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Issue No. 5 Jan-March, 2007 Amar Naseer Asmat Saleem Ronald Inayat Dr. Shahzad Saleem Pledge: What is the target for tax recovery during the current fiscal year? Abdullah Yusuf: Our target is 835 billion rupees. During the first seven months (July-January) of the current financial year, we have already realised 463 billion rupees in taxes, which is 25 % more than the figures for the corresponding period last year. We are gradually increasing the pace of tax recovery, which shall push up the tax recovery rate, enabling us to easily achieve the target of Rs. 835 billion during the next five months. A few years ago, the target of tax recovery was Rs. 100 billion, but the government could not achieve that. However, the present situation is quite satisfactory and we shall, Insha Allah, easily achieve our target. u 2 ACIF is a unique industrial alliance in Pakistan, striving to raise awareness about protection of IPRs in order to create level playing field for the legitimate industry and better protection of the rights of consumers. The Forum focuses on efforts to convince the stakeholders, including the concerned government quarters, to protect the IPRs, in all forms, in the country In this issue Interview....................... 2 Editor`s Note.............................3 Press Picks................................3 Global Congress ............... 4 Market Watch .............. 5 To The Point ................... 6 Industry Fights Back..................7 Celebrity Speaks ............ 8 A Chartered Accountant by profession, M. Abdullah Yusuf is one of the seasoned and senior bureaucrats of Pakistan. He is Secretary of the Revenue Division and Chairman Central Board of Revenue (CBR). He is a dedicated, committed and intelligent officer who has many accomplishments to his credit, the foremost being enlargement of the country's revenue base and drastically increasing tax revenues during the last few years. He has also served as Managing Director of the Utility Stores Corporation of Pakistan. The prime responsibilities of CBR, among others, include: collection of federal taxes and duties, adopting measures to interdict smuggling and ensuring that companies and persons engaged in production, provision of services and other business activities pay duties and taxes in full, as levied by the Federal Government. We reproduce excerpts from Chairman CBR Abdullah Yusuf (AY)'s exclusive interview for the Quarterly Pledge Ineffective implementation of IPR laws adversely affecting legal trade in the country Ineffective implementation of IPR laws adversely affecting legal trade in the country Interview of Chairman CBR, M. Abdullah Yusuf Novartis Pharma Pakistan NQ Pharma Oxford University Press Pakistan State Oil Pakistan Tobacco Company Pepsi Cola International Philips Electrical Industries Procter & Gamble Pakistan Rafhan Best Foods Reckitt Benckiser Pakistan Systematic Education (Kaplan) Tapal Tea Toyota Indus Motors Unilever Pakistan Efroze Chemical Industries English Biscuit Manufacturers Hilal Confectionery ICI Pakistan Johnson & Johnson Muzic Unlimited National Foods Nestle Pakistan

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Page 1: Pledge issue 5Tapal Tea Toyota Indus Motors Unilever Pakistan Efroze Chemical Industries English Biscuit Manufacturers Hilal Confectionery ICI Pakistan Johnson & Johnson Muzic Unlimited

Issue No. 5 Jan-March, 2007

Amar NaseerAsmat SaleemRonald InayatDr. Shahzad Saleem

Pledge: What is the target for tax recovery during the current fiscal year?

Abdullah Yusuf: Our target is 835 billion rupees. During the first seven months (July-January) of the current financial year, we have already realised 463 billion rupees in taxes, which is 25 % more than the figures for the corresponding period last year. We are gradually increasing the pace of tax recovery, which shall push up the tax recovery rate, enabling us to easily achieve the target of Rs. 835 billion during the next five months. A few years ago, the target of tax recovery was Rs. 100 billion, but the government could not achieve that. However, the present situation is quite satisfactory and we shall, Insha Allah, easily achieve our target.

u 2

ACIF is a unique industrial alliance in Pakistan, striving to raise awareness about protection of IPRs in order to create level playing field for the legitimate industry and better protection of the rights of consumers. The Forum focuses on efforts to convince the stakeholders, including the concerned government quarters, to protect the IPRs, in all forms, in the country

