Project Title

Canada's "Project Chargeback" Workshop 

Project Year

2017   

Project Number

CTI 27 2017 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

CTI 27 2017 

Project Title

Canada's "Project Chargeback" Workshop 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

General Project Account 

Sub-fund

None 

Project Year

2017 

Project Session

Session 2 

APEC Funding

61,000 

Co-funding Amount

Total Project Value

61,000 

Sponsoring Forum

Intellectual Property Rights Experts Group (IPEG) 

Topics

Intellectual Property 

Committee

Committee on Trade and Investment (CTI) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Canada 

Co-Sponsoring Economies

Chile; Korea; Mexico 

Expected Start Date

01/08/2018 

Expected Completion Date

30/09/2018 

Project Proponent Name 1

Nicholas Gordon 

Job Title 1

Senior Trade Policy Officer 

Organization 1

Global Affairs Canada 

Postal Address 1

111 Sussex Drive, Ottawa, Ontario, Canada K1A 0GS 

Telephone 1

1-343 2034445 

Fax 1

Not Applicable 

Email 1

Nicholas.Gordon@international.gc.ca 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Nicholas Gordon 

Project Summary

Canada is proposing to host an instructional workshop regarding its anti-counterfeiting initiative, “Project Chargeback”, which is a collaboration between the Canadian Anti-Fraud Center, credit card companies, banks, and IP rights holders who work together to reimburse victims of online counterfeiting and piracy. Canada has presented its program to economies all over the globe in various international fora, including WIPO’s Advisory Committee on Enforcement and the WTO TRIPS Council, and receives consistent requests from economies, including APEC member economies, for additional information regarding how the initiative works and what is required to establish a similar chargeback program in other jurisdictions. 

This workshop will provide participating APEC and Non-APEC member economies with detailed information on how Canada’s initiative is administered in practice, and will share experience and know-how, with a view to assisting all participants in establishing their own domestic chargeback programs, should they wish to do so.

Relevance

Intellectual Property (IP) crime involving the deceptive marketing of counterfeit and pirated goods continues to pose a threat to the economic integrity of APEC member economies, including digital trade and ecommerce. Counterfeiters are spoofing legitimate retailers' websites, such as Canada Goose, Ugg Boots, Lululemon,  Michael Kors and many more, to sell counterfeit or pirated goods to consumers that have same look and feel as the legitimate manufacturer. Counterfeiting is a delocalised crime, as the counterfeit goods can be produced, transported, and sold from, to, anyone anywhere in the world. Given that IP protection and enforcement are solely under sovereign jurisdiction, combatting the trade in counterfeit goods is particularly challenging as each APEC member economy must do so individually, but can gain knowledge through cooperation or information exchanges on best practices with other economies. 

In response to consumer complaints about these nefarious online commercial practices, Canada has developed a novel, effective, and resource efficient approach to combatting counterfeiting and piracy over the internet. The first of its kind in the world, "Project Chargeback" is a collaboration between the Canadian Anti-Fraud Centre (administered by the Royal Canadian Mounted Police), credit card companies, banks, and IP rightholders, who work together voluntarily to reimburse victims of online fraudsters, and then close counterfeit retailers' accounts for having breached the terms of service agreement with the credit card companies, making it difficult for fraudulent retailers to conduct their activities online. 

Following presentations by Canada on Project Chargeback at the 43rd and 44th IPEG meetings, many APEC members expressed a strong interest in learning more about how the initiative is administered in practice and how to implement similar initiatives in their own jurisdictions. 

This project falls under Rank 1 as it has a direct link to promoting regional economic integration via free and open trade and investment, by supporting the multilateral trading system, and the implementation of Bogor Goals. 

This project also falls under Rank 2 to directly support the APEC Strategy for Strengthening Quality Growth through the protection and enforcement of intellectual property rights, including trade secrets.

