Are Counterfeiting and Piracy Serious Problems?How Bad is Counterfeiting & Privacy?
According to FBI, Interpol, World Customs Organization and International Chamber of Commerce estimates, roughly 7-8% of world trade every year is in counterfeit goods. That is the equivalent of as much as $512 billion in global lost sales. Of that amount, U.S. companies lose between $200 billion and $250 billion. IP theft has a major impact at home, too: according to the U.S. Customs and Border Protection, in fiscal year 2010, nearly 20,000 seizures of counterfeit and pirated goods with a total domestic value of $188.1 million and a manufacturer’s suggested retail price of $1.4 billion were intercepted before entering the United States. The total domestic value of counterfeit products seized presenting potential safety or security risks seized was $42 million.
Which sectors are most affected? IP theft poses a risk to all industry sectors; those most commonly affected by IP theft are manufacturing, consumer goods, technology, software, and biotechnology, including pharmaceuticals.