Counterfeit Goods Causing €1.4 Billion Loss Every YearMEDIA ROOM
The Office of Harmonisation in the Internal Market (OHIM), the largest intellectual property agency, has just published a report, revealing that around 12.3 percent of sales relating to toys and games have been lost due to counterfeiting. These goods are causing top toys and games manufacturers across Europe to lose up to €1.4 billion yearly.
The above-mentioned OHIM report also states that when one takes into account the direct and indirect effects of counterfeiting in the games and toys industry, around €370 million in government revenue is lost across the EU, in VAT, income tax, social security contributions and tax on company profits. This illegal activity has resulted in less people being employed by manufacturing companies – around 6,160 less jobs than in a scenario without counterfeiting.
Germany is the country that is most affected in this respect. Counterfeit toys and games costs the country’s market around €327 million a year, 10.9 per cent of the value production. The United Kingdom is the second most affected, whereby 11.6 per cent of the toy and games sector sales are lost to counterfeit products annually.
The above clearly illustrates the extent to which the toys and games industry is impacted by counterfeit products. The mentioned OHIM report is aimed at helping policy makers in their work by providing data and evidence and to help consumers make more informed choices.