Trade in counterfeit and pirated goods increases steadily

Trade in counterfeit and pirated goods has risen securely in the last few years. Overall trade volumes stagnated stands at 3.3 percent of global trade.
Trends in Trade in Counterfeit and Pirated Goods puts the value of imported fake goods worldwide based on 2016 customs seizure data at USD 509 billion, risen from USD 461 billion in 2013 which is 2.5 percent of world trade. For the European Union, counterfeit trade depicted 8 percent of imports from non-EU countries, raised from 5 percent in 2013. These figures do not include domestically produced and consumed fake goods, or pirated products being distributed via the Internet.
Trade in fake goods, which infringe on trademarks and copyright, creates profits for organized crime gangs at the expense of companies and governments. Fakes of items like medical supplies, car parts, toys, food and cosmetics brands and electrical goods carry a range of health and safety risks. Examples include ineffective prescription drugs, unsafe dental filling materials, fire hazards from poorly wired electronic goods and sub-standard chemicals in lipsticks and baby formula.
Counterfeit trade takes away revenues from firms and governments and feed other criminal activities. It can also endanger health and safety.
Counterfeiters thrive where there is poor governance. It is vital that we do more to protect intellectual property and tackle corruption.
The goods making up the biggest share of 2016 seizures in dollar terms were footwear, clothing, leather goods, electrical equipment, watches, medical equipment, perfumes, toys, jewellery and pharmaceuticals.
Customs officials also noted an increase in counterfeits of goods less commonly seen in the past such as branded guitars and construction materials.
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 touched by counterfeiting in 2016 were the United States, whose brands or patents were concerned by 24 percent of the fake products seized, followed by France at 17 percent Italy 15percent, Switzerland 11percent and Germany 9 percent A growing number of businesses in Singapore, Hong Kong and developing economies like Brazil and China are also becoming targets.
Small parcels sent by post or express courier are a prime and growing conduit for counterfeit goods. Small parcels accounted for 69 percent of total customs seizures by volume over 2014-2016 (57percent via post and 12 percents through courier, climbed from 63 percent over the 2011-2013 period.
Along with few screening of small parcels, other areas where policy gaps are fostering counterfeit trade are erratic penalties on traffickers and the special rules governing free trade zones.
Past OECD-EUIPO examination has described that free trade zone where economic activity is driven by reduced taxes, customs controls and lighter regulation can unkindly facilitate counterfeit trade. The OECD is working with its member countries on official guidelines to help authorities shoo the problem.
Trends in Trade in Counterfeit and Pirated Goods covers all physical fake goods which infringe trademarks, design rights or patents, and real pirated products, which split copyright. It does not include online piracy, which is a further discharge on economies.