Trade in counterfeit and pirated goods has risen steadily over the last few years – even as overall trade volumes stagnated.
The Organization for Economic Cooperation and Development (OECD) estimates that counterfeit products now stand at 6% of global trade.
According to the OECD the countries most affected by counterfeiting are the
United States, followed by France, Italy, Switzerland and Germany.
Counterfeiting affects brand reputation as well as revenue. The level of
awareness and concern about counterfeiting among rights holders, trade
organizations and government officials has risen, yet the problem continues to grow.
Even though there have been significant increases in solving and successes in battling the sale of counterfeit goods, this is still a flourishing business. A relatively low risk and high reward crime, counterfeiting is seen as a safe revenue stream by many criminals.
On average, a “knock off” can be sold for about 10 times what it costs to manufacture! Another reason for the steady increase in the sale of counterfeit products, is the lack of severe punishment as a deterrent. Even if prosecuted, the criminal will rarely be given a harsh sentence. And also overseas marketplaces like Aliexpress or Wish just fight half-heartedly against the problem on their platforms because counterfeit products make up a huge part of their business. these products contribute to a big share of their business.