A new report from the European Union Intellectual Property Office (EUIPO) shows that €2.2 billion — 7.5 % of all sales in the tyre sector — are lost each year due to counterfeiting across the EU.
In addition, the presence of counterfeit batteries in the EU market costs legitimate industry €180 million each year, which is equivalent to 1.8 % of the sector’s sales. Counterfeit batteries mostly affect the vehicle sector but are also found in the mobile phone sector.
Those lost sales translate into approximately 8,400 jobs lost directly across the two sectors, as legitimate manufacturers employ fewer people than they would have done in the absence of counterfeiting.
The total loss of government revenue as a result of counterfeit tyres and batteries in terms of lost taxes amounts to €340 million.
The Executive Director of the EUIPO, António Campinos, said:
We hope that the findings of this report, which looks at two important economic sectors in the EU, will help policymakers as they study ways of combating counterfeiting. Furthermore, as fake tyres and batteries can have significant safety and environmental consequences, we also hope it will help consumers to choose wisely when purchasing these vital items.
Today’s report is the twelfth in a series of studies released by the EUIPO, via the European Observatory on Infringements of Intellectual Property Rights, into the economic impact of counterfeiting on industrial sectors in the EU.
United Kingdom
In the United Kingdom, lost tyre sales due to counterfeiting are estimated at €201 million (GBP 146 million), with an estimated 5.5 % of revenue lost for the legitimate industry. Lost battery sales due to counterfeiting are estimated at €13 million (£9 million), with an estimated 1.4 % of revenue lost for the legitimate industry.
Germany
In Germany, lost tyre sales due to counterfeiting are estimated at €261 million, with an estimated 4.2 % of revenue lost for the legitimate industry. Lost battery sales due to counterfeiting are estimated at €31 million, with an estimated 1.1 % of revenue lost for the legitimate industry.
France
In France, lost tyre sales due to counterfeiting are estimated at €411 million, with an estimated 7.6 % of revenue lost for the legitimate industry. Lost battery sales due to counterfeiting are estimated at €27 million, with an estimated 2 % of revenue lost for the legitimate industry.
Italy
In Italy, lost tyre sales due to counterfeiting are estimated at €256 million, with an estimated 5.9 % of revenue lost for the legitimate industry. Lost battery sales due to counterfeiting are estimated at €18 million, with an estimated 1.5 % of revenue lost for the legitimate industry.
Spain
In Spain, lost tyre sales due to counterfeiting are estimated at €445 million, with an estimated 17.6 % of revenue lost for the legitimate industry. Lost battery sales due to counterfeiting are estimated at €32 million, with an estimated 4.6 % of revenue lost for the legitimate industry.
Poland
In Poland, lost tyre sales due to counterfeiting are estimated at €74 million (PLN 310 million), with an estimated 6.6 % of revenue lost for the legitimate industry. Lost battery sales due to counterfeiting are estimated at €6 million (PLN 25 million), with an estimated 1.7 % of revenue lost for the legitimate industry.
