Counterfeiting costs 6 billion business

April 13, 2010

Counterfeiting has become "a global phenomenon with serious economic and social consequences. In introducing the report which was commissioned by the Ministry of Economy, the new president of the Union of Manufacturers, Christian Peugeot, does not mince his words. Counterfeiting is a waste of money for businesses and states, a danger to consumers and a violation of labor law and the environment. Formerly focused on luxury, the phenomenon now affects consumer goods: soap, razors, electronics, batteries, cigarettes, liquor, sporting goods, auto parts and medicines."China has become the" factory of false "is now the leading global player in counterfeiting," the report said.

100 billion dollars per year

Presented this morning to the Minister of Economy Christine Lagarde, the document recalls that counterfeiting costs the G20 more than 100 billion dollars per year (70 billion of tax losses, 20 billion to fight against networks and 14 , 5 in costs associated with deaths due to counterfeit). In France, the direct loss of sales for French companies related to counterfeiting has been estimated at 6 billion euros per year, according Bercy.

To make his report as concrete as possible, has directly addressed the Unifab businesses. The specialist construction materials Saint-Gobain amounted to 2 million euros, or 1% of its turnover, the losses from making copies.Lacoste annual losses estimated at 228 million euros, or 6.2% of its turnover. The whole industry suffers from the French luxury 4% to 7% loss of revenue due to counterfeiting, the report said. Nearly three quarters of companies also argue that the counterfeiting of their products "directly harming their image." PSA Peugeot Citroen and notes that "the presence in the markets of products whose safety is not guaranteed results in degraded image for our brands and the risk of consumer distrust.

Five angles

More importantly, in the present context, the negative impact of counterfeiting is "particularly significant" innovation, but also jobs for companies. The European Union estimates that counterfeiting is disappearing 100 000 jobs a year.Some 57% of respondents say that the phenomenon was therefore "a direct impact on their employment policy. For 18% of them false leads to job cuts for 47% it prevents the creation of new jobs by reducing margins. According to Microsoft, "a 10% decline in the rate of software piracy would benefit the entire industry by creating 36 000 new jobs in France and almost 864 000 worldwide.To address this scourge, Unifab proposes that governments act five angles of attack: to improve international cooperation in the fight against counterfeiting, strengthening the legal, improve the operational response to counterfeiting and education to players and opinion, halting the cybercontrefa?on.

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