ZAGREB, June 6, 2019 - Croatia annually loses 2.5 billion kuna in sales income in key product sectors due to counterfeiting and piracy, and the loss at the EU level amounts to as much as 451 billion kuna, with clothing being the most affected product sector, the European Union Intellectual Property Office (EUIPO) says.
EUIPO monitored the economic impact of counterfeiting in 11 key product sectors in the EU in the period from 2012 to 2016.
The analysis covered the following product sectors: cosmetics and personal care; clothing, footwear and accessories; sports goods; toys and games; jewellery and watches; handbags and luggage, recorded music; spirits and wine; pharmaceuticals; pesticides; and smartphones.
EUIPO, based in Alicante, Spain, estimates that counterfeiting and piracy cause an annual loss of 2.5 billion kuna in Croatia, which is 10.7% of sales in the 11 product sectors. At the EU level, the sales income loss amounts to as much as 451 billion kuna.
The per capita loss in Croatia is estimated at 600 kuna annually, while at EU level it exceeds 800 kuna.
The job loss caused by counterfeiting and piracy is close to 4,000 in Croatia and up to 468,000 across Europe, EUIPO executive director Christian Archambeau warns.
Apart from analysing counterfeit and piracy products, EUIPO also analysed demand for such products.
Lower prices, availability and a low degree of social stigma related to such activities encourage consumers to buy counterfeit products or illegally access content protected by copyright, shows a report on intellectual property right infringements in 2019.
Croatia's clothing sector is the most affected by counterfeiting, with losses amounting to 928 million kuna annually, followed by the drug industry.
The youngest EU member reports high losses also in the following product sectors: smartphones (340 million kuna), cosmetics (214 million kuna), and spirits and wine (122 million kuna).
Compared with the first analysis, from 2018, the updated analysis shows that at EU level, the losses have dropped in most products sectors, except for clothing, footwear and accessories and cosmetics and personal care.
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