Source: Intelog - Porto Alegre / RS - NEWS - 16/05/2010

On April 23, the National Secretary of Justice, Romeu Tuma Jr, assumed the presidency of the National Council to Combat Piracy.

Only 19 days later he was removed from office, after the State of São Paulo revealed his relationship with Li Kwok Kwen, one of the leaders of the Chinese mafia. The "friend" of the mobster commanded the body responsible for solving one of the most complicated problems in the country.

All the data involving this "sector" is fuzzy, but estimates indicate that Brazil lost US $ 20 billion to piracy last year, in taxes not collected and losses for companies, according to the Brazilian Association to Combat Counterfeiting (ABCF) . A survey by the Trade Federation (Fecomércio-RJ) found that almost half (46%) of Brazilians admit that they bought fake products in 2009. Most know that piracy causes unemployment (63%) and finances crime (69%). Still, the price is decisive: 94% buy because it is cheaper.

If smuggling and other activities surrounding illegal trade are included, the informal economy generates R $ 850 billion per year, or 30% of the Gross Domestic Product (GDP), according to the Brazilian Institute of Ethics in Competition (Etco).

Piracy was defined by the International Criminal Police Organization (Interpol) as the crime of the century. According to the International Chamber of Commerce, piracy moves about 7% of world trade, or US $ 600 billion, surpassing the US $ 360 billion of drug trafficking.

"The street vendor is just the weakest link in a very powerful mafia," said Etco president André Franco Montoro Filho. In his assessment, everyone is affected: companies suffer losses, jobs are closed and the consumer is left without guarantee and protection.

Despite this, it is difficult to combat piracy in Brazil. The first reason is corruption. The second is the extension of borders and the lack of enforcement. The contingent of the Federal Revenue in all Brazilian ports is similar to the number of inspectors in the Port of Hamburg, in Germany, where there are 3 thousand employees.

Other factors that hinder the fight against counterfeiting are the low purchasing power of consumers, culture and even technological innovation. The internet makes life easier for people, but also for pirates. “The best way is to stop at the port. Once it enters, it becomes more difficult ”, says Luiz Claudio Garé, legal advisor to the Brand Protection Group, which brings together companies such as Bic, Nike and Chanel.

Source: State Agency in The State of São Paulo