Government to Crack Down on Counterfeit and Pirated Goods - Associate Minister of Commerce Media Statement

The Associate Commerce Minister Judith Tizard today announced that the government intends to crack down harder on counterfeit and pirated goods which undermine our creative industries and deprive New Zealanders of income.

Cabinet has agreed to amend both the Trade Marks and Copyright legislation to enable the Economic Development Ministry to investigate and prosecute the manufacturing, importing and selling of counterfeit and pirated goods.

Judith Tizard said the trade in counterfeit goods is a growing problem in New Zealand.

"The volume of these goods detained by Customs has increased by over 400% in the last 6 years," she said.

"These counterfeit and pirated goods deprive honest and hard-working New Zealanders of income and they undermine our creative industries. The goods may also pose health and safety risks for consumers as they aren't made to New Zealand's product and safety standards."

Penalties are high for those convicted with a fine up to $150,000 or five years in prison. However the Minister is concerned that prosecutions are ad hoc and infrequent.

The Minister says once the legislation is passed the National Enforcement Unit of the Economic Development Ministry will be better able to start targeting high-level, high-profile offenders.

"Copyright and trade mark owners can still take civil action against counterfeit or pirated goods. As these groups will benefit from increased government enforcement, a key component in assessing whether action is needed may include whether a copyright or trade mark owner is willing to take civil action."

"This government supports the contribution our creative and innovative sectors make to our economy and to our economic transformation. This is another way to provide that support," the Minister says.

Background Information

• Since July 2000, the volume of goods detained by Customs at the border under the Trade Marks and Copyright Acts has increased by over 400 percent.
• the National Enforcement Unit (NEU) of the Ministry of Economic Development investigates and prosecutes offences under a number of acts on behalf of the Official Assignee, Registrar of Companies and Registrar of Motor vehicle trader.
• The role of the NEU is to be expanded under the proposed changes to allow it to enforce criminal offences. This business unit is expected to work closely with other key government enforcement agencies, such as Police and Customs.

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