about five years’, over 70% of the world’s population will be online. International criminal networks are creating hundreds of websites – on servers across multiple jurisdictions – selling the same counterfeit products. Every time a consumer receives a counterfeit product when they thought they had found a bargain genuine product online, the value of the counterfeited brand diminishes. Arresting counterfeiters selling their products online is difficult as they can very quickly shut down one website and replace it with another. The fightback against such a difficult enemy will be difficult. Our goal is to convene all those with a part to play, to open communication channels between them, and to foster meaningful collaboration among them. We aim to put brand owners at the centre of the debate and make sure that their voice is heard. 2. Taming the internet While the internet has in some ways been a boon for brand owners, allowing them to reach more consumers than ever before, it can also be a threat. In addition to facilitating the sale of online counterfeits, the expansion of the domain name system can be extremely challenging and just as damaging when
it comes to protecting brands. In 1995, less than 1% of the world’s population had an internet connection. Today, more than 3.5 billion people are online, and it is estimated that 10 more people come online every second! The internet is an integral part of our daily lives, and in the operation of our businesses, stock markets, and government agencies. Global business-to-consumer e-commerce is growing at an incredible rate. In 2012, it surpassed $1 trillion. By 2015, it more than doubled to $2.2 trillion. Consumers in the Asia-Pacific region are responsible for more than half of online shopping, followed by North America, accounting for around a quarter, or $644 billion, of all business-toconsumer sales in 2015. It is in brand owners’ interests to ensure that trademarks receive the same protection on the internet as they do in the brick-andmortar world, and that consumers can make safe, reliable, and informed choices about the products and services they seek online. Brand owners’ voices are critical to the security and stability of the internet as they are on the frontlines of protecting consumers from fraud and abuse. We are making sure that the voice of brand owners is heard at the Internet Corporation for Assigned Names and Numbers (ICANN),
COUNTERFEITING IS THE MOST CRITICAL IP ISSUE FACING BRAND OWNERS AND CONSUMERS TODAY. IT DIRECTLY AFFECTS NATIONAL SECURITY, THE GLOBAL ECONOMY, AND POSES SIGNIFICANT HEALTH AND SAFETY RISKS FOR CONSUMERS AND THEIR COMMUNITIES.
which was created to ensure a secure, stable, and resilient Internet. INTA members are participating in key review processes that have a direct impact on the ability of brand owners to protect their names in the domain space. For example, we have been the voice of brand owners during the launch of the Generic Top-Level Domains program (gTLDs). Brand owners may not know that acronym, but they will have heard of the launch of new domains such as .guru, .club and, more worryingly, .sucks and .xxx. While some businesses have chosen to launch domains for their dot brand and create new channels for brand awareness and community building, most are closely monitoring the program to ensure that their brands are protected within the new domains. INTA is helping brand owners police and protect their brands. 3. Restrictions on using brands In recent years we have seen increased regulations and legislation to restrict brand use including plain and standardized packaging, which reduces the use of trademarks on packaging or even bans them altogether. This issue has been controversial because much of the focus recently has been on tobacco products as a means to deter people from smoking. As a result, governments have justified these brand restrictions as a public health issue and have not taken trademark rights into consideration. Although this may at first glance seem like a fight only for a few brand owners, these restrictions are increasingly being applied to non-tobacco products. For example, we have observed brand restrictions on baby formula and on fast-food, including pizza. These restrictions often dictate what images or logos may be applied to labels for these products. The threat to brand owners is clear – reducing the right to use a trademark is a threat to business and an attack on the right to use the brand that has often taken years to build. Looking Ahead While these three challenges may at first look daunting, brand owners are not alone. We will continue to continue the fight against counterfeiting, to monitor and promote trademark rights in ongoing discussions on internet governance and expansion, to stress the implications for IP with regards to brand restrictions, and to advocate on behalf brand owners globally. With your help, we can succeed. ■ Berlin. Germany 2017 ❙ 73