In 2019, global illicit trade in counterfeit and pirated goods amounted to USD 464 billion, or 2.5% of world trade. In absolute terms, the value of trade in fakes is close to the entire GDP of advanced OECD countries such as Austria and Belgium.
Counterfeit and pirated goods
Counterfeiting poses a significant risk for knowledge-based, open and globalised economies. Because illicit trade in counterfeit goods is a dynamic and constantly changing phenomenon, continuous measurement efforts are needed to monitor this risk.
Key messages
Any product that is trademark-protected becomes a lucrative target for counterfeiters. Fakes can be found among many types of goods, including common consumer products (e.g. clothing, footwear), business-to-business products (e.g. spare parts, pesticides), and luxury items (e.g. fashion apparel, deluxe watches). There are even instances of counterfeit (trademark infringing) guitars, coconut oil, and construction material.
Criminals pollute supply chains with counterfeit goods and often abuse excellent modern trade infrastructure. Logistical advancements and progress in trade facilitation have brought overall trade growth and significant welfare enhancements in areas such as e-commerce platforms, Free Trade Zones, containerised maritime transport, and rapid technical progress in the delivery of parcels. In other cases, however, limited transparency and enforcement challenges have led to the creation of conditions that are conducive to illicit trade in fakes.
Context
There are no safe fakes
Most fakes pose health and safety risks to consumers. This includes health risks (e.g. fake pharmaceuticals or food products), safety risks (e.g. counterfeit automotive spare parts, fake batteries), and environmental hazards (e.g. fake pesticides).
Among dangerous goods, the most frequently counterfeited product categories during 2017-2019 were perfumery and cosmetics (32% of global customs seizures), clothing (25%), and toys and games (22%). They were followed by automotive spare parts (7%) and pharmaceuticals (5%).
Many fake information and communication technology (ICT) goods are of inferior quality and potentially dangerous
Of all ICT goods traded globally, 6.5% are counterfeit and nearly one in four video game consoles shipped abroad is a fake. Many types of electrical and electronic equipment have been counterfeited and can contain malware and spyware. An example is semiconductors which are used in a broad range of products that demand high performance, something that cheaply manufactured articles cannot achieve. Their incorporation into other products complicates their detection, with potentially serious consequences.
