The Half-A-Trillion Dollar Global Counterfeit Goods Market

There is an old adage: anything that can be made, can be faked. According to new data from OECD and the EU’s Intellectual Property Office, those fakes are quite a lucrative industry for the enterprising counterfeiter, with a total annual value of nearly half a trillion a year.

Yes, that is trillion with a “T.”

The hardest hit brands originate in the U.S. and EU, particularly France and Italy, and the biggest winners are organized crime.

The report estimates that the overall value of global counterfeit goods at $461 billion in 2013. The biggest uptick in fake goods imported occurred in the EU – a 5 percent increase – while China remains the top producer of the fake goods.

“The findings of this new report contradict the image that counterfeiters only hurt big companies and luxury goods manufacturers. They take advantage of our trust in trademarks and brand names to undermine economies and endanger lives,” said OECD Deputy Secretary-General Doug Frantz, launching the report with EUIPO Executive Director António Campinos as part of OECD Integrity Week.

Fake goods persist across product categories, though footwear is a favorite of fakers. More disturbing than the more cosmetic faking are the fakes in auto parts, pharmaceuticals, toys, baby formula and medical instruments, where failures can result in injury or death for consumers at the receiving end of the fake.

The report only deals with physical counterfeiting, and therefore it does not consider online piracy. While China is the top provenance of fake goods, its most innovative companies also fall victim to counterfeiters.