Audio & Musical InstrumentIndustry Working Group (IWG)

Fact Sheet

Group Coordinator: Heidi Ng, Bose Corporation

Group Members:

Bose Corporation Fender Harman Apple (TBC)

Key Objective(s)

With the common interest of all audio industries related parties in ceasing those who manufacture and distribute counterfeit audio products, the purpose of the Audio & Musical Instrument IWG is for its members, subject to the relevant IPR Protection policies, to jointly communicate with appropriate government authorities in a more effective way to pursue those entities and individuals in the unlawful manufacture, distribution and sale of these products.

Introduction

Currently, our audio IWG members have observed a substantial increase in the number of counterfeit audio products appearing in several world markets, most notably China. We have worked together on raids to fight against these counterfeit parties. While we have seen counterfeit audio products selling in all over China, the manufacturers of counterfeit audio products however are relatively concentrated in Guangdong, Shenzhen, Dongguan and Shantou. We have increasingly observed counterfeit speakers, headphones and audio accessories made in China selling towards Europe and North America.

With a high determination on fighting counterfeits among all the Audio and Musical Instrument IWG members, we believe it can be more effective if the work is organized jointly and cooperatively. It is the intent of the Group to request the appropriate government authorities to apply consistent, effective pressure to the audio products counterfeiting network, in an effort to have the counterfeiting operations shut down and have the counterfeiters prosecuted and punished.

Automotive Industry Working Group (IWG)Fact Sheet

Group Coordinator: Ewen Turner, General Motors

Group Members:

3MALTECOAudiBMW GroupBoschBridgestoneCaterpillarChryslerContinentalCumminsDaimlerDelphiEatonExxonMobilFederal-MogulFordFreudenbergGates UnittaGeneral MotorsHarley-DavidsonHarman

HellaHitachiHoneywellJohn DeereMahleManroland AGMichelinMann-HummelNissanNGK Spark PlugPSA Peugeot CitroenSchaefflerSKFTomTomTOYOTATRWValeoVolkswagen AGYamahaZF

Key Objective(s)

“To work cooperatively with the Chinese authorities to protect consumer’s safety and their investments.”

Introduction

One aspect of the Automotive Group’s activities is to raise consumer’s awareness of product piracy. The members also try to track down the well-organized networks responsible for manufacturing counterfeit components and to transfer serious cases to the Public Security Bureau, seeking a criminal conviction of counterfeiters in Court. In this fight against piracy, the individual companies are making use of the revised PR China Intellectual Property Right laws and regulations, exhausting all channels available to protect its customers from falling victim to substandard goods.

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Battery Industry Working Group (IWG)Fact Sheet

Group Coordinator: Chen Lin, Energizer

Group Members

CasioEnergizerEvonik DegussaGates UnittaMatsushita ElectricMotorola

NECSamsungSANYOSonySony EricssonToshiba

Key Objective(s)To combine forces in the battle against counterfeiters, including manufacturers and wholesalers in eastern and southern China.

IntroductionThe Battery Industry Working Group is composed of 8 companies, which cooperate to share information and anti-counterfeiting related costs. In the past, the IWG was active in Hunan Province and staged several successful raids on counterfeit battery plants including the largest counterfeit battery case in China's history in Leiyang and Matian City. Previously, officials there seized a total of three million batteries with a market value of RMB 15 million (US$1.9 million).

The Battery IWG will be reborn in 2005 with the signing of the New Coalition Agreement after the Spring Festival. The IWG’s objective is to jointly battle counterfeiters, including manufacturers and wholesalers, as well as large warehouses filled with counterfeit batteries. The group’s attention will be mainly focused on the PRC’s eastern and southern regions.

Furthermore, valuable information sharing among members, in regards to IPR service providers’ background and achievements and data pertaining to the counterfeiting network will benefit all members and will result in a more effective fight against counterfeiting.

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Construction & IntegrationIndustry Working Group (IWG)

Fact Sheet

Group Coordinator: Steve Jiang, AMP Netconnect China, Tyco Electronics

Group Members:

ABBArmstrongCiscoCommScope

Dow CorningJohn DeereMetsoTyco

Key Objective(s)To work cooperatively with the authorities to protect the IP right owner and the interest of the public by resolving problems related to the use of un-safe counterfeit products in construction and building infrastructure projects.

