GLOBAL AUTOMOTIVE ANTI COUNTERFEITING ALLIANCE Alexander Theil AASA China Aftermarket Forum Meeting...
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Transcript of GLOBAL AUTOMOTIVE ANTI COUNTERFEITING ALLIANCE Alexander Theil AASA China Aftermarket Forum Meeting...
GLOBAL AUTOMOTIVE GLOBAL AUTOMOTIVE ANTI COUNTERFEITING ANTI COUNTERFEITING
ALLIANCEALLIANCE
Alexander TheilAlexander TheilAASA China Aftermarket Forum MeetingAASA China Aftermarket Forum Meeting
Shanghai, June 7, 2007Shanghai, June 7, 2007
Counterfeit auto parts are a public Counterfeit auto parts are a public SAFETY hazard!!!SAFETY hazard!!!
Everybody is a potential victim!!!Everybody is a potential victim!!!
WomenWomen
ChildrenChildren
Senior CitizensSenior Citizens
DriversDrivers
PassengersPassengers
PedestriansPedestrians
BACKGROUNDBACKGROUND
Counterfeit Automotive parts are a Counterfeit Automotive parts are a growing global phenomena. growing global phenomena.
Current Anti-Counterfeiting programs Current Anti-Counterfeiting programs unable to deliver satisfactory resultsunable to deliver satisfactory results
Considerable Frustration, even Considerable Frustration, even Resignation within Industry due to limited Resignation within Industry due to limited progress progress
BENCHMARKBENCHMARKAutomotive Industry is not sufficiently Automotive Industry is not sufficiently organized to effectively compete with other organized to effectively compete with other Industries such asIndustries such as
– Motion Picture Industry (MPA)Motion Picture Industry (MPA)– Phonographic Industry (IFPI)Phonographic Industry (IFPI)– Software Industry (BSA)Software Industry (BSA)– Pharmaceutical Industry (PHARMA)Pharmaceutical Industry (PHARMA)
Despite the fact that auto parts are a public Despite the fact that auto parts are a public health and safetyhealth and safety concern, enforcement concern, enforcement authorities spend more efforts for these authorities spend more efforts for these industries than for the automotive industry. industries than for the automotive industry.
WHY NOWWHY NOW
In most countries in Asia, the above Copyright In most countries in Asia, the above Copyright Industry Associations dominate Industry Associations dominate
– the public dialogue regarding counterfeitingthe public dialogue regarding counterfeiting– law enforcement agenda law enforcement agenda
They have now also started to dominate the They have now also started to dominate the agenda setting with the Chinese government. agenda setting with the Chinese government.
Enforcement results for the Auto Industry in Enforcement results for the Auto Industry in China are going to get considerably worse - China are going to get considerably worse - unless we act !!!unless we act !!!
CURRENT SYSTEMCURRENT SYSTEM
Each company running own enforcement Each company running own enforcement program with ad hoc cooperation program with ad hoc cooperation between brand ownersbetween brand owners
Investigations and enforcement usually Investigations and enforcement usually outsourcedoutsourced
Most cases involve many brand owners, Most cases involve many brand owners, usually service providers coordinate usually service providers coordinate enforcement actionsenforcement actions
CURRENT LIMITATIONSCURRENT LIMITATIONS
Governments do not wish to be seen to Governments do not wish to be seen to support just one company, one country or one support just one company, one country or one region.region.
– However, they are willing to listen to a global However, they are willing to listen to a global industry perspective, in particular if this also extends industry perspective, in particular if this also extends to the local industryto the local industry
Criminal law enforcement agencies in many Criminal law enforcement agencies in many countries will not take cases unless ALL brand countries will not take cases unless ALL brand owners involved commit to support the case.owners involved commit to support the case.
– These agencies will focus on industries which have These agencies will focus on industries which have organized themselves and will ignore those which organized themselves and will ignore those which have failed to do so. have failed to do so.
