How counterfeit goods affect the economy?

This report shows that the infiltration of counterfeit and pirated products, or IP theft, creates an enormous drain on the global economy – crowding out Billions in legitimate economic activity and facilitating an “underground economy” that deprives governments of revenues for vital public services, forces higher …

Is counterfeiting on the rise?

If there’s one thing that we know about the trade of counterfeit and pirated goods, it is that it continues to increase alarmingly. In addition, these amounts do not include domestically produced and consumed counterfeit goods, or pirated digital products distributed online.

How much of world trade is counterfeit?

3.3\%
18 March 2019 – Trade in counterfeit and pirated goods has risen steadily in the last few years – even as overall trade volumes stagnated – and now stands at 3.3\% of global trade, according to a new report by the OECD and the EU’s Intellectual Property Office.

How big is the counterfeit market?

General description. According to Forbes, in 2018 counterfeiting was the largest criminal enterprise in the world. Sales of counterfeit and pirated goods totals $1.7 trillion per year, which is more than drugs and human trafficking. It is expected to grow to $2.8 trillion and cost 5.4 million jobs by 2022.

Why is counterfeiting a crime?

Counterfeiting is a crime involving the theft of someone’s trademark. By making or selling a counterfeit, criminals seek to profit unfairly from the trademark owner’s reputation. Counterfeiting is a fraudulent imitation (a forgery) of a trusted brand and product, and it is a serious crime.

What is counterfeiting and how it will fall as criminal action?

counterfeiting, manufacture of false money for gain, a kind of forgery in that something is copied so as to defraud by passing it for the original or genuine article. These states punish counterfeiters of both their own and other currencies.

Where do most counterfeit goods come from?

According to the 2018 Global Brand Counterfeiting Report, worldwide losses suffered due to counterfeiting amounted to USD 323 billion in 2017. Handbags alone accounted for $20 billion. 80\% of the world’s counterfeits originate in China, where the consumer demand for fake products is high.

Where do most counterfeit products come from?

The highest number of counterfeit shipments being seized originates from East Asia, with China and Hong Kong (China) at the top of the ranking (see Figure 3.1). China and Hong-Kong (China) have been dominating global trade in counterfeit goods during the 2014-16 period and as well as during 2011-13.

How do counterfeit products affect businesses?

There is also a business threat of counterfeit products, as it results in a loss of revenue for the brand that is being copied. Simply put, when counterfeiters sell a product that looks the same as the original but at a lower price, the authentic brand will lose sales.

What is counterfeit criminal?

Counterfeiting is a crime involving the theft of someone’s trademark. Counterfeiting is a fraudulent imitation (a forgery) of a trusted brand and product, and it is a serious crime. Under U.S. federal law, for example, criminal counterfeiting offenses can be punished by life in prison and up to $30,000,000 in fines.