EUIPO study reveals €2bn fake good seizures in EU

A report on intellectual property crime from Europol and the EUIPO has revealed ' the dark side of fake goods' which are estimated to account for 5.8 per cent of EU trade.

The analysis – entitled Uncovering the Ecosystem of Intellectual Property Crime: A Focus on Enablers – reveals that approximately 86m fake items valued at over €2bn were seized in the EU in 2022, with the organised criminal groups behind the trade driven by "high demand…for low-priced goods" as well as "profit potential and low risk."

It warns that scammers and organised crime networks use legal entities and loopholes – such as producing fake goods outside the EU and adding logos, tags and packaging within the bloc – to avoid detection by the authorities.

The most commonly seized products were video games, board games, packaging materials, toys, cigarettes and recorded CDs and DVDs, according to a joint statement by the EUIPO and Europol, which co-authored the report. The majority were produced in China, including Hong Kong, and Türkiye.

The rise of social media, influencers and online commerce has changed consumer behaviour, increasing their appetite for IP-infringing goods or content, while having a low awareness of risks that can include harm to the economy, citizens’ health and safety, and the natural environment.

In one case, diet and nutrition influencers in Romania promoted illegal pharmaceuticals and anabolic steroids to their followers, exposing purchasers to potential harm. The operation led to the dismantling of a clandestine laboratory with more than one million pills at the production site.

According to EUIPO executive director João Negrão (pictured above), raising consumer awareness of the risks associated with counterfeits is a priority.

"When consumers opt for counterfeit products or are misled into buying fakes, they are not only receiving substandard goods but are also contributing to a shadow economy that undermines legitimate businesses and fuels other criminal activities, he said.

"It's essential to understand the real cost of counterfeit goods – a cost that extends beyond the price tag and impacts our society's wellbeing."

The report notes that a key EU instrument to counter online threats, including counterfeit goods, is the EU Digital Services Act, which entered into force on February 17 and holds online platforms, search engines, hosting services, and intermediary services to standards that aim to improve transparency and accountability.

Part of the DSA involves requiring marketplaces to allow users to flag IP-infringing and otherwise illegal content online, and for online platforms to cooperate with specialised ‘trusted flaggers' to identify and remove it. The are also new rules to trace sellers on online marketplaces, amongst other measures.

Earlier this year, the European Commission also adopted a recommendation on a 'toolbox' of strategic measures to curb counterfeiting and foster collaboration between rights holders, service providers, and law enforcement in combatting the trade.