28 | 10 | 2024

EUIPO and Europol published a report on uncovering the ecosystem of intellectual property crime, focusing on enablers and impact

 

The European Union Intellectual Property Office (EUIPO) published, in cooperation with Europol, a report on Uncovering the Ecosystem of Intellectual Property Crime - A Focus on Enablers and Impact.

This report is a result of continuous action of Europol and EUIPO combatting infringements of intellectual property rights and uncovering networks of crime perpetrators, operating within the instrument of EMPACT (European Multidisciplinary Platform Against Criminal Threats).

EMPACT is a security initiative launched by the Member States of the European Union (EU) and aimed at identifying threats related to organised and serious forms of international crime, and defining priorities in the fight against such illegal activities, according to a clear adopted methodology. EMPACT introduces an integrated approach to EU internal security, including measures related to external border control, law enforcement cooperation, information management, training, prevention and public-private partnerships, where appropriate.

This report examines strong impact of crime in the field of intellectual property, the manufacture and sale of counterfeit products and pirated content; it indicates sophisticated methods used by perpetrators and organised criminal groups to exploit consumer behaviour, which consequently leads to wider societal harm.

In comparison to 2022, the number of activities by responsible authorities within the EMPACT in the fight against this kind of crime has risen significantly in 2023. The number of investigations into crimes against intellectual property has risen from 51 to 1406 in 2023, the number of imprisonments has risen from 115 to 1096, and the value of the property ceased has quadrupled.

The report indicates that approximately 86 million fake items were seized in the EU in 2022, estimated to the value over 2 billion euro. The most products seized were from the category of videogames, packaging materials, toys, cigarettes, and recorded CDs and DVDs.

The illegal trade in counterfeit goods was estimated to represent 5.8 % of imports to the EU.

The report also points out that sophisticated and organised criminal activities in some cases include the manufacture of products in countries outside the EU and then, when the products arrive in the EU, they are completed by unauthorised addition of trademarks and other markings to the products and packaging of the products, with the aim of delivering such counterfeits to the final consumer. In this way, however, consumers receive a product of very questionable quality, and potentially a dangerous product.

Extremely dangerous products include counterfeit drugs and medical products, pesticides, counterfeit food and beverages and nutritional supplements, counterfeit vehicle parts, etc.

The report also contains a presentation of examples from practice in the actions of responsible authorities when detecting and prosecuting this type of crime.

Therefore, due to their scale and complexity, infringements of intellectual property rights pose a permanent threat to the internal security of the EU, have a negative impact on the economy, health and consumer safety, and harm the nature and environment of the EU.

The key drivers encouraging crime in the field of intellectual property are shaped by technological, economic and social trends, and these crimes are also connected to other criminal activities carried out by organised criminal groups (forgery of documents, cybercrime, corruption, money laundering, etc.). At the same time, these groups take advantage of the global demand for cheaper products, but also mislead consumers by offering them counterfeit products for sale.

The report emphasises the key role of authorities responsible for the enforcement of intellectual property rights and the need for the cooperation of all stakeholders in preserving innovation, protecting the safety and health of consumers, and maintaining the integrity of the economy and society.

The integral report is accessible here.