Hong Kong - Counterfeiting & Trademark Infringement Report, 2018

Hong Kong - Counterfeiting & Trademark Infringement Report, 2018

Report Description

The growth in global trade and technology has positively affected many markets across the world but along with that, it has some major adverse effects as well. Business organizations spend a lot of money, time and resources on protecting their brand and trademarks. But even after all the measures, the counterfeit market is booming rapidly.

Hong Kong-Counterfeiting and Trademark Infringement Report, 2018 has addressed the issue of proliferation of trademark counterfeiting in this technologically driven era.  The globalization of trade and communication has offered unparalleled opportunities for organized crimes to engage in illicit trade and counterfeiting so as to increase their economic influence.

Hong Kong is known as a counterfeit hub. Many manufacturers in Hong Kong produce large volumes of counterfeit products and sell them across the globe. The increasing use of e-commerce platforms has helped these counterfeiters to reach a larger number of people without any geographical barriers and with no fear of being caught.

The report has done an in-depth analysis of the existing legal frameworks in Hong Kong on trademark protection and all the other aspects related to it. The problem of import, sale and distribution of goods bearing counterfeit trademarks is increasing by every passing hour in Hong Kong.

But appropriate attention to this issue is not given. Trademark counterfeiting has caused enormous damages to many sectors of Hong Kong’s economy. Hong Kong is mostly called as “shoppers paradise”, and due to increasing counterfeiting, this reputation is being destroyed. The distributors of famous brand products have suffered a lot of economic loss because of illicit activities of counterfeiting. The luxury brands also are finding it hard to compete with the counterfeiters. This in turn is affecting the growth of economy, jobs are being lost, shops are being shut down and all this is adversely affecting the pristine image of the country.

The legal frameworks are not enough to fight the issue of counterfeiting. The evolution in new technologies has made it very difficult for the authorities to regulate this illicit market. Tracking and tracing the infringers is a herculean task.

The report has highlighted the role of custom authorities. The brand owners can join forces with custom authorities to safeguard their trademarks.

The report has provided various recommendations that are beneficial for the brand owners which will help the protecting their brands by using new technologies and also by collaborating with the various stake holders involved. 

Losses incurred in 2017 due to Counterfeiting amounts to $1.2 Trillion

Table of

Contents

Table of Contents

  1. Executive Summary
  2. Scope and Approach
    1. Background – The Era of Flat world & Connected World
    2. Definitions & Terminologies
  3. Hong Kong Counterfeiting Perception Index
  4. The Market Size of Counterfeit Goods in Hong Kong
    1. By Value
    2. By Industry
  5. Sales Medium of Counterfeit Goods in Hong Kong
    1. Markets 
    2. Online Medium
      1. E-Commerce
      2. Social Media
  6. International Agreements on Intellectual Property Rights
    1. Trade Related Aspects of Intellectual Property Rights, (TRIPS)
    2. Anti-Counterfeiting Trade Agreement
  7. Analysis - Secondary Liabilities
    1. Auction Sites
    2. Internet service providers
  8. Legal Analysis - Hong Kong
    1. Trademark Ordinance, 2003
    2.  Trade Descriptions Ordinance, 2013
  9. Legal Framework
    1. Trademark Law, 1993
    2. Anti-unfair competition law, 1993
    3. Civil Code, 1986
    4. Criminal law, 1997
    5. Tort law, 2009
    6. Regulations of Customs Protection for Intellectual Property Rights and its Implementing Methods, 2003
  10. Issues Analysed
    1. Trademark Law
    2. Custom & Border measures
    3. Criminal Liabilities & Penalties
    4. Civil Enforcements
    5. Online Counterfeiting
    6. Anti-Counterfeiting
  11. Recommendations for Anti- Counterfeiting in Hong Kong

List of

Graphs

List of Graphs

  1. Economic Value of Losses Suffered due to Counterfeiting (USD Billion), 2001-2020
  2. Economic Value of Losses due to Counterfeiting in Selected Sectors (USD Billion), 2002-2020
  3. Shares of seizures by IP-infringing category (Percentage), 2017
  4. Number of Internet Users Globally (Millions), 2005-2017
  5. Growth in Estimated Value of Counterfeited Goods (Billion USD), 2008-2017
  6. Global Merchandise exports and Imports (USD Trillion), 1960-2017
  7. Value of Seized Goods by Reporting Economy (USD Million), 2017
  8. Average Percentage Share of global physical counterfeiting(Percentage), 2011-2017
  9. Total Annualized Outsourcing Contract Value and its Growth From (USD million), 2013-2017
  10. Share of Companies that Outsource by Sector(Percentage), 2017
  11. Distribution of the Countries as per Income Level (Percentage), 2017
  12. Share of endorsed celebrity follower’s in Countries as per the Region (Percentage), 2017
  13. Distribution of Targeted Audience by Income Level(Percentage), 2017
  14. Average Age of Luxury Brand User by Region (Year), 2017
  15. Average Age of Luxury Brand User by Income Group (Year), 2017
  16. Budget to reach potential customer of Luxury Brands on Social Media (per Day in USD), 2017
  17. Market Size of Global E-commerce Business(USD Billion), 2012-2017
  18. Most Frequent Brand Name Used in online Counterfeiting(Percentage), 2017
  19. Top five countries involved in online sales of counterfeit items (Percentage), 2017
  20. Share of Authenticated and Illicit Post on Social Media (Percentage), 2017
  21. Share in Mode of Communication on Social Media Counterfeiting (Percentage), 2017
  22. Distribution of Leading Uses of 3D Printing(Percentage), 2015- 2017
  23. Number of 3D Printer Shipment (Million), 2013-2017
  24. Route Map of Source and Destination of Counterfeit Clothes and Textile, 2017
  25. Route Map of Source and Destination of Counterfeit Footwear, 2017
  26. Route Map of Source and Destination of Counterfeit Cosmetics and Perfumes, 2017
  27. Route Map of Source and Destination of Counterfeit Leather Articles and Handbags, 2017
  28. Heat Map of Source, Destination and Transit points of trade in illicit goods, 2017
  29. IPR Detentions by Number of Cases and Articles in EU(Thousand), 2007-2017
  30. Number of Trademark Application and Registration in China (Thousand), 2007-2017
  31. Number of Requests for Intervention by Business Undertakings to Intercept Counterfeiters, 2010-2016
  32. Blueprint of TAG Heuer Mikrograph Caliber 560, 2017
  33. Global Market Share of Logistic Services (Percentage), 2017
  34. Evolution of the global personal goods luxury( Billion Euro), 2012-2017
  35. Penetration of Countries in online luxury sales globally (Percentage), 2017

Country Analysed

Hong Kong

A Complete Analysis of Hong Kong market

Laws

Analysed

International, National and Regional Laws

International Agreement-

  1. Trade Related Aspects of Intellectual Property Rights, (TRIPS), 1995
  2. Anti-Counterfeiting Trade Agreement, 2012
  3. EU E-commerce Directive, 2000
  4. EU Customs Regulation, 2007

Hong Kong-

  1. Trademark Ordinance, 2003
  2.  Trade Descriptions Ordinance, 2013
International, National and Regional Laws

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