Objectives

The key objectives of this project will be:

1) To further collaboration and contribute expertise and experience among IP enforcement experts of APEC member economies who may be interested in developing or are developing an anti-counterfeiting enforcement capacity by leveraging the knowledge-sharing nature of and the subject-matter expertise of IPEG delegates and panel experts;

2) To enhance APEC member economies’ knowledge of the chargeback process and how Canada’s program operates in conjunction with banks, credit card companies, law enforcement and IP rightholders; and

3) To equip interested APEC member economies with a list of necessary steps and items to implement a domestic anti-counterfeiting initiative based on credit card chargeback polices.

Alignment

This project will inform APEC member economies on new practices that aligns with the “Actions” enumerated in the Ministers Responsible for Trade Statement released on May 21, 2017, specifically to: foster cooperation in the area of IPR protection and enforcement, raise MSMEs awareness of IP commercialization, and encourage the use of the IPR system as a means to stimulate economic and technological development to contribute to a healthy innovation ecosystem. The project also aligns with the objectives outlined in that statement of continuing collaboration amongst APEC economies to advance work on digital trade, including on the APEC Roadmap on the Internet and Digital Economy. 

This project aligns with CTI priorities of trade and investment facilitation and promotion of digital trade in the APEC region; and the APEC anti-counterfeiting piracy initiative, specifically enforcement-related activities.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs: The primary deliverable of this project will be an instructional workshop and discussion panel delivered in advance or immediately following IPEG 46.

Representative(s) from the Canadian Anti-Fraud Centre and Global Affairs Canada will facilitate a half-day instructional seminar explaining how the chargeback process initiative works including how complaints are received, processed, confirmed counterfeit, and tracked. Additional instruction and analysis will be presented regarding issues encountered by other economies that have or are working to implement a chargeback program. 

A panel that includes representatives from credit card companies or pay service providers, a Canadian Bank, and representatives from other non-APEC member economies that have implemented a chargeback program, as well as the United Nations Interregional Crime and Justice Institute will hold a discussion and Q&A for workshop participants. Switzerland and Italy have, or are in the process of, putting in place chargeback models based on Canada’s and will be invited to speak about their approach and experiences. These economies can speak to what, if any, adaptations they may have made to the Canadian model to fit their domestic context.

Participants will also be provided with a list of necessary steps and items to implement a domestic anti-counterfeiting initiative. In basic terms, a general list of steps and requirements would be provided, including a copy of credit card chargeback policies which are global in nature. It is up to individual APEC economies to identify where such a program may fit best within their own governance regimes and economic institutions. Representatives from the Canadian Anti-Fraud Centre are prepared to explain and provide instruction regarding “how to” approach the various private sector partners required, including providing a list of contacts.

As required, the PO will complete and submit to the APEC Secretariat the Meeting Completion Report in the required format within two months of the workshop’s conclusion. In addition, the PO will send out a survey to all participants requesting feedback in respect of the delivery of the workshop, knowledge obtained, and whether their economy may intend to pursue a chargeback initiative of their own. Once the completed surveys are submitted, the information will be compiled into a meeting summary report and will be provided to the APEC Secretariat detailing the turnout of participants, the feedback received from the participants, and any project issues or successes with a view to enhancing the projects sustainability following the conclusion of the workshop.

Outcomes: Workshop participants will gain a deeper understanding of Canada’s innovative approach to countering the illegal sale of counterfeit and pirated goods. Participants will better under how “Project Chargeback” relies on the cooperation between banks, credit card companies, law enforcement, and IP right holders to successfully target fraudulent retails, particularly online retailers.

Interested participants will be equipped with a list of necessary steps and items to implement a similar domestic anti-counterfeiting initiative based on credit card chargeback policies, and will be encouraged to follow-through to support Canada’s efforts. Given the delocalised nature of these fraudulent online retailers, the more diffuse the adoption of models like Project Chargeback, the more successful the APEC member economies will be in tackling the sale of counterfeit and pirated goods and protecting their consumers.