IntroductionMain contractors, sub-contractors or system integration companies often win tenders with genuine products, but then use counterfeits on the construction site. In other cases, they may not have any agreement under the contract about the construction or the materials to be used, and then they may choose to use counterfeits.Enforcement on construction sites always faces various difficulties, including:1. Cooperation from the construction company or the system integrator to undergo an

investigation2. Investigation into the completed part of the project which might be using counterfeits;3. The calculation of the case value4. The treatment or remedy action on replacing counterfeit products in the area where the

installation work has finished5. The interference of the local authorities; etc.

The QBPC Construction and Integration IWG is a sub-committee of the Quality Brands Protection Committee pursuing to combat counterfeiting in construction sites.

The Construction and Integration Group’s activities in 2006 may include:1. Government cooperation with TSB, Construction Committee, Bidding Regulatory

Commission and other related authorities;2. Organization of special training for the related government officials;3. Organization of seminars to research making use of the revised PRC Intellectual Property

Right laws and regulations, exhausting all channels available to protect customers from falling victim to substandard goods, including: Confiscation of the counterfeits stock on a construction site Push authorities to destroy the counterfeits

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Order the construction or integration company to use genuine products in the project, and supervise the construction company to re-do the work with genuine products;

Impose economical penalty on the infringer; Work with law enforcement authorities on how to determine the value of

counterfeits; Get compensation from the infringer for the right owner

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Creative Industry Working Group (IWG)Fact Sheet

Group Coordinators: Xuan Yun, Microsoft

Group Members:

Disney Microsoft

NBATime Warner

GE

Key Objective(s)

To work cooperatively with the Chinese authorities, right holders and other stakeholders to fight piracy and build a fair, healthy and sustainable marketplace for creative industries in China.

Introduction

The Chinese government has endorsed a national policy to boost the development of creative industries, which may lead to a new era of fast growth of the business in such sector. However, copyright-based industries are still facing huge challenges including unfair trade and investment policies and serious piracy problem on the market. Therefore, the Creative IWG was set up to serve our members that have business in these industries to cope with such challenges in a constructive way. The main responsibilities of Creative IWG are to

1. Lead the Ethical On-Line Advertising Initiative including reaching an MOU with cooperating online enterprises, if possible

2. Design industry-tailored projects and reach out to relevant government agencies including NCAC, SARFT, MOC, MIIT, etc, judicial bodies, and relevant NGOs

3. Build QBPC’s image in this industry for IPR protection4. Work with local partners for advocacy, industry self-discipline and best practice sharing

in enforcement

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Fast Moving Consumer Goods (FMCG)Industry Working Group (IWG)

Fact Sheet

Group Coordinator: Ken Mason, Rep. Zippo

Group Members:AkzoNobelALTECOAmwayAnsellAppleBATBPCoddaGHDHindustan Pencils

Imperial TobaccoJT InternationalManroland AGMary KayMcCormickPhilip MorrisS.C. JohnsonWrigleyZippo

Key Objective(s)To eliminate the sales of counterfeit goods through raids and monitoring of markets, wholesalers and manufacturers.

IntroductionThe FMCG IWG was formed in January 2001 with the objective of exchanging information and pursuing joint raid actions. The IWG is placing a special emphasis on operating in counterfeiting "hot spots" and fighting local protection.

FMCG IWG Y2006 Initiatives1. A better focus and sharing of information around the use of counterfeit inspection

companies. Currently there is not enough information sharing on best practices and costs and very little standardization. The QBPC, and certainly the FMCG IWG would be more effective if we were able to outline what our members thought were best practices and standards and send a letter out to the various enforcement companies on the "QBPC Standard". My goal would be to facilitate that discussion to come up with standards this year. Therefore these standards would benefit the companies we wish to join the FMCG IWG as well.

2. Organize more market tours. We had good feedback from some of our membership last year with the tour we took to Yiwu in Zhejiang Province. We would like to organize more tours to increase the knowledge and awareness of our members as to what really happens out in the field.

