Under the "Project on the Protection of Intellectual and Intellectual Property Rights at Customs", a national seminar titled "Trademarks in Turkey and Their Roles in Turkish Economy" was organized by the Ministry of Customs and Trade on 27 September at Conrad Istanbul Bosphorus Hotel. Bülent Tüfenkci, Minister of Customs and Trade, participated in the closing ceremony of the Project on the Protection of Intellectual and Intellectual Property Rights at Customs. Minister Tüfenkci stated that counterfeit and pirated goods not only damage the economy, but also the society as they constitute a means of financing terror organizations.
Minister Tüfenkci mentioned that intellectual and Intellectual Property Rights have developed together with the globalization of world trade. He continued, "Because the most important concept that shapes an economy is the production factors of that economy. Classical production factors are labor, capital, raw material and entrepreneur. As these are limited, also technology and innovation affect production factors in order to ensure the increase of production and economic growth."
Minister Tüfenkci said that technology and innovation emerge only at places where intellectual property rights are preserved. He continued, "In this respect, there is a close relationship between economic development and effective establishment and preservation of intellectual property rights. According to OECD researches, the growth realized in developed economies in the last thirty years emerged to a great extent from the R&D and innovation works."
Minister Tüfenkci mentioned that the scope of intellectual and Intellectual property rights is in fact wider than it is widely known. He said, "This scope should be considered and thought in a more comprehensive way such as copyright, trademark, geographical indication, design, patent and utility model as well as the rights of plant breeders over new plant varieties. Hence, Intellectual Property Rights does not only refer to the trademark. In this sense, also geographical indications constitute an area to be contained within this scope."
Emphasizing that geographical indications constitute one of the most significant economic resources of a country, Tüfenkci made the following assessment, "For our country, the products with geographical indications are more important. Because in our country, the number of products which have the capacity to be considered as a "product with geographical indication" is more than the total of the EU. Anatolia is a rich geography. Each and everyone of more than 2,500 local products in our country is a candidate to receive a geographical indication and become a world brand. There are 3 geographical indications protected throughout the EU as they were registered by Turkish producers. These are Aydın's fig, Antep's baklava and Malatya's apricot."
"The increase in the index brings about the entry of international investment"
Minister Tüfenkci stated that intellectual and Intellectual Property Rights is among the biggest capitals of economy. He provided the following information: "Intellectual Property Rights has become a power that affects the demand and sectors. Protection of intellectual and Intellectual Property Rights has become a factor whose impact is increasing all the more over the whole trade, competition, taxes and protection of consumers. According to a study made by EU Intellectual Property Rights Office, between the years of 2011 and 2013, 28 percent of the employment in the EU has been provided by the sectors which are based on intellectual and Intellectual property rights."
Tüfenkci stated that, according to OECD's January 2017 report, international trade volume of counterfeit products exceeded 461 billion dollars. He continued:
"Foreign investments, including especially high technology transfers, increase in the countries where intellectual and Intellectual property rights are preserved better. The relationship between protection of intellectual property rights and international investments is multidimensional. Those countries who achieve a one-point increase in the Intellectual and Intellectual Property Rights index, have 27 percent more potential to attract international investments. This rate increases until 33 percent in sectors that are more sensitive regarding intellectual property rights. A one-point increase in intellectual and Intellectual Property Rights index brings about an additional international investment entry of 1.5 billion dollars.
A 2-point increase in Intellectual and Intellectual Property Rights Index, increases by 57 percent the possibility that once they decide on making investment in the country, international investors make investment in production sector rather than distribution and sales. Investors evade from making production in the countries which fail to protect, or sufficiently protect, intellectual and Intellectual property rights; they prefer bringing their products into these countries only by way of imports. Production of counterfeit or pirated goods not only damages the economy, but also the society as it is a means of financing terror organizations."
"Tax loss will decrease and employment will increase"
Mentioning that most of such acts are performed by criminal organizations, Minister of Customs and Trade Tüfenkci said, "Therefore, protection of intellectual property rights will obstruct the monetary resource of terror organizations, decrease the state's tax loss and increase employment. Underground producers of counterfeit and pirated goods do not give any tax for the production they make and the revenues they earn."
Saying that a material tax loss emerges in this respect for the states, Tüfenkci mentioned that such producers employ workers illegally and endanger the safety of their workers. Tüfenkci emphasized that it is not possible to tolerate violations of intellectual and Intellectual property rights in Turkey in any way. He continued:
"Protection of intellectual property rights is rather essential for the prestige of our country at international level. It is indeed upsetting that in the reports prepared regarding intellectual property violations which are considered as 'crime' by many developed countries today, our country is still shown as an exporter of counterfeit goods, although it has gradually decreased thanks to our effective struggle. These assessments are mostly made according to the goods' source country, i.e. the country where they come from, not their country of origin.
Turkey is an important transit country in terms of its geographical position. Our country is located at the very center of a geography where 48 percent of world trade volume is being performed. Many goods entering the EU is transferred by our country. As Turkey is a transit country, when counterfeit or pirated goods entering the EU are captured, our country is referred to as the source country. Moreover, the fact that the goods captured within the framework of counterfeit production are assessed in terms of their source country, leads to neglection of the countries of their origin."
Tüfenkci emphasized that if the EU focuses on the countries of origin in its such assessments, this will render the combat against counterfeiting and piracy more effective. He stated that at this stage, they struggle against violations of intellectual and Intellectual property rights more effectively at Turkish customs.
Minister Tüfenkci said, "While the number of interceptions was 196 in 2014, this number increased by 120 percent and reached 431 in 2015. In 2016, a 2.5 percent increase was realized compared to 2015 and 437 interceptions were performed. We witness that these rates are rising toward much higher levels by the year of 2017."
"Our country's brand value will increase as much as the strengthening of the combat"
Bülent Tüfenkci, Minister of Customs and Trade, said that our country's brand value will increase, prestige will be supported and the reliability of Turkish products in international market will increase, as much as the strengthening of the struggle against counterfeit and pirated goods across the country. He stated that interception of counterfeit and pirated goods at customs before they become subject of international trade, is the most important tool of the fight against intellectual and Intellectual Property Rights violations. He continued:
"The obligation to apply separately to each relevant customs administration for protection of intellectual and Intellectual property rights of right owners, has been abolished. In order to render the application procedure for protection of intellectual and Intellectual property rights easier and faster, we have commenced the practice of making the applications in electronic medium as of 1 April 2013. Based on the significance we attribute to this subject, we have established the 'Department of Origin and Intellectual-Intellectual Property Rights' in May 2013. We have increased the training activities performed at customs administration offices regarding intellectual property rights in recent years, being either in-service or in line with the requests of right owners."
Minister Tüfenkci concluded his words as the following:
"With this EU project, which was carried out efficiently for the last 1.5 years at our Ministry, our implementation capacity regarding intellectual and Intellectual property rights has been improved. I think that having been realized at an intensive tempo for a period of 19 months, our project fulfilled an important mission regarding counterfeit and pirated goods, in the field of intellectual and Intellectual property rights. It increased the effectiveness of our customs administration offices, ensured the development of better legislation and protection tools, enhanced cooperation and coordination in the fight against intellectual property violations and generated solutions that are especially focused on the fields of safety and health risks regarding counterfeit and pirated goods. I thank all the attendees who contributed to the performance of this mission."
