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Dear Mr President,
The member companies of the International Chamber of Commerce’s BASCAP project welcome the European Commission’s many recent initiatives to tackle the serious problem of counterfeiting and piracy. The EU Customs Action Plan and the new Zero Tolerance approach to piracy in third countries, for example, signal a renewed effort by the Commission to fight this problem, which is a huge drain on European economies.
Intellectual property rights (IPR) are of key importance for the competitiveness of many industrial sectors, as the Commission recognises. Protection of IPRs encourages initial investment - including the funding of research and development, creates jobs, increases market value, and promotes innovation. For example, a recent study conducted in the U.S.A. indicates that more than half of economic growth there derives from industries that are wholly or significantly dependent upon adequate protection of intellectual property from theft. IPRs allow even the smallest of enterprises to benefit from their innovation and creativity, by supporting not only manufacturing but also the licensing of inventions and creations.
Fighting IP counterfeiting and piracy is one of the most critical steps the European Union and third countries, particularly those closely connected with the EU geographically and economically, can take to increase economic competitiveness. Unfair competition from counterfeiting and piracy worldwide drains billions annually from the ‘virtuous cycle’ of economic growth that intellectual property generates – and costs the EU more than 100,000 lost jobs every year. Counterfeiters do not innovate, pay taxes or reinvest in research and development. They sometimes even put fakes on the market that pose health and safety dangers to consumers. There is much more that can be done at European level to tackle this serious economic and social problem.
The Commission must ensure that these initiatives are followed through and given sufficient political support and the resources necessary to be effective. As services, licensing and non-traditional manufacturing continue to grow among the European economies, an even greater percentage of investment, economic activity and jobs in every sector will depend on intellectual property rights and continued exhortation to strengthen both enforcement and existing laws to deal with new technological developments.
BASCAP and its members look forward to working with the Commission and other EU Institutions in implementing these important initiatives, and we stand ready to provide any information and assistance needed.
Kind regards,
Jean-René Fourtou, Chairman of the Supervisory Board of Vivendi Universal
ICC Honorary Chairman and Co-Chairman of BASCAP
Eric Nicoli, Chairman of EMI Group
Co-Chairman of BASCAP
Steven A. Ballmer, CEO, Microsoft, United States
Peter Brabeck-Letmathe, Chairman & CEO, Nestlé, Switzerland
David Brennan, CEO, Astra Zeneca, United Kingdom
David Iakobachvili, Chairman, Wimm-Bill-Dann Foods, Russia
Sudhir Jalan, Vice-Chairman, SICPA India Ltd. India
Afaque Ahmed Khan, CEO, Hobo Collections Emirates, United Arab Emirates
Randy Pond, Senior Vice President Operations, Processes and Systems, Cisco Systems United States
Tariq M. Rangoonwala, CEO, Home Products International, Pakistan
Marcus Wallenberg, Chairman, Skandinaviska Enskilda Banken, Sweden
Andrew Witty, President, Pharmaceuticals Europe, GlaxoSmithKline, United Kingdom
Bob Wright, Vice Chairman & Executive Officer, General Electric Company
Chairman & CEO, NBC Universal, United States
Guy Sebban, Secretary General, International Chamber of Commerce
Chair of BASCAP Steering Committee
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