2nd International Symposium on Intellectual Property Protection and Enforcement (ISIPPE 2) Report
A recent consumer survey on global counterfeiting highlighted the alarming scale and impact of counterfeiting. The counterfeit market exponentially grew from US$509 billion in 2016 to US$2 trillion in 2023. In 2018, the Anti-Counterfeit Authority (ACA) estimated the illicit trade market at KES 826 billion, a 14 per cent increase from the previous year.
A 17-country study of the Michigan State University (MSU), center for Anti-Counterfeiting and Product Protection (A-CAPP) showed that 52% of participants (n = 13,060) bought counterfeits in the past 12 months knowingly, 68% were deceived into buying counterfeits, and collectively, 74 per cent of participants have bought counterfeits knowingly and/or unknowingly. In Kenya, 59 per cent of participants indicated they knowingly bought counterfeits, 86% were deceived into buying counterfeits, and collectively, Kenyan participants were second to Indian participants, with 86% of them indicating they bought counterfeits non deceptively and/or deceptively.
Globally, consumer awareness regarding the risks of counterfeit goods is varied, and there are significant challenges in raising sufficient awareness to combat this issue effectively. Many consumers remain unaware of the economic and health risks associated with counterfeit products, which include everything from substandard quality to potential safety hazards in counterfeit pharmaceuticals, electronics, and automotive parts. In Kenya, the Anti-Counterfeit Authority (ACA) has highlighted that counterfeit goods pose significant safety threats, including risks of electric shocks and toxic chemicals, especially in unregulated markets. The risks became more prominent during the COVID-19 pandemic, as counterfeit personal protective equipment and test kits flooded markets worldwide.
Despite some awareness campaigns by brands and governments, consumer education remains limited in many regions. Counterfeiting now affects over 3.3 per cent of global trade, valued at approximately $509 billion, according to the International Chamber of Commerce. Consumer awareness campaigns like those launched in the U.S. with Homeland Security partners have helped reduce the demand for counterfeit products, but without consistent, widespread education, the demand continues to grow, especially in online marketplaces where counterfeits are difficult to control.
The limited consumer awareness also stems from a lack of effective deterrents and consumer protection mechanisms. Organizations like Interpol, OECD, WIPO and brand associations emphasize the need for more robust awareness campaigns and better regulatory support to inform consumers globally about counterfeit dangers and help them make safer purchasing choices.
Improving consumer awareness on a large scale requires a multi-pronged approach that includes international cooperation, stricter enforcement policies, public awareness campaigns, and technological advancements for verifying product authenticity at purchase points.
To address the above challenges, the Anti-Counterfeit Authority, in collaboration with the Ministry of Investments, Trade and Industry (MITI), and World Intellectual Property Organization (WIPO) organized the second International Symposium on Intellectual Property Protection and Enforcement (ISIPPE-2), under the theme "Uniting Against Counterfeits for a Healthy and Safe Future.”
The Anti-Counterfeit Authority is pleased to share the key findings and actionable recommendations from ISIPPE-2, a landmark hybrid gathering of over 570 delegates and 70 speakers across 163 countries. The symposium was held in Nairobi, Kenya in June 2024. Delegates came from Kenya, USA, Belgium, France, UK, Germany, Switzerland, Cameroon, South Africa, Tanzania, UAE, Japan, Netherlands, India, Rwanda and Nigeria.
The symposium covered critical aspects of Intellectual Property (IP) protection and enforcement, with a focus on countering counterfeiting and strengthening IP systems worldwide. Below is a summary of the findings and recommendations, organized by theme.
Theme 1: Innovation and Technology
Key Findings
- Digital and blockchain technology offers traceability solutions to protect IP and detect counterfeits effectively.
- Technology's rapid evolution requires IP enforcement to adapt in real-time.
- Effective technology adoption, such as AI and blockchain, improves counterfeit detection and data sharing between agencies.
- Artificial Intelligence (AI) and machine learning are becoming vital tools for monitoring and enforcing IP rights globally.
Recommendations
- Enhance Digital Integration: Implement digital tools to trace products and automate inspections. Investment in Technology: Stakeholders should invest in blockchain and digital tools to enhance product authentication.
- Training Programmes: Capacity building in AI and machine learning for IP enforcement agencies is essential to stay ahead of counterfeiters.
- Promote Cross-Border Technology Collaborations: Build alliances with international tech firms to adopt the latest anti-counterfeit innovations.
Theme 2: Policy, Regulation, and Enforcement
Key Findings
- Legislative frameworks vary widely across jurisdictions and have many gaps, complicating enforcement, especially in cross-border cases.
- Harmonized IP policies at the sub-regional and regional level can support faster and more cohesive enforcement.
- Regional disparities in IP laws hinder collective enforcement efforts.
- Regulatory gaps in digital IP protection challenge conventional enforcement.
Recommendations
- Harmonize Regional IP Policies: Work towards standardizing IP laws within the region.
- Strengthen Digital IP Frameworks: Update legal frameworks to address online IP violations effectively and address online counterfeiting in particular
- Policy Harmonization: Encourage African Union (AU) member states to develop harmonized IP legislation for smoother enforcement across borders.
- Enforcement Units: Establish dedicated IP enforcement units within law enforcement agencies to focuson IP-related cases specifically.
Theme 3: Research and Capacity Building
Key Findings
- Consistent IP research and data are lacking, limiting data-driven decision-making.
- Research on the economic impact of counterfeiting in Kenya and other African countries is limited, hindering effective policy-making.
- Knowledge gaps in IP enforcement within judicial systems affect the handling of counterfeit cases.
- Skill gaps in enforcement agencies impact the effectiveness of IP protection measures.
Recommendations
- Invest in IP Research Centre: Establish dedicated centres to gather data and conduct research.
- Enhance Training Programmes: Develop specialized training for enforcement officers in IP protection.
- Enhanced Research: Conduct studies on the economic impact of counterfeits, focusing on key sectors such as pharmaceuticals, agriculture, and technology.
- Judicial Training: Implement continuous training programmes for judiciary and enforcement officers on IP issues to improve case handling and judgments.
Theme 4: Stakeholder Education, Awareness, and Engagement
Key Findings
- Public awareness of IP rights remain low, especially among young consumers and small businesses.
- Low public awareness of IP rights contribute to high counterfeit tolerance.
- Insufficient collaboration with businesses hinders comprehensive IP education.
- Collaborative engagement between government agencies, private sector, and civil society has proven effective in increasing IP awareness.
Recommendations
- Public Campaigns: Launch national IP awareness campaigns targeting consumers, traders, and manufacturers to educate them on the dangers and risks of counterfeits.
- Private Sector Engagement: Strengthen partnerships with private companies and civil society organizations for joint IP awareness initiatives.
- Build Partnerships with Industry Stakeholders: Foster collaborative awareness initiatives with brands, retailers, and industry groups.
