Connect with us

Opinion

The US trade war with Beijing will do little to prevent counterfeit items flooding out of China

Published

on

counterfeit items flooding out of China

While US President Donald Trump has sought to make intellectual property rights (IPR) a major sticking point in America’s ongoing trade war with China, the little progress made in negotiations between the two countries in this area over the past year or so will likely make no dent whatsoever in the huge number of counterfeit and pirated products that are exported out of China to foreign markets every year. For its part, Beijing claims it has made significant progress on IP protection in recent years, with data from China’s State Administration of Foreign Exchange (Safe) showing in April that the country’s external payments of IPR royalties had risen 24% in 2018 to $35.8 billion, resulting in a deficit of $30.2 billion.

Beijing has long promised to improve its IPR protection regime, more as part of efforts to bolster innovation and support its own industries than to placate the US, and has set up a series of specialist IP courts across the nation, as well as increasing penalties for trademark infringement. Although foreign companies have complained that these are often biased towards domestic firms and hand out inadequate punishments, the increased external IPR royalty payments being made by China suggest that the country’s new approach might be producing some positive results.

While this development is to be welcomed, particularly for those businesses that have benefited from increased IPR royalties emanating from the country, it remains to be seen what impact if any China’s new IPR regime might have on the massive amount of fake items that flood out of the  country to overseas markets.

Some experts believe the US/China trade war could even lead to an increase in the number of counterfeit goods coming out of the mainland and Hong Kong, with World Trademark Review reporting in June 2018 that six trade associations had warned US Congress that tariffs levied against Beijing could divert resources away the country’s efforts to fight the counterfeiters that operate from within its borders. In March, CNBC reported that if anything the problem is likely to get worse, not least on account of the fact that Chinese counterfeiters are increasingly able to take advantage of technology such as ecommerce platforms and 3D printers.

It could be argued that it is too early to tell whether the US trade war with China will have any meaningful effect on the volume of bogus goods that are exported from the mainland and Hong Kong to the rest of the world an annual basis, but the direction of travel suggests that an improvement from the current state of affairs looks a long way off.

At the beginning of September, the AFP news agency reported that head of the Investigations Directorate at the EU’s anti-fraud office OLAF had warned that the growth of ecommerce platforms had made Europe’s battle with counterfeiters from China more difficult, noting that gangs of fraudsters operating from within the country were to blame for the problem rather than the state itself. Just weeks later, data released by the European Commission revealed that seizures of fake goods consignments imported into the EU had risen over the previous year, and that the majority of bogus household items smuggled into the 28-nation bloc had come from China.

Back in March, a report published by the Organisation for Economic Co-operation and Development (OECD) and the EU’s Intellectual Property Office revealed that fake goods had grown to account for 3.3% of all global trade, and that most of the counterfeit items seized around the world in 2016 originated from mainland China and Hong Kong. Things seem not to have improved much over the intervening years, with continual reports suggesting that mainland China and Hong Kong remain the source of the lion’s share of all fake items sold around the globe.

At the end of last month, US Customs and Border Protection (CBP) revealed that its officers based at a cargo sorting centre in Kentucky had discovered counterfeit bracelets and other jewellery sent from China that would have been worth some $90 million if they had been genuine. This came after the CBP’s annual Intellectual Property Rights Statistics showed that China remained the main source of counterfeit and pirated goods seized by customs agents across the US in 2018, accounting for 54% of the value of all IPR seizures in the country that year.

All of this suggests that while Beijing’s new IPR regime looks set to improve the lot of businesses that had been losing out on royalties they should have been earning on products sold within China, life looks unlikely to change for the organised criminal networks that are behind many of the counterfeits that are exported out of the country to overseas markets, and that tariffs imposed by the Trump administration might even make things easier for them.

Continue Reading

Opinion

Islamist or far right, terrorist prisoners should remain behind bars if there is the slightest suspicion they could still pose a risk

Published

on

terrorist prisoners should remain behind bars

The British government last week very sensibly moved to make sure dangerous terrorist prisoners cannot be released halfway through their sentences to maim and murder innocent members of the public. In emergency legislation tabled in Parliament after two Islamists launched bloody attacks over the past few months having both been let out of jail early, UK government ministers sought to prevent extremists from being set free prior to serving at least two-thirds of their sentence. Even then, cases would need to be referred to the Parole Board for consideration before an inmate could be freed, according to the draft legislation. Under British law as it stands, terrorist suspects are automatically released from jail halfway through their sentences even if authorities believe they could still pose a threat.

The unveiling of the proposed new law prompted some commentators to complain that simply locking up terrorists and throwing away the key is no way to deal with radicalised individuals, as is often the case whenever stricter sentencing for these types of offences is floated as an idea. In reality though, while the suggested new measures may be a start, they go nowhere near far enough.

While the multiple terror attacks the UK endured throughout 2017 were not enough to force any meaningful change, one need only look at the events of the past few months to see how desperately reform of current legislation is needed. In November of last year, an Islamist extremist who had been let out of jail early after being convicted of plotting to launch attacks on several London landmarks stabbed two people to death while attending a conference on rehabilitating offenders in Fishmongers’ Hall near London Bridge.

