Intellectual property crime growing exponentially

IP crime is the counterfeiting and piracy of trade marked and copyrighted products and services. This includes fake goods, prescription medicines and luxury goods, as well as trademarks and unauthorised downloads. The Rogers Review estimated that criminal gain from IP crime in the UK was £1.3 billion in 2006 with £900 million flowing to organised crime. Many industries are severely affected and attribute high levels of financial loss to IP crime. The European Commission reported that the total number of counterfeit and pirated articles seized by customs officials in Europe was 79 million in 2007.

In a report on intellectual property fraud by leading risk consulting company Kroll, IP fraud has skyrocked over the last ten years, "due to better access to Internet distribution channels and more criminal networks turning to IP fraud to finance operations". The report states there are weaknesses in corporate IP pipelines, poor legal protections in emerging markets, and highly sophisticated outlaws using both electronic and traditional means of obtaining trade secrets.

According to the Intellectual Property Office, you are responsible for enforcing your intellectual property. If you discover an infringement, you need to decide whether to seek an injunction or damages. They recommend seeking legal advice before taking any action, preferably from a law firm who specialise in intellectual property, patents, and trademarks.

An ounce of prevention may well be worth a pound of cure in these cases, and a thorough review of your policies, suppliers, and processes may go a long way in preventing litigation and loss of revenue. A few suggestions in combating IP fraud include:

• conducting a full IP audit and inventory of all archives
  
• conducting due diligence on suppliers, vendors, and partners
• sharing information with law enforcement officers
• preventing insider leaks through a system of monitors and alerts
• blocking software downloads on company PCs (or have a system where only certain people have administrative rights to download)
• encrypting data to outside sources
• putting security controls in place for high risk data
• protecting trade secrets, especially in employment contracts
  
• ensuring third party agents sign confidentiality agreements (this includes agencies, and should be in place for both parties)
  
• keeping up to date with regulatory requirements, and fully complying with new legislation

This is just a small step to ensuring that the information your company generates in the form of ideas, services, products, and branding does not generate profits for anyone outside the company.

Resources:

Intellectual property law firm

UK IP crime group

Interpol

Intellectual property management

Intellectual property solicitors London