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Hong Kong Customs Appeals to Young People Not To Sell Counterfeits

Issued: August 15 2014

Hong Kong Customs efforts to combat the sale of counterfeit goods resulted in the arrest of 42 people, including seven under the age of 22.

The Customs & Excise Department in Hong Kong carried out an operation before the summer holiday to combat the sale of counterfeit goods at street level in various districts and on internet platforms. The department stopped 31 suspected cases in stepped-up enforcement action in June. A total of 42 people, including 20 men and 22 women, aged between 19 and 68, were arrested. Suspected counterfeit goods including stationery, mobile phone cases, cosmetics, hair curlers, handbags, clothes, shoes and other items with a total value of about HK$340,000 (US$44,000) were seized in the operation.


Of the 42 arrested, seven were under age 22. In the first six months of 2014, the number of arrested persons under age 22 has risen by 67% compared to the same period in 2013.


“Statistics like these tend to reflect enhanced investigation and enforcement by the likes of Customs & Excise and need to be kept in perspective,” says Warren Ganesh, senior consultant at Smyth & Co in association with RPC in Hong Kong.


In the cases, most of the young offenders participated in the sale of suspected counterfeit goods on internet platforms, such as auction sites or social networks, during their leisure time. Some of them were part-time salespersons at shops or stalls selling suspected counterfeits.


“In Asia generally, it is not unusual in some business sectors to hear employees running their own small businesses or contributing to their family businesses during office hours. Concerned employers need to be alert to this and have appropriate policies in place; while also communicating those policies to employees, in a manner that is consistent with the firm culture,” says Jason Carmichael, a partner at Smyth & Co in association with RPC. “Counterfeit dealings by an employee at work can carry obvious reputational risk for an employer.”


Guy Fong, group head of Intellectual Property Investigation (Operations), said at a July 3, 2014, press conference that some youngsters were involved in selling counterfeits for quick money, and some believed that selling counterfeits on internet platforms would not be easily detected. Some of them have the misconception that they are not committing a crime as they have not claimed the goods as genuine or they do not know the goods are counterfeit.


“It is a mistake to think counterfeit transactions done online do not leave an evidential trail; they do and regulators know this,” says Davina Turnbull, an associate at Smyth & Co in association with RPC. “As for raising awareness of counterfeits, it is not just a matter of enforcement; more education, incentive and industry engagement are required.”


The quality of counterfeits can depend on what goods are involved and their sources, says Beverly Yee, a senior associate at Smyth & Co in association with RPC. “For example, a fake Rolex watch may be pretty easy to spot (from the feel and movement of the second hand).”


Fong appealed to members of the public to respect IPRs and not to get involved in the selling of counterfeits. He appealed to youngsters to stay alert and not to be involved in such activities during the summer holiday. They should remain vigilant when applying for summer jobs. Parents are also reminded to guide their children so as to prevent them from infringing the law.


“Counterfeiters come in all shapes and sizes and are not linked to any one age group. They can vary from ‘mum and dad’ operations to more organizedtype crime,” says Jason Carmichael, a partner at Smyth & Co in association with RPC.


“With today’s youngsters growing up in a digital age, it no longer matters where in the world an infringer is based, particularly when operating via an online platform,” says Rebecca Williams, a registered foreign lawyer at Smyth & Co in association with RPC.

 

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