Counterfeiters and pirates have persistently and continually worked to develop online business models that give them wider scope to market and sell their fake products to consumers and businesses. That’s according to a European Union Intellectual Property Office (EU IPO) report.
The study also points to a ‘dark side’ in which the systematic use and exploitation of digital platforms, websites, darknet markets, social media and the domain name system are not only leading to a wider proliferation of fake goods, but to the dissemination of dangerous malware, illegal phishing and fraud. And that’s helping criminals to access the ID’s and bank accounts of consumers and businesses.
This ‘first phase’ study, commissioned by the EUIPO, exposes the fact that counterfeiters are clearly innovative and often pioneering in the way they develop their IPR-infringing business models, which are often created by mirroring authentic online business platforms, websites and marketplaces. Using this approach, criminals are able to mislead consumers and businesses alike. Moreover, they are also able to remain anonymous and gain direct access to sales revenue, subscription fees and donations and even more indirect revenue sources such as pay-per click or advertisement fees. All of which is used to fund their criminal lifestyles and other illegal activities. This study is important because it not only provides government, enforcement and industry with a greater understanding about how infringers and criminals work in the online world, it also provides them with possibilities to develop a more effective range of strategies which can be used to tackle counterfeiting and piracy over the internet.
The UK’s Anti-Counterfeiting Group (ACG), which represents 3000 international brands, welcomed the report. Alison Statham, ACG Director of Operations said that 26 per cent of all employment in the EU is now directly generated by intellectual property related industries and it is vital that these assets are protected in both the physical and online worlds. “I am delighted that this work has been given such a high priority by EUIPO and look forward to the next stage report. However, what the work shows us already is that criminals clearly make no distinction about how and who they target. Consumers and business are regularly being attacked in the same way. In reality, everyone is being threatened by counterfeiting and piracy and the ACG advice on this is to ‘only buy or access products from reputable sources and when in doubt, take advice’. “
The full report can be found here: https://euipo.europa.eu/.
This is the seventh report in a series of studies, undertaken by the EUIPO, to reveal the economic impact of counterfeiting piracy in numerous industrial sectors in the EU. Previous reports have covered the economic impact of fake cosmetics and personal care items, fake clothes, sports equipment, toys, jewellery and handbags and luggage. Each report centres on a sector known to be particularly vulnerable to counterfeiting and piracy.
About the Anti-Counterfeiting Group (ACG)
A not for profit trade association, it represents rights holders in the branded goods sectors (see website www.a-cg.org). It is a forum for stakeholders in the anti-counterfeiting field to support each other – from brand owners through specialist service providers to the law enforcement agencies which are responsible for enforcing the criminal provisions of the Trade Marks Act 1994.
