Counterfeiting costs Switzerland dearly
Counterfeiting damages the good reputation of Swiss companies and reduces their sales by billions each year. In 2018, Switzerland lost more than 10,000 jobs as a result. A new study provides concrete figures for the first time.
The global trade in counterfeit "Swiss" products such as watches, household appliances or medicines is causing very considerable economic damage in Switzerland, in addition to some of the health consequences. In 2018, customers around the world paid over 2 billion Swiss francs for counterfeit "Swiss" products - in the belief that they were buying an original. In the long term, this threatens the good reputation of Swiss companies. This is shown in a new study by the Organisation for Economic Cooperation and Development (OECD) commissioned by the Swiss Federal Institute of Intellectual Property (IPI).
In addition to the good reputation, sales also suffer: Swiss companies were defrauded of around CHF 4.5 billion in sales in 2018. The watch and jewellery industry was hit hardest. It lost around 2 billion francs in sales. But counterfeiters also targeted goods from the machinery, electrical and metal industries: The turnover of these industries was reduced by around 1.2 billion francs. Other frequently counterfeited products with a Swiss label were clothing and shoes. Since the outbreak of the Corona pandemic and due to increased online trade, counterfeit medicines have also been increasingly seized.
According to the OECD, the vast majority of "Swiss fakes" came from China and Hong Kong, followed by Singapore and Turkey. India was also involved in the counterfeiting of medicines.
The wrong game costs thousands of jobs
Less turnover also means fewer jobs: According to the OECD, Swiss companies would have been able to offer over 10,000 more jobs in 2018 without the counterfeiting industry. The watch and jewellery industry alone lost four out of ten jobs. But the public sector was also affected: According to estimates by the study's authors, it lost revenue amounting to almost CHF 160 million.
For the study, the OECD took into account all counterfeits seized worldwide, which primarily violated the trademark rights of Swiss companies. The authors took into account the fact that consumers deliberately bought a counterfeit in around half of the cases; such a purchase was therefore largely no substitute for buying an original product.
Increased action by authorities and industry
Through this study, the impact of the global counterfeiting industry on Switzerland has been quantified for the first time. "The losses are so considerable that they require decisive action from all of us" says Anastasia Li-Treyer, Managing Director of the Swiss branded goods association Promarca and President of the Swiss Platform against Counterfeiting and Piracy "STOP PIRACY" to the results.
The authorities and industry are already working together to combat the counterfeiting industry, for example with campaigns to raise consumer awareness. For Li-Treyer, the study is a solid basis for decision-making in order to - together with politicians - disrupt the machinations of counterfeiters in an even more targeted manner. In future, for example, the IPI will work even more intensively for minimum standards for the enforcement of intellectual property rights in free trade agreements. The aim is to uncover and stop the activities of counterfeiters where the infringement of rights begins.
Source: Swiss Federal Institute of Intellectual Property
