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19 september 2007

The problem of pirated goods held a prominent place in publications of English-language media in this July and August. In this case, the question is pirated goods in the general sense of the word: from forged trademarks to forged classes of goods and even falsification of materials, of which they are made.

British Daily Mail published a review of situation with pirated goods in the British market.

Over three million of adult British purchased pirated goods of luxury brands. Quasi-Louis Vuitton was the most popular brand followed by pirated Gucci, Burberry, Tiffany, Prada, Hermes, Chanel, Dior, Yves St Laurent и Cartier. The leader in the number of purchases was clothing followed by shoes, watches, leather goods and jewellery. However, not only people that cannot afford goods from the designers determined demand in the market – people with a family income exceeding 50,000 pounds sterling made every fifth purchase. Most of such fakes were purchased in Britain, but the number of counterfeit purchases made by British in India and Far East increased by about a half during the last year. Such number has also increased in China and Europe.

Almost a third of respondents acknowledged that they had purchased such fakes on EBay. The internet portal has notified vendors that they will have to produce evidence of authenticity of their goods. Newspaper notes that the quality of fakes improves every day thus making purchase thereof even more expedient and desirable while revelation of such fakes becomes more and more difficult. Almost a third of people buy counterfeit goods with all certainty that they pay for an original. Only one person out of six is sure that he will be able to distinguish between the former and the latter.

It is no wonder that there are even stars among people seen when buying counterfeit luxury goods (for example, Renee Zellweger).

Britain is not the only country of which such a situation is characteristic. Among tourists who has been in Tunisia, there are rumours about French who go to that country in shop tours for bags a la Louis Vuitton. There are dozens of websites selling counterfeit Swiss watches in Russia. An episode of Sex in the City, a TV serial popular among women, was dedicated to such purchases some time ago. Nevertheless, efforts (sometimes rather successful efforts) are made from time to time to influence the situation. Mass media publish information thereon.

Early in August, Tiffany & Co. obtained an injunction from a court against Starglam Inc. and its principal John Shamir collecting from them 1 million dollars. The Company sold counterfeit silver Tiffany products, which were basically imported from Asia, but also made on the spot, in New York. The enterprising “pirates” sold most of their products via Internet, including eBay. Therefore, it is no wonder that the injured party brought a civil action against the internet auction.

For the avoidance of such situations, Internet portals realising jewellery often take preventive steps. The eBay made a radical solution. Late in July, it stated that it was revising its policy with respect to placement of jewellery and precious metal products with diamonds on its website intended for trading within the USA. Therefore, the word “diamond” must be used only to indicate a natural mineral consisting essentially of pure carbon, crystallized in the isometric system”.

When listing a laboratory-grown stone, the word “diamond” may only be used if the word is immediately preceded or followed by any one of the following terms: “created”, “lab-created”, “man-made”, “synthetic”, “manufactured” or “laboratory-grown”. And for a Cubic Zirconium stone, the word “diamond” in the item title or description may only be used if the word is immediately preceded or followed by the words “simulated” or “imitation”. According to the Internet Portal, such innovations are introduced for the convenience of buyers, who must clearly understand from the item description what they are buying.

A bit earlier, India witnessed a nationwide discussion of the Government intention to introduce mandatory marking of gold stating its fineness. As is well known, the jewellery practice in many countries does not provide for mandatory stating the metal fineness and this pretty often results in sale of low quality products. It is obvious that for India, whose jewellery sector is on the up-grade, it is the matter of national credibility and an efficient way to expand its representation in the world jewellery market.

Reportedly, implementation of the gold product marking system will commence in the major Indian cities on 1 January 2008. The Government has engaged the jewellery sector in this work. For the first time in its history, Indian National Federation of Precious Stone and Jewellery Sellers organised a videoconference participated by 28 trading organisation from 16 cities of the country on 12 July. Participants discussed a draft statement of the Federation to the Indian Government containing recommendations on the introduction of marking.

Intellectual property theft is another widespread example of piracy.

On 26 July, Franck Muller, a watch manufacturer, settled amicably with Elini Watches. The latter had to stop sales of its three watch lines in the USA, Canada and Caribbean Islands.
Franck Muller charged Elini with infringement of trademark and copyright and unfair competition. The Company alleged that Elini copied a significant part of design of the famous lines of Franck Muller watches Conquistador Chronograph and Cintree Curvex. Reportedly, the ban affects lines of Elini watches New Yorker, Jumbo and Dolce.
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