Beneficiaries: The workshop will be open to all APEC member economies, brand associations, and other non-APEC member economies, aimed specifically at participants of the IPEG. Canada recommends that the IPEC delegate be accompanied by an official from their respective government who has the authority to, or represents such an authority, that may initiate anti-counterfeiting projects. Workshop facilitators will include representatives from the Government of Canada with representatives from Global Affairs Canada and the Canadian Anti-Fraud Centre (administered by the Royal Canadian Mounted Police); as well as credit card companies, with a representative either from credit card companies or pay service providers; a Canadian bank; the United Nations Interregional Crime and Justice Institute and other economies that have implemented a chargeback initiative based on the Canadian model and experienced similar successes. Canada will proactively seek gender balance amongst workshop panellists.

Beneficiaries of the workshop will be the policy makers from APEC members in attendance who can learn from Canada’s experiences and will be provided the necessary material to replicate a similar project. Ultimately, consumers, producers, and governments across APEC member economies would benefit if a chargeback initiative is implemented each representative’s respective economy.

Dissemination

APEC IPEG, and similar forums such as the World Intellectual Property Organization, is the best means to disseminate the outputs of this project. As Project Chargeback is still in a nascent stage, the most effective audience to target is IP experts. 

To support APEC member economies who may wish to follow Canada’s example, we will share electronic versions of the presentation slides with workshop participants so that they can more easily share the knowledge and information within their respective economies.  We will also assemble and post the agenda, presentation slides, and any other relevant materials from each workshop on the APEC Meeting Document Database. These materials can also serve as a curriculum guide that participants can use to conduct their own analysis in their home economies so that a wider audience of individuals from the public and private sectors can benefit.  In addition, we will share the project monitoring and completion reports with delegates to IPEG, and CTI.

Gender

In soliciting experts to participate in the workshop, Canada will seek to ensure a balanced panel of both female and male speakers and presenters. We will also request that any participating APEC member economy take into consider gender balance in nominating participants to the workshop. 

Counterfeit and pirated goods pose a threat to the health and safety to both female and male consumers across all APEC economies. To the extent that victims of counterfeit goods are more often female, the implementation of a chargeback initiative may positively be more beneficial to female consumers. We recommend all member economies wishing to put in place a chargeback model track the gender of chargeback victims to inform future policy making.

Work Plan

Time

Task

Deliverables

August 2018

Workshop

Instructional workshop and discussion panel

September 2018

Survey

Post workshop survey to be distributed

Gather and analyse survey results into report 

October 2018

Workshop Materials 

Completion Report

Make available workshop materials through APEC’s Meeting Document Database 

Submission of Completion Report to the Secretariat

November 2018

Summary Report

Submission of Summary Report to
the Secretariat
 

The primary deliverable of this project will be an instructional workshop and discussion panel delivered August 2018 in advance or immediately following IPEG 48. 

-  November 2017: receive APEC approval for workshop

-  December 2017/January 2018: ask IPEG participants to consider submitting questions in advance by February/March 2018

-  December 2017/January 2018: send invites to speakers requesting confirmation by January 2018

-  January 2018: Nominate confirmed speakers for endorsement

-  January 2018: confirm travel arrangements for panelists in consultation with APEC Secretariat PD

-   February 2018: confirm venue for event ASAP in consultation with APEC Secretariat PD

-  March 2018: begin preparing materials and content for workshop

-  March 2018: send out call for IPEG members to nominate participants

-  May 2018: Nomination forms due and submitted to APEC Secretariat PD

-  June 2018: finalise workshop materials

-  July 2018: buffer to complete miscellaneous tasks

-  August 2018: workshop

-  October 2018: Submit Workshop materials for publication through APEC’s Meeting Document Database

-  October 2018: Submit Completion Report the Secretariat

-   November 2018: Publish and make available Summary Report to the Secretariat 

Representative(s) from the Canadian Anti-Fraud Centre, Global Affairs Canada and the United Nations Interregional Crime and Justice Institute will facilitate a half-day instructional seminar explaining how the chargeback process initiative works including how complaints are received, processed, confirmed counterfeit, and tracked. 

