Brussels: 23.04.13

On 18^th April 2013 the Commission released its first report evaluating the effectiveness of the Memorandum of Understanding (MoU) on the sale of Counterfeit Goods via the Internet. The MoU, signed by some 33 e-commerce platforms and major brand owners in May 2011, aims at establishing a code of practice in the fight against the sale of counterfeit goods over the Internet while enhancing collaboration among its signatories. It focuses on disrupting the supply side of the counterfeit market in order to efficiently eliminate the online availability of counterfeit goods.

Yesterday the Commission shared, in the context of the Stakeholders Dialogue, its evaluation of the MoU’s ability to reduce the online sale of counterfeit goods. In its report, the Commission states that it will look to extend the membership of the MoU over the next two years, to include new Internet platforms, distributors, right owners and trade associations.

In light of the report, EFPIA, the voice of the research-based pharmaceutical industry in Europe, has decided to endorse the MoU. Although EFPIA believes the MoU fails to address some pharmaceutical sector related issues such as sponsored links to illegal on-line pharmacies, it nonetheless considers the MoU to be a constructive step in the right direction.

EFPIA sees its adherence to the MoU as part of the comprehensive public-private partnership strategy the pharmaceutical sector has set up at global level against counterfeiting. This is another example of the industry’s willingness to partner with stakeholders to concretely tackle problems. Other active initiatives among others include:

• EFPIA actively participates in the ASOP EU initiative, an informal multi stakeholder patient safety coalition whose objective is to make buying medicines online safer. The coalition regroups various stakeholders including Internet intermediaries, encouraging voluntary and collaborative action against illegal online pharmacies. Today there are about 40,000 rogue pharmacies operating online.
• In the context of the implementation of the EU Falsified Medicines Directive (Directive 2011/62/EU) EFPIA is setting up the European Stakeholder Model (ESM)together with EAEPC (the European Licensed Parallel Distribution Industry), GIRP (European Association of Pharmaceutical Full-Line Wholesalers) and PGEU (Pharmaceutical Group of the European Union), respectively representing parallel distributors, wholesalers and pharmacists in the EU. The ESM offers a cost-effective technological solution using 2D barcoding to verify the authenticity of medicinal products, combating the entry of falsified medicines in the EU supply chain and ensuring patient safety across Europe. The four stakeholders have been invited to present their system of today’s meeting of the Heads of Medicines Agencies in Dublin.
• At a global level EFPIA supports the Pharmaceutical Industry Initiative launched last month by Interpol and 29 major global pharmaceutical companies aiming at protecting the health of patients around the world by ensuring access to safe and effective medicines. The Initiative is an extension of the work done by Interpol’s Medical Product Counterfeiting and Pharmaceutical Crime Unit, targeting the organised crime networks behind the counterfeiting of both generic and branded medicines.

 With the rise of the Internet, the threat of counterfeit medicines has increased. This threat is not confined by EU or by national borders: It is a global problem requiring a global approach in partnership with all relevant stakeholders, both public and private.