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EU loses €60 billion to intellectual property rights infringement every year, EUIPO report reveals

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intellectual property rights infringement

The European Observatory on Infringements on Intellectual Property Rights (EUIPO) has published a new study on the impact, role and public perceptions of intellectual property in the EU.

The Observatory’s Synthesis Report revealed that €60 billion ($70.8 billion) is lost across the 28-nation bloc every year as a consequence of counterfeiting in 13 economic sectors.

That figure represented a loss of €116 for every EU citizen on an annual basis.

Approximately 434,000 jobs are estimated to have been lost in these sectors as a consequence of legitimate manufacturers making fewer products than they would if intellectual property rights infringements were not committed by counterfeiters.

While the majority of Europeans (97%) believe that enforcing intellectual property rights helps protect inventors and creators, 10% of respondents admitted to having bought counterfeit goods over the course of the past year, while a similar percentage confessed to having knowingly downloaded pirated protected content over the same period.

Twenty-seven percent of respondents overall and 41% of those aged between 15 and 24 agreed that “it is acceptable to purchase counterfeit products when the price for the original and authentic product is too high”.

The report notes that counterfeiters have benefited significantly from the growth of the internet and ecommerce platforms in particular, which they use to sell fake products and distribute pirated digital content such as films, TV shows, music and books.

China was found to be the largest producer of fake products in nine out of the ten most at-risk industries across the EU, which included foodstuffs, pharmaceuticals and electronics and electrical equipment.

According to customs seizure data, large volumes of counterfeit goods continue to arrive in the EU from China, much of which passes through the port and international airport of Hong Kong.

Unveiling the study last week, EUIPO Executive Director António Campinos said: “Over the past five years, our reporting and research has given, for the first time, a comprehensive picture of the economic impact of counterfeiting and piracy on the EU economy and job creation, as well as intelligence on how intellectual property rights are infringed.

“Through our research, we have also shown the positive contribution that intellectual property has on employment and growth.

“Our work has been carried out so that policymakers and citizens can be in no doubt of the value of intellectual property and the damage that arises from its infringement.”

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Convicted felon arrested in LA after police seize 553 illegally-owned guns

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553 illegally-owned guns

Police in Los Angeles have discovered a massive haul of 553 illegally-owned firearms inside the home of a convicted felon after receiving information from one of his neighbours.

The huge arsenal of illicit weapons was found after a two-day search of a property inhabited by 60-year-old Manuel Fernandez, who was arrested on charges of being a felon in possession of firearms and a being felon in possession of ammunition.

An initial search by local police of Fernandez’s home in the town of Agua Dulce resulted in the discovery of 432 firearms.

A follow-up raid conducted at the property in cooperation with federal agents resulted in the seizure of an additional 91 guns, along with computers, mobile phones, and hard drives.

In a separate swoop on a second address, 30 illegal firearms belonging to a female associate of Fernandez were confiscated.

Commenting on the discovery of the haul, Sheriff Jim McDonnell said: “This case is a testament to the community’s involvement in reducing crime and taking guns out of the hands of criminals.

“The swift response of our Palmdale Sheriff’s Station personnel and the assistance provided by our partners at the California Department of Justice and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) showed the positive result of our campaign ‘See Something, Say Something’.

“We are proud of the relationship we have built in the Antelope Valley area as we continue to build trust with the communities we serve.”

The Los Angeles County Sheriff’s Department called for assistance from ATF investigators due to the high number of firearms that were recovered during the operation.

They helped trace the purchase history of the guns, and will further assist in the case by providing resources as it progresses through the courts.

Supervisor Kathryn Barger, representing Los Angeles County’s 5th District, commented: “I applaud the Palmdale Sheriff’s station, the City’s Partners Against Crime and the Department of Justice who worked in conjunction on this effective operation and massive seizure of illegal firearms.”

The US Department of Homeland Security’s “See Something, Say Something” campaign encourages members of the public to remain alert to and report any potentially suspicious activity they may see to local police.

The campaign is primarily intended to raise awareness of the indicators of terrorism and terrorism-related crime, and is said to have played a key role in disputing a number of potential bomb attacks.

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Italian police target organised metal thieves in EU-wide operation

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organised metal thieves

Police in Italy last month led a major EU-wide crackdown on organised metal theft.

Supported by Europol, the European Union Agency for Law Enforcement Training (CEPOL) and the informal Network Against Metal Theft, the operation targeted thieves in Belgium, Bulgaria, Cyprus, France, Germany, Greece, Italy, Poland, Portugal, Romania, Spain and Britain.

Across the 12 countries that participated in the one-day effort, law enforcement officials ran checks on nearly 54,900 individuals, more than 42,200 vehicles, almost 8,000 environmental companies and scrap dealers, 589 border areas and 2,572 other hotspots, including harbours and rail transport sites.

The crackdown resulted in the arrest of 117 suspects alleged to have committed serious crimes, who were detained alongside more than 1,300 individuals who were convicted of minor offences and released.

Investigators identified a further 1,659 crimes, including 75 cases of theft, 60 of knowingly receiving stolen goods, 137 environmental crimes, 1,387 miscellaneous offences, and 2,763 administrative violations.

Officers seized nearly 358 tonnes of metal worth an estimated €890 000 ($1 million) during the operation, including almost 93 tonnes of copper worth around €540,000, and 983 solar panels and 140 vehicles.