SOLUTIONSOLUTION
Global Automotive Brand Owners Global Automotive Brand Owners Anti-Counterfeiting Alliance Anti-Counterfeiting Alliance (“Automotive Alliance”)(“Automotive Alliance”)
To be effective the Alliance has to be Global in To be effective the Alliance has to be Global in nature, i.e. it has to be perceived as representing nature, i.e. it has to be perceived as representing the industry as a whole, without any national or the industry as a whole, without any national or regional limitations.regional limitations.
Representation of Industry as a WholeRepresentation of Industry as a Whole
Being global in nature will allow the Alliance Being global in nature will allow the Alliance to advance its agenda independent from to advance its agenda independent from wider geo political developments wider geo political developments The Alliance will provide a competent and The Alliance will provide a competent and reliable point of contact for governments, reliable point of contact for governments, law enforcement, media, etc. law enforcement, media, etc. – In every key country, there will be In every key country, there will be
dedicated resources, dedicated resources, contact points, orcontact points, orhotlinehotline
Coordination of Local / Regional / Coordination of Local / Regional / International CasesInternational Cases
Alliance coordinates all Investigations and Enforcement Alliance coordinates all Investigations and Enforcement actions involving more than one Brand.actions involving more than one Brand.Oversee service providers on behalf of the individual Oversee service providers on behalf of the individual companiescompanies– Ensure quality of investigative work Ensure quality of investigative work – Ensures that fees charged are appropriate. Ensures that fees charged are appropriate.
Every case will be analyzed from an International Every case will be analyzed from an International perspective to identify the global networks the perspective to identify the global networks the counterfeiters are operatingcounterfeiters are operatingDisaster regions, i.e. regions in which counterfeiting is of Disaster regions, i.e. regions in which counterfeiting is of particular eminence will be identified. particular eminence will be identified. – Specific programs will be established to address the particular Specific programs will be established to address the particular
situation in each disaster region. situation in each disaster region. – These all encompassing programs will be tailor made to address the These all encompassing programs will be tailor made to address the
specific problems in each region. specific problems in each region. – They will include investigations, as well as aspects of enforcement, They will include investigations, as well as aspects of enforcement,
education, public policy, public relations, government lobbying, etc education, public policy, public relations, government lobbying, etc
Supervision of Enforcement ActionsSupervision of Enforcement Actions
Alliance officials/employees will Alliance officials/employees will
Attend raid actions whenever possibleAttend raid actions whenever possible
Conduct post raid follow upConduct post raid follow up
Lobbying and Government Lobbying and Government RepresentationRepresentation
Lobbying on case related details,Lobbying on case related details,– Higher level enforcement Higher level enforcement – Ministerial level enforcement officials, Ministerial level enforcement officials, – Local governmentsLocal governments– Regional governmentsRegional governments– National governmentsNational governments
Lobbying on public policy debates to influence Lobbying on public policy debates to influence changes in policy changes in policy – Intellectual Property laws Intellectual Property laws – Law enforcement implementation rules and guidelinesLaw enforcement implementation rules and guidelines
Customs Training and AlertsCustoms Training and Alerts
Main Goal is to Focus Government resources onto the Main Goal is to Focus Government resources onto the Automotive Industry instead of other industries.Automotive Industry instead of other industries.One Alliance official could be responsible forOne Alliance official could be responsible for– Training, Training, – Customs responseCustoms response– Product inspection servicesProduct inspection services– LobbyingLobbying– Etc.Etc.
The health and safety aspect of the automotive industry The health and safety aspect of the automotive industry should provide us with a natural ranking on top of the should provide us with a natural ranking on top of the priority list priority list
BENEFITSBENEFITSSubstantial Cost SavingsSubstantial Cost Savings
Dramatically Better ResultsDramatically Better Results– Quantitatively numbers of seizures, prosecutions, and Quantitatively numbers of seizures, prosecutions, and
compensation will increase dramatically. compensation will increase dramatically. – Qualitatively the information obtained in the course of Qualitatively the information obtained in the course of
the cases will allow us to the cases will allow us to strategically address the global networks and the organizers strategically address the global networks and the organizers behind the scene. behind the scene.
This in turn will eventually create a deterrent effect and will This in turn will eventually create a deterrent effect and will result in discouraging counterfeiters from the automotive result in discouraging counterfeiters from the automotive industry as a whole.industry as a whole.
