Fake copies already account for 2.5% of world trade

The money that fake products move in the world is equivalent to the GDP of Austria or the sum of the wealth of Ireland and the Czech Republic: 408,000 million euros. Pirated merchandise already represents 2.5% of all commercial exchanges. This is what emerges from a joint report by the OECD and the European Intellectual Property Office (Euipo) – a European body based in Alicante – to which this newspaper has had access and whose details will be presented this morning in Paris.

The EU is the market where this phenomenon is most visible. 5% of the imports that reach the Old Continent are counterfeit goods and add up to around 85,000 million euros. The penetration of counterfeit products in Europe is proportionally twice as high as in the rest of the world. A previous study by the OECD had estimated the weight of counterfeiting in world imports at a more modest figure, 1.9%, which corresponded to some 177,000 million euros. This means that the value of pirated goods has more than doubled in five years.

“Rights holders, governments and the formal economy as a whole suffer economic and social losses. These figures hint at the financial power of the criminal networks behind this illegal trade, which has become the greatest threat to any modern knowledge-based economy.

Various sectors affected

When intellectual property is infringed, trademarks, industrial designs, patents or copyrights are copied. In 95% of the cases, the confiscated goods are due to infringements of trademark rights (in the case of industrial patents, a legal expert opinion is needed).

The counterfeit product industry affects a wide range of goods. From high-end products such as watches, perfumes and leather goods to equipment and consumer goods such as cosmetics and food. "In some cases, fake products are of very low quality, posing a threat to health and safety," the study warns. This is what happens with toys that do not comply with the regulations, or food products without guarantee. The most affected are the most advanced economies, such as the US (leaders in technology), Italy (which stands out in design and the food industry), France (for its high-end products) and Switzerland (watches).

Internet does not escape either

One of the recent trends is the laxity of controls in electronic commerce: two out of three seizures are in deliveries by ordinary mail

China in the lead

China is the country that produces the most illegal copies. But experts from the OECD and EUIPO warn that any middle-income emerging economy can play a significant role in counterfeiting because only a minimum of infrastructure, production capacity and weak intellectual property legislation are needed.

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The journey of counterfeit goods is long and complex. But the study has identified some hubs, or intermediate transit points, such as Hong Kong and Singapore. Countries like Afghanistan or Syria also fall into this route, due to their political and legal weakness.

Another recent trend is the laxity of controls in electronic commerce. Two out of three seizures are in regular mail deliveries. In these cases, the economic impact of counterfeiting becomes of great magnitude. "If a customer has a bad experience in an online purchase, it is difficult for him to return to the platform as he has lost confidence," lament sources in the sector.

the most copied

The most copied brands are Nike, Ray-Ban, Louis Vuitton and Rolex. Some consumers may purchase counterfeit goods in the belief that they are genuine. The merchandise looks the same as the original (although it is not) and the price is very similar. It is a clear example of fraud. Others, on the other hand, look for copies conscientiously because they want to take advantage of lower prices and products that are not too far from the original, even if the difference is noticeable.

Nike, the most counterfeited brand

Nike, Ray-Ban, Louis Vuitton and Rolex are the brands preferred by counterfeiters. Some may think they are authentic when purchasing them.

The data suggests that malicious sales are growing, because the prices at which fakes are sold are becoming more expensive: Nike shoes at 90 euros, Ray-Ban glasses at 100 or Louis Vuitton bags at 700. Counterfeiters are increasingly looking for more deceive the consumer in good faith. "It is a burden for customers and a cost for those who pay taxes," lament the authors.

Spain: toys, cosmetics and sporting goods

The people of Barcelona perceive it with the recent proliferation of top blankets in the city. But the phenomenon of counterfeiting in Spain has a considerable economic impact: 5% of the value of all pirated goods in the world is confiscated. But in some sectors the consequences are particularly dire. In cosmetics, fakes subtract 949 million euros each year from the coffers of companies, 17.1% of their total sales: Spain is at the head of the EU countries most affected in this sector (if indirect effects are included, the losses rise to 9,500 million euros and 80,000 jobs).

Impact in Barcelona

The city of Barcelona perceives the phenomenon through the top blanket, which has recently proliferated in its streets

As for toys, most of the imitation products that arrive from China and Hong Kong cost 167 million to the Spanish toy sector. With regard to sports equipment, Spain is the third country in Europe that suffers the most, with sales of counterfeit items accounting for 15.7% of the total, with losses of 76 million euros per year (this figure does not includes neither textiles nor sports shoes).