Feature

Don’t trust a fake, buy the true make

Product piracy costs billions – not only in lost sales but also because of potential damage, due to the inferior quality of counterfeits. The consequences are complex – just like the related countermeasures, says Martin Ryan, Schaeffler UK’s Industrial Distribution Director.

02/07/2024 14:38:43

The statistics are concerning: the cross-border law enforcement officials from Europol report that the share of pirated products in worldwide trade to amount to 2.5 percent, valued at $461 billion. Western industrial countries are particularly affected by product piracy.

According to the most recent OECD study in 2019, some 24 percent of the infringements of intellectual property rights (IPR) discovered worldwide concerned the United States, followed by France (17 percent), Italy (15 percent), Switzerland (11 percent) and Germany (nine percent). Shoes, clothing, leather goods, electronics and watches accounted for the largest share of merchandise.

However, product piracy not only affects luxury or consumer goods, but it also impacts critical product groups such as medicine and safety-relevant industrial products.

Fake products as a safety risk
The consequences of counterfeiting are complex. Manufacturers not only lose sales or competitive advantages, but are also threatened by a tarnished brand image, claims for damages, job loss, or litigation. Not only major corporations are impacted. In a survey conducted by the European Intellectual Property Office among small and medium-sized enterprises, one in four companies reported being affected by IPR infringements.

Read the full article in DPA's July 2024 issue

Written By Sophia Bell

Sophia Bell is the Group Editor of DPA, Connectivity, and PBSI. She joined the team in 2020 as Assistant Editor after achieving a First-Class Honours BA in English Literature and Film Studies from the University of East Anglia. In her current role, she leads the editorial strategy, driving digital growth and ensuring each title continues to deliver trusted, relevant insight for engineering and manufacturing professionals.