In a second phase, the Commission will examine setting up mechanisms for administrative co-operation among the Member States to combat the problems and the need to put forward proposals for harmonising the minimum thresholds of sanctions and criminal proceedings and extending Europol's powers.
The proposal for the Directive is expected to be presented during the first half of 2001. It will concern mainly the measures and procedures for searching, seizure and proof, the criteria for calculating damages and the right to information.
The measures provided for in this Communication are intended to complement those taken by customs authorities to check counterfeit and pirated goods at the external borders of the Union.
Trade involving counterfeiting and piracy is estimated by the Commission to account for a total of 5-7% of world trade, representing €200 to €300 billion a year in lost revenue and the loss of 200,000 jobs world-wide. It is estimated that EU businesses which operate internationally are losing between €400 million and €800 million in the single market and €2,000 million in non-member countries.
According to the Commission’s research, counterfeiting and piracy as a percentage of legitimate trade in the single market accounts for 39% of the data processing market and 16% of the audio-visual sector making these the worst affected markets.