In this issueIn te rv iew. . . . . . . . . . . . . . . . . . . . . . .2

Editor`s Note.............................3

Press Picks................................3

Global Congress...............4

M a r k e t Wa t c h . . . . . . . . . . . . . . 5

To The Point...................6

Industry Fights Back..................7

Celebri ty Speaks. . . . . . . . . . . .8

A Chartered Accountant by profession, M. Abdullah Yusuf is one of the seasoned and senior bureaucrats of Pakistan. He is Secretary of the Revenue Division and Chairman Central Board of Revenue (CBR). He is a dedicated, committed and intelligent officer who has many accomplishments to his credit, the foremost being enlargement of the country's revenue base and drastically increasing tax revenues during the last few years. He has also served as Managing Director of the Utility Stores Corporation of Pakistan.

The prime responsibilities of CBR, among others, include: collection of federal taxes and duties, adopting measures to interdict smuggling and ensuring that companies and persons engaged in production, provision of services and other business activities pay duties and taxes in full, as levied by the Federal Government.

We reproduce excerpts from Chairman CBR Abdullah Yusuf (AY)'s exclusive interview for the Quarterly Pledge

Ineffective implementation of IPR laws adversely affecting legal trade in the country

Ineffective implementation of IPR laws adversely affecting legal trade in the countryInterview of Chairman CBR, M. Abdullah Yusuf

Novartis Pharma Pakistan NQ PharmaOxford University PressPakistan State OilPakistan Tobacco CompanyPepsi Cola InternationalPhilips Electrical Industries

Procter & Gamble PakistanRafhan Best FoodsReckitt Benckiser PakistanSystematic Education (Kaplan)Tapal TeaToyota Indus MotorsUnilever Pakistan

Efroze Chemical IndustriesEnglish Biscuit ManufacturersHilal ConfectioneryICI PakistanJohnson & JohnsonMuzic UnlimitedNational FoodsNestle Pakistan

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I n t e r v i e wE x p e r t ` s O p i n i o nP: Can we term the increase in tax recovery rate as economic P: Are you satisfied with the state of implementation of IPR growth? laws?

AY: No doubt, the financial health of the country is now much AY: As regards violation of IPRs, we are sternly tackling the issue better and the economy is constantly and steadily growing. The and taking stringent action against persons involved in the illegal large number of tax incentives introduced by us has encouraged practice. Even the international agencies have commended the taxpayers, leading the country on the road towards a real Pakistan's performance in this regard. Pakistan is performing very progress during the current era, and thereby resulting in a well on this front. We have considerably controlled the sale of considerable improvement in its economy. pirated and counterfeit products. In my opinion, our progress is

good. P: The IPRs position is quite critical in Pakistan and this is affecting the genuine brands. In your opinion, why is the P: In our country, one item is sold under10 different brand situation like that? names. Presuming those to be genuine, people buy those

goods. This causes loss to the genuine producer. How can this AY: It is true, the IPRs position is really critical in the country.

practice be curbed?The problem exists at two levels. At level one, there is national trade, where one finds proliferation of counterfeit and pirated AY: No doubt, goods are being sold here under dozens of names goods, and at level two there is international trade. We want to resembling well known brands, most of which are counterfeit. We increase the exports, but the violation of IPRs is damaging have all types of consumers and innumerable problems. Due to Pakistan's image. Presently, Pakistan is striving to increase its meager income, the common man sometimes prefers to buy cheap exports and also the quality of its exportable goods. At the goods without realizing that it will not be value for money. Any national level, we are taking swift measures to stem piracy, how, it is our resolve to take stern action against the unscrupulous counterfeiting and copyright infringement. This has resulted in elements so as to eliminate counterfeiting.considerable improvement in the national trade, as is evident

P: What is the situation within the country? Would you like to from the current tax collection figures. The government is also

dilate on the situation regarding fake products which are taking steps to promote legal trade. For that very reason, the

being either imported or exported?Government of Pakistan has set up the Intellectual Property

It is our foremost duty to curb counterfeiting in international Organisation (IPO), which is a dedicated body for the protection AY:trade. As far as the imports are concerned, the vice has of IPRs. considerably decreased due to stringent measures adopted by us.

P: In addition to counterfeiting, smuggling is another major problem. What is your opinion about that?

