a tripartite report - Unctad
a tripartite report - Unctad a tripartite report - Unctad
TANZANIA SUBJECT AREA 2008/9 * 2009/10 2010/11 Vertical Agreements 1 2 0 Horizontal Agreements 0 1 0 3 1 4 Reviewed Mergers 8 5 19 Counterfeit product cases 26 0 0 Other cases 0 0 0 TOTAL CASE 38 9 23 Source: * submitted by FCC. At the end of 2011, there were complaints which were pending before the FCT as follows: (i) Fair Competition Commission (FCC) Vs Tanzania Cigarette Company (TCC) Complaint: This Complaint has been stayed waiting for the Miscellaneous Application by TCC before the High Court of the United Republic of Tanzania challenging constitutionality of the Commission in terms of it being an investigator, prosecutor and adjudicator. (ii) Baraka Stores V. Mabibo Wines & Spirits & TRA. The Complaint is still pending to the Commission after the Order of the fair Competition Tribunal for trial de novo. (iii) Global Outdoors Systems & Others V TANROAD. The Commission registered settlement out side the Commission by the parties i.e. before the case was taken for adjudication. (iv) Tanzania Breweries Limited Vs Serengeti Breweries and Fair Competition Commission (Consolidated Appeals Nos.4&5 at FCT): This appeal is still pending before FCT and parties were submitting skeleton of written submissions ready for hearing. The parties have contended that the Commission is illegally constituted and thus its decision against them should be annulled. Almost all the cases are based on technicalities than on the substantive matters that touch on the elements of the United Republic of Tanzania’s competition law. 3.0 ANTI-COUNTERFEITING UNDER THE MERCHANDISE MARKS ACT 63 Anti-counterfeit function of the FCC is an important public policy activity in the United Republic of Tanzania. With its long trading history, the United Republic of Tanzania’s coastline also plays as an entry and exit point for a number of countries in eastern and southern Africa. The country’s reputation as a trustworthy trade facilitator is important to keep. From the discussions held during the preparation of this assessment report, the FCC is actually more widely known by the general public as the “institution that deals with counterfeit products”. The Commission’s role in this area has been “scrupulous” and the media have tended to give this function more prominence than the core aspects of competition law – except occasionally on mergers. It is worth noting from the outset that the counterfeit functions of the FCC are not covered under the FCA but under the Merchandise Marks Act (MMA) of 1963 which was passed by the Parliament of Tanganyika (i.e. before the union with Zanzibar). It is clear from its name and functions that the FCC was intended to deal with everything that affects “fair competition”. The concept of fair competition is wider than the standard usage in the core elements of competition law. It is thus not surprising that the “Fair Competition Commission” has been assigned responsibilities to deal with counterfeit products that create an unfair competition landscape as well as have potential harmful effects on consumers. The purpose clause of the MMA states that it is a law to control use of Marks and Trade Descriptions in relation to merchandise. The MMA contains im- “false name or initials” means, as applied to any goods, any name or initials of a person which – (a) are not a trade mark, or part of a trade mark; and (b) are identical with, or colourable imitation of, the name or initials of the person carrying on business in connection with goods of the same description, and not having authorized the use of such name or initials; and some person not carrying on business in connection with such goods. TANZANIA
64 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE “false trade description” means a trade description which is false or misleading in material respect as regards the goods to which it is applied, and includes every alteration of a trade description, whether by way of addition, effacement or otherwise, where that alteration makes the description false or misleading in a material respect, and the fact that a trade description is a trade mark, or part of a trade mark, shall not prevent such trade description from being a false trade description within the meaning of this Act. “goods” means anything which is the subject of trade, manufacture or merchandise. “inspector” means any person appointed by the Minister to be an inspector for the purposes of this Act. By policy direction, the Director-General of the FCC was appointed by the Minister to be the “Chief Inspector” for the MMA. The functions of such inspector are substantially to inspect, seize and destroy goods suspected and proved to be counterfeits. Under Section 2 of the Merchandise Marks Regulations (MMR) of 200877 , the following “Counterfeiting” means with the authority of the owner of any intellectual property right subsisting in the United Republic of Tanzania or elsewhere in respect of protected goods – (a) the manufacturing, producing, packaging, repackaging, labelling or marking, whether in the United Republic of Tanzania or elsewhere, of any goods whereby those protected goods are imitated in such manner and to such degree that those other goods are identical or substantially similar copies of the protected goods; (b) the manufacturing, producing or making, whether in the United Republic of Tanzania or elsewhere, the subject matter of that intellectual property, or a colourable imitation thereof so that the other goods are calculated to be confused with or to be taken as being the protected goods of the said owner, or any goods manufactured, produced or made under his licence; (c) the manufacturing, producing or making of copies in the United Republic of Tanzania or elsewhere in violation of authors rights or related rights. “Counterfeit goods” or “pirated goods” of “offending goods” means goods available as a result of counterfeiting or piracy, and includes any means used for the purposes of counterfeiting or piracy. “Piracy” means