Mapping the Real Routes of Trade in Fake Goods

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Author(s):
OECD, EUIPO
23 June 2017
Pages:
160
ISBN:
9789264278349 (PDF) ;9789264278332(print)
http://dx.doi.org/10.1787/9789264278349-en

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Trade in counterfeit and pirated goods is a vital threat for modern, innovation-driven economies, a worldwide phenomenon that grows in scope and magnitude. Counterfeiters ship infringing products via complex routes, with many intermediary points, which poses a substantial challenge to efficient enforcement. This study looks at the issue of the complex routes of trade in counterfeit pirated goods. Using a set of statistical filters, it identifies key producing economies and key transit points. The analysis is done for ten main sectors for which counterfeiting is the key threat. The results will facilitate tailoring policy responses to strengthen governance frameworks to tackle this risk, depending on the profile of a given economy that is known as a source of counterfeit goods in international trade.
 

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  • Preface

    Globalisation, trade facilitation, and the rising economic importance of intellectual property are drivers of economic growth. However, they have also created new opportunities for criminal networks to expand the scope and scale of their operations, free-riding on intellectual property and polluting trade routes with counterfeit goods. The consequences for the economy are serious. Trade in counterfeit goods not only damages economic growth but also undermines good governance, the rule of law and citizens’ trust in government, and can ultimately threaten political stability. In some cases, the fakes can also have serious health, safety and environmental implications.

  • Foreword

    The broadening scope and magnitude of counterfeiting and piracy, and counterfeit trade in particular, are key challenges in the global economy, which is increasingly innovation-driven. The economic threat that these practices pose undermines innovation and hampers economic growth, while generating adverse health, safety and security effects for governments, businesses and consumers. Organised criminal groups are playing an increasingly important role in these activities, benefiting significantly from profitable counterfeiting and piracy operations.

  • Acronyms and abbreviations
  • Executive summary

    Trade in counterfeit and pirated goods is a worldwide phenomenon that is growing in scope and magnitude. Globalisation, trade facilitation, and the rising economic importance of intellectual property have been fuelling economic growth on the one hand, while on the other opening up new opportunities for criminal networks to expand the scope and scale of their operations, with serious negative consequences for the economy and society. Trade in counterfeit pirated goods also undermines good governance, the rule of law and citizens’ trust in government, and can ultimately threaten political stability.

  • Mapping the real routes of trade in fake goods

    Parties that trade in counterfeit and pirated products tend to ship infringing products via complex trade routes in order to cover their tracks. These complex routes are a formidable obstacle for enforcement authorities; mapping the trade routes for fake goods is therefore essential for developing effective policies to counter this threat. This chapter describes OECD research which assesses the complex routes associated with the global trade in counterfeit and pirated goods. The chapter provides an overview of the key issues and the methodology used.

  • An overview of ten industry sectors

    This chapter provides the findings of the investigation into the routes and means through which fake products are transported from producer economies to the final markets. It summarises the intellectual property intensity and propensity to be faked for ten key product categories, maps out the main producer economies and transit points, and reveals the main transport modes and shipment sizes.

  • Conclusions and next steps

    This chapter offers an overview of the findings presented in Chapter 2. While the data show large variations in experiences across sectors, some general patterns are observed. These include the identification of key producer countries, as well as key transit hubs. The chapter draws out some policy implications of these findings, then lists steps that could be taken to enhance future work.

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