Industries create an institute to combat piracy and smuggling


By Mariana Sallowicz, Diário de São Paulo - 30/06/2005

Giants in the electronics and computer industry have organized to fight counterfeiting and smuggling. The companies created the Instituto Brasil Legal, which will aim to combat illegal practices in the sector in which they operate. Every year, Brazil fails to raise R $ 96 billion because of these illegal practices. Altogether, seven companies form the institute: AMD, Dell, Intel, Microsoft, Panasonic, Phillips and Semp Toshiba.

Among the main actions of the new institution will be the gathering of information to assist the authorities in identifying the distributors of pirated and smuggled products. ? These companies have information, in their commercial sectors, that can help in the identification of the smuggling route ?, details Edson Luiz Vismona, executive president of the Institute. ? We will provide data to the Federal Police, the Federal Revenue Service and the Judiciary. We have to find out who feeds the distribution sites ?, he explains.

The executive also warns that at the same time that the tax burden of companies increases, illicit products gain space. Data from the institute give a dimension of this problem: eight out of every 10 computers in the country are illegal, in addition, 64% of the software is clandestine in origin. ? This is because they bring products to the market with lower prices, since they do not pay taxes. But whoever is harmed is the consumer, who does not have a quality product, or even without any guarantee ?, warns the president.