According to a study released by the EU Observatory on Infringements of IP Rights on July 21, 2015, counterfeiting has the following economic and social impacts in the clothing, footwear, and accessories sectors:
•26.3 billion Euro of revenue (9.7% of sales) lost annually;
•43.3 billion Euro of revenue lost in this and in related sectors combined (knock-on effects);
•363,000 direct jobs lost;
•Over 518,000 direct and indirect jobs lost; and
•Over 8 billion Euro of government revenue (e.g. taxes) lost.
This sectorial study is the second carried out by the Observatory, after the study on the cosmetics sector published on March 10, 2015. The Observatory will conduct studies covering other sectors known to be impacted by counterfeiting, including: watches and jewelry, luggage and handbags, sport goods, games and toy, medicines, computers and automotive parts, as well as tobacco and alcoholic drinks.
Additionally, the Observatory is carrying a joint study with the Organization for Economic Cooperation and Development (OECD) on the impact of counterfeiting on international trade. This will be similar to the OECD’s 2008 study.
According to the Observatory, these studies are aimed at providing a global picture of the impact of IPR infringements and assisting policy makers in developing effective enforcement policies.