Illicit trade in fake goods is a significant and growing threat in today’s globalised and innovation-driven economy. Its harmful impact on economic growth, innovation, the rule of law and, ultimately, trust in well-functioning global markets, should not be underestimated.
In recent years, the OECD and the EU Intellectual Property Office (EUIPO) have been collecting evidence on various aspects of this risk. The results have been published in a series of reports, starting with Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact (2016). These results have been expanded and updated in subsequent reports, including Trends in Trade in Counterfeit and Pirated Goods (2019) and Global Trade in Fakes: A Worrying Threat (2021). The findings are of concern, as trade in counterfeit and pirated goods was found to amount to up to 2.5 % of world trade in 2019; when considering only imports into the European Union, fake goods amounted to up to 5.8 % of imports. These shares have remained stable over the years, and illicit trade in fakes remains a serious risk to modern, open and globalised economies.
This report builds on previous analysis, presenting detailed quantitative information on the value of illicit trade in fake goods in the context of the COVID-19 pandemic, considering the profound shifts in consumer demand, changes in enforcement priorities, and sudden reshuffles in supply chains. The evidence in this report can serve to raise awareness of the risks of this trade and its implications for post-COVID-19 recovery policies.
This report was prepared under the auspices of the OECD Working Party on Countering Illicit Trade, which focuses on evidence-based research and advanced analytics to assist policy makers in mapping and understanding the vulnerabilities exploited and created by illicit trade.