The results of research on negative effects of counterfeiting in the games and toys sector have been published

The European Observatory on Infringements of Intellectual Property Rights at OHIM (hereinafter: the EU Observatory) has published the fourth economic study in a row dealing with the impact of a problem of counterfeiting products in individual industry sectors in the European Union, originally titled “The economic cost of IPR infringement in toys and games”. The study is available at the following link.

The published study covers the products such as dolls, action figures, toy animals, board games, toy musical instruments, train models, puzzles, excluding consoles or software for video game consoles.

The introduction of the study gives the data for 2012 resulting in the total consumption of toys and games in the EU Member States totalling 10.6 billion euros at producer prices. In the same year, there were approximately 53,000 employees, and the most significant producer was Germany, accounting for 40% (2.7 billion euros) of total production. The industry is comprised of 5,200 enterprises in the EU, with 99% of SMEs of which 90% are micro enterprises.

The estimated total counterfeiting effect in the EU in the toys and games sector amounts to 12.3% of consumption (1.4 billion euros) per year. The table on page 16 of the study shows estimates of direct losses for all the EU Member States, including the Republic of Croatia, where the lost sales in the toys and games sector amount to 4 million euros per year. These losses are related to the loss of estimated 6,150 jobs in the EU as well, with the highest one recorded in Germany (1,563) and Great Britain (623).

The study also mentions indirect losses caused by counterfeiting suffered in other sectors in the economy as well, amounting to 850 million euros per year on the average in the period 2007-2012. In addition thereto, the study gives a rough estimate of the loss in state revenues totalling 370 million euros. The study itself includes a detailed outline of methodology used in this research.

Such research work of the EU Observatory shall be continued in the forthcoming period as well, to cover other sectors susceptible to the infringement of intellectual property rights, such as watches and jewellery, medicines, computers, car parts, tobacco and alcohol etc.

The study is available at the following link.

Datum novosti: 15/12/2015