AY: It is correct, smuggled goods find their way in to Pakistan, and damage the national industry. Smuggling in our country mostly takes place from across the Pakistan-Afghanistan and Pakistan-Iran borders. We can cite the example of Iranian oil, which is very cheap in Iran and is smuggled in to Pakistan from across the border. We have taken up this issue with the Iranian Government and impressed upon them to exercise greater vigilance at their borders so that the smuggling of oil could be stopped. We are active to eliminate the smuggling from Pakistan. However, the fact remains that it is very difficult to exercise full control on our country's borders with Afghanistan and Iran because the border

P: IPRs laws are being framed, but what is the state of their area is mostly mountainous and difficult to traverse. But, despite implementation ? that we are striving to stop and put an end to smuggling.AY: No doubt, there exist all types of laws in the country, but P: How is the elimination of smuggling possible?implementing those laws has always remained problematic. I

AY: For eliminating smuggling, we have lowered duties when understand that ineffective implementation of IPRs laws is compared with their structure in the recent past. When there is adversely affecting legal trade in the country, while those reduction in duties and taxes, it automatically reduces the involved in the illegal trade are taking advantage of the resulting incentive and the profit margin of the smugglers. As a result of situation and usurping the rights of others. Insha Allah, you reduction in duties and consequently the incentive and profit would see a great progress in this context very soon; and the margin of the illicit operators, smuggling has reduced to a elements involved in the piracy and counterfeiting business considerable extent.would be eliminated.

P: There is massive smuggling of cigarettes in the country. P: What is the extent of loss to the national exchequer due to Some of the smuggled brands even do not carry the mandatory tax evasion and lukewarm implementation of IPRs? What is health warning. What would you say in this regard?CBR doing in this context?

AY: You are right. Cigarettes are being smuggled in to Pakistan. AY: I do agree that the black economy is causing losses to the But, we cannot lower the tariff on cigarettes. However, we are national exchequer in billions of rupees, but the IPO is tackling trying to curb the smuggling so that the indigenous industry could this problem. It is rather difficult to indicate the correct statistics prosper. Regarding the health warning, it is for the Ministry of about loss to the national exchequer as a result of tax evasion. Health to check how cigarettes without the mandatory health However, according to an estimate, some 40 % of Pakistan's total warning are being sold in the country.regular economy, amounting to US $7.5 trillion, takes place in the

parallel sector. In addition to causing immense loss to the national P: Do you think that public-private partnerships would help exchequer, the black economy is also damaging the national strengthen enforcement of intellectual property rights in the economy. But, we are not sitting idle. The government agencies country?took action against the pirated CDs on a country-wide basis and

AY: Definitely; we welcome initiatives by the private sector and conducted raids at many premises. Currently, four factories, are willing to extend all possible assistance in this regard. Joint which are suspected to be making pirated CDs, are under our initiatives can promote legitimate business to the greater benefit of surveillance. It remains our earnest endeavour to support the

legitimate business and quality products. our economy

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Press Picks

Drive to check health warning on cigarettes

The Ministry of Interior and CBR have taken a serious notice of the sale of cigarette brands carrying no health warning and directed the authorities concerned to conduct raids at retail outlets involved in the sale of illegal products. The decision was taken after the Ministry of Health raised concerns about the unabated sale of cigarette brands carrying no health warning. In all major cities, sale of imported cigarettes is reportedly on the rise. Majority of these brands are either smuggled or are without health warning, which creates strong doubts amongst the public about their quality

Fake, unregistered drugs seized

In an operation against dealers of spurious drugs, Rawalpindi District Health officials recovered a large quantity of non-registered, smuggled and spurious drugs, worth millions of rupees, from four medical stores. The raids were conducted in Bangash Colony, Dhoke Hasu, Glass Factory and Bohar Bazaar areas

FIA confiscates pirated CDs

In a raid on an electronics shop in Rawalpindi Cantonment, on February 8, FIA confiscated pirated copies of CDs and equipment used in the illegal business. The owner of the shop, along with his employees, was arrested and the shop was sealed

Held for loading unlicenced software

The Lahore Police arrested two computer dealers from Wahdat Road for loading unlicenced software on the hard disks of new computers and seized all the 47 illegal CDs