the illicit, prohibited or unauthorized copying of any intellectual property right on or over goods for the purpose of trade. Under Regulations 4–5 of the MMR, the Chief Inspector is clothed with powers to, inter alia: (a) conduct an investigation on any breaches of the Act and request assistance of a police (b) detain or seize any goods which he reasonably suspects to be counterfeit goods; and (c) issue a receipt in respect of detained or seized goods under this Regulation; (d) conduct a public inquiry; (e) issue a summons (f) delegate in writing any of his functions to a For purposes of carrying out these wide powers, the Minister may, on the advice of the Chief In- he may think appropriate for the purposes of the better implementation of the Act 78 . Under Regulation 34, the owner of the goods detained or seized as suspected offending goods may, within one month of the notice of detention or seizure put up a claim in writing for their restoration by the Chief Inspector. Where no claim is made within the period, the goods shall be forfeited and shall be disposed of as the Chief Inspector may determine. At regulation 51, a person dissat- appeal to the Fair Competition Tribunal. 3.1 Counterfeits and Competition There has been criticism that the MMA and the FCC for that matter are concerned largely with goods imported into the United Republic of Tanzania and not goods manufactured locally and sold locally. The inspectorate emphasis is on imports as well as on local music products. The locally produced goods are shielded from foreign competi-
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64 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE<br />
“false trade description” means a trade description<br />
which is false or misleading in material respect<br />
as regards the goods to which it is applied, and<br />
includes every alteration of a trade description,<br />
whether by way of addition, effacement or otherwise,<br />
where that alteration makes the description<br />
false or misleading in a material respect, and the<br />
fact that a trade description is a trade mark, or<br />
part of a trade mark, shall not prevent such trade<br />
description from being a false trade description<br />
within the meaning of this Act.<br />
“goods” means anything which is the subject of<br />
trade, manufacture or merchandise.<br />
“inspector” means any person appointed by the<br />
Minister to be an inspector for the purposes of this<br />
Act.<br />
By policy direction, the Director-General of the<br />
FCC was appointed by the Minister to be the<br />
“Chief Inspector” for the MMA. The functions of<br />
such inspector are substantially to inspect, seize<br />
and destroy goods suspected and proved to be<br />
counterfeits. Under Section 2 of the Merchandise<br />
Marks Regulations (MMR) of 200877 , the following<br />
<br />
“Counterfeiting” means with the authority of the<br />
owner of any intellectual property right subsisting<br />
in the United Republic of Tanzania or elsewhere in<br />
respect of protected goods –<br />
(a) the manufacturing, producing, packaging,<br />
repackaging, labelling or marking, whether in<br />
the United Republic of Tanzania or elsewhere, of<br />
any goods whereby those protected goods are<br />
imitated in such manner and to such degree that<br />
those other goods are identical or substantially<br />
similar copies of the protected goods;<br />
(b) the manufacturing, producing or making,<br />
whether in the United Republic of Tanzania<br />
or elsewhere, the subject matter of that<br />
intellectual property, or a colourable imitation<br />
thereof so that the other goods are calculated<br />
to be confused with or to be taken as being<br />
the protected goods of the said owner, or<br />
any goods manufactured, produced or made<br />
under his licence;<br />
(c) the manufacturing, producing or making of<br />
copies in the United Republic of Tanzania or<br />
elsewhere in violation of authors rights or<br />
related rights.<br />
“Counterfeit goods” or “pirated goods” of “offending<br />
goods” means goods available as a result<br />
of counterfeiting or piracy, and includes any<br />
means used for the purposes of counterfeiting or<br />
piracy.<br />
“Piracy” means the illicit, prohibited or unauthorized<br />
copying of any intellectual property right on<br />
or over goods for the purpose of trade.<br />
Under Regulations 4–5 of the MMR, the Chief Inspector<br />
is clothed with powers to, inter alia:<br />
(a) conduct an investigation on any breaches<br />
of the Act and request assistance of a police<br />
<br />
(b) detain or seize any goods which he reasonably<br />
suspects to be counterfeit goods; and<br />
(c) issue a receipt in respect of detained or seized<br />
goods under this Regulation;<br />
(d) conduct a public inquiry;<br />
(e) issue a summons<br />
(f) delegate in writing any of his functions to a<br />
<br />
For purposes of carrying out these wide powers,<br />
the Minister may, on the advice of the Chief In-<br />
<br />
he may think appropriate for the purposes of the<br />
better implementation of the Act 78 .<br />
Under Regulation 34, the owner of the goods detained<br />
or seized as suspected offending goods<br />
may, within one month of the notice of detention<br />
or seizure put up a claim in writing for their restoration<br />
by the Chief Inspector. Where no claim is<br />
made within the period, the goods shall be forfeited<br />
and shall be disposed of as the Chief Inspector<br />
may determine. At regulation 51, a person dissat-<br />
<br />
appeal to the Fair Competition Tribunal.<br />
3.1 Counterfeits and Competition<br />
There has been criticism that the MMA and the<br />
FCC for that matter are concerned largely with<br />
goods imported into the United Republic of Tanzania<br />
and not goods manufactured locally and sold<br />
locally. The inspectorate emphasis is on imports as<br />
well as on local music products. The locally produced<br />
goods are shielded from foreign competi-