The problem of counterfeit watches in Central Asia

Central Asia, including Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, is an important transit hub for counterfeit goods, including watches. The region plays a key role in the transit of counterfeit goods from China to Europe, due to its strategic location and developing legal systems.

The main factors contributing to the spread of counterfeit goods

Geographical location: Central Asia is located between China and Europe, making it a convenient transit corridor for counterfeit goods.

Evolving legal systems: Insufficient intellectual property protection and weak legal mechanisms facilitate the spread of counterfeiting.

Economic factors: Low standard of living and high prices for original goods stimulate demand for cheaper fakes.

Corruption and poor border controls: Corruption and poor border controls facilitate illegal trade and smuggling.

Counterfeit product supply routes

Counterfeit watches enter Central Asia primarily from China. The main routes include:

China Seaports: Counterfeit goods are shipped from Chinese seaports such as Qingdao and then transported by rail to the borders of Kazakhstan and Kyrgyzstan.

Transit via Kazakhstan: Kazakhstan and Uzbekistan are key transit hubs from where counterfeit goods are distributed to other countries in the region and further to Europe.

Alternative routes: Some counterfeit shipments may arrive via the UAE, Saudi Arabia, Turkey and Singapore, which also facilitates their distribution in the region.

Counterfeit luxury watches

In the counterfeit market in Central Asia, you can find fakes of such luxury brands as:

• Rolex
• Omega
• TAG Heuer
• Longines
• Tissot
• Hublot

These fakes are often sold in wholesale markets and shopping malls, as well as through online platforms.

The share of counterfeit products in the watch market

The exact share of counterfeit products in the Central Asian watch market varies, but it is significant. In some countries in the region, counterfeit products can account for more than 40% of the total watch market. This is due to high demand for cheap fakes and insufficient control by the authorities.

It is important to note that the exact share of counterfeit watch products on the Central Asian market is difficult to determine due to the illegal nature of this activity and the lack of official statistics. To obtain more accurate data, specialized market research will need to be conducted in each of the countries in the region.

Anti-counterfeiting measures

Strengthening the legal framework: The introduction and strengthening of laws aimed at protecting intellectual property and combating counterfeiting are important steps to reduce the volume of illegal trade.

International cooperation: Cooperation with international organizations and neighboring countries to improve border control and information exchange.

Educational programs: Raising public awareness of the risks and consequences of purchasing counterfeit goods through educational campaigns and training.

Technological solutions: Implementation of new technologies for tracking and identifying counterfeit goods, as well as improving monitoring and control systems on online platforms.

The following types of punishments are provided for in the countries of Central Asia for the trade in counterfeit watches:

Administrative responsibility:

Fines: Fines may vary depending on the country and the severity of the violation.

Confiscation of counterfeit goods.

Criminal liability:

Imprisonment. Although specific terms are not specified for the Central Asian countries.

Additional measures:

Suspension or revocation of a license to conduct trading activities.

Prohibition on engaging in certain types of activities.

Civil liability:

The possibility of civil lawsuits from copyright holders, which may lead to additional financial losses and legal costs.

It is important to note that specific sanctions may vary in each Central Asian country. For example, Kazakhstan has a Law on Unfair Competition that may be applied in cases of counterfeit trade. In Kyrgyzstan, counterfeit goods are defined in the Law on Customs Regulation. It is worth emphasizing that the region is working to strengthen measures to combat counterfeiting. For example, Kazakhstan is expanding its measures to combat counterfeit products. In addition, Central Asian countries cooperate in the field of counteracting the production and distribution of counterfeit products within the framework of international agreements.

It is difficult to single out specific Central Asian countries with the strictest laws against counterfeit watches. However, some trends and facts can be noted:

Uzbekistan demonstrates significant progress in the field of intellectual property protection:

In February 2024, Uzbekistan amended its Customs Code to introduce ex officio powers to suspend and seize counterfeit imports and exports.

The country announced plans to combat counterfeit goods and online piracy in the 2022 National Intellectual Property Development Strategy.

Uzbekistan acceded to the WIPO Performances and Phonograms Treaty (WPPT) and the WIPO Copyright Treaty (WCT) in 2019.

Kazakhstan is also taking steps to strengthen the fight against counterfeit products:

The country has a Law on Unfair Competition, which can be applied in cases of trade in counterfeit goods.

