EUIPO against counterfeits

6. prosince 2016 16:42

With the festive season approaching, millions of shoppers across the EU-28 are buying Christmas presents for family and friends. The Executive Director of the EUIPO hopes that the results of our study series will help consumers make more informed choices and they will be able to see the economic effects that counterfeiting and piracy have on sales and jobs.

EUIPO against counterfeits

The Executive Director of the European Union Intellectual Property Office (EUIPO), António Campinos turns to all consumers within the whole European Union and brings them the results of series of studies. A series of studies carried out by the EUIPO through the European Observatory on Infringements of Intellectual Property Rights, estimates that over EUR 48 billion — or 7.4 % of all sales — is lost every year in nine sectors, due to the presence of fake goods in the marketplace. Every year, an additional EUR 35 billion is also lost across the EU economy due to the indirect effects of counterfeiting and piracy in these sectors, as manufacturers buy fewer goods and services from suppliers, causing knock-on effects in other areas.

The nine affected sectors are: cosmetics and personal care, clothing, footwear and accessories, sports goods; toys and games, jewellery and watches, handbags, recorded music, spirits and wine, and pharmaceuticals.

Those lost sales translate into close to 500,000 jobs directly lost or not created across these sectors in the EU, as legitimate manufacturers and in some case distributors of corresponding products employ fewer people than they would have done in the absence of counterfeiting and piracy.

When the knock-on effect of counterfeits on other sectors is taken into account, an additional 290,000 jobs are lost elsewhere in the EU economy.

With the festive season approaching, millions of shoppers across the EU-28 are buying Christmas presents for family and friends. The Executive Director of the EUIPO hopes that the results of our study series will help consumers make more informed choices and they will be able to see the economic effects that counterfeiting and piracy have on sales and jobs.

The situation varies from Member State to Member State, but the overall picture from our study series is very clear — counterfeiting and piracy have a negative effect on the EU economy and on job creation.

In the Czech Republic it is estimated that € 713 million is lost annually as a result of counterfeiting, while € 547 million is directly lost in the sectors identified, amounting to 8.3 % of the sales of these sectors. This translates into over 13.800 jobs directly lost in these sectors. Relative lost sales and uncreated jobs due to counterfeiting in the sectors analysed is above the EU average in the Czech Republic. Wine and spirits is the sector relatively more affected compared with EU average.

The studies were carried out between March 2015 and September 2016 by the EUIPO, to build up a fuller picture of the economic cost of counterfeiting and piracy in the EU. In Series of studies is reflected influence of counterfeits on public finances. Government revenue lost as a result of counterfeiting and piracy is estimated at EUR 14.3 billion in the nine above mentioned sectors per year. The amount EUR 14.3 billion is calculated with foregone personal income tax, VAT and excise duty. The study series will continue throughout 2017.

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