3. Consumer education program: To reach out to the consumers to increase awareness and educate them to purchase genuine products

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Golf Industry Working Group (IWG)Fact Sheet

Group Coordinator: Jason Yao, Acushnet

Group Members:

Acushnet Company Karsten Manufacturing Callaway NikeCleveland Golf TaylorMade-adidas Golf

Key Objective(s)

In light of the common interest of each participant in pursuing those who manufacture and distribute counterfeit golf products, the purpose of the Golf IWG is for its members, subject to the relevant anti-trust guidelines, to jointly petition appropriate government authorities to pursue those entities and individuals in the unlawful manufacture, distribution and sale of these products.

Introduction

In recent years, each of the Golf IWG members has observed a substantial increase in the number of counterfeit golf products appearing in several world markets, most notably China. We estimate that more than 50% golf clubs in the retail market in China are counterfeit. While we have seen counterfeit golf products selling in all over China, the manufacturers of counterfeit golf products however are relatively concentrated in Guangdong, Fujian and Zhejiang. We have increasingly observed counterfeit golf clubs, golf balls and golf accessories made in China selling in Europe and North America.

The Golf IWG members are very determined in fighting counterfeits jointly and cooperatively. It is the intent of the Group to petition the appropriate government authorities to apply consistent, effective pressure to the golf products counterfeiting network, in an effort to have the counterfeiting operations shut down and have the counterfeiters prosecuted and punished.

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Home Appliances Industry Working Group (IWG)

Fact Sheet

Group Coordinator: Li Hai, Sony Corporation

Group Members:AkzoNobelCasioHitachiLG ElectronicsLutronMatsushita ElectricNEC

PhilipsSamsungSANYOSeb DeveloppementSonySony EricssonToshiba

Key Objective(s)To share information and experiences in anti-counterfeiting and infringement, coordinate efforts against anti-counterfeiting and infringement, raise group members' concerns to enforcement agencies, and cooperate with the agencies to promote the protection of IPR.

IntroductionThe Small Appliances IWG was formed in the latter half of the year 2002. Since its establishment, group members have identified common products which have had serious counterfeiting problems: linen care (irons), hair care (hair dryers), house cleaning (vacuum cleaners), food preparation (food processors), light emitting (bulbs), and oral hygiene (electric toothbrushes), TV, Video and audio instruments.

In addition, common concerns within the IWG include the export of counterfeit products from China as well as trademark and design patent infringement issues. The most serious counterfeiting problems are found in Guangdong and Zhejiang Provinces.

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Imaging Supplies Industry Working Group (IWG)

Fact Sheet

Group Coordinator: Jan Tan, Epson

Group Members:

CanonEpsonHewlett-Packard

SamsungXerox

Key Objective(s)

“By sharing knowledge and taking joint proactive actions we may to able to lessen the negative impact on our customer satisfaction, R&D investment and brand images from those infringements.”

Introduction

Printing consumables including but not limited to ink-cartridges and toner cartridges has long been suffering counterfeiting and other kinds of intellectual property rights infringements all over the world. These infringements not only hurt our legitimate business but also affect our brand images and customer satisfaction. In China, the problems are particular serious as majority of fake products have been found to be produced there and then sold within China and exported all over the world.

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IT Industry Working Group (IWG)Fact Sheet

Group Leader: David Carroll, Alcatel-Lucent

Group Members:

3MAMDAlcatelAppleApplied Materials AkzoNobelCanonCiscoCreative TechnologyDellDisneyD-LinkEpsonGiga-ByteHewlett-PackardIBMIrdeto B.V.Logitech

Matsushita ElectricMicrosoftMotorolaNational Semiconductor CorporationNECNokiaNXP SemiconductorsPhilipsRIMSamsungSanDiskSANOFI-AVENTISSonySony EricssonTexas InstrumentsToshibaUbukata

Key Objective(s)

An agreement was formed amongst the IT companies in the QBPC to take full advantage of synergies in two key areas:

1. Joint investigations and enforcements in cases affecting two or more of the member’s brands, particularly in high profile cases. Initially these appear to involve coordinated actions against syndicates behind the export of mixed shipments of counterfeit IT products. These cases may also involve smaller factories and distribution centers, against which action may not normally be taken, as well as the larger production sites. Within the Mainland, investigations may also include enquiries into printing and packaging facilities. It should be noted that QBPC members are keen to see cases that result in the arrest and the subsequent jailing of offenders, as opposed to simple fines.

