Government takes steps to crack down on counterfeit

Canada’s new Combating Counterfeit Products Act (Bill C-8) is being hailed as a significant improvement in the fight against counterfeit goods.

“We see this as a major, major step forward,” says Adam Grachnik, senior director, communications at Food & Consumer Products of Canada (FCPC) in Toronto of Bill C-8, which was passed into law earlier this month.

Under the law, the Canada Border Services Agency (CBSA) will be able to seize suspected counterfeit goods at the border. It also allows for information sharing between CBSA, the RCMP and rights holders to identify counterfeit goods at the border.

“If you’re the maker of product x and a counterfeit one is suspected of coming in, you can then report there is a counterfeit product,” Grachnik says. “There is a line of communication that did not exist before.”

He says there has been a growing presence of counterfeit products in the marketplace “so the fact the government is taking some concrete action is a real sign of progress.”

According to the Canadian Anti-Counterfeit Network, the retail value of seizures of counterfeit goods reached $38. 1 million in 2012, compared with $7.7 million in 2005.

Last month, the CBSA told a senate committee it has adequate resources to implement the law.

Grachnik says discussions are ongoing as to who will pay when suspected counterfeit goods are detained at the border.

“We don’t think a rights holder should have to bear any costs for counterfeit goods that are seized which infringe on their brands.”

FCPC is also pressing the federal government to take increased action to combat illegal e-commerce sales and grey market goods with non-compliant labels.

“There is always more to do and this (law) definitely does not eradicate the issue but we do believe some of the changes will definitely make a difference,” Grachnik says.