In the summer of 2024, the Croatian Intellectual Property Office published a report detailing intellectual property (IP) infringement data for 2023. This statistical overview sheds light on the enforcement of IP rights across three main segments in Croatia: liability for misdemeanors (falling under the jurisdiction of the Croatian Customs Administration), criminal liability (managed by the State Attorney’s Office), and civil liability (which is enforced through private actions, often involving Collective Management Organizations (CMOs)). This article analyzes the trends observed in the 2023 report, aiming to provide insight into the future landscape of IP enforcement in Croatia and explore implications for rightsholders and other stakeholders in the IP space.
When talking about IP infringements sanctioned by misdemeanors, the Customs Administration primarily enforces IP rights through border controls, while fewer resources are devoted to inspections within the market. In 2023, border control procedures constituted around 75% of all enforcement actions by customs, with a substantial 99% of cases initiated at the request of the rightsholder. This approach to enforcement, where rightsholders actively lodge requests, has been a consistent trend, indicating an ongoing dependency on rightsholder involvement in detecting infringements. Interestingly, while the number of border control procedures was typical for a calendar year (totaling 635 procedures), the value of goods destroyed in 2023 was considerably lower, at approximately USD 4 million. This is a stark contrast to the values seen in previous years, such as USD 56 million in 2022 and USD 33 million in 2021. Among destroyed goods in 2023, toys (USD 1.5 million), bags, watches, and jewelry (USD 1.1 million), and machines and tools (USD 0.9 million) represented the highest categories in terms of value.
In terms of customs inspections in the market, the resources are again focused on trademark infringements, accounting for about 90% of cases, whereas copyright infringements made up only 7%. Notably, the Customs Administration conducted only 16 inspections related to illegal software in 2023, reflecting a decline from around 250 inspections per year conducted in the 2016-2018 period.
IP-related criminal proceedings are relatively rare in Croatia, likely due to the country’s small jurisdiction and the preference for handling IP infringements through civil or administrative routes. This low volume makes it challenging to establish strong trends. However, one consistent observation is that monetary fines remain the primary sanction for criminal IP infringements, with incarceration, although possible, being an uncommon penalty.
Although the landscape of IP infringement in Croatia primarily involves industrial property, with a strong emphasis on trademarks, in civil court proceedings, copyright protection takes the lead over other forms of IP. The speed of civil litigation in IP cases is notably efficient compared to other areas of law and most first-instance civil court cases related to copyright infringements are resolved within a year. This efficiency can be partly attributed to the role of CMOs, which initiated around 80% of new IP-related litigation cases in 2023. With a wealth of experience in copyright litigation, Croatian CMOs have become adept at navigating these cases efficiently, often resulting in straightforward proceedings that allow for prompt rulings.
In conclusion, the trends observed in IP infringement enforcement in Croatia reveal a system where responsibility is shared among customs, criminal authorities, and private players. The Customs Administration’s reliance on rightsholders to initiate border controls reflects a trend toward collaborative enforcement, though the decline in the value of destroyed goods suggests potential shifts in focus or enforcement efficacy.
Meanwhile, the role of criminal sanctions remains minimal, with monetary fines prevailing over more stringent penalties. On the other hand, civil litigation, bolstered by the active participation of CMOs, stands out as a particularly effective avenue for IP enforcement in Croatia. Civil courts have demonstrated an efficient framework for addressing IP disputes. Looking ahead, the trends suggest that Croatia will likely continue to rely on rightsholder-driven enforcement to address IP infringement. Strengthening cross-border collaboration, reallocating resources to address evolving infringement types, and enhancing the enforcement capacities of customs and criminal authorities could further bolster Croatia’s IP protection landscape, supporting both local and international rightsholders in safeguarding their intellectual assets.
By Iva Basaric, Partner, and Matija Skender, Senior Associate, Babic & Partners
This article was originally published in Issue 11.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