Local pirated computer market values at Rs. 16 billion

According to London-based International Federation of the Phonographic Industry's 2005 Report on Pakistan, the domestic piracy market is worth US$ 27 million (Around Rs. 16 billion) per year. The replication facilities in Pakistan produced about 230 million copies a year. With only 25 million discs used locally, the rest (roughly 205 million) are exported across the world. Approximately 20,000 shops in the country are selling pirated films, while hundreds of cable operators are showing pirated movies

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The proliferation of fake, spurious and substandard products in the country seems to be the order of the day. Medicines, including life-saving drugs, wheat flour, tea, edible oil, soft drinks, milk, biscuits, tobacco, petroleum products, cosmetics, compressed natural gas, and various consumer items are adulterated to various degrees. A number of deaths have been reported in the past due to the consumption of adulterated or fake medicines by patients suffering from various diseases.

Adulteration in foodstuffs and medicines poses direct risk to the health and safety of consumers. Pakistan is among the few countries where, unfortunately, these two basic and vital items for human survival are widely polluted. And yet not much except some ad-hoc measures seem to have been taken to deal with the criminal elements playing with the lives of the people and minting money. Another equally important issue pertains to the projection and marketing of fake and spurious products openly. During a recent session of the Punjab Assembly, a member drew the Speaker's attention towards the harmful policy of the media, both print and electronic, in accepting advertisements for the promotion of spurious drugs and fake sex inducing medicines. A number of so-called physicians, claiming to have received gold medals during their academic careers, offered one hundred per cent cure for diabetes, cancer and hair transplant, which was factually incorrect, hence misleading. The MPA informed the House that such advertisements not only deprived the people of their money but also adversely affected their health. The menace of counterfeiting, piracy and infringement of Intellectual Property Rights pose a grave danger to our nascent industry, in particular the small and medium scale industry. In this regard, one may cite the case of Mehak Agarbatti. According to the owner of this famous local brand, his flourishing business could not face the continuous onslaught of the counterfeiters and it ultimately got wrecked. Hence, there is a dire need to deal with the criminal elements indulging in piracy and counterfeiting with an iron hand, if we want our industry to grow and flourish as robust ventures.

Last but not the least, the urgent need of the hour is the enactment of stringent laws that allow the courts to award exemplary punishment to the adulterators, counterfeiters and pirates so that this social and moral rot in the society could be checked

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Mr. Amar Naseer represented ACIF at the Global Congress proportions. This is a global phenomenon which requires as a Panelist in the session on “The Latest Developments in global action. The Third Global Congress is “an important Cooperation Efforts between the Private and Public step in developing the networks and harnessing the Sectors.” As an alliance, ACIF and its newsletter Pledge collective expertise necessary to develop durable solutions was showcased as one of the best practices. Amar Naseer to this all-pervasive problem as each player brings to the emphasised, at the moot, that industry alliances, like ACIF, table their unique experience in the fight against this illegal should be taken as partners in the programmes sponsored

activity. All stakeholders need to join forces in supporting by WIPO, governments and other agencies to combat

countries in establishing effective intellectual property piracy and counterfeiting. Various delegates and speakers systems to enable them to harness their creative resources emphasised the importance of joint public and private for economic development." sector partnerships in combating counterfeiting and piracy.

At the Congress, top government officials, business leaders The participants at the Congress viewed with concern that and international law enforcement officials hailed the counterfeiting and piracy have a deep and adverse impact increased level of international cooperation in combating

on the economy as a whole as these illegal practices also counterfeiting and piracy. They called for an even greater

translate into lost earnings, lost jobs and lost tax revenues. marshalling of efforts and resources to counter the Today, almost every product in the market is a target of escalation in this illicit trade which threatens consumer counterfeiting and piracy, endangering human health and health and safety and undermines economic development.safety, adversely affecting development of economies, and hampering legitimate trade. Dr. Kamil Idris, Director General of WIPO said:

Counterfeiters and pirates are thwarting economic The Global Congress is a very important international development and endangering health and safety of event for the protection and enforcement of Intellectual consumers. Their methods are sophisticated, their reach is Property Rights. The first Congress was held in Brussels in far and their crimes claim victims every day. The scourge of

counterfeiting and piracy has assumed epidemic 2004 and the second was held in Lyon in 2005

