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Police Enforce IP Rights at CeBIT

German officials raid 55 exhibits accused of patent infringement

By Gary Tufel -- Tradeshow Week, 3/17/2008

More than 180 German police, customs officials and prosecutors raided 55 exhibitors' booths March 5 during CeBIT, the giant information technology tradeshow held March 4-9 in Hannover, Germany. Two more raids followed on subsequent days.

Authorities confiscated six cartons of electronic goods – including cell phones, navigation devices, digital picture frames, flat-screen monitors, GPS devices and high-definition televisions – and documents, according to Hannover police spokesman Stefan Wittke.

He said the raids were in response to the large number of complaints from patent holders prior to the tradeshow, which had increased in recent years. Wittke said police conducted similar raids during the 2006 and 2007 CeBIT shows, but they were not as extensive as this year's actions.

Wittke said at least 24 of the exhibitors questioned and fined were from China, including three from Hong Kong. Another 12 were from Taiwan. Nine more were from Germany and one each was from Poland, the Netherlands and South Korea.

Most of the relevant patents were related to devices with MP3, MP4 and DVB functions for digital audio and video; blank CDs; and DVD copiers, Wittke said. Twenty people were ordered to pay a security deposit of $1,000 ($1,533) each and were released. Most were cooperative, he added.

Wittke said the police intended their actions to send a message that intellectual property violations would not be tolerated. He said Deutsche Messe, organizer of the show, had informed all exhibitors of the possibility that regulations would be enforced.

“They should have known this and expected the raids,” Wittke said. “We will conduct them again next year as well.”

The 55 exhibitors in question were allowed to continue participating in the show, but faced eviction if found in violation again.

The cases have been turned over to authorities, and the offending parties may face additional fines. However, they do not face jail time as had been reported elsewhere in the media.

CeBIT and Deutsche Messe spokesperson Hartwig von Sass confirmed some details of the raids, but said police instructed Deutsche Messe not to comment on the ongoing investigation.

Vincent Gerard, managing director of UFI, the Global Assn. of the Exhibition Industry, said that recent interventions on IPR issues at exhibitions were not unusual and occur when an exhibitor considers him or herself the victim of patent infringement.

“The organizer's role consists of providing assistance and access to the exhibition for the adapted legal action when counterfeit practices are identified,” Gerard said.

Steven Hacker, president of the Intl. Assn. of Exhibitions and Events, said he was happy to see authorities taking the intellectual property rights of exhibitors seriously.

“The CeBIT incidents illustrate the need for organizers to do all they can to prevent their events from being used by pirates for illegal purposes,” Hacker said. “This issue will only grow in its importance for our industry.”

 

Global Efforts in Place to Combat Tradeshow Piracy, Theft

The CeBIT incident drove home long-standing concerns about the theft of intellectual property at tradeshows. But even before the events at Hannover, Germany, earlier this month, a number of German messes and industry associations had launched efforts to curb piracy and counterfeiting practices at exhibitions and to educate exhibitors on the issues.

For example, Koelnmesse's Red Card campaign against intellectual property rights piracy is modeled after the practice in many sports, including soccer, of handing out red cards after rules infractions. Posters and brochures depict an arm stretched out toward the viewer holding a “No Copy!” message on a red card.

At assistance centers on showfloors at the Cologne, Germany, exhibition hall, staffers record tradeshow customers' concerns and provide advice on how to take measures early to protect their intellectual property rights.

As was the case with CeBIT, tradeshow officials in Cologne said they cooperate with authorities and customs officials, who send mobile control groups into tradeshow halls to investigate possible cases of illegal copying and are authorized to confiscate exhibited products.

Karsten Deicke, a Koelnmesse press officer, said, “Product piracy is one of the chief problems plaguing international trade fairs.” In Germany, he said, such violations are considered attacks on the affected manufacturers.

Koelnmesse also signed an August 2007 Intellectual Property Memorandum with its Chinese business partners that it hopes will be a model for similar partners in other countries.

Messe Frankfurt's campaign against copying was launched in 2006. Since then, the number of confiscated goods at Frankfurt consumer goods tradeshows decreased as much as 90 percent, officials there said. There has also been a significant increase in registered trademarks and assertion of property rights.

Detlef Braun of Messe Frankfurt's Board of Management said some 4,800 IPR inquiries were made at Frankfurt shows in 2007. He said an increasing number of exhibitors at Messe Frankfurt shows are well informed about how to protect their products and brands. This year, the number of exhibitors at Ambiente 2008 who requested help with the issue had increased 27 percent compared with 2007.

Braun said the most important thing exhibitors needed to understand is that the registration of their brand names, designs or technical information in their own countries may not be enough to protect them when they travel to Germany and other European Union countries. Protection is only possible if property rights have also been registered in the country in which the show is held.

UFI, the Global Assn. of the Exhibition Industry, which has addressed the problem on an ongoing basis, recently released its Recommendations for the Protection of Intellectual Property Rights at Exhibitions. Each UFI member has been asked to sign the UFI Code of Ethics, agreeing to respect the intellectual property of others and protect the confidentiality of privileged information provided during business activities, said Vincent Gerard, UFI managing director.

Among UFI's recommendations to organizers are:

  • Advise exhibitors to protect and register trademarks, patents or designs before the tradeshow starts and to use all forms of legal protection before and during the event. Exhibitors who believe other exhibitors may infringe on their rights should inform customs authorities of their suspicions.
  • Offer a list of local attorneys who specialize in intellectual property rights.
  • Provide experts (IP attorneys, customs authorities) during the event to offer legal advice.
  • Provide a neutral arbitrator or judge to help determine if there is a violation or to resolve IPR disputes during the show.
  • Provide interpreters to facilitate communication in case of disputes with foreign exhibitors.
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