Electronics, clothing, perfumery, cosmetics and toys. Counterfeit goods remain a major problem, particularly affecting small and medium-sized businesses. These businesses are at greater risk of being affected by counterfeiting than larger companies because they are less likely to register their rights and have fewer resources and less capacity to monitor and discover when their goods have been counterfeited. As a consequence, they are also less equipped to fight counterfeiters.
This is shown by a new report, which also concludes that small and medium-sized businesses, whose rights have been infringed, are 34% less likely to survive as a business after 5 years than those that have not been affected by counterfeiting.
There is no doubt that the illicit trade in counterfeit goods remains a major problem and that it is a direct attack on law-abiding small and medium-sized businesses. When businesses fail to stop it, it soon costs Danish jobs
‘There is no doubt that the illicit trade in counterfeit goods remains a major problem and that it is a direct attack on law-abiding small and medium-sized businesses. When businesses fail to stop it, it soon costs Danish jobs,’ says Henriette Vængesgaard Rasch, Head of Trademarks at the Danish Patent and Trademark Office.
The problem is that many small businesses do not know enough about rights and the options available to fight against the illicit trade in counterfeit goods.
‘There are good reasons to encourage more companies to register and protect their products, for example with trademarks and design rights. Both large and small businesses will be in a much stronger position to tackle counterfeiters with proof of ownership. For investors, it is also important that the ownership of rights can be documented and enforced. It can therefore also help in attracting investment,’ says Henriette Vængesgaard Rasch.
Businesses can also ask customs authorities to help them keep an eye out for counterfeit goods when they enter the EU, for example if they have a registered trademark or design.
Denmark in the top 10 for customs seizures
With regard to infringements of intellectual property rights among large businesses, Denmark ranks in the top 10 OECD countries in terms of customs seizures of counterfeit goods, according to the report. Denmark accounted for 2% of the counterfeit goods detained in OECD countries during the period, while the United States comes highest with 38%, followed by France (18%) and Germany (13%).
‘The fight against counterfeit goods by large Danish companies shows that registering and protecting your trademarks and making requests for customs assistance is effective. The time has come to get Danish small and medium-sized businesses more involved,’ says Henriette Vængesgaard Rasch.
China is still behind most illegal counterfeit goods. Illicit trade in counterfeit goods from China accounted for 63%of the counterfeit goods detained en route to the EU during the period analysed, from 2011 to 2019. Hong Kong accounted for 15% and Turkey for 10%.
According to the report, most fake products are to be found in the categories of electronics (30% of seizures), clothing (18%), perfumery and cosmetics (10%) and games and toys (10%).
Read the report ‘Risks of Illicit Trade in Counterfeits to SME Firms’
Read more about requests for customs assistance at jegvælgerægte.dk
Read more about rights here.