Increased Policy InfluenceIncreased Policy Influence
Supervisory Board
Chairman Asia
MDKorea
MDChina
MD ASEAN
MD India
STRUCTURETOP-DOWN APPROACH (Asia Wide)
EnforcementManager
EnforcementManager
EnforcementManager
Fulltime Alliance Employee
Member Employee
Supervisory Board
Chairman
ViceChairman
ViceChairman
ViceChairman
ViceChairman
EnforcementManager
EnforcementManager
EnforcementManager
EnforcementManager
STRUCTUREBOTTOM-UP APPROACH (China Only)
Fulltime Alliance Employee
Member Employee
BACK UP 1: STRUCTUREBACK UP 1: STRUCTURE BOTTOM-UP APPROACH (China Only)BOTTOM-UP APPROACH (China Only)
SUPERVISORY BOARDSUPERVISORY BOARD: : Consisting of representatives of all Alliance member companiesConsisting of representatives of all Alliance member companiesCHAIRMANCHAIRMAN: :
– Manages the Alliance on behalf of the Supervisory board. Manages the Alliance on behalf of the Supervisory board. – Represents the Alliance towards government, public, etc. Represents the Alliance towards government, public, etc.
(In the long term this position should be a full time Alliance employee, but for the start (In the long term this position should be a full time Alliance employee, but for the start up stage the function shall be performed by a representative elected from within up stage the function shall be performed by a representative elected from within Supervisory board members)Supervisory board members)VICE CHAIRMENVICE CHAIRMEN (x numbers) : (x numbers) :
– Assist the Chairman in representing the Alliance toward governments, public, etc. (lobbying, Assist the Chairman in representing the Alliance toward governments, public, etc. (lobbying, marketing)marketing)
(This function shall be performed by a number of representatives elected from within (This function shall be performed by a number of representatives elected from within the Supervisory board)the Supervisory board)ENFORCEMENT MANAGER(S)ENFORCEMENT MANAGER(S): :
– Coordinating all Alliance investigations Coordinating all Alliance investigations – Supervising Alliance raid actions and conducting post raid follow-up (particular the second Supervising Alliance raid actions and conducting post raid follow-up (particular the second
element will result in drastic cost reductions).element will result in drastic cost reductions).– Contact point for customs seizures and responsible for customs trainingContact point for customs seizures and responsible for customs training
Full time position(s) reporting to the Alliance Chairman. Full time position(s) reporting to the Alliance Chairman.
BACK-UP 2: “Typical” Case: BACK-UP 2: “Typical” Case: FENGHUA YLJFENGHUA YLJ
Raid Action in Zhejiang Province in December 2006 resulted in Raid Action in Zhejiang Province in December 2006 resulted in seizure of US$1,2 million worth of products (based on dealer price)seizure of US$1,2 million worth of products (based on dealer price)
CUSTOMERS: CUSTOMERS:
Identified over 100 companies in 35 countries including Asia, Middle Identified over 100 companies in 35 countries including Asia, Middle East, Europe, Africa, South AmericaEast, Europe, Africa, South America
SOURCES:SOURCES:
Identified over 100 manufacturers of various auto parts, all located Identified over 100 manufacturers of various auto parts, all located in China.in China.
Follow-up investigations already led to seizures in Dubai, Germany, Follow-up investigations already led to seizures in Dubai, Germany, Poland, Romania, Hungary. Value of additional products, labels, Poland, Romania, Hungary. Value of additional products, labels, packaging seized, and sales information discovered worth US$38.4 packaging seized, and sales information discovered worth US$38.4 million (retail value of case so far ca US$80 Million)million (retail value of case so far ca US$80 Million)
Further investigations in other countries around the world ongoingFurther investigations in other countries around the world ongoing
Counterfeit auto parts are a public Counterfeit auto parts are a public SAFETY hazard!!!SAFETY hazard!!!
Everybody is a potential victim!!!Everybody is a potential victim!!!
WomenWomen
ChildrenChildren
Senior CitizensSenior Citizens
DriversDrivers
PassengersPassengers
PedestriansPedestrians