ECONOMIC AND LEGAL ASPECTS AGAINST CONTROLLING GOODS TURNOVER

• Main Authors: Ruslan Fyl, Galina Luk'yanova
• Format: Article
• Language: English
• Published: Izdevnieciba “Baltija Publishing” 2019-12-01
• Series: Baltic Journal of Economic Studies
• Subjects: counterfeit goods, illicit trafficking, infringement of intellectual property rights, copyright holder, consumer, forgery
• Online Access: http://www.baltijapublishing.lv/index.php/issue/article/view/750

The purpose of this article is to describe the content of the economic and legal bases of counteraction to the circulation of counterfeit goods. Using systemic and formal-logical methods, the amount of economic losses is outlined and the magnitudes of consequences arising from the circulation of counterfeit goods for the state, patent holders, consumers and manufacturers of counterfeits are outlined. It has been stated that drugs, toys, agrochemicals, and foodstuffs are the most counterfeit at the moment and are not only supported by crime as a crime in the field of intellectual property, but also endanger the lives and healths. Considering the market of counterfeit goods described its features, which are that the operation indicated the author but due to factors such as low solvency of the population in developing countries; the inability to sell counterfeit products separately from the original products, due to the fact that the original products are used for masking in the sale of counterfeiting; lack of specialized equipment for establishing counterfeit goods and knowledge of the original; scale and narrow specialization of counterfeit goods market participants; the transnational nature of this market; splicing organized crime with law enforcement agencies; high profitability of counterfeit market. The practical importance of the research is the documentary analysis examines the international legal aspects of counterfeiting of such goods and notes that the rules of the Agreement on Trade-Related Aspects of Intellectual Property Rights, TRIPS and the EU Customs Regulation on Intellectual Property Observance set out measures to combat trafficking in goods that infringes intellectual property rights. Consequently, successfully tackling counterfeit goods trafficking requires a constant search for innovative methods of struggle. An effective strategy for overcoming this phenomenon should combine the various measures of its counteraction, all of them should be used in a coordinated and systematic way, complementing each other. Therefore, both economic and political management methods must be taken into account to overcome the counterfeit. And only their optimal combination will have the greatest effect in the formation of concepts of counteraction to the circulation of counterfeit goods. And this is definitely worth the effort since the innovative and economic development of the state depends on solving the problem of creating an effective system of protection of intellectual property rights. Methodology. A methodological framework of the economic and legal bases of counteraction to the circulation of counterfeit goods is defined by the complex of scientific cognition methods that allow us to look at this problem as a multi-aspect, interdisciplinary phenomenon. On the basis of the system, structural, systemic-functional and other scientific approaches, the idea of counteraction to the circulation of counterfeit goods has formed a complex systemic category covering the theoretical and practical level of economic and legal activity.