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July 6, 1996
. Vreme News Digest Agency No 248
Who "Replay" Is Bringing Charges Against

Fashion Pirates

by Filip Svarm

Have you ever been offered to buy "original Rauy Ban" sun-glasses for only ten German Marks? When you were offered "Johnnie Walker" whisky, did you discuss whether it came from Bulgaria, Romania or a local distillery? Were you embarrassed when someone noticed that your shoes were called "Rebok," "Ribok" or "Reeboc" instead of "Reebok"? Do you buy "Levi Strauss" or "Reply" jeans which are "Exactly the same as the original ones" but three times cheaper? Among dozens of commercials which spoiled watching the European football championships, one spot particularly drew attention. All those using the "Replay" trade mark without authorization were warned to immediately stop doing so, or they would have to bear all the legal consequences. "An important condition for further cooperation with "Fashion Box" company was to legally protect the "Replay" trade mark, says Drasko Babic, "Replay" general manager for Yugoslavia at "Fashion Company." "Our idea is to promote representation of foreign companies in Yugoslavia. One of our tasks in the process is to take measures against unauthorized producers and vendors of "Replay" trade mark. Since television is the most suitable medium for the presentation of the idea, we have used this route to inform unauthorized producers as well as the general public that, as official distributors, we are authorized to protect "Replay" trade mark on our market.

The Yugoslav market, just like all other Eastern markets, is flooded with copies of trademarks. For example, when a popular video game appears in the United States it costs 49.90 U.S. dollars. The next day, the same game can be bought in Belgrade at 4 German Marks, in Moscow for 5 dollars and in Peking for 2 dollars. Calculation is simple: no copyright paid, no investment into production and advertising, and who would ask about the quality at such low a price. The whole thing is so serious and involves so much money that it led almost to a trade war between America and China. Pirate products are abundant in F.R. Yugoslavia. "According to our information, unauthorized producers of "Replay" trademark are located mostly in the Novi Pazar region, but there are other towns, too," said Babic and added: "The products are distributed and sold all over F.R. Yugoslavia - in shops and flea-markets alike." Babic explained what this means: "If this practice continues, we cannot strengthen our position on the domestic market and, therefore, cannot deal with our partners abroad. Our partnership does not refer only to the sale of products, but also to production which could be carried out only if "Replay" trade mark were fully protected. Our partners want to invest, but not in wild market conditions."

Slavica Tokic of the Belgrade Institute for Intellectual Property says the institution does not interfere before registered trademark owners bring charges. If a registered trademark is at issue, the Institute testifies against those who use the trademark without authorization. All of those who abuse it must remove their goods from the market and the damaged companies usually require compensation as well, which certainly is not low. This applies to the unauthorized producers of trademarks, while the Institute has nothing to do with those who sell such products. Imported products are also not protected by the Institute - they are to be protected by the institutions in the countries which export the goods. Babic explained the measures his company is taking: "We have our internal control and ways of finding out about unauthorized produces and vendors. We have also made contracts with certain lawyers to implement the action in the territory of F.R. Yugoslavia." What "Replay" will accomplish in the struggle against pirates is yet to be seen. It is certain, however, that no serious capital will enter the country for as long as production and sale of world famous trademarks is possible. The big bosses who are dealing in unauthorized business and hosts of unemployed persons and refugees will certainly benefit from the situation as it is. However, the income of the latter will be nothing but a miserable compensation for everything they have been deprived of in the current state of national economy.

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