The Economic Impact of Counterfeiting and Piracy

This study develops and applies a rigorous methodology to estimate the incidence of counterfeit and pirated items in world trade. This methodology can be used in the future to refine the assessment as the quality and quantity of data improve. The study also provides an analysis of the market for counterfeit and pirated goods and the effects on various affected parties, ranging from the owners of the intellectual property rights, to consumers and governments. The study also provides a number of in-depth snapshots of different industry sectors, highlighting how those sectors are affected by counterfeiting and piracy, and how they are responding.
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Audio and visual sectors
In accordance with the OECD Council mandate for this study overall, the following sector analysis covers only piracy that culminates in the production of a physical product, such as a CD, a DVD or (increasingly less likely) a music or VHS cassette; that is, “hard media”. Piracy of what the Council mandate considers “digital” (that is, non-physical) content, whether over the Internet or by other means, will be considered separately in Phase II of this project.
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