The real challenges and way forward

---from a police officer’s perspective

Wang Zhiugang

IP division of Economic Crime Investigation Department The Ministry of Public Security of China

AGENDA:

IP crimes analysis China efforts Real challenges Solutions

II. IP Crimes analysisthe world is still a

schizophrene.

1. IP crime is still a economic phenomena.

2.IP violation is an international and serious crime.

IP IP CRIMECRIME

consumerconsumer

producerproducer

retailerretailer

distributordistributor

holistic strategies 6

II. What we have done

IP Criminal

Protection

EnforcementEnforcement

PartnershipPartnership

CoordinationCoordination …EducationEducation

LegislationLegislation

Inte’l Inte’l cooperationcooperation

approaches using intelligence to guide the

investigation ---self-developed, informers, administrative organs and IPR

owners ---monitoring criminals and the markets---WWW.CYBERPOLICE.CN

Code: SPRING OPERATION Randolph Hosbon Guthrie ran internet

business selling piracy DVDs On July, 2004, as a result of the first joint

China-American law enforcement operation Guthrie and his fellows were arrested.

More than 210,000 pirated DVDs were seized.

OCEAN-CROSSING Operation Richard Cowley, Wang Daijun et al formed a

internet-based syndicate selling counterfeiting Viagra, Cialis

In Sept. 2005, Richard Cowley and others was arrested as a result of Sino-Amercian-Europe joint operation, and 1040,000 counterfeit pharmaceutical and 260 kg raw materials & various equipment were seized.

MIDAQUAN case:

--- Mi Daquan advertised his counterfeit pharmaceutical on internet and shipped 25 million tablets to domestic and overseas wholesalers.

WAVE Operation Jin Jihui et al colluded on the Internet and sold

counterfeit pharmaceutical to more ten countries via internet.

In May 2006, 2 criminal syndicates were smashed, more than 40 tons of fake pharmaceutical and raw materials were seized.

Wholesaling

Producin

g

Summer Solstice In Jul 2007, after more than 1 year’s

thoroughout investigation with undercover operation, a transnational piracy syndicate was taken down, 22 master disks and 360 thousands disks seized, 8 million US dollars’ worth of assets confiscated.

Comments: the most significant and biggest piracy case in the world

IV. THE REAL CHALLENGES & WAY FORWARD

The IP crime is still there All of us should shoulder heavier

responsibilities We have to identify the real

challenges and find the way forward

Real Challenges?- from one perspective Lack of strong legal framework in certain countries Lack of special IPR units Lack of resources in Enforcement Lack of effective and vigorous enforcement actions Lack of deterrent sentencing ……….. ………..

?Is it solution to the problem?Is it feasible?

Setup IP Unit in police, procuratorate and court Commitment of greater resources to IPR enforcement More immediate raid, seizure, arrests and prosecutions Goods and raw materials destroyed; Facilities shutdown Throughout investigation into every case Finding and arresting the mastermind and king pins Uprooting the transnational syndicates apply all possible charges, impose more deterrent

sentence, More imprisonment, Close cooperation and collaboration with right-holders

REAL CHALLENGES?--from police officer’s view

POLICE? Is IP crime the top 1 priorities? to use the ever-limited source to initiate

investigation and tackle the challenges to arrest Mr. Right –who is really criminal liable

and prove that properly IP crime is a international problem

Profound economic / social background sophisticated, internationalized and on “commercial scale”, Enforcement only is not the solution

Enforcement The evolving INTERNET and digital technology

make the crime covert, traceless and borderless

Counterfeiting is more cheap, easy and “perfect”

Enforcement is more difficult… Unidentifiable… Technically sophisticated… Harder to detect the criminal activities and mastermind … The criminals may be out of jurisdiction

Prosecution forensic and proof problems stem from

transient nature of digital evidence---Authenticity and Admissibility of digital records---what needed to prove the intention to do so, for

commercial purpose and on commercial scale?---how to calculate the volume of infringing items

to launch investigation or impose punishment---IP address, e-mail is sufficient to prove beyond

reasonable doubt?

Jurisprudence issues: Who should be criminal liable? technological

advance or just morally wrong e.g. the act to circumvent the protections,

trade in and distribution of programs and tools intended to circumvent the protections, Unauthorized alteration/removal of rights management information

New technologies, esp P2P, BT and Search engines

The way forward concord rather than discord A holistic approach should be

taken Measures adopted to combat

piracy have to be customized according to the legal framework, enforcement environment and social situation in the country

new & specific resolution To conduct further practical &

theoretical exploration Law & Enforcement must keep abreast of

technological developments A consolidated model law needed: criminal law (provision of direct IP

infringement activities and premeditated crime, such as possession of infringing tools)

+ procedure law +relevant administrative regulations

Specifically:

Standardizing the definition and extension of IP crime

Simplifying investigation and proof requirement

Allowing for new techniques and measures to address the ever changing modus operandi

Let the police officers have compatible substantive offences and procedural powers.

To make the enforcement easier to make the world safer

THANK YOU !THANK YOU !

Tel: (8610)66266604Fax: (8610)66263075Email: mpswang@gmail.comAdd: No. 14 Dongchangan Ave. Beijing, 100741

Q & A