir and Mr. Waseem Haqqi Mr. Kamal Rizvi addressing the seminar

encouraged counterfeiting, infringement and piracy, while the related issues. Law was no longer a problem, but the real setback lies in lack of interaction between the stakeholders - unethical practice of those handful persons adversely affected the

professional businessmen and the quality of products. Those manufacturers, customers and the government. “General criminals were not only hoodwinking the citizens, but also perception about counterfeited or pirated products being cheap damaging their health. While companies manufacturing and should be removed through proper awareness among people,” he

added. DG IPO Mr. Yasin Tahir, who was guest of honour on the occasion, also addressed the seminar.

Renowned writer and artist, Mr. Kamal Ahmed Rizvi addressed the participants and highlighted the sufferings of artists, writers and creators at the hands of the pirates.

producing quality products are striving to eliminate the vices of counterfeiting and piracy, the government was asked to take immediate and strict action against manufacturers of counterfeited items.

ACIF called upon the media to create awareness about IPR issues and expose the elements involved in the heinous business of piracy, which was causing immense harm to

The speakers noted that protection of Intellectual Property Rights (IPRs) plays a s igni f icant ro le in the economic development, growth and prosperity of a nation. IPR protection not only encourages creativity and promotes a healthy competition; it also helps in translating new

the citizens, trade, industry and, above all, the state. inventions and works into economic benefit for the inventors/producers and for the society at large. That explains the

ACIF & IPO reason for the greater flow of Foreign Direct Investment (FDI) to countries, which have an efficient mechanism for IPR protection.

Chairman Intellectual Property Organisation (IPO), Mr. Waseem The inflow of new investments, in turn, lends increased strength Haqqi, asked manufacturers, both national and multinational, to to the domestic industrial sector and creates new job take initial step towards ensuring protection of their patents and opportunities. On the other hand, if works or products of the trademarks by educating their customers about the significance genius/creative sons of a society are widely copied and pirated, of genuine products. Speaking as chief guest at a seminar on they would get little return for their hard labour, while pirates, Intellectual Property Rights in Pakistan, organised by ACIF on

counterfeiters and trademark violators might fill their coffers August 1, 2006, in Karachi, Mr. Haqqi asked the aggrieved

through their unethical and illegal activities parties to approach IPO Registrars for the redressal of their IPR

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P: Some people trace the origin of IP law to the grant of marketing rights to multinationals.

HIK: I disagree with this notion. As a matter of fact, IP violation poses a great threat to our own industry. Are companies like Hamdard, Hilal, Qarshi, Sufi, National, Waves, Tapal and thousands others of the type, national firms or foreign organisations? Can't the illicit practice harm them? In fact, this whole discussion is irrelevant because crime remains a crime whether committed by nationals or foreigners. The industry of a country cannot flourish without safeguarding its IP rights. In the past, when too many inventions were being made in the West, the scientists and inventors would immediately get their products registered. Had there been no IP, the situation would have dampened their spirits and, resultantly, the fruits of science and technology would not have reached us. Let me tell you that IP issue

had existed even during the Moenjodaro era, otherwise we would not have got those seals. The counterfeiting of currency is another form of IP infringement. Therefore, it is a very old, but equally important issue.

P: Would you like to dilate on trademark piracy? If some one adopts 'AFC' or 'IFC' as trademark against 'KFC,' would it constitute IP violation?

HIK: Some names are not only a symbol of identity, but are also unique. If someone copies them, that would constitute IP violation. Likewise, if a name is identical to a great extent and it is proved that the real intention was to use the name, it would also be a violation of IP. But, the examples that you have cited, the designs and names have been changed in toto. As these names are Pledge: Would you like to throw light on the history of IP Law abbreviations, there is a great scope. Another type of violation in Pakistan and the society's attitude towards it?pertains to identical names. For example, manufacturing Billa

