Thousands of fake watches destroyed in Switzerland

A rather unusual event took place recently at a recycling plant in the Swiss countryside. Representatives of Stop Piracy, Switzerland’s anti-counterfeiting platform, Swiss Customs, the Federation of the Swiss Watch Industry and the Swiss Anti-Piracy Association met to witness the destruction of 29,000 counterfeit Swiss watches, a total 1,400 kilos of fakes. The last operation of this kind goes back to 2004. The event sent out a powerful message whose timing owed nothing to chance. Indeed, new legal provisions against counterfeiting and piracy came into force on July 1st. The importing of products in violation of trademarks and designs is now prohibited in Switzerland, even when intended for personal use. In practical terms, anyone crossing the border with a fake watch on their wrist could well have it confiscated at Customs.

In line with France and Italy

“Until today, we had ample Customs staff but no legal basis on which to seize counterfeit watches from persons entering the country. Thanks to these new provisions, this is something we can now do, just as we can seize packages containing counterfeit goods ordered over the Internet. In this sense, we are catching up with France and Italy, the difference being that they can also impose fines of up to €10,000, which in Switzerland we can’t. No-one can claim the public hasn’t been given enough information on the matter. Now let’s hope this new legal framework will prove sufficiently dissuasive.”

“This is clearly a huge step in the right direction,” declared Jean-Daniel Pasche, President of the Federation of the Swiss Watch Industry (FH). “Let’s not forget that one of the main objectives of anti-counterfeiting operations is to maintain consumers’ faith in legitimate products while keeping attention focused on counterfeiting activities.”

Switzerland on the front line

During the destruction operation, Stop Piracy listed some figures for the counterfeit market, which continues to expand on an international scale. The OECD has estimated international trade in counterfeit products at USD 200 billion a year. This does not include digital products distributed over the Internet or domestically produced and consumed counterfeit products. Illicit trade in counterfeits costs the Swiss watch industry an estimated CHF 2 billion a year. “Switzerland hardly counts as a centre of production for replica watches,” commented Jean-Daniel Pasche as the watches went into the crusher. “The majority of counterfeits come from Asia and certain European countries, with some assembly workshops on the American continent. Obviously the ideal solution would be to stem counterfeiting at the point of production. Operations of this type do take place, but it isn’t always possible to identify or tackle the problem at the source. Often, workshops are located in places where it’s difficult to defend one’s rights and take legal action. Sometimes products are exported not as finished watches but as components which are then assembled closer to the point of sale. This is why action must also target the sales point and consumers. It’s also important to show the countries producing counterfeit watches that Switzerland takes this issue very seriously and is also cleaning its own backyard.”

For the organisations involved, the symbolic destruction of the 29,000 fakes seized over the past four years was intended to deliver a powerful message. The final word went to Jean-Daniel Pasche: “It’s particularly sad to see that Swiss citizens actively contribute to undermining a branch of the country’s economy that employs almost 49,000 people. We sincerely hope that measures taken will incite Swiss consumers to be more wary of counterfeiting and to weigh up the facts.”