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G l o b a l C o n g r e s s C o m b a t i n g C o u n t e r f e i t i n g a n d P i r a c y

GLOBAL CONGRESS CALLS FOR GREATER EFFORT AND RESOURCES IN COMBATING

COUNTERFEITING AND PIRACY WORLDWIDE

GLOBAL CONGRESS CALLS FOR GREATER EFFORT AND RESOURCES IN COMBATING

COUNTERFEITING AND PIRACY WORLDWIDE

ACIF Speaks at the

Global Congress

The Third Global Congress on Combating Counterfeiting & Piracy was jointly organised by the World Intellectual Property Organisation, Interpol and the World Customs Organisation, in Geneva, on 30 & 31 January, 2007. The global moot was attended by over 700 delegates.

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In the wake of proliferation of spurious products in the country, one often comes across news reports about food poisoning or the death of a man, woman or child due to administration of a counterfeit drug or injection. The vice has become so widespread that one can buy numerous substandard versions of any famous product or brand. Being unable to compete with the fake products, many a producer of goods, who started their business on a small scale, have lost their entire capital. Ishaq Noor is one such person, who took up to Agarbatti making at Landhi, Karachi, in 2001, with a loan of Rs. 250,000. Due to good quality of his product, initially Ishaq Noor's business flourished, but within a span of one year it succumbed to the onslaughts of fake and infringing versions of his products in the market.

sub-standard and inferior quality versions of the product, using Due to his great liking for the fragrance of flowers, Ishaq Noor the brand name “Mehak”. named his Agarbatti product as 'Mehak.' Even the slogan of Mehak Agarbatti “Phoolon Ki Mehak, Mehak Agarbatti,” Unfortunately, most of the dealers and retailers in the country mix reflected his tilt towards the fragrance of flowers. After the genuine products with the fake and spurious ones with the aim conducting numerous experiments, Ishaq Noor himself prepared to increase their profits. Sometimes, even the shopkeepers a special perfume and used that as one of the ingredients for connive with the manufacturers of fakes and start selling goods at making Mehak Agarbatti. Being a quality conscious person, he commission or at an enhanced rate of profit. This results in a would buy the best material for his product from markets setback to the makers of genuine products, while those preparing renowned for those goods. For instance, he would purchase spurious and fake goods earn windfall profits. Consequently, the bamboo from Sargodha and Gandasinghwala and 'Barada' from original and genuine Mehak Agarbatti product suffered Sri Lanka. tremendous losses, which wrecked the business of Ishaq Noor.

The situation prompted many a shopkeeper to attempt for luring In Pakistan, Agarbattis are mostly prepared manually, without Ishaq Noor to engage his network in preparing the counterfeits of commissioning any sophisticated machinery. Being a labour the two most popular brands of Agarbattis available in the intensive job, Ishaq Noor had to seek the association of other market. They even volunteered to increase their purchase order persons in the Agarbatti making process. For the preparation of by 200 or 300 per cent, if Ishaq Noor accepted their suggestion. Agarbatti sticks, he entered into an arrangement with a few poor However, Ishaq Noor did not pay any heed to their unsolicited women of Orangi Town, who would apply the special paste on advice. The greedy ones amongst the community of shopkeepers the sticks and deliver these to him, when the paste dried. The started patronising the sale of counterfeit products to that of Ishaq arrangement ensured timely delivery of the prepared product to Noor's genuine, original and quality product. Ishaq Noor felt him and the poor women income within the confines of their himself to be quite helpless due to the massive onslaught of the homes. Ishaq Noor himself handled the printing and wrapping of pirates, making and marketing counterfeit Agarbattis, using Agarbatti packets. All put together, he had to hire the services of Mehak Agarbatti's brand name some 20 people for the entire operation. During those times, a committee was constituted to check the sale As far as the marketing was concerned, Ishaq Noor would of fake, spurious and counterfeit goods. The formation of this himself market his product. He would undertake tours of all committee encouraged Ishaq Noor to approach it and get the major towns and cities of Pakistan and try to convince the counterfeiters nabbed. However, the committee could not help wholesalers and retailers to buy Mehak Agarbatti. He preferred to him because the network of marketing fake and substandard do these jobs himself on two counts. Firstly, his means did not products had become deeply entrenched throughout the length

and breadth of the country. Against this, the efforts of the permit him to employ other people to do these jobs for him. government agencies to check piracy and counterfeiting lacked Secondly, he believed that he could perform these jobs in a much vigour and enthusiasm and never went beyond a few cosmetic better way than any one else.steps.

