Proceedings at this national roundtable kicked off with the participants acknowledging that the illicit trade in goods and services, today more than ever manifested by smuggling and, more importantly, by product piracy, is an endemic and growing phenomenon in both Italy and Europe. Such activities are run and sustained by criminal organizations that have in essence created a productive and economic system parallel to the legal market, from which it siphons off social resources and wealth – a shadow market characterized by products that are Mafia-made as opposed to Italian-made, to the detriment of consumers, as well as of firms operating within the law and their trademarks, which are under attack from the proliferation of “fake goods”. It comprises a highly complex and multilayered ecosystem, with even the approach taken to product imitation varying depending on the type of goods in question.
The areas identified as most affected by the trade in counterfeit products included food, technology, clothing, accessories and tobacco, impacting significantly on both the economy and society. In Italy alone, the turnover from pirated and smuggled goods was valued at 6.5 billion euro, with lost revenues to treasury estimated as in excess of 5 billion euro, not taking into account the cost in terms of the thousands of regular jobs that vanish into thin air as a result of such illegal practices.
Those in attendance suggested that consumers play a key role in this scenario, often knowingly purchasing illegally-produced goods, and at other times unaware of the consequences of their actions, not fully appreciating their serious implications. Indeed, it was highlighted that making such a purchase is a criminal offense, exacerbated by the health, safety, social, and working conditions ramifications that stem from the way in which these products are manufactured. There was thus a perceived need for a new consumer ethic, viewed as both desirable and essential, to be achieved by raising public consciousness of the fact that the trade in counterfeit products is part of a larger set-up, orchestrated by big transnational organized crime groups. It was felt that any campaigns aimed at raising the awareness of and educating consumers should be sponsored not just by private industry, but also by public authorities.
One factor considered crucial in any debate regarding this issue was brand names or labels, once seen as a mere “embellishment” for products but in reality capable of swaying consumers, yet all too often at the mercy today of the counterfeit goods market. In the view of many of those present, Italian firms, which are traditionally small and scattered far and wide, are not able to protect themselves solely through their logos or trademarks, the intangible value of which must necessarily be accompanied by tangible efforts to extol the virtues of authentic products, including their history, their uniqueness, and their local roots. In essence, this was seen as amounting to making genuine Made in Italy items synonymous in consumers’ minds with “beautiful, good-quality and well-made” products.
Moving on from an analysis of the phenomenon to an examination of the possible solutions needed to combat it, the participants expressed the view that one key issue is the shortcomings of the applicable regulatory framework. Much was made of the need to protect Italian industry, a goal – it was stressed – that could be achieved by pushing for appropriate international standards, including so as to protect traditional products and age-old crafts from the spread of Italian-sounding goods, a business practice not in itself illegal so long as it does not deliberately give rise to misconceptions amongst consumers, thereby indirectly causing detriment to law-abiding manufacturers. The participants saw no dearth of significant opportunities to improve the regulatory framework, starting with the proposed transatlantic trade and investment partnership (the TTIP) between the European Union and the United States currently being negotiated. Similarly, national laws were also seen as needing to be updated in keeping with the times, following the good examples of the past such as the important steps taken in the 1990s, which resulted in Italy effectively stamping out the smuggling of tobacco products.
Lastly, traceability of product origin and control of supply chains were pointed to as further areas where major changes need to be accomplished. It was noted that remedies and protections already exist, even at the European level, but were deemed not sufficient. One example cited, viewed as a case in point, was that of product labeling, with too many countries applying different and conflicting regulations. In this regard, it was proposed that the collaboration between legitimate industry and institutions – including through the sharing of expertise and information – could become a further weapon against illegal practices, not least because such synergies would enable the identification of the best technological solutions for traceability available on the market. It was remarked, in conclusion, that the first tangible and immediately achievable result of implementing such traceability systems would be precisely that of disrupting the supply of pirated products.