Hasan Irfan Khan: The Intellectual Property (IP) Law was Marka Agarbati against the established brand of Billi Marka promulgated here before Pakistan's establishment. In fact, the Agarbati or Johar-e-Joshanda against the reputed Johar Joshanda. British had introduced it in the Sub-Continent. It is even The solution lies in manufacturers' registration so as to establish incorporated in the 1935 Act. However, it would be correct to say who are the pioneers and who started manufacturing later on. that there has been a lack of knowledge about this law, while its Likewise, the taxation system can play an important role in implementation has remained ineffective throughout. When the resolving this issue. But, our real problem is the undocumented business community brought the matter to government's notice, it economy and the multifarious vices breeding from it. Another type established an IP Organisation (IPO) to protect and safeguard the of piracy pertains to making a 100 % identical fake product, IP rights. The IPO is doing a good job, but the implementation and copying the brand name along with complete address and other enforcement of this law is not up to the mark. particulars. It is just like making a counterfeit currency note.

However, the practice prevails here because a culture of copying P: What does constitute IP?has emerged due to weak law enforcement.

HIK: Basically, it covers three things, which are design, P: If a newspaper or magazine commissions a writer to write trademark and copyright, i.e. copying anyone's writing or making an article and also pays him honorarium for that piece, would its use in any form. Firstly, if we takeup the copyright, some it get a perpetual right to use that write-up? Or, it will have to people do not know that the infringement of IP law is a crime, but pay him again whenever it republishes that article.many people do indulge in that intentionally also. As the violators

do not get punished, the crime continues to prevail. However, in HIK: If it is envisaged in the agreement that the rights have been 1992, the government inserted a new clause in the law, making vested for all times, then the situation is clear. But, if nothing has copying of any book a cognisable offence and copyright been settled then the newspaper or magazine has the right for only infringement a non-bailable offence. Now, on a complaint, a one time publication and on reproduction it has to pay again to the police officer, not below the rank of an inspector, can arrest the author. Likewise, the 'performance rights' are also for one time offender without court warrants. But, people still continue to only. If a singer has sung a song, the remuneration that the artist copy because the culprits are able to secure bails easily. has received is only for a single transmission. In case of re-telecast Whenever sentenced, the culprit gets a minor penalty, simply a or re-broadcast, the artist should be paid again.fine of Rs. 2000 - 4000. In my opinion, the minimum punishment

P: What has been judiciary's role in this affair?should be embodied in the law and it should be deterrent to the As IP pertains to personal rights, it requires an individual to core. The government needs to act promptly, including over its HIK:

implementation mechanism. Further, we should not arrest a petty initiate action on his/her own. Since, it has become a cognisable shopkeeper, rather we should apprehend the publisher whose offence, in case of those counterfeit products which can affect the shop is brimming with copies of the pirated edition. Then, there is masses, the court can also act suo moto.the issue of trademark. If some one sells a shoddy product, using

P: How can this problem be controlled? the trademark of a company that would constitute trademark infringement. For example, a designer prepares a beautiful HIK: The law alone cannot eradicate a crime. It can only curb it. design, but a low quality factory copies that and starts selling its According to my study, only 10 - 20 % people are habitual inferior product at a lower price against the superior costly offenders whereas the remaining are simply opportunists. product. Through his action, the counterfeiter inflicts huge losses Therefore, effective law enforcement, coupled with appropriate upon the designer and the mill producing quality product. level of awareness, can greatly help in controlling this crime

I n t e r v i e wE x p e r t ` s O p i n i o n

IPRs: Implications & DimensionsAn interview with HASAN IRFAN KHAN

Mr. Hasan Irfan Khan is practising as a consultant in IP/Corporate Law for over a decade. He is a visiting lecturer and external examiner at Punjab University Law College; Member Pakistan Government's IT Law Forum and Working Group on TRIPs Agreement; Member Executive Committee Lahore High Court Bar Association and its Committee on IP Law; Advisor Rice Exporters Association of Pakistan and regular contributor to IP law journals of international stature. He has participated and delivered lectures at innumerable conferences abroad.

