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19 April 2016Copyright

OECD and EUIPO say fake goods worth $500bn a year

The OECD and the European Union Intellectual Property Office have released a report outlining that global imports of counterfeit goods are worth $500 billion a year.

They released the report yesterday, April 18, outlining the details and statistics surrounding intellectual property infringement.

Called “Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact Findings”, the report ,made the findings by using statistical analysis and drawing on a global dataset of almost half a million customs seizures from 2011 to 2013.

The report covers all physical goods which infringe patents, trademarks and design rights, and pirated goods which breach copyright.

However, it doesn’t cover online piracy.

The goods analysed include machine parts, chemicals, handbags and perfume. Footwear is the most infringed item.

It estimates that international trade is “commandeered” by counterfeit and pirated goods, and also outlines that in 2013 the international trade in fake goods represented 2.5% of world trade or “as much as” $461 billion.

Fake imports into the EU amounted to a maximum of 5% of all imports in 2013, which was as much as €85 billion ($96.3 billion).

Many brands are hit by counterfeiting, although Ray-Ban, Rolex, Nike and Louis Vuitton “seem to be more intensely targeted”, according to the report. Chinese companies’ IP rights have been “frequently infringed”, the report said.

Doug Frantz, deputy secretary-general at the OECD, said: “The findings of this new report contradict the image that counterfeiters only hurt big companies and luxury goods manufacturers. They take advantage of our trust in trademarks and brand names to undermine economies and endanger lives.”

Emma Pitcher, partner at Boult Wade Tennant, said the figures were sobering.

She added that the amount that counterfeiters make "probably makes it one of the world’s major industries".

"Many people would say 'what’s the problem with buying a fake Louis Vuitton bag?', but very often the counterfeiters are gangsters and it’s a front for money laundering organised crime," she added.

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