20 Mar European Commission publishes recommendations to combat online and offline counterfeiting
On 19 March 2024, the European Commission published a Recommendation on how to increasingly combat counterfeiting and enhance the enforcement of intellectual property rights. The Commission estimates that industries that “make intensive use of IP” contribute 47% of total EU GDP and nearly 40% of total employment within the Union. It further emphasises the intrinsic value that IP holds, pointing to a 2021 firm-level analysis report by EUIPO, which found that companies with IP rights pay on average 19% higher wages and that IP rights convey increased revenue regardless of company size, pointing out that European SMEs that rely on IP rights “appear to generate 68% higher revenues per employee.”
The value of IP-protected products has enabled a vast illegal market flourish, ranging from counterfeit goods to both digital and product piracy. The OECD/EUIPO joint 2022 report on Dangerous Fakes highlights the dangers that products that do not follow rigorous safety standards or processes can impose. Though there are some industries where public acknowledgement of the risk is higher, such as adverse health risks when consuming counterfeit pharmaceutical products, cosmetics, or alcohol, there are other areas, such as electrical and electronic equipment or even children’s toys where, due to a lack of adequate safety standards, the risks the products pose can be significant to the average consumer.