25.05.08

The number of faked popular brands is decreasing in Russia due to tougher punishment, according to Vadim Radayev, the first director of the Higher School of Economy. However, he admitted the losses of brand companies are growing, as the turnover increases.

He quoted the results of the survey carried out by the School as showing "a gradual decrease in the share of faked products" since 2000.

Radayev told reporters on Thursday the number of faked sport and footwear dropped from 70-80 percent to 30-40 percent, medicines - from 30-40 to 10-15%, while the share of faked tea and coffee is down to 1-2 percent.

Radayev attributed the decrease to the introduction of criminal punishment for the abuse of up to six years, as well as major fines of up to five million rubles (over 200 thousand dollars).

He also said eight out of ten piracy cases end in court now in contrast to two out of ten cases five years ago.

However, the number of complaints from foreign companies grew 1.5-fold in 2003-2006, as the retail turnover annually grows 13 percent in Russia, while the turnover of the companies annually ups 20-30 percent.

The RusBrand Association uniting over 80 Russian and international companies agreed that "piracy producers and distributors are not going to surrender." "They resort to new steps aimed to keep their illegal business," said RusBrand executive director Alexei Popovichev.

He said the new steps comprise better packing quality, production outside Russia, and a wider use of Internet to sell the faked goods.

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Source: ITAR-TASS