The danger of counterfeits bought on the Internet and delivered by post is frequently highlighted, but a new study has shown that container loads of high-value fakes shipped by sea continue to play a major role in this illegal global trade.
COVID-19 has brought volatility to the markets, changed trade routes and reshaped priorities, putting increased attention on the problem of counterfeiting, with fake personal protection equipment (PPE), medicine and now counterfeit vaccines.
A joint study, by the European Union Intellectual Property Office (EUIPO) and the Organization for Economic Cooperation and Development (OECD) finds that maritime transport is a major channel for high-value counterfeits, with China the main source of fake goods seized on container ships.
Overall, imports of counterfeit and pirated goods amount to around 3.3% of global trade. Based on data from 2016, containerships carried 56% of the total value of seized counterfeits and it is vital that enforcement authorities keep up the pressure to prevent this important channel from being misused.
All types of counterfeit goods are shipped by sea, ranging from high-value electronic equipment to leather goods, clothing, cosmetics, and toys and games. While shipping containers account for a relatively low number of global seizures of counterfeits, these tend to be of the highest value goods.
For example, the global trade in counterfeit electronic devices and electrical equipment was €125 billion in 2016. This represents more than 5.6% of the total trade in those products.
The fake goods arriving by sea make their way to customers in various ways, so action needs to be taken in parallel to ensure that the marketplaces, including the important online platforms, are safe places to do business.
This is especially important for the small and medium-sized companies who are increasingly using them to have a global reach during COVID-19 lockdowns.
The EUIPO, working with the Member State Intellectual Property Offices and the European Commission is supporting a €20 million Ideas Powered for Business SME Fund for 2021 to encourage EU SMEs to get trademark and design protection.
The legitimate internet marketplaces are well aware of the fact that there are ‘bad players’ out there who try to take advantage of any loopholes and the Office is actively working with them. Having a registered trademark is a significant asset as it helps the platforms identify illegitimate goods wherever they are sold.
This new EUIPO-OECD study provides more information about how fakes reach the market, and on the importance of the maritime route. We know from other reports that much of the profit goes to organised crime and is used to support illegal activities including drug and people trafficking.
Recent concerns over COVID-related fakes have highlighted the need to make a concerted effort to combat fakes of all kinds. Counterfeit goods harm legitimate trade, are often dangerous and should return to being a priority in enforcement against international crime.