Kazakhstan expands measures to combat counterfeit goods.

Kyrgyzstan has a definition of counterfeit goods in the Law "On Customs Regulation".

The Central Asian countries cooperate in the field of combating the production and distribution of counterfeit goods within the framework of international agreements.

It is important to note that specific sanctions and penalties for counterfeit watch trafficking may vary in each Central Asian country. Further research into each country’s legislation will be required to obtain more accurate information on the severity of laws in individual countries in the region.

However, Central Asian countries have big problems with counterfeit watches. Let's look at each country separately:

Uzbekistan

Uzbekistan faces serious challenges in combating counterfeit goods, including watches. The main problems include:

Insufficient mechanisms to combat the circulation of counterfeit products.

Disregard for court decisions and inaction of law enforcement agencies in this area.

Lack of real liability for repeated trademark infringement and counterfeit production.

Problems with parallel imports and import of counterfeits.

Kazakhstan

Kazakhstan also has significant problems with counterfeit products, but is taking steps to address them:

The country has a Law on Unfair Competition, which can be applied in cases of trade in counterfeit goods.

Kazakhstan is expanding measures to combat counterfeit goods, including criminal liability for the illegal use of trademarks.

Kyrgyzstan

Kyrgyzstan faces challenges in combating counterfeit products, but is also taking steps to address them:

The country has legislation that provides for administrative and criminal liability for offenses related to counterfeit products.

However, as in other countries in the region, problems with law enforcement and control remain.

Tajikistan

Tajikistan also has problems with counterfeit goods:

The country has a Criminal Code that provides for penalties for the illegal circulation of counterfeit goods.

However, as in other countries in the region, problems with law enforcement and control remain.

Although there is no exact data on the share of counterfeit watches in the Uzbek market, it can be assumed that this share is significant, given the general problems with counterfeit products in the region.

However, it should be noted that Uzbekistan is taking active steps to combat counterfeiting, including amending legislation and participating in international agreements. However, more accurate information will require specialized market research.

General counterfeit trends:

Uzbekistan was removed from the US Intellectual Property Watch List in 2024 due to significant progress in protecting intellectual property rights and combating counterfeit goods.

In 2022, Uzbekistan announced plans to combat counterfeit goods and online piracy as part of the National Strategy for the Development of Intellectual Property.

Anti-counterfeiting measures:

In February 2024, Uzbekistan amended its Customs Code to introduce ex officio powers to suspend and seize counterfeit imports and exports.

Uzbekistan acceded to the WIPO Performances and Phonograms Treaty (WPPT) and the WIPO Copyright Treaty (WCT) in 2019, which also contributes to the fight against counterfeiting.

The following measures can be highlighted that Uzbekistan is taking to combat counterfeit products, including watches:

Conducting "Month without counterfeit":

Every year from February 15 to March 15, Uzbekistan celebrates "Month Without Counterfeit".

The purpose of the event is to effectively combat the sale of counterfeit products throughout the republic.

Legislative changes:

Uzbekistan is working to improve legislation in the field of intellectual property protection.

However, there are problems with law enforcement, in particular with the execution of court decisions and the actions of law enforcement agencies.

Strengthening border controls:

Work is underway to prevent the smuggling of counterfeit products across the border, especially from Kyrgyzstan.

Border services identify and prevent attempts to illegally import counterfeit goods.

Interaction with copyright holders:

Work is being carried out with copyright-holding companies to identify and combat counterfeiting of their products.

Raising awareness:

Events are being held to inform the public about the harm of counterfeit products and the importance of protecting intellectual property.

However, despite the measures taken, there are significant problems in the fight against counterfeiting:

Lack of an effective mechanism for pre-trial prohibition of the sale of identified counterfeit goods.

Lengthy legal proceedings during which counterfeit products continue to be sold.

Insufficient protection of intellectual property.

Difficulties with the destruction of counterfeit products and the tools used to produce them.

Thus, although Uzbekistan is taking certain steps to combat counterfeit goods, including watches, the effectiveness of these measures is still limited due to a number of legislative and law enforcement issues.

The following conclusions about the effectiveness of the “No Counterfeit Month” in Uzbekistan:

Frequency of events:

The event is held annually from February 15 to March 15, demonstrating a systematic approach to combating counterfeit products.

