Over €26 billion and up to 363,000 jobs lost every year in the EU due to
counterfeiting of clothes, shoes and accessories
The manufacture and distribution of fake clothes, shoes and accessories
(like ties, scarves, belts and gloves) takes over €26 billion every year from
legitimate EU businesses.
A new study from the Office for Harmonization in the Internal Market
(OHIM), the EU’s intellectual property agency, shows that the sale of fake
clothes, shoes and accessories in the EU equals nearly 10% of the total sales
in the sector throughout the EU-28.
That lost revenue translates into 363,000 lost jobs, as the legitimate
manufacturers and retailers make and sell less than they would have done in the
absence of counterfeiting, and therefore employs fewer workers.
The study, released through the European Observatory on Infringements
of Intellectual Property Rights, entrusted to OHIM, also assesses the indirect effect
of the counterfeit trade.
When the knock-on effects on suppliers are taken into account,
legitimate businesses across the EU lose €43.3 billion of sales revenue because
of counterfeiting, with around 518,000 jobs lost.
Since producers and sellers of fakes do not pay tax, social
contributions and VAT, over €8 billion of government revenue across the EU-28
is not collected.
The President of OHIM, António Campinos, said:
“With this report we can put a figure on the economic impact of
counterfeiting, and its consequences in terms of lost revenue and jobs at EU
level in the clothing, shoes and accessories sector. These results will not
only help policy makers in their work, they will also help consumers make more
Today’s report is part of a series of studies into the economic impact
of counterfeiting in a number of sectors across the EU, which will be released
over the coming months.
In the UK: The trade in fake clothes, shoes and accessories (like ties,
scarves, and belts) costs UK manufacturers, retailers and distributors around ₤2.6
billion (€3.6 billion) in lost sales every year and 40,000 jobs.
In France: The trade in fake clothes, shoes and accessories (like ties,
scarves, and belts) costs French manufacturers, retailers and distributors
around €3.5 billion in lost sales and over 25,000 jobs lost (36,000 if indirect
effects are added).
In Germany: The trade in fake clothes, shoes and accessories (like
ties, scarves, and belts) costs German manufacturers, retailers and
distributors around €3.5 billion in lost sales and over 40,000 jobs lost (over
52,000 if indirect effects are added).
In Italy: The trade in fake clothes, shoes and accessories (like ties,
scarves, and belts) costs Italian manufacturers, retailers and distributors
around €4.5 billion in lost sales and over 50,000 jobs lost (80,000 if indirect
effects are added).
In Spain: The trade in fake clothes, shoes and accessories (like ties,
scarves, and belts) means that over 50,000 jobs are lost, which account for
nearly 14% of the employment in the sector.
New study finds that companies owning Intellectual
Property rights outshine their competitors in economic performancе
Companies owning intellectual property rights (IPRs) have, in general, 29% higher revenue per
employee, about six times as many employees and pay wages that are up to 20%
higher than firms which do not own IPRs.
These are the main findings of a study carried out by the Office
for Harmonization in the Internal Market (OHIM) acting through the EU
Observatory on Infringements of Intellectual Property Rights.
The study, which is
based on official public financial data from more than 2.3 million European
firms, covers companies which own patents, trade marks and designs at both
national and EU level.
One of the key findings
in the study is that a modest share of small and medium sized enterprises (SMEs)
in Europe own patents, trade marks or designs. It also finds that those SMEs which
own such rights have almost 32% higher revenue per employee – a significantly
higher economic performance, showing significant relative benefits associated
with the ownership of IPRs. SMEs are companies which employ fewer than 250
people and which have an annual turnover not exceeding 50 million euro.
António Campinos, President
of the Office for Harmonization in the Internal Market (OHIM) said: “SMEs
are the backbone of the EU economy, and our study shows that IP rights are an
economic asset for them. With the creation of its free, global, online trade
mark and design databases (TMview and DesignView), OHIM has already made IPR
searches available for millions of firms and individuals. This study, however,
shows that we need to do more to promote the economic advantages of IP among
SMEs, who benefit from it the most. Our aim is to help SMEs to fully explore
the economic potential of their IPR.”
This report, which looks at the contribution of IPRs at a company level,
is a follow-up to a first EU-wide analysis of the contribution of IPR intensive
industries to economic performance and employment in the European Union.
New report: Intellectual
property rights and firm performance in Europe: an economic analysis.
Bulgarian Patent Office prepares to implement e-filing of trade marks and designs applications
Experts from the Office for Harmonization in the Internal Market (Trade Marks and Designs) (OHIM) visited the Bulgarian Patent Office during the period 14-16 May 2013.
The purpose of the visit was to discuss the specific requirements of the national legislation on trade marks and designs in order to implement electronic filing of both industrial property objects.
OHIM in cooperation with the European national offices for trade marks and design works on the creation of e-services projects, which are part of the Cooperation Fund, providing € 50 million for the development and implementation of 23 projects.
Projects relating to e-filing of trade marks and designs are planned to be implemented in the Bulgarian Patent Office by the end of 2013.
A development of projects for electronic renewal, electronic filing of oppositions and requests for revocation and invalidity is foreseen.
Implementation of e-services projects will simplify the access to applying of trade marks and designs and subsequent proceedings for the users of the systems and will improve the quality of administrative services by optimizing and streamlining the procedures.
Users will be able to use the systems for electronic services through the website of the Bulgarian Patent Office without the need for electronic signature.
During the workshop, experts from both offices discussed the process of applying for trade marks and designs and developed specific requirements for the purpose of adapting the software to the Bulgarian legislation.