Knock-off goods cost threaten job creation

The International Chamber of Commerce released a report at the 6th Global Congress on Combating Counterfeiting and Piracy on last week that reported the global economic and social impacts of counterfeiting and piracy will reach $1.7 trillion by 2015 and put 2.5 million legitimate jobs at risk each yea

By ·

The International Chamber of Commerce released a report at the 6th Global Congress on Combating Counterfeiting and Piracy on last week that reported the global economic and social impacts of counterfeiting and piracy will reach $1.7 trillion by 2015 and put 2.5 million legitimate jobs at risk each year.? 

The report updates a 2008 Organization for Economic Cooperation and Development report that showed more than $250 billion in counterfeit and pirated goods move through international trade alone. The new ICC study also examines additional impacts not quantified in the OECD report. These include the value of domestically produced and consumed counterfeit products, the value of digital piracy, and the negative impacts on society, governments and consumers.?

“By filling in the gaps left by the OECD, we have been able to paint a more comprehensive picture of the negative economic and social impacts of counterfeiting and piracy,” said Jeffrey Hardy, coordinator of the ICC Business Action to Stop Counterfeiting and Piracy (BASCAP) initiative, in a statement.? 

The report shows that based on 2008 data, the total global economic and social impacts of counterfeit and pirated products are as much as $775 billion every year. This includes impacts of lost tax revenue and higher government spending on law enforcement and health care. The figure is estimated to more than double to $1.7 trillion by 2015, due in part to rapid increases in physical counterfeiting and piracy as measured by reported customs seizures and greater worldwide access to high speed Internet and mobile technologies, the report noted.

The report also indicates that international trade in fakes accounts for more than half of counterfeiting and piracy, and could grow to as much as $960 billion by 2015. Domestic production and consumption will account for between $370 billion and $570 billion, and digitally pirated music, movies and software for as much as $240 billion in 2015.? 

Furthermore, the report highlights that counterfeiters and pirates operate outside the law, which makes estimating the extent of counterfeiting and piracy and the harm these activities cause “extremely challenging.”? 

“No one report or approach will yield a complete picture or provide all the answers but we’ve attempted to examine the measurement of this illegal activity in a more comprehensive way than has been done to date, and to develop methodologies that others can now use for more completely and accurately estimating the economic and social impacts of counterfeiting and piracy,” said Damien O’Flaherty, senior associate at Frontier Economics, the consulting firm that produced the report.? 

To read the full report, visit: http://www.iccwbo.org/bascap/index.html?id=40991


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Private Fleet vs. Dedicated: Which one is right for you?
Having the right fleet for your business can give you an advantage over the competition and lower transportation costs.
Download Today!
From the April 2017 Issue
While adoption rates have remained relatively flat, yard management systems (YMS) are helping logistics operations turn that important space between the loading dock and the gate into a vital link in the supply chain.
Information Management: Wearables come in for a refit
2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...