Detection of counterfeit products:

During the month in 2021-2022, 3,000 counterfeit items were identified. This indicates that the event allows detecting a significant number of counterfeit goods.

Objectives of the event:

The main goal is to effectively combat the sale of counterfeit products throughout the republic. This demonstrates the purposefulness of the state's efforts in this direction.

Interdepartmental cooperation:

Various government agencies, including the Department of Intellectual Property of the Ministry of Justice and the Committee for the Development of Competition and Protection of Consumer Rights, are participating in the month. This demonstrates a comprehensive approach to solving the problem.

Information campaign:

Holding press conferences and media coverage of the event helps to raise public awareness of the problem of counterfeit products.

However, despite the regular holding of the "Month without counterfeit goods", the problem of counterfeit goods in Uzbekistan remains relevant. This may indicate that:

The Monthly is an effective tool for detecting counterfeit goods, but its short-term nature may limit its long-term impact.

Additional measures are needed to combat counterfeiting on an ongoing basis, not just during the annual month.

Perhaps, the legislative framework and law enforcement mechanisms need to be strengthened to more effectively combat counterfeit products.

Overall, the No Counterfeit Month can be seen as an important element in the anti-counterfeiting measures in Uzbekistan, but its effectiveness may be limited without additional systematic efforts throughout the year.

In the area of ​​combating counterfeit products, the following penalties can be identified for violators:

Administrative fines:

Administrative fines may be imposed for violations related to the sale of counterfeit products. The exact amounts of fines for the "Month without counterfeit" are not specified, but in general, fines in Uzbekistan can reach several hundred minimum monthly salaries.

Criminal liability:

Serious violations, especially if repeated or on a large scale, may result in criminal liability. Punishment may include imprisonment for up to five years.

Confiscation of goods:

Counterfeit products identified during inspections are subject to confiscation.

License revocation:

For producers of alcoholic and tobacco products, the license may be revoked if counterfeit products are detected.

Equipment seizure:

From October 1, 2024, in the event of detection of shadow production, production without excise stamps or digital marking, as well as low-quality alcoholic products, the production equipment will become state property.

Financial sanctions:

For the improper use of food and technical ethyl alcohol, tax authorities will apply financial sanctions in the amount of 2.5 times the amount of excise tax.

License suspension:

The inspection will be authorized to suspend the license for a period of ten days in case of violations during the transportation of ethyl alcohol.

It is important to note that these sanctions are applied not only within the framework of the "Month without counterfeit goods", but also in general within the framework of the fight against counterfeit goods in Uzbekistan. "Month without counterfeit goods" is an intensive period of inspections and measures aimed at identifying violations, but the sanctions are based on the general legislation of the country in this area.

Based on the study of data on the “Month without counterfeit goods” in Uzbekistan, the exact share of counterfeit watches among the total number of counterfeit goods detected is not indicated.

Based on the information available on the Internet, the following measures can be identified that are being taken in Uzbekistan to inform consumers about the risks of counterfeit products:

Holding press conferences:

As part of the "Month without counterfeiting", press conferences are held to highlight the risks associated with the purchase and use of counterfeit products.

Media coverage:

Information about counterfeiting issues and the risks associated with it is regularly published in the media.

Explanatory work with business entities:

Events are being held to inform entrepreneurs about the consequences of the production and sale of counterfeit products.

Educational programs:

Educational events are organized to raise public awareness of the risks of using counterfeit goods.

Social advertising:

Various forms of social advertising are used to draw attention to the problem of counterfeiting and its negative consequences.

Information campaigns:

Targeted information campaigns are being conducted, aimed at different groups of the population, to explain the risks associated with counterfeit products.

Interaction with public organizations:

Public organizations are involved in disseminating information about the risks of counterfeiting among various segments of the population.

Use of digital platforms:

Information about the risks of counterfeit products is disseminated through official websites of government agencies and social networks.

Conducting seminars and round tables:

Events are organized with the participation of experts, where the problems of counterfeiting and ways to protect consumers are discussed.

Publication of information materials:

Brochures, leaflets and other information materials are published containing information on how to recognize counterfeit products and avoid the risks associated with them.

These measures are aimed at raising public awareness of the risks associated with the purchase and use of counterfeit products and contribute to the development of more responsible consumer behaviour.