In a statement, Europol said: “This action sends a strong signal from law enforcement authorities to metal theft gangs operating all over Europe and to the many scrapyards that accept all kinds of metal with ‘no questions asked’.

“The phenomenon of copper theft has taken a European dimension and it often affects companies operating in the transport, energy, and telecommunications sectors, disrupting essential public services and leading to significant economic and social repercussions and possible implications for security.”

The operation, during which investigators carried out real-time cross-checks against Europol databases, was conducted within the framework of EMPACT, an ad hoc management environment to develop activities in order to achieve pre-set goals in Europol’s fight against serious international and organised crime.

In May 2016, Europol revealed that police in Romania and France had taken part in an operation that resulted in the disruption of a major Romanian metal theft gang operating in France.

The effort involved 10 simultaneous raids across the country in the provinces of Ilfov, Teleorman and Galati.

Three suspects were arrested and a large quantity of evidence was seized during the raids, including 300kgs of iron alloy, cash and documents.

Earlier this month, China border force agents arrested 245 people on suspicion of being members of a scrap steel smuggling ring who were said to have illegally sold more than 2.4 million tones of metal to buyers across Southeast Asia.

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How paedophiles, sex traffickers and blackmailers freely use the surface web to exploit victims

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paedophiles, sex traffickers and blackmailers

Drug dealers who once felt safe to operate on the dark web have found to their cost over recent years that hidden online marketplaces may not offer the anonymity and protection they once thought they might. The closure of the likes of Hansa and AlphaBay and the arrest of illicit marketplace admins and moderators such as bearded hipster Gal Vallerius and AlphaBay boss Alexandre Cazes have prompted many dealers to abandon the dark web in favour of surface web platforms and applications that ironically seem to offer more protection from the prying eyes of police and other law enforcement authorities.

Paedophiles and child porn distributors have also had their fingers burned on the dark web following the infiltration by police of the world’s largest child porn hidden website, prompting them and other sex offenders to focus on ways of using surface web tools to facilitate their crimes. As has proven to be the case with drugs, weapons and human trafficking, big technology firms have done little to rid their networks of criminals who carry out a range social media-enabled sex offences, whether they involve children or adults. A failure to crack down on this type of activity is resulting in misery for victims across the globe, some of whom end up taking their own lives as a result of being targeted by online predators.

Live child sex abuse streaming

The spread of cheap, fast and reliable internet access in countries in Southeast Asia and South America has resulted in the rise of livestreamed child sex abuse shows, during which paedophiles from across the globe can send instructions to vulnerable young victims who are forced to carry out the degrading acts they request in front of webcams. Taking advantage of child exploitation laws that are much laxer than those that typically apply in most western countries, Southeast Asian and South American sex trafficking gangs lure young people with the promise of well-paid legitimate work, only to compel them to perform for foreign child abusers in squalid cybersex dens. These gangs are able to use surface web encrypted messaging apps such as Skype and WhatsApp to broadcast their livestreams, safe in the knowledge that the content they produce will be inaccessible to global law enforcement agencies. Even if the paedophiles who pay to watch the material they make are caught, sex trafficking gangs in these regions know the likelihood of them facing justice is slim.

Sextortion

Over the past few years, sextortion blackmailers have increasingly targeted social media users looking to meet potential partners and engage in sexual activity online. Often working from organised call centre-style environments, sextortion scammers contact potential victims on social media platforms such as Skype and Facebook, typically pretending to be an attractive young woman. After building a rapport, the fraudsters convince their victims to send them compromising images of themselves, either of in a state of undress or committing a sex act. As soon as they come into possession of the material they are looking for, sextortion scammers immediately turn nasty, demanding payment in exchange for not distributing the incriminating material to victims’ friends and family members. A number of UK victims are known to have taken their lives after being blackmailed by sextortion scammers. In a separate form of sextortion, paedophiles target mostly young women and girls to convince them to send naked pictures, and then blackmail them into performing degrading sex acts in front of a webcam for their own gratification. Both the National Centre for Missing and Exploited Children in the US and Britain’s National Crime Agency have recorded marked increases in reported cases of sextortion in recent years.

Online grooming

Paedophiles have long used the internet to both distribute indecent images of children and target victims to physically abuse, but the growing proliferation of social media platforms, smartphone apps and connected devices is offering them a much wider surface over which to operate – an opportunity they are taking full advantage of. As well as the likes of Facebook, Instagram and Snapchat, online predators exploit messaging apps including Kik, musical.ly and Ask.fm to target potential victims, typically pretending to be young people themselves. In March, the UK’s National Crime Agency warned that paedophiles were targeting children on the hugely popular Fortnite game via the app’s text chat feature. Earlier this week, a British mother revealed how her son had been sexually abused after being groomed by a paedophile via his games console.

While big technology firms occasionally pay lip service to the protection of children and vulnerable people online, they spend a very small portion of their vast profits on making their platforms a less welcoming environment for paedophiles, sex traffickers and sextortion blackmailers. All the while they refuse to take any real action, it will fall to law enforcement authorities to do what they can to diminish the advantage online surface web tools have handed to these types of offenders. With this being an all but impossible task, the surface web is likely to remain a much more fruitful hunting ground for sexual predators than the dark web until governments force big tech companies to get their house in order and stop profiting from the suffering of the victims of online sexual exploitation.

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