If it were not for the bravery of members of the public, who tackled Usman Khan before armed police arrived on the scene and shot him dead, it is likely that many more victims would have lost their lives. Khan was handed an indeterminate prison sentence for “public protection” with a minimum jail term of eight years after he was convicted of a range of terrorist offences in 2012, including plotting an attack on the London Stock Exchange. Despite this, he was freed in December 2018, less than a year before he launched his deadly attack.

Just months later, another Islamist extremist stabbed two people in the London suburb of Streatham after being released halfway through a terror-related prison sentence just days earlier. Sudesh Amman was shot dead by a police officer who was part of team keeping him under surveillance due to worries about the danger he posed. Amman was set free after being jailed for possessing documents containing terrorist information and disseminating terrorist publications. If nothing else, the fact the 20-year-old jihadist was released from custody despite being considered so dangerous that he required police surveillance demonstrated just how wrong-headed current UK law is.

How can it be the case that a potentially violent extremist can be let out of prison when he is considered such a threat that he requires a team of detectives to monitor his movements? While it is of course a good thing that officers were on hand to neutralise Amman after he launched his attack, would it not have been better for all concerned if he was not been freed in the first place?

Over the approaching months, scores of convicted terrorists will be coming up for release in Britain, which is one of the reasons the UK government is so keen to push through its new legislation as soon as possible. But while the new law might buy ministers some breathing space by keeping dangerous extremists off the streets in the short term, all it effectively does is kick the problem into the long grass. Even if some extremists are forced to serve the whole of their tariff behind bars, there will be no guarantee they will not hold the same views that inspired their original crimes once they are eventually released from jail. This will be the case whether the offender of is an Islamist or a member of a far-right organisation, although the former group is by some margin a more worrying concern in the UK at present.

As such, the law must act accordingly. A system under which terrorists are handed determinate sentences is no longer fit for purpose, as has been demonstrated repeatedly not only in the UK but also elsewhere. Members of the public deserve to be protected from dangerous extremists, which means none should be allowed to walk the streets until any suspicion that they might pose a risk has been completely discounted. The long and short of the matter is that so long as those harbouring dangerous extremist attitudes are not allowed back on the streets, their chances of acting out their ideological impulses will be much diminished, and you and I will feel safer going  about our business without the fear of being stabbed in the neck by a convicted terrorist whose rightful place is behind bars.

Continue Reading

Opinion

How virtual credit card skimmers successfully target blue-chip firms that should have the resources to repel their attacks

Published

on

virtual credit card skimmers

Despite the banking industry’s best efforts and the launch of a multitude of awareness-raising campaigns by law enforcement agencies across the globe, criminals are still able to use ATM machine and point-of-sale (POS) payment system skimmers to harvest consumers’ credit card details with relative ease. In just the past few weeks, a French-Brazilian man was handed a suspended jail sentence in Australia after being convicted of using an ATM skimmer to fleece victims of tens of thousands of dollars, while police in numerous states across the US have reported increased incidents of credit card skimming devices being found attached to payment consoles at petrol station pumps.

If it were not bad enough that the makers of cash machines and POS devices appear to be completely unable to prevent a scam that now seems relatively low-tech in nature, hackers are increasingly turning to a virtual version of credit card skimming that targets information entered by buyers during the checkout process on ecommerce platforms.

Earlier this week, Interpol revealed that it had supported an operation that resulted in the arrest of three suspects in Indonesia who are alleged to have used digital skimming code to steal the personal credit card information of consumers using multiple ecommerce platforms. The international law enforcement agency said the three suspects went on to use the card details they stole to buy electrical equipment before selling it on at a profit.

In collaboration with online security firm Group-IB, Interpol also identified several servers associated with this type of crime and a number of infected websites in six countries in the ASEAN region. The results of the operation demonstrated the relative ease with which virtual credit card skimmers can be deployed, highlighting the fact that they can be difficult to detect and can be bought and deployed by hackers easily for as little as $250.

This type of cyber crime activity is often referred to as Magecart, an umbrella term coined to describe the act of using so-called JavaScript sniffer malware to target ecommerce websites built on the Magento platform. By maliciously injecting a simple yet effective code into such websites, Magecart hackers are able to steal consumers’ card details and personal information as they go through checkout pages at the end of the purchasing process.

Much in the same way as physical skimmers capture credit card information and PINs at ATM and POS machines, JavaScript sniffers record payment card details and personal information such as names, addresses and phone numbers and then send this on to servers controlled by the hackers behind the scam. As well as using this information to make purchases, cyber criminals can also put credit card details on sale in bulk on the dark web, or use the information they steal to commit identity fraud.

While consumers will more often than not get their money back if their credit card information is compromised by JavaScript sniffer malware, companies targeted in such scams can suffer lasting reputational damage, and can in some cases face fines for failing to protect their customers’ data. Despite the potential consequences, businesses that one would assume would have more than adequate resources to direct towards ensuring the security of their IT systems have fallen victim to Magecart-style attacks, including British Airways and Ticketmaster.

