Counterfeiting and piracy cost Arab countries USD50 billion annually

With the volume of commercial fraud worldwide accounting for five to ten per cent of the global trading volume, valued at $780 billion annually; and similar activities in the Arab region coming to about US$50 billion, the Arab League and Hemaya Universal believe that the time is ripe for the aforementioned forum to be organized.

The first edition of the Arab Consumer and Brand Protection Forum (ACBPF) will be held on May 2008 in Saudi Arabia which will gather top trade and finance officials from different Arab countries, related governmental agencies such as the customs, specifications and standards bodies, chambers of commerce, consumer protection societies, owners of trademarks, non-governmental organizations as well as bodies specialized in combating commercial fraud.

On behalf of the Arab League, the agreement was singed by H.E. Dr. Mohammed Al-Towaijri, Assistant to the Secretary General for Economic Affairs and Mr. Ahmed Al-Zubaydi, President & CEO of Hemaya Universal for the Director General of the Arab Administrative Development Organization. Also present on the occasion were Sheikh Ahmed bin Abdul Aziz Al-Hamdan, honorary chairman of Hemaya Universal, Hemaya board members along with several trademark owners, professionals from intellectual property right projection organizations and the media representatives.

The forum will run for three days to review and study proposed mechanisms and formulate proposals for consumer protection. The suggested courses of action will be referred to the Arab League for purposes of developing future plans and execution of the relevant recommendations

Dr. Al-Towaijri pointed out: "Commercial fraud of all forms has become a global phenomenon that deserves attention and the combined efforts of all concerning bodies. A more synergistic approach is necessary to effectively deal with this problem and minimize its impact on Arab economies. Ultimately, what we hope to achieve is to ensure the protection of consumers in the region, enable commerce and trade to flourish and benefit us all."

Dr. Al-Towaijri also underscored the importance of the private sector in the battle against commercial fraud. "We at Arab League are of the belief that the private sector has a pivotal role in combating commercial fraud, as well as ensuring consumer and intellectual property rights are protected. We fully support this initiative, which is envisioned to facilitate an effective coordination among relevant government offices across the region, the private sector as well as non-government entities to activate mechanisms and laws to limit the spread of this phenomenon."

"The absence of ethical trade values and principles among manufacturers and importers of imitated products has contributed to the deepening crisis of commercial fraud in the region. In addition, the negligible penalties meted out to dealers of counterfeit have encouraged the growth of this phenomenon. With this forum, we have an opportunity to share ideas and formulate mechanisms to effectively stamp out commercial fraud",

said, Ahmed Al-Zubaydi, Chairman of Hemaya Universal.

Pointing to other contributing factors Al-Zubaydi said the worrying increase of commercial fraud violations included the limited number of cadres specialized in detection of adulterated and imitated goods in the market; the absence of a network linking all concerned parties involved in combating this phenomenon and the long procedures involved in investigating cases of commercial fraud.

"We also have inadequate laboratory equipment. The personnel hired there only rely on the certificate of conformity issued by the country of origin which may be incomplete and irregular. There seems to be an apparent lack of commitment among Arab countries to prevent import and export of such adulterated and imitated goods as well as low consumer awareness about the adverse economic impacts of purchasing counterfeit products," Al-Zubaydi added.

Sheikh Hamdan, the honorary President of Hemaya Universal, noted: "Tackling this phenomenon by the private sector alone is not enough; they need a strong and strategic partner such as the Arab League to activate and intensify efforts with related government sectors to boost the effectiveness of this initiative. With combined efforts, we will not only succeed in eradicating commercial fraud but also attract foreign investments."

The Arab Forum for Consumer Protection, in coming months, will coordinate intensively with the trade and industry departments from different Arab countries in identifying and penalizing shops that trade in fraudulent and imitated goods.

The forum will also organize a road-show to raise consumer awareness about the ill-effects of buying counterfeit goods.