2. Coordinating responses and support in lobbying the Mainland Government on IP issues as they affect the IT industry, in part under the QBPC banner for IP issues as a whole.

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Introduction

Following discussions among some QBPC IT company members, the IT IWG was formed in 2001 to work cooperatively in tackling common counterfeiting problems faced by members. 

In year 2005, most IT IWG members reached agreement to conduct an extensive market survey in Shenzhen which could help most IT members to understand current market situation and identify how and which suspects involved into counterfeit activities of IT products. And results have forwarded to QBPC and lobbied through MORO meeting accordingly.

Considering similar counterfeit supply chains of some counterfeit IT products, like printing supplies, some members have agreed to share infringers’ information among members. Also, members will discuss on how to lobby common concerns of all IT member companies, like enforcement barriers in some cities, local protection, etc., through media/official newspaper.

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Luxury Goods Industry Working Group (IWG)Fact Sheet

Group Coordinator: Andrew Olson, Prada

Group Members:BurberryCalvin Klein ChanelCoachDonna KaranEstée Lauder Companies (China)Fendi

Gucci HermesLVMH Fashion GroupPrada S.A.Tiffany & Co.Zegna

Most of these companies belong to groups that include a number of other well-known international brands, including Fendi, Bottega Veneta, Celine, Givenchy, Kenzo, Loewe, Miu Miu, Jil Sander and others.

Together, LVMH, Prada, Gucci, Hermes, Chanel, Coach and Burberry represent roughly half of the entire worldwide market for high quality leather goods and a significant portion for high quality apparel, while Tiffany is renowned for high quality jewelry.

The PRC Trademark Office has recognized the severity of the counterfeiting problems of at least four of the brands, including LOUIS VUITTON, GUCCI, CHANEL and PRADA, by including these brands in the 1999 and 2000 list of “Key Trademarks for Emphasized Protection”.

Introduction

Members of the Luxury Goods IWG co-operate closely with a view to improving the position with regard to the counterfeiting of luxury goods in China. This co-operation takes a number of forms. Members regularly make joint presentations to relevant officials and government authorities in order to focus attention on the particular problems faced by the luxury goods industry in China. Other recent projects include writing to the major hotels in China to warn them against permitting their facilities to be used for the sale of counterfeit luxury goods, approaches to major PRC leather goods brands to explore possible areas of co-operation, and commencing a civil action against various vendors in the new Silk Market in Beijing, as well as the owner of the market, with a view to establishing the principle of landlord’s liability for infringing activities carried on by their tenants in certain circumstances.

IWG members have also implemented a scheme to conduct joint enforcement action where the rights of more than one member are being infringed.

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Pharmaceutical Industry Working Group (IWG)Fact Sheet

Group Coordinator: Sam Zhou, SANOFI-AVENTIS

Group Members:Abbott LaboratoriesAnsellAstraZenecaBayerBeaufour IpsenChindexEli LillyEvonik DegussaGlaxoSmithKline

Johnson & JohnsonLife TechnologiesNovartisPfizerRocheSANOFI-AVENTISSchering-PloughServierTakeda

Key Objective(s)

“To work cooperatively with related Chinese Government bodies to introduce effective long term strategies to protect consumers from the risks of counterfeit pharmaceuticals.”

Introduction

Members of the Pharmaceutical Industry Working Group (PIWG) work closely to cooperate in the following key areas:

Coordinate intelligence at a working industry level to better support actions at both provincial and international levels.

Discuss ongoing industry concerns and trends and develop strategies to counter them. This includes coordinated discussions with relevant government bodies whenever possible, including SFDA, MPS and PSBs.

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Power Tools Industry Working Group (IWG)Fact Sheet

Group Coordinator: Mai Lin, Makita

Group Members:

BoschHitachi

HusqvarnaSTIHL

Key Objective(s)

“To work cooperatively with the Chinese authorities to protect consumer’s safety and member investments.”

