OBI: The health crisis has created new business opportunities for counterfeit products

The production of counterfeit and model products is increasingly taking place within the Member States, according to a study carried out jointly by the EU Intellectual Property Office, EUIPO and the European Union law enforcement agency, EUROPOL.

According to an announcement by the Industrial Property Organization, the study confirms that Intellectual Property (IP) crimes are a threat to health, consumer safety and financially harmful to all.

Also, according to the announcement of the study findings, the online and offline distribution of counterfeit and degraded goods was a major criminal activity during the pandemic.

The health crisis caused by COVID-19 highlighted the fact that criminal organizations do not recognize borders and take advantage of the slightest weakness or lack of coordination to strengthen their influence. New business opportunities have emerged for the distribution of counterfeit goods, mainly on digital platforms, with counterfeit products offered through live streaming sales, instant messaging services, video and sponsored social media advertising.

Piracy is now almost exclusively a digital crime, although some illegal TV services still use physical stores to attract subscribers.

Imports of counterfeit and pirated goods in 2019 amounted to 119 billion euros, representing 5.8% of all goods entering the European Union (EU).

The text of the evaluation shows that while most of the counterfeit products distributed in the EU are produced outside the EU, there are indications that the production of counterfeit and model products is increasingly taking place within the Member States. The frequent seizure of counterfeit packaging and semi-finished products at borders clearly indicates the presence of production facilities within the EU – some for partial assembly and others for full production cycles.

SOURCE: ΑΠΕ-ΜΠΕ