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2024 European Commission Recommendation on measures to combat counterfeiting

On March 19, 2024, the European Commission published its “Recommendation on measures to combat counterfeiting and strengthen respect for intellectual property rights” (Europa.eu, 2024.03.19). Through this document, the Commission encourages Member States, national authorities, rights holders and other stakeholders, including service providers, to adopt appropriate, effective and balanced measures to combat property infringement. intellectual property in the digital and physical domains, ensuring that they comply with European Union legislation, in particular the rights defined in Article 52 of the Charter of Fundamental Rights (principle of proportionality: Europa.eu). This recommendation results from in-depth consultations launched in 2021. It emphasizes the importance of better cooperation and better information sharing between key stakeholders. This is a particularly rich document from which we have attempted to extract the essence.

Domain names. – The Commission recalls that domain names, as essential as they are in the digital world, can also facilitate intellectual property infringements, for example through cybersquatting or by directing users to counterfeit websites. To improve the security and resilience of the domain name system, directive (EU) 2022/2555 requires EU Member States to require registries and registrars to collect and maintain accurate domain name data. registration of domain names. This data must be accessible to the person who requests it within 72 hours. The directive highlights the importance of data accuracy to identify infringers and enforce the rights of intellectual property right holders. Monitoring internet for intellectual property infringement is a challenge that requires resources. This is why the Commission highlights and congratulates the recent partnership of EURid (the European Union ccTLD registry) and the European Union Intellectual Property Office aimed at increasing the protection of intellectual property rights of holders of European trademarks.

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Alternative dispute resolution methods. – The European Commission is calling for an expansion of alternative dispute resolution (ADR) mechanisms to encompass a wider range of intellectual property disputes, going beyond the conventional scope of registration and enforcement processes. The Commission calls on national intellectual property offices and ADR entities to mediate various intellectual property disputes. Furthermore, it urges top-level domain (TLD) registries to adopt ADR methods aligned with the UDRP (Uniform Domain Name Dispute Resolution Policy), which would provide a faster and more cost-effective alternative to litigation.

Germany (.DE)?. – It is legitimate to wonder whether the Commission has Germany in its sights. Indeed, .DE domain disputes are not resolved through a specific ADR process like the UDRP, which poses a unique challenge given that the .DE extension is the third most popular ccTLD with over 25 million of active domain names. This absence of an ADR mechanism adapted to disputes linked to the .DE domain constitutes a notable paradox in the field of intellectual property dispute resolution.

Small and medium enterprises. – The European Commission also recalls that on January 1, 2021, in partnership with the EUIPO, it launched the SME Fund to provide financial support to small and medium-sized businesses affected by COVID-19 and the conflict in Ukraine. The Commission announces that this fund is expected to expand in 2024 to include funding for initial consultations with intellectual property experts. The Commission is stepping up its efforts to raise awareness among SMEs about securing their data, providing easier access to solutions to improve their defence against intellectual property infringements and cyber threats.

Web3.0. – The European Commission invites Member States to inform Web 3.0. economic operators (including companies whose business model relies on non-fungible tokens or “NFTs”) on existing intellectual property regulations, such as obtaining necessary authorizations to use protected content in virtual environments. A call is made to rights holders, intellectual property offices and other parties i involved to discuss with the Commission how intellectual property rights, such as trademarks and designs, can be protected in these new spaces.

Counterfeit pharmaceutical products. – The Commission’s recommendation highlights a growing concern within the European Union: the counterfeiting of pharmaceutical products, which has seen a worrying increase in recent years. Indeed, the Commission recalls that medicines became the seventh category of goods most seized at the Union’s borders in 2020. The Commission is campaigning for better information for consumers using online pharmacies.

Damages. – The Commission does not fail to recall the dismay of holders of intellectual property rights regarding compensation in the event of infringement of their rights. In this regard, the Commission recalls that Directive 2004/48/EC establishes minimum standards which Member States are free to exceed by adopting stricter protective measures, including the application of punitive damages.