EUR 1.4 billion damage from counterfeiting games


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Manufacturers of all kinds of toys throughout the E.U. they lose around 1.4 billion euros every year due to the presence of counterfeit products on the market.

EUR 1.4 billion damage from counterfeiting games

The new report from the Office for Harmonization in the Framework of the Internal Market (OHIM) reveals that 12.3% of sales in this sector are lost due to counterfeiting. These lost sales translate into 6,150 lost jobs, resulting in legitimate businesses employing fewer people than could have been achieved due to copying.

The industry sector that manufactures these toys is largely made up of small and medium-sized enterprises (SMEs) in the EU, employing on average around 10 workers per enterprise. The report also shows that, if the direct and indirect effects of counterfeiting are taken into account, €370 million is lost in government revenue across the EU, in terms of VAT, income tax, social security contributions, but also the tax on a company's profits.

The report released by OHIM, acting through the European Observatory on Infringements of Intellectual Property Rights, refers to the production of products such as dolls, stuffed animals, board games, musical toys and instruments, model goods such as trains and the puzzles. But it does not include video game consoles or video game software or bicycles.

OHIM President António Campinos said in a statement: “We are completing a picture of the economic impact of copying in a large number of economic sectors across the EU.

This particular report shows us the extent to which the gaming sector is affected by the presence of imitation and counterfeit goods in the market. Our aim is through this report to assist policy makers in their work by providing evidence-based data and studies, as well as to help consumers make more informed, informed product choices."

Germany : is the largest toy producer in the EU. Its goods accounted for 40% (2.7 billion euros) of total EU production in 2012. The presence of counterfeit toys and video games costs the German manufacturing sector 327 million euros each year, corresponding to 10.9 % of production value. The country is in first place among the EU countries. for lost sales and jobs.

United Kingdom : 11.6% of the industry's direct sales are lost annually (£174.2m). It is the second most affected country in the EU. due to counterfeiting in this sector (after Germany).

Spain : 16.6% of the sector's direct sales are lost per year (€167 million).

Italy : 15.6% of the sector's direct sales are lost per year (201 million euros).

France : 11.6% of the sector's direct sales are lost per year (€168 million).

This is the fourth in a series of studies produced by the OHIM on the economic impact of counterfeiting in EU industrial sectors. Studies have already been released on goods in the sports sector, on the economic impact of counterfeiting on clothing, shoes and accessories and on the economic impact of counterfeiting in the cosmetics and personal care sector.

Each report focuses on an area known to be vulnerable to copying and counterfeiting. Future reports will study additional sectors, including watches and jewelry, luggage and bags, pharmaceuticals, computers, auto parts, tobacco and alcohol, and other sectors believed to be vulnerable to copyright infringement.