Vremya MN

April 26, 2002
Page 2

Epidemic of Counterfeits

By Nadezhda Kozhukhova

A survey conducted by the Association of International Pharmaceutical Manufacturers (AIPM) and the Coalition for Intellectual Property Rights revealed that counterfeits comprise 12% of all medicines, an estimate two-to-four times higher than the previous figures.

AIPM Director Robert Rosen says that counterfeit medicines are a growing problem that threaten the health of Russian consumers, while robbing the coffers of both government and industry. Both frequently bought medicines and prescription drugs and vitamins are counterfeited. The damage incurred by the pharmaceutical companies amounts to $250 million annually.

The survey among 53 foreign and domestic pharmaceutical companies discovered a direct correlation between the January 1, 2002 introduction of 10% VAT on medicines and an increase in counterfeit medicines imitating the trademarks. Most of counterfeit medicines are locally produced, but foreign manufacturers in India (29%), Bulgaria (29%), Ukraine (21%), and Kazakhstan (14%) are also involved in counterfeiting.

Inadequate enforcement of intellectual property laws, inadequate penalties for intellectual property violations and the political influences of Russian counterfeit producers are the main obstacles to anti-counterfeiting efforts.

CIPR President Peter Necarsulmer said that the legislation could be improved, as the existing provisions are not adequately implemented and enforced.

The issue of counterfeit medicine was raised during a meeting of the Expert Council of the State Duma in May 2001. At that time, the decision was taken to develop a series of amendments to the existing legislation, above all, to the Law "On Trademarks," the Criminal and Administrative Code, and the Code of Criminal Procedure. A year later, the government has prepared suggestions, which are still to be considered. We hope that this good deed will take less than a year.

Expert Opinion: Do Not Pass Up Examination

How can the consumer protect himself against counterfeit drugs? The consumer should carefully read the drug's package and check for accuracy in the information provided, as sometimes only a couple of letters in the names may be changed. Although medicines cannot be returned or exchanged, the Law "On Protection of Customer's Rights" is fully applicable to them to counterfeit drugs. There are some provisions on the return of products of poor quality because of false information and incompliance of consumer characteristics. The customer can file a claim for the examination of a suspicious drug. If the drug is found to be counterfeit or of poor quality, its cost will be reimbursed to the consumer. Moreover, you have the right to claim for moral compensation.

Evgeny Myasin, Co-chairman of the Russian Consumers Union.