This comes down to the fact that JavaScript sniffer code can be so difficult to detect once it has been injected into a website. At the end of December, Malwarebytes security researcher Jérôme Segura explained in a blog post how JavaScript sniffer code can be hidden in such seemingly innocuous website components as wieldy-used boilerplate “free shipping”  image files. Segura noted that media files are good places for hackers to hide such code on account of the fact that most web crawlers and scanners concentrate on HTML and JavaScript files.

While it may seem strange to some observers that the banking industry and global law enforcement agencies have failed to neutralise the threat posed by physical credit card skimmers, the ease with which Magecart hackers can compromise companies’ IT systems makes the threat posed by JavaScript sniffers all the more pernicious. While the success of Interpol’s recent operation demonstrates that it is possible to identify and bring Magecart cyber criminals to justice, the fact that it can take as little as one line of code to compromise ecommerce platforms makes it very difficult to head off these types of attacks before they start producing results.

In March of last year, Group-IB revealed that Magecart malware that took the form of just one line of code had comprised more than 800 websites, including one run in the UK by apparel maker FILA. With finding such code being like searching for a needle in a haystack, it seems likely that Magecart attacks will live as long and happy a life as physical credit card skimming.

 

Continue Reading

Opinion

If the UK press is so racist, why do Prince Andrew’s alleged wrongdoings generate so many more column inches than ‘Asian’ grooming gangs?

Published

on

‘Asian’ grooming gangs

Much has been made over recent weeks of the way Meghan Markle has been treated by the British press since she married Prince Harry some 20 months ago. She has, we are told by her supporters, been made to endure the most appalling abuse, particularly at the hands of the UK print media. It has been repeatedly suggested that this has been meted out solely on account of Markle’s skin colour, and has absolutely nothing to do with the manner in which she has conducted herself since joining the royal family. The difference between the coverage she receives and that enjoyed by Prince William’s wife Kate Middleton, it is argued, simply comes down to skin colour.

Accusations of racism are routinely levelled at parts of the British media, and are in some cases well deserved. But whether or not you believe Meghan Markle has been hounded by reporters and journalists due to the fact she is of mixed race, there is little evidence to suggest that Prince Andrew has in any way benefitted from the colour of his skin when it comes to media coverage of his alleged wrongdoings. That is of course entirely correct.

Accusations that the Duke of York may have been involved in sex trafficking should be taken extremely seriously. As should the very well documented fact that he maintained a relationship with the disgraced and now deceased US financier Jeffrey Epstein after he had been convicted of procuring an underage girl for prostitution and sex trafficking.

Thanks to UK media coverage of his alleged behaviour, Prince Andrew’s life is now almost unrecognisable compared to this time last year. Following weeks of lurid headlines about his party lifestyle and discussion relating to his ability to sweat, the Duke was effectively sacked from the royal family, and lost almost all his “work”. The press did its job; exposing wrongdoing and holding Andrew to account. Having white skin did him few favours on this occasion it would seem, and failed to protect him from an absolute mauling from the British media.

But if the UK press truly is as racist as is often claimed, one could surely expect that it would stop at nothing to investigate repeated revelations about mostly Pakistani Muslim paedophile grooming gangs raping poor white working-class girls with at least the same vigour as it would allegations about the Duke of York? Apparently not.

Last week, the Times of London reported that it had seen a report that showed the UK’s Independent Office for Police Conduct (IOPC) had upheld a complaint that a police officer from Rotherham ignored allegations that such gangs existed because the town “would erupt” if it were  known that Asian men were routinely having sex with under-age white girls. While the story received moderate levels of media coverage for a couple of days, it garnered nothing approaching the attention generated by the allegations relating to Prince Andrew.

There is a pattern here. In the UK, barely a month goes by without reports of “Asian” gangs being brought before the country’s courts to face charges of raping vulnerable young white girls. Earlier this month, the BBC reported that Leeds Crown Court had heard that a grooming gang in Huddersfield preyed on two “young and vulnerable” teenage girls, with one victim estimating she “had sex with up to 300 men”.

In December, the Independent reported that campaigners had called for the UK government to keep a promise to review grooming gang “characteristics” after revealing that more than 18,700 suspected victims of child sexual exploitation were identified by local authorities in 2018-19. In November, the Yorkshire Post reported that five men who sexually exploited young girls in Huddersfield had been handed jail sentences of up to 14 years. To say this is an epidemic would be an extraordinary understatement. In fact, research published by the Quilliam Foundation in 2017 revealed that 84% of “grooming gang” offenders were at the time “South Asian”.

Despite this, the above stories and many others like them receive nothing approaching the blanket coverage the disgraceful allegations against Prince Andrew were rightly given towards the back end of last year. Surely, if the UK media was as racist as some people claim, reports of mostly Pakistani Muslim paedophile gangs raping young white working-class girls would receive at least comparable coverage to the accusations facing the Duke of York? Fortunately for the members of these gangs, it would appear that the British press is beset by a form of racism to which they are immune.

Continue Reading

Newsletter

Sign up for our mailing list to receive updates and information on events

Social Widget

Latest articles

Press review

Follow us on Twitter

Trending

Shares