Trade in Counterfeit and Pirated Goods: Mapping the Economic - - PowerPoint PPT Presentation

Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact

Presentation to IACC by Peter Avery Senior Consultant 19 May 2016

Joint project: OECD — EUIPO

With excellent collaboration with:

• World Customs Organization (WCO)
• DG TAXUD of the European Commission
• US Dept. of Homeland Security

The key question: What are the volumes, scope and trends of trade in counterfeit and pirated goods?

Why does 
 “counterfeiting and piracy”
 matter? Rising economic importance of intangibles (ideas, brands, know-how…), including intellectual property rights means:
 Increasing incentives to counterfeit (“free riding”)

Why does 
 “trade in counterfeit and pirated goods”
 matter?

• Now revival of trade since the economic crisis;
• Emergence of global value chains;
• Booming e-commerce


 à … high focus on trade.
 Complex dynamics of counterfeit trade

We have analysed counterfeit trade using:

• Customs data on seizures of fake goods;
• Interviews with enforcement officials (customs,

police) and industry experts;

• OECD 2008 project experience.

Results

“photographs” of counterfeit trade

In 2013 trade in fake goods was as much as 
 
 USD 461 bn (up to 2.5%)
 


• f world trade.


In the EU: 
 
 EUR 85 billion (USD 116 billion) 
 (up to 5% of total EU imports).
 
 Developed countries are more targeted than other countries.

… combined GDP of Ireland and the Czech Republic
 
 … twice Apple’s yearly revenue.

USD 461 billion…

Key results

Corresponds to 5%

• f total EU imports

EU

Corresponds to 2.5%

• f global trade

€85

billion

(USD 116bn)

• f EU imports

Worldwide

€338

billion

(USD 461bn ) Trade in fake goods

All economies and continents are involved, either as:
 
 * transit points of trade, or as
 * producing economies.

Where do fakes

• riginate?

Middle income / emerging economies dominate (e.g. China).
 


They have sufficient infrastructure, and productive and technological capabilities
 
 ...but
 
 They may not have sound institutional frameworks to combat counterfeiting.

Large trade hubs including FTZs
 (e.g. HK, Singapore, Dubai) 
 
 Countries with weak governance
 (e.g. Afghanistan, Syria)

Complex trade routes 
 with many transit points:

Which products are concerned?

* high-end consumer luxury goods

(watches, perfumes or leather goods)
 
 * business-to-business products (machines, chemicals, spare parts…) 
 
 * ordinary consumer products 
 (toys, pharmaceuticals, cosmetics and foodstuffs)

Fake…

Any IP-protected product becomes a target for counterfeiters. 
 
 Fresh strawberries, bananas, cinnamon

• r coconut oil.

Whose rights are being infringed?

Most brands are hit by counterfeiting.


* Many are located in OECD countries; but * Chinese companies are also targeted. 


All innovative companies that rely on IP are at risk, 
 no matter if they are in developed or 
 in emerging economies.

Number of items per seizure

• n average (2011-2013)

As a percentage of total seizures

Transport modes

1 1 - 5 6 - 10 >10 0% 10% 20% 30% 40% 50% 60% 70%

Counterfeiting trends: transport

Mail Air Sea Road Rail Other Pedestrian

Counterfeit and pirated trade is mainly done in small shipments

* Shrinking costs of express services 
 
 * Booming e-commerce
 
 * For traffickers – a way to avoid detection 
 and minimise the risks of sanctions

Growth in small shipments
 (postage / express services)

What are the next steps?

• Robust results – starting points for building

evidence-based policy responses

• We are ready to act, and to

provide evidence, and to advise our respective member countries.

• Our intention: 


to continue our successful co-operation.

• e.cd/fake

www.euipo.europa.eu/

Contacts Piotr.Stryszowski@oecd.org Nathan.Wajsman@euipo.europa.eu