Introduction

One aspect of the Power Tool IWG’s activities is to raise consumers’ awareness of product piracy, especially with regard to safety issues. The members also try to track down the well-organized networks responsible for manufacturing counterfeit tools and to transfer serious cases to the Public Security Bureau, seeking a criminal conviction of counterfeiters in court. In this fight against piracy, the individual companies are making use of the revised PR China Intellectual Property Right laws and regulations, exhausting all channels available to protect their customers from falling victim to substandard goods.

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Refrigeration & Air-ConditioningIndustry Working Group (IWG)

Fact Sheet

Group Coordinator: John Groves, Emerson

Group Members:DanfossDuPontEmerson

Honeywell SamsungUbukata

Key Objective(s)

“To work cooperatively with the Chinese authorities to protect the safety and investments of refrigeration and air-conditioning product users.”

Introduction

One aspect of the RA Group’s activities is to raise customer’s awareness of product piracy. The members also try to track down the well-organized networks responsible for manufacturing counterfeit components and to transfer serious cases to the Public Security Bureau, seeking a criminal conviction of counterfeiters in Court. In this fight against piracy, the individual companies are making use of the revised PR China intellectual property right laws and regulations, exhausting all channels available to protect its customers from falling victim to substandard goods.

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Sporting Goods Industry Working Group (IWG)Fact Sheet

Group Coordinator: spring Tang, Adidas

Group Members:

AdidasAmer SportsBMWCaterpillarDeckersGore

Levi StraussNBAPNew Era CapNFLNikePUMA

Key Objective(s)

1. To share the information among the members such as counterfeiting factories’ names, locations, branded counterfeits found, etc.

2. To share experience among the members such as solving similar problems, fighting complicated targets, dealing with corruption, etc.

3. To do actions hand in hand. Because counterfeits of the member brands are often found in a same target, which means we can do join actions by which we can strengthen the impacts of the raids as well as sharing the costs;

4. To cooperate in many other matters concerning anti-counterfeits.

Introduction

The Sports IWG covers most of the global sports brands. Counterfeits of the IWG include sneakers, sports suits, golf products, etc.

The major flooded areas are Fujian, Guangdong and Zhejiang. Since the establishment, we have already shared with each other much useful information and have done lots of joint actions which have resulted in very good outcomes.

The Sports Industry Working Group is a very united team and has a very close daily communication.

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Toys & Licensed Goods Industry Working Group (IWG)

Fact Sheet

Group Coordinator: Jeff Yi, Disney

Group Members:

DisneyFenderHasbroHarley-Davidson

HusqvarnaMattel Time Warner

Introduction

The Toys & Licensed Goods IWG is a newly established sub-committee of the Quality Brands Protection Committee. The IWG is established to provide a forum for QBPC member companies with similar counterfeit problems in China.

Key Objective(s)

1. Provide forum to discuss related IP issues and industry related best practices. 2. Conduct training seminars/product verification seminars with key enforcement units

for our industry. 3. Lobby relevant counterfeit issues among members through QBPC to Chinese

Authorities to increase government and public awareness.   4. Create mechanism for joint actions and notification of seizures.

 

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Wireless and Integrated Circuits Industry Working Group (IWG)

Fact Sheet

Group Coordinator: Kelvin Liu, QUALCOMM

Group Members:

AlcatelManroland AGApple MotorolaCisco National Semiconductor CorporationD-link NXP SemiconductorsIntel RIMLG Electronics SamsungQUALCOMM Sony Ericsson

Texas Instruments

Key Objective(s)

“To work cooperatively with the Chinese authorities to protect consumer’s safety, ability to communicate, and their investments.”

Introduction

One aspect of the Wireless Group’s activities is to raise consumer’s and wireless carrier’s awareness of wireless product piracy. The members also try to track down the well-organized networks responsible for manufacturing counterfeit wireless products and to transfer serious cases to the Public Security Bureau, seeking a criminal conviction of counterfeiters in Court. In this fight against piracy, the individual companies are making use of the revised PR China Intellectual Property Right laws and regulations, exhausting all channels available to protect its customers from falling victim to substandard goods.

