Home / BUSINESS / 1.64 bln lost every year in Romania due to counterfeiting, EUR 60 bln lost across the EU overall

1.64 bln lost every year in Romania due to counterfeiting, EUR 60 bln lost across the EU overall

New research from the European Union Intellectual Property Office (EUIPO) shows that EUR 60 billion is lost each year due to counterfeiting in 13 economic sectors. Over the past 5 years, the EUIPO has been tracking the economic cost of counterfeiting in sectors known to be vulnerable to intellectual property rights (IPR) infringements.

Today’s figures show that the direct annual losses of those sectors amount to EUR 60 billion, corresponding to 7.5 % of their sales, as a result of the presence of fake products in the marketplace.

The accumulated losses are equivalent to EUR 116 per EU citizen per year.

Because legitimate manufacturers produce less than they would have in the absence of counterfeiting, thus employing fewer workers, 434,000 jobs are also directly lost in these sectors.

The report estimates that due to the presence of counterfeiting, the 13 sectors lose 22.5 % of direct sales annually in Romania. This is equivalent to approximately EUR 1.64  billion (RON 7.3 billion), or EUR 83 (RON 367) per Romanian inhabitant per year.

Most losses in our country are reported in the pharmaceuticals industry (EUR 976 million), in the fashion industry- clothing, footwear and accessories (EUR 161 M) and in the smartphone industry (EUR 128 M).

The fourth sector reporting high losses due to counterfeiting in Romania is the cosmetics industry (EUR 94 M) and the fifth is the wine and alcohol industry (EUR 75 M loss).

The 13 sectors studied are: cosmetics and personal care; clothing, footwear and accessories; sports goods; toys and games; jewellery and watches; handbags and luggage, recorded music; spirits and wine; pharmaceuticals; pesticides; smartphones; batteries and tyres.

These figures form part of a cycle of research work, carried out by the EUIPO over the last 5 years, and released in one single report for the first time. The Synthesis Report, released today, also brings together research on the contribution of intellectual property to the EU economy and the cost of counterfeiting and piracy to international trade. It also synthesises actions being undertaken to combat intellectual property rights infringements by national, regional and international bodies.

Over the past 5 years, our reporting and research has given, for the first time, a comprehensive picture of the economic impact of counterfeiting and piracy on the EU economy and job creation, as well as intelligence on how intellectual property rights are infringed. Through our research, we have also shown the positive contribution that intellectual property has on employment and growth. Our work has been carried out so that policymakers and citizens can be in no doubt of the value of intellectual property and the damage that arises from its infringement,” said the Executive Director of the EUIPO, António Campinos.

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