In a report, Counterfeiting in the Canadian market: How do we stop it ?, the Canadian Intellectual Property Council (CIPC) concludes that Canada’s intellectual property rights (IPR) regime continues to have serious weaknesses that undermine our country’s innovation capacity and economic prosperity. The CIPC is an organization of businesses under the banner of the Canadian Chamber of Commerce focused on improving and protecting intellectual property rights in Canada.

“As we mark World Anti-counterfeiting Day, the problem of counterfeit and pirated products infiltrating the traditional and on-line market place continues at an unabated pace. Canada’s system is outdated and unfortunately, no progress has been made on the creation of IPR institutions or an Intellectual Property crime task force,” said Perrin Beatty, President and CEO of the Canadian Chamber of Commerce. “This is impacting our competitiveness on many fronts, and it is critical that the Canadian Government take a proactive stance to allow Canadian businesses to fully participate in the global economy.”

The RCMP produces intellectual property crime statistics on a quarterly basis. In the most recent update, the value of infringing goods continues to grow at an alarming rate. China continues to account for 80% of counterfeit goods found in Canada. 30% of counterfeit goods seized posed risks to the health and safety of Canadians. And finally, pharmaceutical counterfeits are now at 7% of all products seized, up from 4% in 2011.

Counterfeiting in the Canadian Market exposes the extent of the world’s current counterfeit problem and illustrates the risks associated with counterfeit products and their illicit distribution. Canada has a number of weak spots with respect to intellectual property rights, leaving it vulnerable and hindering its ability to fully participate in the global economy. The report examines international best practices in hopes of better understanding how to combat IP infringements and highlighted five areas where urgent action is required to modernize Canada’s current system.

Canada has no tools to track and report on the instances of counterfeiting that are detected. For example, the Canadian Border Services Agency (CBSA) does not have a mandate for reporting on IP crime at the border. This lack of clear and credible information poses a real problem for decision makers.