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Counterfeiting Losses in the UAE Estimated at $700 Million a Year

ABU DHABI - A study conducted by brand owners in the UAE has revealed that some select economic sectors of the country alone suffered a loss of about $700 million in a year, as a result of counterfeiting, a government official said on Monday.

Speaking after inaugurating the anti-counterfeiting exhibition at Abu Dhabi Trade Center (Abu Dhabi Mall) Mohammed Omar Abdullah, Undersecretary for Department of Planning and Economy (DPE) said the study showed that vehicle spare parts industry had to bear the maximum brunt, with counterfeiting accounting for 12.5 per cent of its value.

“On the other side pharmaceutical industry was found to be the least affected with counterfeiting making up only 0.15 per cent of its total market volume. The results of the study were revealed by KPMG Consulting Company,” he said.

According to Abdullah, the DPE managed to detect some 4,650 cases of counterfeited items most of which bearing labels of renowned brands during the year 2008; and sent 821 warnings to shop owners within the emirate of Abu Dhabi.

Abdulla further added that the DPE’s Trade Protection Division is ready to receive any complaints concerning counterfeiting of trademarks, whether the complaint is made by holders of commercial agencies or by consumers in order to take prompt action against the violators.

The division will keep samples under custody, pending submission to the competent units at the Ministry of Economy and subsequent legal action.

The DPE Undersecretary called on all concerned agencies within the state to work for the development of a commercial counterfeiting control system by implementing a range of relevant measures, preparing studies and holding discussions.

Through such initiatives it must be possible to draft a comprehensive system in this regard. The penalties for violations in this area should be raised to the levels, which would deter offenders.

The exhibition has been organised by the Commercial Affairs Sector under the auspices of Nasser Al Sowaidi, Chairman of the DPE.

· ramavarman@khaleejtimes.ae