Fake goods trade rises to €460bn: EUIPO and OECD
Global sales of counterfeit and pirated goods jumped to €460 billion ($509 billion) a year in 2016, amounting to 3.3% of world trade.
In a report issued Monday, March 18, the European Union Intellectual Property Office’s (EUIPO) Observatory and the Organisation for Economic Co-operation and Development (OECD) said this was a “considerable” rise on its previous estimation, particularly considering the growth occurred during a period of a relative slowdown in overall world trade.
Three years ago, and using the same methodology, the previous report established that international trade in fake goods represented 2.5% of world trade or €338 billion.
In the EU, nearly 7% of all imports from third countries are now estimated to be counterfeit and pirated goods, worth up to €121 billion. Again, this constitutes a “sharp rise” from the previous estimate of 5%.
The report said that the companies and businesses most affected by counterfeiting and piracy continue to be primarily based in OECD countries such as the US, France, Italy, Switzerland, Germany, Japan, Korea and the UK.
Almost 24% of the total value of seized products refers to the IP rights of owners registered in the US. This was followed by France (16.6%), Italy (15.1%), Switzerland (11.2%) and Germany (9.3%).
However, it went on to add that a growing number of companies in other economies, such as China, Brazil and Hong Kong are also being affected.
Although fake goods originate from virtually all economies in all continents, said the report, China and Hong Kong continue to be by far the biggest origin.
Christian Archambeau, executive director of the EUIPO, said: “Counterfeiting and piracy pose a major threat to innovation and economic growth, at both EU and global level. The rise in the share of counterfeit and pirated goods in world trade is deeply concerning, and clearly calls for coordinated action, at all levels, to be fully tackled.”
The report also noted that the use of small shipments for trade in fakes continues to grow.
“The proliferation of small shipments raises the cost of checks and detention for customs and introduces additional significant challenges for enforcement authorities. There is thus a need for coordinated examination of policies in this area,” added the report.
“Trends in Trade in Counterfeit and Pirated Goods” covers all physical goods which infringe patents, trademarks and design rights, and pirated goods which breach copyright, but doesn’t cover online piracy.
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