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Electrical Distribution Industry Working Group (IWG)

Fact Sheet

Group Coordinator: James Liu, ABB

Group Members:

ABBLegrand

Schneider ElectricSiemens

Introduction and Key Objective(s)

Electrical Distribution equipment (Low and Medium Voltage) has to be designed to provide a high level of security during operation. Malfunctions cannot only cause high financial damages but will seriously put human health at risk.

The brands of the member companies of this working group guarantee a high level of security and protection for Low and Medium voltage products.Our customers have a strong confidence in our brands and in the quality of our products.The IP rights of our products and brands are being extensively infringed by counterfeiters in China.

The main objective of this working group is to curb down the number of counterfeiters infringing our IP, to ensure our customers are aware about dangers of using counterfeit products and to make Chinese authorities aware of those risks and supportive of our efforts to make China Electrical Distribution Industry safer.

The member co-operation will be in 3 main areas :

Jointly communicate to our partners and customersTo better protect our customers, by making them aware of risks of fakes and prevent our partners to deal with copies

Joint efforts to intensify our actions against counterfeiters and their channelsTo protect by all means our Intellectual Property rightsTo improve the efficiency of our actions (cost and focus wise)

Contact jointly relevant Chinese government bodies and local authoritiesTo set up an information and cooperation network to support our actions

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Agricultural Industry Working Group (IWG)Fact Sheet

Group Coordinator: Guoqun Hu, SYNGENTA

Group Members:

BayerBASFDowDuPont

MonsantoMosaicNovozymesSyngenta

Key Objective(s)

To work cooperatively with the Chinese authorities to ensure that Chinese farmers utilize the highest quality seeds and most advanced agricultural practices available to maximize the quantity and quality of agricultural output, by

1. creating favorable patent protection in the field of biotechnology as well as plant variety protection (PVP), and seed registration environments that encourage the development and commercialization in China of the most advanced seed and agricultural technology (efficient protection and enforcement);

2. eliminating the use of inferior seed and counterfeit agricultural products; and

3. improving the efficiency and effectiveness of technology and intellectual property transfer so that agricultural seed transfer can occur seamlessly in and out of China.

Introduction

The agricultural industry seeks to improve efficiency, yields, and health for the agriculture sector in China through our efforts. We are committed to bringing the best innovative technologies to Chinese farmers and seek active cooperation from the government authorities to provide a transparent, predictable market for our products.

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Food & Beverage (F&B)Industry Working Group (IWG)

Fact Sheet

1) Group Coordinators: Ainsley Jong, Diageo

2) Group Members:Anheuser-BuschBacardiCoca-ColaDiageoHeinekenMcCormickMoët Hennessy

NestleNovozymesPernod-RicardSPIUnileverWrigley

3) ObjectivesTo uncover and implement in co-operation with the Government innovative and effective avenues to deter counterfeiters from dealing in products belonging to the F&B industry.

4) OverviewThe F&B IWG is being formed with the interest and support of several companies and the Management of QBPC this year. Its objectives are focused on finding new ground on which the member companies may utilize mutually effective enforcement strategies to combat counterfeiters.

5) InitiativesWe are at a very early stage of the formation of the IWG. After an opportunity for the group

members to sit together, we will be able to provide our detailed initiatives and an action plan

for this year.

6) Action PlanTo be formulated.

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Lighting Industry Working Group (IWG)Fact Sheet

Group Coordinator: Steven Wang, Philips

Group Members:BOSEGEHella

LutronPhilips

Key Objective(s)

To work cooperatively with the Chinese authorities to protect consumer’s safety and brand owners’ interest.

Introduction

Lighting products are daily used by consumers. Currently the counterfeit goods in the market is serious which goods is dangerous to consumer’ life and property.

Lighting IWG will focus on the following:1. Do some training for government enforcement officers (AIC, TSB, PSB, Customs…) in

several hot spots;2. Raise Lighting IWG’ common issues to relevant authorities for action (Hong Kong

Registered Company Loophole).3. Work together for specific actions.

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