A panel that includes representatives from credit card companies or pay service providers, a Canadian Bank, and representatives from other non-APEC member economies that have implemented a chargeback program will hold a discussion and Q&A for workshop participants. 

Participants will be provided with a list of necessary steps and items to implement a domestic anti-counterfeiting initiative.

Risks

Risk 1: Speakers may not be available to attend. 

Risk management: Project overseer will take prompt action on the selection of the speakers and confirm their participation as early as possible, and develop a secondary list speakers in the event of a cancellation. 

Risk 2: Low interest in participation. 

Risk management: Project overseer will actively engage with IPEG delegates to promote the project. 

Risk 3: Risk of the unsuitability of workshop content or take-home materials for economies due to regional differences. 

Risk management: Maintain open information sharing network between Canadian Anti-Fraud Centre and APEC member economy experiencing difficulty. 

Risk 4: Risk of delay due to logistics pertaining to venue as the event intends to take place during SOM 3. 

Risk management: Confirm logistics well in advance of SOM 3 (asap i.e. February 2018) 

Risk 5: Not having the right participants in the room.

Risk management: Invite APEC-IPEG members to nominate participants well in advance and maintain open.

information sharing network between Canadian Anti-Fraud Centre and APEC member economy whose expert may not have been able to attend.

Monitoring and Evaluation

The project is expected to deliver a comprehensive understanding of the function, impact, and operation of a chargeback initiative. Indicators of success will be measured through a survey of APEC members that attend and participate in the workshop, including confirmations from APEC member economies regarding their intent to investigate the feasibility of a chargeback program. To the extent that victims of counterfeit goods are more often female, the implementation of a chargeback initiative may positively be more beneficial to female consumers.

Linkages

Engagement: Canada will invite representatives from credit card companies, banks, and other non-APEC member economies to participate on the panel during the workshop. 

Previous work: Canada is presenting and undertaking similar initiatives in other international fora, such as the World Intellectual Property Organization’s Advisory Committee on Enforcement and the WTO TRIPS Council, regarding the positive benefits of a chargeback initiative. 

APEC’s Comparative Advantage: The implementation of a chargeback initiative across APEC member and non-economies would yield many benefits including would promote the multilateral trading system, thereby the Bogor Goals, as well as improve the protection and enforcement of intellectual property rights, including trade secrets, which would support the APEC Strategy for Strengthening Quality Growth.

Sustainability

The potential impact of a chargeback initiative if pursued by other economies is global in scale, and the benefits of participation for APEC region consumers would increase as additional economies participate. As such, beneficiaries will be provided with implementation information at the event, and supported by further collaboration and information sharing among non-APEC member economies utilising a chargeback program. The Canadian Anti-Fraud Centre is interested in encouraging an open information sharing network between themselves and other APEC member economies interested in implementing a chargeback program to facilitate the exchange of experiences and dissemination of information. The progress of APEC member economies will be measured through engagement and surveys to gauge the ability of member economies to implement a chargeback initiative. 

In conjunction with discussion and interest amongst IPEG representatives, we will evaluate next steps, such as potentially working on a set of best practices or enhanced cooperation and information sharing after the completion of feasibility studies for the implementation of chargeback programs.

Project Overseers

Nicholas Z. Gordon
Senior Trade Policy Officer
Intellectual Property Trade Policy Division
Global Affairs Canada

Nicholas is a lawyer and presently working for Global Affair’s Canada in the area of intellectual property trade policy. He has worked as a negotiator on several of Canada’s international trade agreements including the TPP, the Canada-Korea FTA, and the Canada-Japan Economic Partnership Agreement. His files include IP in North America, Japan, the Republic of Korea, the protection and enforcement of trade secrets, APEC, WIPO, and IPR enforcement.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

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