UK High Court ruling now requires internet providers to block sites selling counterfeit products.
The Royal Courts of Justice, where the UK High Court is based
The Whir reported on the ruling on Friday 17 October at the UK High Court, in a case filed by the Richemont/Cartier Group against five UK ISPs (internet service providers) who represent 95 percent of UK broadband users. The ruling states that ISPs “must try to block sites selling counterfeit goods on the internet”, and is the “first ruling of its kind in the UK”.
The group had seen a number of orders issued against the five ISPs – BskyB, BT, EE, TalkTalk and Virgin Media – concerning the Copyright, Designs and Patents Act 1988’s section 97A, which were issued in order to “block sites selling counterfeit versions” of goods that the group produces. The site notes however that “use of the internet to traffic counterfeit goods is a global problem”, with the value of counterfeit goods in 2015 expected to reach $960 billion (€749 billion).
The site notes that the decision is “somewhat controversial” as “aside from providing an internet connection, ISPs have no connection to counterfeit goods or content”, and it also forces them “to take on the cost of blocking content [which] while minimal, the ongoing burden could eventually prove more costly”.
The UK seizes more counterfeit products “than any other member of the [EU]”, and the European Commission has stated that the top six categories of seized counterfeit goods “were most likely to have been ordered on the internet”. However, The Whir notes that the “precedent” set by the ruling could “put ISPs at risk for more expense as similar decision and possible lawsuits occur in the future”.
It added reference to The Guardian’s analysis of the case, including the fact that “another contentious aspect of the decision is that the judge relied on the fact that ISPs had already innovated, under political pressure, to block child abuse images and institute parental controls”, which meant that they had the “infrastructure necessary to block counterfeit websites”.
You can view the court ruling here. A study earlier this year from HP found that the annual cost to the printing industry of counterfeit cartridges and machines is around $3 billion (€2.1 billion).