The estimated value of counterfeit items confiscated on the EU internal market in 2019 amounted to €1.8 billion

The EUIPO Observatory published a report last December on the enforcement of industrial and intellectual property rights (IPR) in the EU internal market showing the results of arrests in EU Member States, 2019. Those were prepared based on the analysis of data on arrests in national markets reported through the 25-member IP Enforcement Portal in 2019. It aims to provide useful information to support the analysis of IPR infringements in the EU and to the development and appropriate countermeasures of the competent authorities, as the figures allow a better understanding of the scope and extent of the problem. On a broader scale, it should provide EU policy makers with data to develop an evidence base for priorities and policies.

Globalization, the development of new technologies and their misuse have compounded the damaging global effect of counterfeiting. Clandestine markets and illegitimate channels have given way to sophisticated counterfeit networks with mass production capabilities operating internationally, posing as licensed legal distributors and even attempting to join the legal supply chain. Furthermore, counterfeiting is often committed by criminal organizations that also commit other crimes such as money laundering, document fraud, cybercrime, labor exploitation, drug production and trafficking, and terrorism.

Anyone can now access, either physically or online, a wide range of products. Consequently, controlling and monitoring existing distribution channels, both legal and especially illegal, is becoming more and more complicated and conflicts with the objectives of trade facilitation and market liberalization.

According to figures reported by the police, customs and market surveillance authorities in the EU internal market, the annual number of IPR infringing items reported as confiscated in 2019 (40 million) decreased compared to 2018 (70 million). The reported figures have been conditioned by the pandemic blockade scenario that has prevented the provision of data by various authorities, but only partially: it was estimated that these short-term gaps in the provision of data represent some 5 million unreported elements of the total reduction of 30 million items.

Despite the large reduction in the number of confiscated items, the estimated value of reported confiscated items in the EU internal market remained virtually unchanged in 2019 (€1.8 billion) compared to 2018. The reasons for this There are two apparent contradictions: the change in stopped products, from cheaper products in 2018 to more expensive products in 2019 (for example, more clothing accessories and fewer toys in 2019), and the increase in the estimated unit value of these products.

For both the number of items and the estimated value, the top five Member States (Italy, Spain, France, Greece and Portugal) accounted for around 92-96% of all arrests in the EU internal market in 2019. For both accounting criteria, Italy clearly led the way, with over 66% of arrests in both number of items and estimated value. Spain, France and Greece appeared in the top five rankings of arrests in EU national markets by number of items and estimated value.

Of the main product subcategories identified, clothing accessories was the leader, both in terms of the number of items reported as detained within the EU and also in terms of their estimated value. The clothing subcategory also appeared among the 4 most detained products within the EU internal market in 2019 for both accounting criteria.

Trademarks predominated as the most infringed IPR in arrests in the EU internal market (more than 96% of confiscated items were with a registered trademark). Other infringed rights, such as designs (in approximately 11.5% of the retained articles this type of intellectual property right was infringed) and, to a lesser extent, patents and copyrights, influenced the internal market of the EU.

More information:

Report

Executive Summary