Bucharest Determined To Fight Counterfeiters

28/10/2004

Official estimates suggest that more than 10 million imitation products are sold to Romanians each year, resulting in enormous losses for companies. The government is taking steps to tackle the problem.

By Razvan Amariei for Southeast European Times in Bucharest – 28/10/04

Romanian workers clear debris after the destruction of five tonnes of counterfeit sport shoes earlier this month in Medgidia. [AFP]

About 128,000 pairs of counterfeit "Puma" and "Adidas" sport shoes were burned using the ovens of a cement factory in Medgidia -- 175km east of Bucharest -- earlier this month in what authorities describe as "the biggest such action in Europe in the last ten years". Seized in Constanta, the country's main port and the most identifiable entry point for counterfeit merchandise -- the shoes likely would have sold for about 10 times less than genuine brand-name products.

The move was part of a crackdown on those who produce, sell and import forged merchandise. According to Ionel Blanculescu, the head of the National Authority for Control, draft legislation aimed at tackling the problem will soon come before parliament. The bill "stipulates heavy sanctions, like fines as big as [24,438 euros] and even imprisonment, for those producing, importing and commercialising counterfeit goods," he said.

Official estimates show that more than 10 million imitations are sold to Romanians every year. Some buyers are probably deceived, some want to show off without spending money, and many simply don't care what they are getting.

Gabriel Turcu, president of the Romanian Association for Fighting the Counterfeit (REACT), says the forged goods market amounts to about 50 per cent to 60 per cent of all goods sold in the country. However, he added, the figures jumps to "as high as 80 per cent when we are talking about perfumes, branded clothes and shoes or mobile phone accessories".

Counterfeit toys and medicines bought and sold in Romania typically originate in China, India, Turkey and the Middle East, says Georgeta Mitroi, chief of a specialised office within the National Customs Authority. Other imitations, however, are manufactured locally. In the alcohol industry, 60 per cent of the counterfeit goods are produced in Romania. Seventy per cent of illegal software and DVDs, as well as 97 per cent of computer games, come from within the country.

The impact on brand-name companies is enormous, with REACT estimating the loss at around 244m euros annually. The companies are not taking this loss sitting down, however. Some have launched informational campaigns designed to educate consumers about the difference between a fake product and the real thing. They are also demanding that authorities increase checks on suspicious transports of goods -- six such requests were made in 2001, but more than 86 took place last year. These checks, along with other actions, are helping to decrease the amount of forged products available on the streets.