Some counterfeiters re-package or re-label drugs so as to give a Dr. M. Shahzad Saleem new expiry date to the expired drugs and a higher strength to

lower strength drugs. Criminals also use empty packaging Counterfeiting is one of the oldest crimes. Its existence, in one material, like used vials of some injectables, to put in their form or the other, can be traced back up to several centuries. For inactive or harmful chemical. example, the counterfeiting of currency was, once, widespread in the United States where one-third to one-half of the circulating Health Risks: In all counterfeit drugs, the actual manufacturer is currency was counterfeit. Globally, the counterfeiting of unknown, the product manufacturing and expiry dates are usually prescribed drugs has seen a steep climb in the past few years. It forged, the safety of the drug can be compromised and efficacy of has quickly made transition from a rare occurrence to a crime,

the product cannot be assured and thus these pose substantial attracting attention both at the public and private level. health risks. The formulation, age, storage guidelines, Counterfeit drugs show a special unscrupulousness as they target

individuals who depend upon medication to alleviate their manufacturing conditions and sterility, are some of the crucial sufferings or to save their lives. Being highly profitable, the crime factors that can compromise a drug and when a counterfeit drug is holds considerable attraction for bad actors, who consider it a taken it is, at best, ineffective and, at worst, dangerous to the “perfect crime.” Often, a patient unknowingly receives extent of being fatal.counterfeit drugs through the mainstream distribution channel (e.g. from a legitimate Some of the reported pharmacy) and will fatal cases associated not immediately fall

with the use of such ill from taking those drugs are as follows: drugs. In a testimony

b e f o r e t h e U S The consumption of a Congress, William paracetamol cough Hubbard, Associate syrup resulted in the Commissioner for death of 89 people in Policy and Planning,

Haiti in 1995. The FDA, very rightly s y r u p h a d b e e n said: “The more likely prepared with glycerol injury from these

drugs is that someone c o n t a m i n a t e d w i t h would not have their diethylene glycol, a toxic disease treated, they chemical used as anti-freeze. Around are just not going to

2500 people reportedly died in Nigeria in help him/her.”1995 after they had been given a false

When a chronically or terminally ill patient fails to improve or meningitis medicine. In the early 1990's, counterfeits of an experiences adverse side effects from the medication, the patient asthma inhaler were found in the Philippines. Upon analysis, it and doctor will usually attribute the non-responsiveness to the was discovered that the inhalers contained no active ingredient. illness rather than questioning the authenticity of the drug and the Although no deaths were reported, the consequences could have doctor may just change the drug without ever questioning its been quite serious. An investigation published in The Lancet efficacy. Thus, counterfeit drugs threaten the already vulnerable showed that in Vietnam and other South-East Asian countries, 38 members of the population while allowing counterfeiters to % of an anti-malaria pill did not contain any active drug, leading operate largely undetected. In Pakistan, estimates about the to the deaths of 25 % of malaria patients in Cambodia, 38 % in private sector suggest that about 50 % of the drug market is Laos, 40 % in Myanmar, 11 % in Thiland and 34 % in Veitnam.constituted by the counterfeit products (WebMD), while these

