With a phenomenal one trillion cigarette sticks passing international borders annually, more counterfeit cigarettes are traded worldwide than any other genuine product. Due to the huge difference between the cost of production and the end retail price, the illegal tobacco trade is ever-economically lucrative for criminals who are able to avoid paying the immensely high taxes. There will always be a strong demand for the supply of cheaper cigarettes on the black market, where a constant host of illegitimate suppliers await, ready and willing to meet such increasing market demands. The best way to combat the escalating trade in illegal tobacco is to raise awareness in the eyes of the media, policy makers and the public of the generic consequences of intellectual property (IP) theft. Particularly the terrifying health risks related to counterfeit consumables, such as illegal tobacco, to thereby reverse the trend in the demand for counterfeits.

 
HEALTH IMPLICATIONS

Even with the imposition of heavy regulations upon legitimate manufacturers, the dangers of smoking genuine cigarettes are extremely high. The dangers of smoking illegal cigarettes, however, are far higher. Counterfeit cigarette manufacturers often purchase unwanted crops cheaply, the tobacco having been cultivated on land soaked with contaminated fertilisers. Furthermore, such crops are nearly always generically contaminated with substantially increased levels of cancer- causing toxic metals, a significant proportion of which, are destined for the lungs of smokers. In particular, counterfeit cigarettes have been found to contain up to 600% more lead, 500% more cadmium, a 300% increase in arsenic, a 160% increase in tar, 133% more carbon monoxide and 80% more nicotine. Whilst lead has been determined by the International Agency for Research on Cancer (IARC) as a ‘probable’ carcinogen, cadmium and arsenic have been determined as ‘definite’ human carcinogens. As well as death, lead can affect almost every organ and system in the body, including brain and/or kidney damage, central nervous and reproductive system damage, premature births and a reduction in the mental ability and physical growth in babies. The damaging effects of cadmium can include (aside from death), damage to the lungs, possible kidney disease, liver disease and nerve and brain damage, whilst the inhalation of arsenic can cause lung cancer, foetal malformations and even foetal death.

 
PUBLIC AWARENESS

There is a widespread lack of public awareness with regard to the sale of illegal tobacco. Unwitting consumers purchase counterfeit cigarettes, unaware of the health risks they are exposing themselves to and how their money is not only funding, but sustaining the activities of organised criminals. In a recent survey carried out by Her Majesty’s Revenue and Customs in the United Kingdom, it was concluded that 81% of smokers, who were found to be consumers of counterfeit cigarettes, when questioned, believed that what they were smoking was genuine tobacco and admitted that they would not be able to distinguish between a genuine and a counterfeit cigarette. The survey also highlighted smokers’ reports of counterfeit cigarettes (usually sold in non-traditional places at substantially lower prices), differing from genuine counterparts, in that they smell and taste different, are harsher, fall apart, have paler filters and don’t ‘draw easily’. However, the packaging, which often looks authentic and includes the obligatory health warning and duty paid notification, leads consumers to believe that it is genuine tobacco that they were purchasing.

 
CUSTOMS CONTROL

In an attempt to reduce the escalation of this illegal trade, Customs authorities in the EU have been refining strategies over the past few years, including the allocation of more frontline and undercover officers, the deployment of state-of-the art scanning trucks to x-ray contents of suspect vehicles, as well as the development of more sophisticated intelligence techniques. However, the criminals are never far behind − always seeking to circumvent such efforts (by moving manufacturing plants from China to the EU, for example). The recent eastward expansion of the EU’s borders has added to the problem. Not only do the new 10 Member States have less stringent border controls, they also have major counterfeiting issues, either as centers for distribution or manufacture of counterfeit produce. Furthermore, the accession of these countries has created a link to the former Soviet Union, where counterfeiting activity is rife.

A UNITED FRONT

Counterfeiting is not just a problem for trademark owners, it affects the whole of society worldwide. Governments around the world are finally beginning to acknowledge the problem and take it seriously. For example, the UK government’s Patent Office, as an executive agency of the Department of Trade and Industry (DTI), launched in 2004 a National IP Crime Strategy, aimed at combating the growing threat of IP crime.

As well as action at governmental level, however, there were calls for businesses to unite against counterfeiters. Therefore a global initiative, in the form of a private-sector alliance, known as Business Action Against Counterfeiting and Piracy (BASCAP), was launched by the International Chamber of Commerce (ICC). The initiative was instigated after a survey by the ICC of its member companies, trade associations and national committees, leading to the conclusion that an international multi-sectoral approach was required in an attempt to combat the increase of counterfeit trade, which is now reaching not only global − but epidemic − proportions. BASCAP − an ICC initiative to improve the enforcement of IP protection − curbing counterfeiting and piracy and bridging the gap between advocacy and implementation. The overall objective of the alliance is to co-ordinate current business activities as well as ongoing efforts and ultimately, using its proven global reach, to compel governments, intergovernmental organisations and enforcement agencies worldwide, to prioritise the enforcement of IP .

 
CONCLUSION

In conclusion, what we need therefore is to ultimately increase our collective knowledge and prioritize action points to be targeted for the benefit of the greater whole. To do this, it requires an assessment of the work being carried out by various sectors, a comparison of the various implemented strategies and a strengthened network to streamline and share this information. As well as demonstrating unity, businesses also need to tighten up their internal affairs by carrying out individual IP audits and evaluating the cost of counterfeiting. Public awareness campaigns should be rigorous and  relentless, in order to enable consumers of counterfeits to make more informed choices about the risks they are taking, by either the purchase and/or consumption of such products. Hopefully, highlighting the hidden risks will bring about a change in consumer perception, which will in turn, may lessen the demand for such illegal products. Regulations and enforcement capabilities need to be reviewed, country by country, exposing the governments that are failing to perform and ensuring that more adequate resources are allocated in the future. Finally, education must be provided at international level to governments, policy makers, enforcement agencies and the judiciary, so that ultimately, counterfeiting becomes less of a soft option for counterfeiters. Above all, a united front and a unified voice, is needed to force the global culture of counterfeiting into a global culture of deterrence.  

* This article was adapted from an article appearing originally in "World Tabacco" November, 2005