Within months, Mehak Agarbatti created a niche market for itself because its sale price was competitive to similar products Despite earlier setbacks, Ishaq Noor has not lost the hope. He

contends that if the government gears up efforts to check available in the market, while its quality was second to none. In adulteration, counterfeiting and piracy, and a bank extends him a fact, Ishaq Noor had kept his profit margin to the minimum and loan, he would be prepared to restart his business of making this helped a great deal in creating demand for Mehak Agarbatti quality Agarbattis and selling these at rates affordable by the in the market. As Mehak Agarbatti became a popular product, common mandozens of counterfeiters started preparing and marketing fake,

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ISHAQ NOOR, MANUFACTURER, MEHAK AGARBATTI

COUNTERFEITERS WRECKED MY BUSINESS

M a r k e t W a t c h C o n s e q u e n c e s o f I P R V i o l a t i o n s

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the civil population on the lines of Citizens-Police Liaison Committee (CPLC) and NGOs working for women rights or human rights (HRCP).

It is also the dream of the industry that the regime should have the Writing is not everybody's passion. The task becomes all the more powers of issuing certifications to the distributors, wholesalers tough when one is determined to give a hundred per cent original and retailers regarding their adherence to Intellectual Property piece, without counterfeiting any article or web-based Rights and all the relevant by-laws of the Intellectual Property information. Since I have been asked to contribute an article for Organisation (IPO) on the lines of ISO-9000, 1S0-14000 and the prestigious magazine, the Quarterly Pledge, a flag-bearer of ISO-22000 certification. companies crusading for safeguarding the rights of the producers

of original and genuine products while, at the same time, In its dream, the industry extends its promise to the regime that it eliminating piracy, counterfeiting and copyrights violations, would sell its products only to the regime certified distributors, therefore, I start dreaming about the plight of industries in wholesalers and retailers; and like the mandatory registration of Pakistan. income tax or sales tax, the industry would ask all vendors, distributors and wholesalers to submit the 'Regime IPO In my dream, I feel, I am transported back to the 1950s and from Certification' and would advise them to distribute their products that point in history to various meetings of industry magnates, only to IPO certified retailers.phase-wise, and finally concluding my sojourn in a meeting of the

businessmen of the present times. I find the industrialists of each Further, the industry, in its dream, expects the regime to make it era resolving one issue or the other and committing to take the impossible for any retailer to do business without obtaining national economy to new heights. However, I notice, one point to necessary certification from it; and to impose strict penalties on be common in all the meetings. It has been the express desire of those certified wholesalers, distributors and retailers who violate the industry through out that an efficient, committed and powerful the IPO guidelines. anti-counterfeit regime be established expeditiously. They

wished that regime to be equipped with a comprehensive law as It remains a dream of the industry that on the lines of Tax well as the necessary tools and paraphernalia to nab and award Ombudsman, the government would appoint an Ombudsman to deterrent punishment to persons involved in violation of resolve the IPO related disputes.copyrights, piracy, counterfeiting or trademark infringement.

It is also the dream of the industry that like the Banking Sector, It has also been a constant dream of the industry that the anti-Telecom Sector and IPP projects, the government would take a counterfeit regime should jump into action, with all the swiftness pride in investing its time on IPO related issues. In return, the and urgency whenever a case of counterfeiting and copyright industry promises to continue making investments in the violation is brought to its notice, displaying the same type of industrial sector at such a large scale that unemployment becomes urgency which has hitherto been reserved for cases involving a thing of the past. counterfeiting of currency notes, bonds or government stamps.

