Six jailed for illegal DVD sales in Dubai

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DVDS RAID: Six people have been jailed after being caught selling parallel imports of DVDs.

DVDS RAID: Six people have been jailed after being caught selling parallel imports of DVDs.

Six foreigners trading in the UAE have been jailed after being convicted of engaging in parallel imports, the practice of goods without the permission of the intellectual property owner.

Dubai Courts handed down the sentence which is the first ever imprisonment related to the sale of "grey" products in the Middle East, the Ministry of Economy said in a statement on Monday.

The ruling followed a raid by authorities against a major parallel importer in Dubai, which led to the confiscation of thousands of DVDs containing banned titles, Ministry chiefs added.

Six people including the shop manager were arrested, with the manager sentenced to two months in prison, a fine of AED20,000 and deportation. The name of the shop was not released.

A parallel import is a non-counterfeit product imported from another country without the permission of the intellectual property owner. Parallel imports are often referred to as grey products, and are implicated in issues of international trade, and intellectual property.

Mohammed Ahmed Bin Abdulaziz Alshihhi, general manager of the UAE Ministry of Economy, said: "Our overriding objective is to improve the competitiveness of the UAE market while ensuring that the interests of the intellectual property rights owners are protected.

"While this landmark court ruling has underlined the UAE's position as the safest business hub in the Middle East, it also reflects the country's stringent stance on piracy."

He said the country would continue its "relentless efforts" to protect property rights, including steps taken to confiscate counterfeit products and levy criminal charges on violators.

"The result...serves as a strong precedent against parallel imports which we can expect to further reduce this type of IPR crime," added Scott Butler, CEO, Arabian Anti-Piracy Alliance.

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Posted by: munter

There will always be demand for products that are not provided by the official agent. The level of this demand is driven primarily by price, to a much lesser extent in ME service/quality/reliability. As a consumer it would be nice to have rights, however we all know that with the invisible hand of lobby groups such as MPAA, the chance of true market balance is zilch. In sophisticated markets where parallel imports are embraced, the value to consumers is maximized. Primary agents tend to stay in business however compelled to compete so much harder on non-price components service/quality/reliability, this is generally a good thing for consumers. Blocking market competition is akin to protectionism which is considered by many economists a key contributor to the great depression. As a global trading hub, the UAE should distance itself from protectionist policies. Finally, any group oppressed long enough eventually wises up and votes with their feet. When channels are obscured as in UAE (local markets/alley ways/chinese ladies), it is likely you will never know the real impact until it is much too late to respond.

Posted by: Mike Charlie Mike

Aamir, (aka Robin Hood) welcome to the arena and thank you for your non emotional and well thought out response. Yes I belong to a certain Ilk, but not the one you have labelled and generalized about. It?s probably much worse than you have imagined! My apologies for insulting your intelligence? really. Please grace me (Tribal and others) with your definition of a parallel import so we may better understand how it helps us as consumers. The local agents that some love so much here have absolutely no say in whether or not action is taken in a specific market in almost all scenarios regarding market rights or use of IP. The brand owner does. An agent is not a brand owner. So go ahead and love them or hate them, but this is not the issue, and I respect your opinion. I am not defending the rights of price gougers, particularly on what we consider essential goods. DVD?s and microwaves are not essential, and the majority of goods illegally sold or manufactured are luxury goods. If you paid too much for your microwave or video camera here, then caveat emptor. Agents do have the right to complain to the brand owner who can investigate and request action according to the laws of the market in question. The owner of the IP, the owner of the brand, not always the manufacturer, does have rights; and most countries with enough brains to actually make a product without stealing the idea from somewhere else have signed up to this. If there is an action requested in the UAE for example, in regards to either market rights or IP violation; in many cases it is not even the local agent who initiates the inquiry. It is the sole right of the brand owner who is usually located in another country. We are not talking about lettuce here brother. Parallel imports (laughable term) can exist when agents in other markets cannot meet the volumes of sales agreed between them and the manufacturer, either intentionally or due to other conditions. In extreme cases the products are reaching the end of shelf life and need to be quickly sold to prevent commercial loss. So instead of losing the rights to distribute (or money) on behalf of the brand owner, they divert or re export to other markets in violation of their own (other) market agreement. Breach of contract / trust? Good for us on price as they would prefer to sell at a loss than have to eat the cost of the overhead they are unable to sell in a perfect world or their own saturated market. In order to make sure they at least break even they can find nice ways to avoid duties in the ?parallel? market (smuggling cough) or they can mix with counterfeit to increase the margin. Better yet, use an unregulated free zone in another emirate! Parallel imports can be and is used often as a cover for counterfeiters and can also be stolen goods from other markets or even this one for example. Aamir would probably have us believe that guys are running all over the world finding legal branded products and due to their extreme abilities in getting discounts, can distribute products made from the same manufacturers at a better price, at the same quality after having travelled even further distances. Did it fall off the back of the truck in transit? For the record I sincerely hope that everyone here gets the opportunity to be overpaid and is able to grasp a managerial position with a corner office and a view. Anyway, I must retreat as I need to get a gift for my mother in law. I will be looking into the souk for a good discount. If Aamir or any of his supporters can please get me a really good discount on an original branded item (more than 5 dirhams) while I am in the souk, please post your address and type of commodity here so the thrifty shoppers amongst us can pay you and your friends a visit. Adios!

Posted by: Doug

Don't buy from Chinese door-to-door DVD vendors. I'm sure most of them are as legit as anyone can be that sells pirate DVDs, but some of them are part of larger gangs - and selling DVDs door to door is a perfect pretext for them to be able to take a look at whether your home is worth breaking into at a later date.....

Posted by: Aamir

All your gibberish in support of agencies and their overcharging ways does not hold any water. You are insulting the intelligence of AB readers / consumers when you think that they will be convinced by your hollow talk in support of these overcharging businesses, which do so because they have the sole rights to import /sell the products locally. I am not supporting counterfeiting and stealing of IP, but I am against curbing of non agency / parallel imports. Leave it to the consumer to decide whether he wants to buy from the so called authorized agent, (who will overcharge / under deliver and exploit the customer) or the so called parallel importer (who sells the same product at a better price / offers you better service). I am sure most of those speaking out in support of the agencies are the overpaid managers of such franchises. These same people will be first to whine regarding overcharging by Etisalat or any other agency.

Posted by: Captain

Twice a month, a Chinese DVD seller rings our door bell (Despite having 24 hour security in the building)..but we always say no. Why buy when you can download? :). Plus it leaves a smaller eco footprint, which UAE tops the list for.

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