LATVIAN GOVERNMENT INCINERATES 25-MILLION
COUNTERFEIT CIGARETTES

Public-Private Cooperation Urgently Needed to Halt Transit of Counterfeits by Organized Crime And Terrorist Groups

Riga, Latvia – International organized crime groups are responsible for the flood of counterfeit products that transit through Latvia bound for Western European markets, according to senior Latvian government officials and a coalition of some of the world's most famous trademark owners.

Latvian Minister of the Interior Mareks Seglins and Parliament Defense & Internal Affairs Committee Chair Dzintars Kudums today oversaw the public destruction of more than 25-million fake cigarettes today at a specially contracted heating facility in the town of Silakrogs near Riga.

"Organized crime is at the center of the production and trafficking of counterfeit goods in Latvia and its Baltic neighbors, according to Saeima (Parliament) Defense & Internal Affairs Committee Chairman Dzintars Kudums.

“Latvia is a major transit corridor for counterfeit goods destined for Western European markets. There is no doubt that these smuggling networks are linked to international organized crime groups, which in many cases, have links to international terrorist networks,” said Kudums.

Organized by the Government of Latvia and the Coalition for Intellectual Property Rights (CIPR), today's event is the first such large-scale destruction of seized counterfeits in the region. "Placed end-to-end, the fake Marlboro, Benson & Hedges, and L&M cigarettes incinerated today would extend from Freedom Monument in Latvia's 800-year old capital to the Rock of Gibraltar on the southern coast of Spain," said Peter Necarsulmer, CIPR president.

Necarsulmer hailed today's public event as "an exceptional illustration of mutual assistance by law enforcement and the private sector in the global war against counterfeiting."

"This is an example to be repeated throughout the Baltics and the region not only for cigarettes but for all faked goods that commit fraud on consumers, rob governments of legitimate tax revenues and violate the intellectual property rights of trademark owners," Necarsulmer added

The seizures of counterfeit tobacco destroyed today involved close cooperation between Latvia's State Security Police, Revenue Service, Customs Department and State Police as well as CIPR and trademark owners Philip Morris International and British American Tobacco (BAT).

“I am extremely pleased with Latvian law enforcement authorities whose persistence and commitment led to the destruction of these fake goods. I want to hold up this bold action as an example for all Latvian law enforcement officials to follow,” Minister of Interior Seglins added.

"The Government of Latvia has a huge financial stake in fighting counterfeiters and smugglers of contraband," said Andrejs Sonciks, general director of Latvia's State Revenue Service. "These criminals are stealing millions of Lats from taxpayers and government alike by avoiding customs duties, excises, income and VAT while enriching themselves," he added.

Senior diplomats from Lithuania, Estonia, Russian Federation, Sweden, United States, United Kingdom and the EU, including US Ambassador Brian Carlson and British Ambassador Stephen Nash, joined trademark owners and Latvian government officials to underscore the significance of today's action.

U.S. Ambassador to Latvia Brian Carlson commended the Government of Latvia for its successful interdiction of counterfeit goods transiting across Latvia’s borders. He said that the U.S. government looked forward to continuing its partnership with the Government of Latvia and its law enforcement officials in the fight against counterfeiters and the organized crime groups responsible.

"As Latvia progresses towards EU accession, it is setting an example of how all countries should deal with counterfeit products," said Greg Prager, Communications Manager for trademark owner Philip Morris International.

"Like any other corporation, we greatly value our trademarks. Putting in place laws to protect these trademarks and backing them up with actions such as today’s event, is one of the most important initiatives a government can take to show the international business community its commitment to the rule of law," said Prager.

"Pharmaceutical firms, food producers, sportswear manufacturers and all trademark owners join with Philip Morris International and BAT in applauding the Government of Latvia's resolve to expeditiously destroy these counterfeits and ensure that these goods do not end up back on the streets,” said Peter Necarsulmer of CIPR.

“Today’s action is an important step forward to improve Latvia’s international reputation. We are confident that consistent implementation of this policy of aggressive seizures and rapid physical destruction of counterfeit goods will help remove a key barrier to investment by regional and international trademark owners,” Necarsulmer concluded.

The Coalition for Intellectual Property Rights (CIPR) is a private-public partnership dedicated solely to advancing intellectual property rights protection and reform in the Baltic States and CIS countries. Through research, education, legislative initiatives, coalition building and legal, judicial and regulatory reforms, CIPR assists governments and businesses in the region to establish transparent and non-discriminatory IPR regimes and to adhere to international standards. CIPR members include a number of the world's most famous trademark owners in the food, beverage, pharmaceutical, fashion, computer and tobacco industries, and enjoy broad support by government trademark regulators and enforcement officials throughout the region.

www.cipr.org

Special Notes to Editors:
Digital Images of Today’s Incineration Action are Available by Contacting Arnolds Karklis in Riga:
(+371) 728-0759
arnolds.karklis@pbnco.com
Or Maxim Syssoev in Moscow:
(+7095) 745-8700
maxim.syssoev@pbnco.com