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Erling Vestergaard | Alicante | 4 July 2018
Economic SignificanceImportance of Infringements of IP
Observatory on Infringements of IPR
Key Impact of IP Infringements
Economic Impact
Observatory on Infringements of IPR
• Regulation (EU) No 386/2012 of 19 April 2012
• Observatory goes from Commission to OHIM (EUIPO as from 5 June 2016)
Observatory on Infringements of IPR
• 28 EU Member States• 67 European and international associations from
private sector• 8 Associations representing consumers and civil
society• 10 MEPS• European Commission (DG GROW, DG TAXUD,
DG TRADE, DG CNECT, OLAF, JRC)• EU and International organisations (Europol,
Eurojust, Cepol, EPO, WIPO, Unicri, Interpol, WCO, WTO, OECD)
Observatory on Infringements of IPR
Key Impact of IP Infringements
Key Impact of IP Infringements
Right holders• Direct loss• Devaluation of brand value
Key Impact of IP Infringements
Right holders• Direct loss• Devaluation of brand value
Consumers• Defrauded• Health, safety and security
Key Impact of IP Infringements
Right holders• Direct loss• Devaluation of brand value
Consumers• Defrauded• Health, safety and security
Society• Reduced tax revenue• Organized crime
Economic Impact
Economic Impact
IP Contribution
Infringement Quantification
Europeans and IP Perception
Economic Impact
Economic Impact
Published 2014 Key question:What are the volumes, scope and trends of trade in counterfeit and pirated goods?
Economic Impact
Report analysed counterfeit trade using:- Customs data on seizures of counterfeit goods +
international trade data- Numerous interviews with enforcement officials (customs,
police) and industry experts- The OECD 2008 project experience.
Published 2014 Key question:What are the volumes, scope and trends of trade in counterfeit and pirated goods?
Economic Impact
Economic Impact
Which products are faked?
Economic Impact
Top 15 industries
Economic Impact
Provenance
Economic Impact
Right holders
Economic Impact
Right holders
All innovative companies that rely on IP are at risk, no matter if they are in developed or in emerging economies
Economic Impact
Economic Impact
Published 2017
Economic Impact
Published 2018
Economic Impact
This study quantitatively confirmsthe links between trade incounterfeit and pirated goodsand FTZs• On average, an additional
FTZ within an economy isassociated with a 5.9%increase in the value of fakeexports
• FTZs have become a usefultool for counterfeiters
Published 2018
Economic Impact
Sectorial studies
Economic Impact
Sectorial studies
• Objective: to quantify the impact of counterfeiting in the EU in sectors thought to beparticularly sensitive
• Reduced sales by legitimate businesses• Reduced tax revenues• Lower employment• (Costs of enforcement, both public and private)
Industry
Inputs
HouseholdsWages
Consumption
FirmsLost salesLost jobs
Economic Impact
Industry
Inputs
HouseholdsWages
Consumption
Lost salesLost jobs
Government
Taxes
Loss of government revenues: taxes and Social Security
contributions
Economic Impact
Economic Impact
Losses by sector – EU28 (% of sector sales)
Total effects:Lost sales: €100 billionLost jobs: 744 400Lost taxes: €14.7 billion
Direct effects:Lost sales: €59 billionLost jobs: 443 700
Economic Impact
Digital Display Advertising
Published 12 January 2016Available here:https://euipo.europa.eu/ohimportal/documents/11370/80606/Digital+Advertising+on+Suspected+Infringing+Websites
Economic Impact
Digital Display Advertising
Economic Impact
Digital Display Advertising
Economic Impact
Digital Display Advertising
Economic Impact
Digital Display Advertising
Economic Impact
Digital Display Advertising
10 advertising intermediariesplaced 91% of all high risk ads
Economic Impact
Digital Display Advertising
erling.vestergaard@ext.euipo.europa.eu2018
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