The United Nations established WHO as a specialized agency for constitute 40 to 50 % of all medicines available in the country. health on 7 April, 1948 to achieve the objective, as set out in its According to World Health Organisation (WHO), Pakistanis Constitution, of the highest possible level of health by all people. spend 77 % of their household health budgets on medicines, half For the purpose of cooperation among themselves and with the of which may be fake or unfit for human consumption. This others to promote and protect the health of all peoples, the prompted PMA Secretary General, Dr. Qaiser Sajjad to call upon Contracting Parties agreed to establish WHO as a specialized the government to work seriously to control the production and agency, within the terms of Article 57 of the UN Charter, sale of counterfeit medicines in Pakistan, which currently ranks accepting the following principles: 13th in the world for the practice. Sindh Health Department's § Health is a state of complete physical, mental and social well-Additional Secretary Technical, Capt. Majid admitted in early being and not merely the absence of disease or infirmity.March 2006 that fake medicines were available in the market, § The enjoyment of the highest attainable standard of health is adding that 27 such medicines have been recovered during raids one of the fundamental rights of every human being without so far.distinction of race, religion, political belief, economic or social Counterfeit drug operations are masterminded and run by condition.organised criminal outfits that often target the most expensive § The extension to all peoples of the benefits of medical, drugs, such as injectables used to boost the immune systems in psychological and related knowledge is essential to the fullest cancer and AIDS patients or those used in organ transplants. Also attainment of health.targeted are the drugs like Statins, Anti-Hypertensives or Anti-§ Governments have a responsibility for the health of their Biotics. Counterfeiting criminals are able to secure very high peoples which can be fulfilled only by the provision of adequate profit margins by making cheap counterfeit versions of expensive health and social measures.drugs.

When viewed in the light of these principles, counterfeit drugs Definition: Different countries define counterfeit drugs infringe the right of people to enjoy the highest attainable differently. Pakistan's Drug Act, 1976, defines it as “a drug the standards of health and, in short term, they get discriminated due label or outer packing of which is an imitation of, or resembles or to the socio-economic conditions. On a longer term, as piracy or so nearly resembles as to be calculated to deceive the label or counterfeiting can discourage development of new drugs, as seen outer-packing of a drug of another manufacturer.” in the cases of Tuberculosis and Malaria, the people suffering

from these diseases are unable to get the required medicines for Types: Many types of counterfeit or diverted drugs are in the the organisms causing these diseases, but develop resistance to market. The first type may be a diluted version or it may contain the older drugs. For improving the human rights conditions, the only inactive ingredients, incorrect dosages, sub-potent or super-governments have an obligation to fulfil by the way of preventing potent ingredients or contaminating chemicals. Another one is a counterfeit drugs and thus help their people achieve the highest completely counterfeit product, chemically distinct from the drug attainable standard of health.- Dr. M. Shahzad Saleem is it purports to be. The third type involves counterfeiting of the Manager Medical Affairs, Novartis Pharma (Pakistan) Ltd drug's packaging materials, but not necessarily the drug itself.

Drug Piracy- A Human Rights Violation

M a r k e t W a t c h D r u g P i r a c y

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Campaign Against Counterfeit I n d u s t r y F i g h t s B a c k

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After arresting, police leaving with the culprits.Police taking fake brands in their possession.

Markets in Pakistan are flooded with fake, pirated and look-alikes of various products. Exploiting people's confidence, the unscrupulous elements prepare fake products with such an expertise that they resemble the genuine and original products. If the original and the fake products, being sold in the market, are placed side by side, it becomes very difficult to differentiate between them. Though it is a heinous crime to sell any fake product, the sale of such food-items and medicines is considered more abhorring as it is tantamount to an attempt to murder. In pursuit of wealth, the manufacturers of fake products play havoc with the lives of the people. For selling their products, these unscrupulous elements target the markets of small towns where these products are openly sold. Frequent news-items bring to our attention that rampant trade in such products is affecting the health and safety of the people.

While manufacturing and trading of counterfeit items is widespread in the country, the wholesale markets in Lahore, Peshawar, Rawalpindi, Karachi and Hyderabad are known for easy access to the counterfeits. Manufacturing of such items is done in places nearby to the wholesale markets and in suburbs to these cities. Dedicated markets/outlets dealing in pirated books, software and audio-video CDs are also operating freely.

Various companies are devoting huge resources to combat counterfeiting and piracy of their well-known products. As a result of public complaints, the law enforcement agencies carried out raids in different cities, confiscating machinery, chemicals, packaging materials and fake products. In view of the gravity of the problem, the law enforcement agencies need to further step up their operations to discourage this illicit trade and save innocent consumers

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Industry Fights Back

“Raw Material” for faking famous brands

Stocks of pirated books A police official examining the books

Confiscated machinery, which was being used to make fake brands