The Economic Impact of Counterfeiting and Piracy

image of 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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The markets for counterfeit and pirated goods

In this chapter, we: 1) describe how the markets for legitimate and infringing products operate and interact; 2) identify the key factors that drive demand and supply of counterfeit and pirated products; and 3) indicate how economy wide institutional factors influence the location of where counterfeit and pirated products are produced and consumed. In so doing, this chapter presents a framework for analysing and understanding the phenomenon.


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