On the other hand, the industry has a negative dream as well. If the The industry wishes the Anti-Counterfeit Regime to enjoy the Anti-Counterfeit Regime fails to act in a positive manner then the powers of a fully autonomous “Authority” on the pattern of government should remain prepared to make large investments in various development authorities, like DHA, KDA, MDA and the the health sector because after consuming counterfeit medicines Beach Development Authority. and other products, now flooding the market; the present number of hospitals will not be able to bear the heavy load of the sick and The industry dreams that the regime should have full support of affected population

T o T h e P o i n t I P R s & P a k i s t a n

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DREAM OF ANTI-PIRACY REGIME

Col. (Retd) Waqar AbbasHILAL CONFECTIONERY

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Campaign Against Counterfeit I n d u s t r y F i g h t s B a c k

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ISO 9001: 2000 certified, Pakistan State Oil (PSO) is the country’s largest oil company. Reputed for quality products, PSO is considered a 'preferred brand' by various segments of automotive and industrial consumers as well as individual customers. In other words, due to their high quality, PSO products enjoy the confidence of both the corporate sector and the individual customers. Presently, PSO is holding 37 % share in Pakistan's lubricant oils market. PSO is also one of the largest contributors to the national exchequer.

Taking unfair advantage of PSO's repute, some unscrupulous individuals have started indulging in the unethical practice of manufacturing counterfeit PSO/Castrol products. The illegal activities of those persons not only hamper the sale and supply of genuine products to the customers, but also deprive the government of at least 20 % of revenue earnings from the sale of PSO lubricants. On the other hand, their illegal practice damages the engines of vehicles and industrial machines, thereby reducing their productivity and useful life.

Naturally, these factors were a reason enough for PSO to take the issue of counterfeiting very seriously as it is not only directly related to the issue of earning revenues, but also more importantly the repute of its products, the interests of its patrons and the revenues of the government. That explains PSO's decision to take strict measures for preventing the mixing of counterfeit and spurious products with its genuine products.

Amongst others, PSO has initiated the following measures to check the vice of counterfeiting of its products:

Ø Use of tamper-evident seals and package controlØ Initiating Satellite Tracking of Consignments Ø Opting for Bar Coding and Batch Control MechanismØ Conducting surprise checks at outlets, using Mobile Quality Vans for these checks.

Meanwhile, in coordination with the local administration, private security agencies, lube sales staff and its own vigilance team, PSO is also conducting effective raids on the premises of manufacturers, wholesalers and retailers of counterfeit lubricant products. It is quite heartening that the concerned government officials understand the gravity of the issue and they are extending their help and assistance to PSO during these raids.

Many culprits have already been arrested as a result of these raids and cases have been registered against them. Now, PSO is pursuing those cases in the courts of law to bring the culprits to justice.

Meanwhile, PSO remains committed to its policy of encouraging open and transparent business practices and, as a responsible corporate entity, discharging its obligations towards the citizens and the environment. The company assures its clientele that it will take strict and quick action against those who undermine PSO's commitment to supply quality products not only to its clients in the corporate sector but also to the individual customers (Contributed by Pakistan State Oil)

PSO GEARS UP ACTION AGAINST COUNTERFEITING

Using automatic machines, a fake factory filling cans with spurious material.

A counterfeiter of PSO lubricants in police custody. Sub-standard lubricants recovered from a fake factory.

Cans recovered from a fake factory being destroyed by putting them on fire.

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country with respect to the production of movies, TV plays and audio-cassettes. In the past, when an audio-cassette was released, the concerned artist would get a reasonable amount in royalty. Due to the enforcement of Copyright Act during those times, no company would dare to counterfeit any item and market the pirated version.

All over the globe, wherever people enjoy music, the preparation and sale of musical items is regulated through formal enactments, which are enforced impartially and with an

iron hand. No doubt, in Pakistan, we have a Copyright Act, but apparently

t h e implementation of that law leaves much to be desired. In the West, artists are able to secure huge

