Counterfeiting, Piracy and the Swiss Economy
The Swiss economy is innovative and knowledge-intensive. Consequently, it relies heavily on intellectual property rights. Swiss industries are also export-oriented and solidly integrated in the global economy. At the same time, the threats of counterfeiting and piracy are growing, and Swiss industries are vulnerable. This report measures the direct economic effects of counterfeiting on Swiss industry and the Swiss government. It estimates the impact of the global trade in fake products that pose as “Swiss made” in terms of lost jobs, forgone profits and lower tax revenues.
Methodological notes
In order to distinguish fake products for sale by counterfeiters on the primary market from those intended for sale on the secondary market, the price difference between both types of counterfeits is calculated. For each seizure entered into the World Customs Organization (WCO) and European Commission Directorate-General for Taxation and Customs Union (DG TAXUD) databases, customs authorities report the infringed trademark, the declared value of goods, the quantity seized and the product’s Harmonised System (HS) code. This allows the unit value of each seized “product type-brand” pair to be determined (“brand” includes the associated trademark or patent). These unit values can then serve as a proxy for the retail prices of fake goods.