The high cost of piracy
Source: Jornal de Santa Catarina - Blumenau / SC - 17/05/2010
SÃO PAULO - 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 his relationship with Li Kwok Kwen, one of the leaders of the Chinese mafia, was revealed. The mobster's friend ran the agency responsible for solving one of the country's most complicated problems. Estimates point 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 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 of a very powerful mafia - evaluates the president of Etco, André Franco Montoro Filho.
A single German port has as many inspectors as all ports in Brazil
Despite this, it is difficult to combat the problem. The first reason is corruption. The second is the extension of borders and the lack of enforcement. The Federal Revenue contingent in all Brazilian ports is similar to the number of inspectors in the Port of Hamburg, Germany, where there are 3 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 consultant for the Brand Protection Group, which brings together companies such as Bic, Nike and Chanel.
One of the most frequent frauds in ports is to load the bottom of the container with undeclared product. Only 5% of containers undergo physical verification.