Traders in Kampala have welcomed the proposed Anti-Counterfeit Goods and Services Bill 2023 as it will save them from unfair competition from substandard and counterfeit alternatives.
In July 2023, Asuman Basalirwa, the member of parliament for Bugiri municipality, secured leave from parliament to allow him to introduce
"The Anti-Counterfeit Goods and Services Bill, 2023" for which he has already made a draft.
The objective of the bill is to prohibit the sale, manufacture, production, packaging, re-packaging, labelling, marketing, blending, processing, treatment, importation and exportation of counterfeit goods and counterfeit services that infringe upon protected intellectual property rights and prescribed standards; to prohibit release of counterfeit goods and counterfeit services into the channels of commerce; and to create offences for dealing in counterfeit goods and counterfeit services.
During the final consultative meeting to seek the public's views about the bill at Kampala Sheraton hotel, manufacturers, traders and business people appreciated the bill, stressing that it has been long overdue because counterfeits are eating into the market share of legitimate businesses and providing unfair competition since they are sold at a cheaper price.
Agnes Ssali, the legal director and company secretary of Uganda Breweries Limited, said counterfeits remain a significant challenge for private business and especially those in the fast-moving consumer goods space.
She noted that counterfeit products have created an unfair playing field for legitimate alcohol players since those involved do not pay taxes and do not adhere to any prescribed legal standards and they have seen reports of death, blindness and other adverse effects from the consumption of counterfeit and substandard alcohol products.
Ssali, however, noted that even though they welcome the proposed law that is intended to curb this vice and they are committed to supporting anti-counterfeit efforts, the law needs to have punitive deterrent measures and consistence in terms of enforcement and prosecution which have been a challenge in the existing pieces of legislation which try to tackle this vice.
"We, therefore, welcome the move to have in place a law that expressly prohibits the sale, manufacture and importation of counterfeit goods and services and that seeks to impose punitive sanctions against those that are found culpable for its infringement. This will enhance the protection of the general public against substandard and defective goods and services and owners of licenses of intellectual property rights will be protected against brand infringement," she said.
Thaddeus Musoke, the chairman of KACITA, said the bill if passed into law, is going to help traders and producers protect their brands from illegitimate traders who duplicate their products thereby messing with their businesses.
He, however, expressed fears of enforcement agencies like the Uganda National Bureau of Standards (UNBS) being underfunded which has at times created corruption tendencies that in order to access standards and effective services, you have to do business under the table.
"The companies UNBS contracted to do the Pre Export Verification of Conformity exercise don't test these commodities; they just take pictures and certify them after meeting some costs. Let us strengthen the capacity of the standards body because if our agencies are still underfunded, we shall not achieve our goal of fighting counterfeits," Musoke said.
Basalirwa, the mover of the bill in parliament, told stakeholders in the meeting that he identified the need to have a comprehensive piece of legislation to address the subject of counterfeits in thecountrybecauseeventhoughthereare laws such as the intellectual property law, Copyright and Neighbouring Rights Act, Trademark Act and the Penal Code Act, there was still no single uniform law that is unique to counterfeits and standards of goods and services.
Basalirwa stressed that the bill suggests more punitive measures with very heavy and deterrent punishments of ten years and above imprisonment and fines that are five times the value of that good or service that is being imitated. Aiding and abetting counterfeit goods and services will also be an offence under this law.
"We have structured the law in such a way that it makes counterfeiting and producing substandard products a very risky and dangerous business."
However, from the consultation meetings held in different parts of the country including Mukono, Bugiri, Mbale, Soroti, Kasese, Mbarara, Gulu, Arua and Kampala, the people said the punishment put in the bill of ten years is just a joke and they proposed at least 20 years and some even life imprisonment.
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The public also expressed their worries about the possible weak implementation of the law, citing so many examples like where UNBS finds substandard products, somebody pays money and they are released or some one is taken to court, they pay a small fine and they are let go.
But Basalirwa said the bill is hybrid with an objective of establishing a cost efficient intergovernment agency collaboration against counterfeiting of goods and services. "On implementation, we are seeking a multi-agency cooperation. We want this law to give mandate to existing agencies like UNBS, UCC, NEMA, URA, and URSB to do the implementation," he said.
According to the Anti-Counterfeit Network, Uganda loses up to Shs 6 trillion to counterfeits and substandard products every year, a figure economists say could be more and increasing every year and, according to Economic Policy Research Centre, close to 40 per cent of Ugandan businesses felt that they suffered due to unfair competition from counterfeit and cheaper substandard products.
