Footwear, clothing and leather products are among the most pirated goods according to new data from the Organisation for Economic Co-operation and Development (OECD) and the European Union’s Intellectual Property Office.
The latest ‘Trends in Trade in Counterfeit and Pirated Goods‘ report, says even though overall trade volumes have stagnated, trade in counterfeit and pirated goods has grown globally and now represents 3.3% of global trade.
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The report, which measures customs seizure data to 2016, puts the value of imported fake goods worldwide at US$509bn, up from US$461bn in 2013 (2.5% of world trade).
Of the total value of seizures in 2016, footwear took the largest percentage share at 22%, followed by clothing at 16% and leather goods at 13%.
The majority of fake goods picked up in customs checks originate in mainland China and Hong Kong. Other major points of origin include the United Arab Emirates, Turkey, Singapore, Thailand and India.
The countries most affected by counterfeiting in 2016 were the United States, whose brands or patents were targeted by 24% of the fake products seized, followed by France at 17%, Italy (15%), Switzerland (11%) and Germany (9%). A growing number of businesses in Singapore, Hong Kong and emerging economies like Brazil and China are also being hit.
Small parcels sent by post or express courier are a prime and growing conduit for counterfeit goods, according to the report. Small parcels accounted for 69% of total customs seizures by volume over 2014-2016, up from 63% over the 2011-2013 period.
Along with insufficient screening of small parcels, other areas where policy gaps are facilitating counterfeit trade are inconsistent penalties on traffickers and the special rules governing free trade zones. Past OECD-EUIPO analysis has shown that free trade zones – where economic activity is driven by reduced taxes, customs controls and lighter regulation – can unintentionally facilitate counterfeit trade.
“Counterfeit trade takes away revenues from firms and governments and feed other criminal activities. It can also jeopardise consumers’ health and safety,” says OECD public governance director Marcos Bonturi. “Counterfeiters thrive where there is poor governance. It is vital that we do more to protect intellectual property and address corruption.”
