EA edges closer to having common laws on fake goods

The Kenyan law provides for a maximum five-year jail term and a cash penalty that is three times the value of the counterfeited product.

A repeat offender would be jailed for a maximum of 15 years.

A new Anti Counterfeit Agency—a watchdog that will protect local manufacturers from those trading in counterfeited goods has also been constituted under the Ministry of Industrialisation to monitor progress in the fight against counterfeited goods.

Battery maker Eveready East Africa Limited has faced challenges from counterfeited batteries especially those imported from China.

Dry cell batteries account for 90 per cent of Eveready’s sales.

According to the Economic Survey 2009, production of dry cells dropped from 109.3 million cells in 2007 to 88.1 million cells in 2008 mostly due to competition from counterfeits and cheap imports.

Regional lawyers reckon that the proposed laws have the potential to reduce the share of market under counterfeits and offer regional companies opportunities to grow their market share and profitability.

The regional anti corruption laws will also protect consumers from harmful and substandard products.

East African Community, Africa’s oldest trading block which was resuscitated in 1999 after its collapse in 1977, is facing a daunting task to establish a common anti counterfeits law applicable in the member states as manufacturers complain of increasing incidents of counterfeiting of goods.

Kenya has enacted anti counterfeits laws which provides for a maximum five-year jail term and a cash penalty that is three times the value of the counterfeited product for counterfeiters. A repeat offender would be jailed for a maximum of 15 years.

A new Anti Counterfeit Agency—a watchdog that will protect local manufacturers from those trading in counterfeited goods has also been constituted under the ministry of industrialization to monitor progress in the fight against counterfeited goods.

Agency has powers to break into any premises suspected of manufacturing illicit goods and arrest, without a warrant, any person suspected to engage in counterfeiting products.

Currently, the police which investigate such occurrences have to obtain search warrants from courts before breaking into business premises.

Some manufacturers are worried that the anti counterfeit laws in Kenya will not stop producers of contraband since it would be difficult to extend the fight against pirated goods beyond the Kenyan borders.

Uganda is preparing to enact its own version of anti counterfeit laws this year.