Investigation of intellectual property crimes Current online trends...

Investigation of intellectual property crimes

- Current online trends and challenges

Berlin

22 June 2017

Europol Unclassified - Basic Protection Level

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1. Europol and IPR crimes 2. Online trade of counterfeited

products 3. Pre-trial investigation and criminal

procedure 4. Impact of the criminal procedure –

key challenges


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• Europol received altogether 869 000 Siena (Secure

Information Exchange Network Application maintained by the agency) messages on 2016;

• The number of Siena messages concerning IPR crimes is increasing, but it is still modest compared to the nature and extent of the phenomena:

1. Europol and IPR crimes


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2. Online trade of counterfeited

products


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products The key features concerning the online trade of counterfeited products on the open network consist of the following: • Most of the websites are on the open network and

they focus on the retail consumers; • Markets on the open network are wide and costs low; • Most of the counterfeited products marketed on the

open network are manufactured outside the EU; • Increasing volume reduces the risk of detection and

identification of illicit goods is also challenging; • Anonymity, international payment transactions and

electronic bill of lading complicate asset tracing. Identification of ultimate beneficiary is complex and time-consuming;


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products • The most common counterfeit goods on the open

network are clothing, jewellery and accessories; • The counterfeited products (pharmaceuticals, car

spare parts, chargers, food, etc.) marketed on the open network constitute also a risk to public health and security.

The key features concerning the online trade of counterfeited products on the anonymous network consist of the following: • Volume of counterfeited products on the anonymous

network market places is reasonably low; - Alphabay 6%, Dream market 18%, Valhalla

Market 4%, Hansa Market 7% and Trade route market 8%;



products

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• The websites on the anonymous network focus on the consumers and retailers (P2P);

• The products marketed on the anonymous network are mainly pharmaceuticals, jewelry and steroids;

• Vendors are present on all market places on the anonymous network;

• Prices on the anonymous network are 1/3 or 1/4 of the retail price of legal goods;

• Products are delivered worldwide in unlimited quantities;

• Identification and detection of ultimate beneficiaries, manufactures, vendors and illegal goods and tracing of proceeds of crime is complex and time-consuming. In addition, anonymity of the actors is more secured on the anonymous network.


3. Pre-trial investigation and criminal

procedure

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The investigation and criminal procedure on counterfeited products consist of the following elements: • Member States law enforcement and judiciary monitor

the network, detect IPR crimes and conduct investigations and criminal procedures;

• Europol has established with the support of the EU IPO funding an IPC3 concept which provides the Member States with the following services - In respect of the open and anonymous networks,

the IPC3 identifies the most vulnerable areas, detects illegal activities (Cyber Patrol with the MS/other partners) and initiates investigations;

- In general, the IPC3 has the following objectives;


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3. Pre-trial investigation and criminal procedure


• One of the key functions of the IPC3 is to enhance awareness among the general public and authorities:



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• Europol/IPC3 applies Operation IOS (In Our Sites) concept which consist of the following elements;



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132 328

706

188 292

999

4580

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

IOS I IOS II IOS III IOS IV IOS V IOS VI IOS VII

• IOS and the number of seized domain names:


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originalbeatsbydre.com

beatsbydre.com


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originalbeatsbydre.com

beatsbydre.com


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4. Impact of the criminal procedure –

key challenges The key challenges for an effective criminal procedure consist of the following: • Lack of awareness (general public/authorities); • Volume, anonymity, international aspects and

connections with the third countries (production, marketing, shipment, payments);

• Essential elements of the criminalizations and low sanctions, which restrict the legal competences in using coercive measures and obtaining legal assistance from other countries;

• Inability to identify ultimate beneficiaries and confiscate their criminal proceeds.

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4. Impact of the criminal procedure – key challenges

There are encouraging examples which prove that authorities are able to conduct successful investigations: • Investigation on IPTV conducted by the Spanish

National Police and supported by Europol/IPC3; • More than 1.600 illicit TV channels in different

countries; - Arrests (30) and seizures; 183.200 € in cash; 48.800 decoders; 10 luxury cars; 1 private airplane; 6 bitcoin mining centres (the biggest seizure of

bitcoins in Spain 78,3 BC = 31.320€).

Jari Liukku Head of Serious and Organized Crime Department

Europol

0031703025574 [email protected]

mailto:[email protected]




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