Governments should work more closely with companies and strengthen enforcement to fight the rising global trade in counterfeit and pirated goods, according to a new OECD report.
Based on data from customs seizures in OECD countries, the report, entitled The Economic Impact of Counterfeiting and Piracy, estimates that trade in counterfeit and pirated goods across national borders may have totalled around USD 200 billion in 2005. The total value of trade in counterfeit and pirated goods, including products made and sold inside the same country, may have been several hundred billion dollars higher, the report said. Its estimate excludes the value of digital products distributed via the Internet.
“Trade in counterfeit goods is a big problem and getting bigger,” said John Dryden, Deputy Director of the OECD’s Science, Technology and Industry Directorate. “It is pervasive, it involves some pretty unsavoury and ruthless characters, and it has serious implications for health, safety, living standards and jobs. It is also a major disincentive to invent and innovate.”
Fake goods are being produced and consumed in most economies, with Asia emerging as the main region for such trade and China as the single largest source of production. The nature of pirated goods varies from market to market, with the main market for counterfeit car parts, for example, being in the Middle East, while consumption of counterfeit tobacco products is highest in Latin America, Africa and Asia.
See full Press Release.
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