Luxottica Group, S.p.A. (LUX)

ANTI-COUNTERFEITING POLICY

The only strategy capable of countering the widespread phenomenon of counterfeit goods is to attack the sources of supply of the thousands of purveyors of pirated goods. Luxottica Group concentrates its efforts on identifying the main flows of fraudulent goods and to organize brand protection strategies accordingly. In 2008, brand protection activities were successfully continued, leading to the destruction of over 1.1 million pairs of counterfeit eyewear. This was the result of consolidating and strengthening programs initiated in previous years, focusing on monitoring the production and trafficking of pirated goods through constant investigations in China and tight Customs control. 2008 also saw the start up of a program to monitor the more popular on-line auction platforms. This allowed approximately 17,500 offers of counterfeit eyewear to be removed.

Intellectual property being one of its most important assets (Oakley alone holds over 600 patents and 1,200 trademarks), Luxottica Group is inevitably committed to maintaining, indeed strengthening, its anti-counterfeiting operations.

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ANTI-COUNTERFEITING POLICY

Luxottica Group believes that the most effective strategy to counter the widespread phenomenon of counterfeit goods is to attack it at the source. Luxottica has therefore decided to limit action

ANTI-COUNTERFEITING POLICY

Luxottica Group believes that the most effective strategy to counter the widespread phenomenon of counterfeit goods is to attack it at the source. Therefore, Luxottica will concentrate its efforts on identifying the main flows of fraudulent goods and to organize brand protection strategies accordingly.

It has been established that most counterfeit eyewear products come from China. Luxottica Group is therefore concentrating its efforts on constant monitoring of production sites and customs offices in collaboration with investigation agencies and market watchdogs, such as the Administration for Industry and Commerce (AIC), the Chinese agency responsible for business registration. This has led to the seizure of vast quantities of counterfeit eyewear in production facilities and the identification of the major perpetrators that export them to the West. Strict controls are also in place in the main shopping centers in Beijing, where most of the demand from European and American counterfeit dealers is handled.

On a parallel front, Luxottica is implementing a system of customs and market surveillance in strategic areas, using customs control services already established by law (e.g., EC 1838/2003, Customs authority intervention against goods suspected of intellectual property rights infringement). The Group also lobbies government entities for their support.

In cases where Luxottica believes customs control to be inadequate against particularly large flows of counterfeit goods, it has initiated investigation programs to identify the main suppliers and distributors.

In 2006, brand protection activities as a whole led to the seizure and destruction of over a million pairs of counterfeit eyewear compared with 430,000 in 2005. Of that total, 350,000 came from operations involving Chinese producers, and 500,000 from a single, highly successful operation in July 2006, when Greek customs authorities detected large shipments of counterfeit goods from the port of Piraeus and the Athens airport.