Counterfeiting Worldwide Siphons Billions of Dollars from Economic Growth

Global companies believe that government determination is the most important factor in the fight against counterfeiting and piracy, according to a published study by the International Chamber of Commerce (ICC)

     The first annual report on counterfeiting and piracy, conducted by the ICC initiative called the Action Against Counterfeiting and Piracy (BASCAP) in collaboration with the Cass Business School at London’s City University, covered 48 companies that primarily operate globally, as well as more than 27 product categories. "Not only does unfair competition through counterfeiting and piracy worldwide siphon billions of dollars from the economic growth cycle generated by intellectual property, but we are particularly concerned about the risks to consumers from unsafe counterfeit products," said Peter Brabeck-Letmathe, Chairman and CEO of Nestlé.

The ICC is a global business organization, the only representative body through which the views of all regions and sectors are reflected on global policy issues. The United States Council for International Business (USCIB) serves as the ICC’s American national committee. When asked which area would yield the best results in combating counterfeiting and piracy – legislation, public education, or stricter enforcement of government measures – respondents rated the latter significantly more important than the other options provided. The survey ranked countries with the best and worst performance in combating counterfeiting and piracy.

 The United States, the United Kingdom, Germany, and France received the highest ratings.  Among the top ten, from top to bottom, are also Japan, Canada, Switzerland, the Netherlands, Singapore, and Australia. At the other end of the spectrum are China and Russia, as countries with the worst performance. This is not surprising given that a previous survey by the European Commission showed that two-thirds of all seized counterfeit goods in the EU come from China. They are followed by India, Brazil, Indonesia, Vietnam, Taiwan, Pakistan, Turkey, and Ukraine. "Counterfeiting and piracy are a kind of cancer in this globalized world," said Jean-Rene Fourtou, Chairman of Vivendi Universal and Vice Chairman of the ICC’s BASCAP initiative.

"Initially, the general consensus was that only luxury goods and music were counterfeited, but now we can say that no business segment can escape counterfeiting and piracy, which are spreading at an explosive rate," he added. BASCAP’s report was published ahead of a meeting on counterfeiting hosted by the World Intellectual Property Organization at Interpol on Tuesday and Wednesday. The meetings will address the economic consequences of piracy and consider strategies for raising public awareness about the damages caused. According to the World Health Organization (WHO), at least 10 percent of medicines on the international market are counterfeit, while this percentage rises to as much as 25 percent in developing regions such as Africa.   (H)