Makers of counterfeit drugs, toys and other goods on a commercial scale would face up to four years in prison or a fine of E300,000 under rules adopted by a European Parliament committee yesterday.

The measure has to be approved by full Parliament and the European Union's 27 member states to become law. It punishes serious breaches of copyright, trademarks or design rights in the EU internal market.

The bloc is seeking to crack down on organised production of pirated or counterfeit goods, particularly those such as fake medicines that can harm public health. The EU assembly's legal affairs committee voted in favour of proposals authored by the European Commission which enter the contentious area of criminal sanctions in policing the bloc's internal market.

The Commission redrafted its proposal in 2005 to include criminal punishment, citing a ruling by the European Court of Justice as a legal basis.

The EU's top court said effective, proportionate and dissuasive criminal penalties may form part of efforts to combat serious environmental offences.