Holder of Pakistan's 'Pride of Performance' Award, Ustad Hamid amounts in royalty, which enable them to spend time on Ali Khan is a progeny of the famous Patiala Gharana (Family). creativity. But, the situation in Pakistan is quite different. Despite Amongst many families credited for having contributed to the rendering a large number of popular songs, the artists in Pakistan development of music in the South Asian Sub-Continent, the do not get enough royalties. On the other hand, the future of Patiala Gharana occupies a distinct and distinguished position. artists remains uncertain due to the absence of a comprehensive Many artists belonging to this Gharana have introduced a number policy pertaining to the enforcement of the Copyright Act. of new musical forms. Even today, when Pop music has assumed Consequently, most of the renowned singers of Pakistan are ascendancy over the classical form of music, an offspring of impelled to lead a life afflicted by pecuniary problems. Patiala Gharana, Ustad Hamid Ali Khan, is keeping the tradition and art of his forefathers alive, while developing a sense of Amongst many of the hit songs, a couple of Ustad Hamid Ali understanding for classical music among the masses. Khan's songs remain the number one choice of the people even

today. The songs in this category are: Menoon Teray Jia Sohna Hamid Ali Khan's grandfather, Ali Bukhsh, was the Court

Hore Labdha Na'n, Guzar Gia Jo Zamana Us'say Bhula He Duo, Musician of Maharaja Patiala. Impressed by his prowess, a

Dil Ki Basti Ajeeb Hey, Dil Soze Say Khali Hey, Audaas Logon Britisher Lord Elcan declared that Ali Bukhsh was a “General of

Say Piyar Karna Koi To Seekhay, and Umran Langhdian Pian Es Music” and his brother Fateh Ali Khan a “Colonel of Music.”

Bahar. Many companies and persons have released these songs Hamid Ali Khan's father, Ustad Akhtar Hussain Khan was known

without Hamid Ali Khan's permission, earning and usurping as the 'Ocean of Music' in India. After Pakistan's independence, millions of rupees. Ustad Akhtar Hussain Khan migrated to Lahore. Akhtar Hussain

had three sons, Amanat Ali Khan, Fateh Ali Khan and Hamid Ali Not only the quality of song deteriorates considerably on low Khan, who kept their forefathers' art alive. In recognition of their quality cassettes usually used by pirates, but their illicit activities services, the Government of Pakistan conferred upon each of the have also inflicted losses of millions of rupees upon Ustad Hamid trio the medal of 'Pride of Performance.' Now, Hamid Ali Khan's Ali Khan besides damaging his goodwill because the listeners, three sons - Nayab Ali Khan, Qasim Wali Khan and Inaam Ali due to ignorance, usually hold the singer responsible for the Khan, are taking their family tradition forward, performing under quality of a song. This is a reason enough for an artist to deduce the banner of 'Raga Boy,' a musical group that they established that the unethical practice of piracy inflicts heavy losses upon two years ago. In addition to Pakistan, Ustad Hamid Ali Khan has both the genuine companies and the artists themselves. given musical performances in many countries, including

Canada, Holland, Norway, UK and USA. He has also given In reply to a question, Hamid Ali Khan told the Pledge that the performances at cultural shows organised by the Government of government did make some efforts, a few years ago, to enforce Pakistan in Afghanistan, Bangladesh, India, Mauritius and UK. the Copyright Act and, in Karachi, it did raid dozens of companies and persons involved in piracy during those days. In an interview with the Quarterly Pledge, Ustad Hamid Ali Khan However, those companies were allowed to reopen after paying highlighted how the bane of piracy has caused immense damage

to the growth of films, TV and music on sound footings, and also insignificant fines. Now, there is hardly an artist in Pakistan who has not suffered losses due to piracy of his works. The inflicted losses totalling in millions on individual artists like him.

The counterfeiting of video cassettes, CDs and audio-visual government should pay special attention towards eliminating the items and the sale of pirated material not only results in heavy vice of piracy and expose the mafia involved in it. Such a step will losses to the companies, but also wipes out the entire fruits of the automatically promote the interests of the artists. On their part, labour of an artist. Since independence, Hamid Ali Khan the artists should also unite and set up an umbrella organisation to lamented, no comprehensive policy has been framed in the tackle this issue, Hamid Ali Khan added

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C e l e b r i t y S p e a k s U s t a d H a m i d A l i K h a n

USTAD HAMID ALI KHAN:A VICTIM OF PIRACY

USTAD HAMID ALI KHAN:A VICTIM OF PIRACY

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