The Italian economy is innovative and rich in intellectual property (IP), with nearly every industry either producing or using IP. Italian IP-intensive industries are very well integrated in the global economy, through active participation in global value chains. At the same time, the threats of counterfeiting and piracy are growing – and Italy is vulnerable. This report measures the direct, economic effects of counterfeiting on Italian consumers, the Italian retail and manufacturing industry, and the Italian governments. It examines both the impact that the imports of fake products to Italy has on these three groups and the impact on the Italian intellectual property rights holders of the global trade in fake products that infringe their IP rights.