A new report released today indicates that the global economic value of counterfeiting and piracy could reach US $2.3 trillion by 2022.
Titled The Economic Impacts of Counterfeiting and Piracy, the report provides estimates on the wider social and economic impacts on displaced economic activity, investment, public fiscal losses and criminal enforcement, and concludes that these costs could reach an estimated US $1.9 trillion by 2022. Taken together, the negative impacts of counterfeiting and piracy are projected to drain US $4.2 trillion from the global economy and put 5.4 million legitimate jobs at risk by 2022.
The report from Frontier Economics, an internationally recognized economics research firm, was commissioned by the International Trademark Association (INTA) and ICC’s Business Action to Stop Counterfeiting and Piracy (BASCAP). It was launched today in Hong Kong during INTA’s 2017 Anticounterfeiting Conference.
“This new study shows that the magnitude of counterfeiting and piracy is huge, and growing,” said Amar Breckenridge, senior associate at Frontier Economics. "Our objective is to as accurately as possible characterize the magnitude and growth of this illegal underground economy and its impacts on governments and consumers. The results show once again that in an interconnected economy, consumers and governments suffer alongside legitimate businesses from the trade in counterfeit and pirated goods.”
The report captures the full spectrum of economic harm associated with counterfeiting and piracy, including the value of domestically produced and consumed counterfeit products, the value of digital piracy, and the negative impacts on society, governments, and consumers. Frontier also estimated significant employment effects with projected losses of 4.2 to 5.4 million by 2022.
"Frontier has been able to paint a more comprehensive picture of the negative economic and social impacts of counterfeiting and piracy," said INTA CEO Etienne Sanz de Acedo. "The rapid growth in counterfeit trade means it's vital for governments to step up the enforcement of intellectual property (IP) rights, and for the public and private sectors to increase their engagement on this issue, as well as their support of government efforts.”
“Measures to fight counterfeiting have not been sufficient,” said BASCAP Director Jeffrey Hardy. “If governments hope to stabilize the economy, and stimulate economic growth and employment, they must do a better job to protect the central role that IP plays in driving innovation, development, and jobs. We believe that reliable information on the scope and impacts of counterfeiting and piracy is critical for helping policymakers better understand that the trade in fake goods is damaging their economies, threatening the health and safety of their citizens, and stifling innovation and creativity."