In the latest edition of our new series into the physical marketplaces that reportedly engage in the trade of counterfeit goods, we head to the beautiful Mediterranean island of Cyprus and focus on the counterfeit hotspots that rights holders should have on their enforcement radars.

The issue of fake goods is a prevalent one in Cyprus. Indeed, earlier this year, a report from the EU Intellectual Property Office (EUIPO) revealed that the Cyprus economy loses €180 million annually due to counterfeiting and piracy, at a cost of around 1,400 jobs a year. Going deeper, the report claimed that, in the clothing and footwear sectors, there are losses of around €90 million, or a staggering 17% of total production.

With that in mind, we reached out to Eleni Chrysostomides and Alexandros Georgiades from IP law firm Chrysostomides Advocates, who let us know the counterfeit considerations and physical marketplaces in Cyprus that brand owners should be aware of.

In a nutshell, what should rights holders know about enforcing against counterfeit goods in Cyprus?

In Cyprus, there are two kinds of protection offered against counterfeit goods. One is civil law protection that may take the form of a lawsuit, the other is Criminal Law protection which is enforced by the Customs Authorities in Cyprus in cooperation with the police. When it comes to the civil aspect, rights holders should definitely look for advice from a local law firm in order to take the right steps.

The cost to enforce the criminal proceedings is minimal as customs and the police are government organisations. However, the cost to enforce through civil proceedings can be more expensive – with a range approximately from €5,000 to €75,000 depending on the number and value of the counterfeits, the damage suffered by the entity and/or person who wishes to enforce such procedure, as well as whether early settlement takes place.

There is also an administrative procedure for enforcing IP rights, according to the provisions of EU Regulation No. 608/2013 on customs enforcement. In this respect, IP rights holders can register their rights with customs, providing details such as registered IP rights and the country of origin of counterfeits. Once registered and for the duration of the registration, customs will monitor and notify the rightholders of suspect consignments of counterfeit goods, who can in turn take action as per the procedure prescribed in the regulation. Usually in such cases, counterfeiters agree to abandon the counterfeit goods for destruction by customs and there is no need for legal proceedings.

Finally, customs authorities, along with the police, frequently conduct market operations targeting shops in Cyprus with the purpose of finding, confiscating, and destroying any counterfeit items they may find. Furthermore, the owner of the counterfeit items may be liable in criminal proceedings which are initiated by the police.

Does landlord liability exist in Cyprus?

As far as criminal proceedings are concerned, landlord liability does not exist in Cyprus and charges are always brought against the person found trading in the said counterfeit items, and not the owner of the premises. As to civil proceeding, again landlord liability does not exist.

Counterfeit hotspots you should know in the Cyprus:

There are a number of counterfeit threat areas in Cyprus, especially around coastal and tourist-heavy areas.

Paphos

Location: A range of souvenir shops in the city of Paphos, including on Apostolou Pavlou Avenue, Poseidonos Avenue, and Tombs of the Kings Road (map link)

Counterfeit risk factor: Very high

Fakes known to be sold there: Handbags, sunglasses, perfumes, and accessories from a variety of brands such as Dolce & Gabbana, Fendi, Gucci, Polo Ralph Lauren, Jean Paul Gaultier, Louis Vuitton, Chloe, and Paul Smith.

Challenges of enforcement at this marketplace: As the stores that are selling counterfeit products are usually souvenir shops and taking into consideration the size of Cyprus and its population, one should have in mind that once a check has been conducted in a specific shop, its owner may tip off the owners of different shops so that they may conceal their counterfeit products.

Recommendations to brand owners: With any check or raid, we’d advise taking advice from a law office before any action.

Limassol

Location: Streets in the southern city of Limassol with souvenir shops. The most problematic roads include Spyrou Araouzou Street, Georgiou A Street, and Amathountos Street (map link)

Counterfeit risk factor: Very high

Fakes known to be sold there: As with most counterfeit issues in Cyprus, it’s mostly handbags, sunglasses, perfumes, and accessories from brands including Dolce & Gabbana, Gucci, Polo Ralph Lauren, Jean Paul Gaultier, Louis Vuitton, Chloe, and others.

Challenges: The stores that are selling counterfeit products are normally souvenir shops, again an owner may tip off the owners of different souvenir shops.

Agia Napa

Location: The souvenirs around the resort town of Agia Napa, including on Makariou Avenue, Kryou Nerou Street, and Nisi Avenue (map link)

Counterfeit risk factor: Very high

Fakes known to be sold there: Mostly fashion-related items, as well as perfumes and accessories. Brands affected include Fendi, Gucci, Jean Paul Gaultier, Louis Vuitton, Nike, adidas and others.

Larnaca

Location: Primarily the Finikoudes beach area of the port city Larnaca (map link)

Counterfeit risk factor: Very high

Fakes known to be sold there: Fake goods more seen in Larnaca include handbags, sunglasses, perfume and accessories from brands such as Dolce & Gabbana, Polo Ralph Lauren, Jean Paul Gaultier, Fendi, Louis Vuitton, Chloe, Paul Smith and more.

Challenges: Owner may tip off the owners of other souvenir shops so as to conceal the counterfeit products.

Recommendations to brand owners: Take advice from a law office before any action.

Nicosia

Location: Fakes can be found in Nicosia, the largest city and capital of Cyprus. Most can be found in the old part of Nicosia, especially within the medieval wall on roads including Ippokratous Street, Solonos Street and any other areas with souvenir shops (map link)

Counterfeit risk factor: Average

Fakes known to be sold there: Like with many other resort areas, handbags, sunglasses, perfumes, and accessories are the most commonly-seen fakes.