€1.4bn lost every year in the EU due to fake toys and games

Published on: 15th December 2015

Toys and games manufacturers across the EU lose approximately €1.4bn each year due to counterfeit products in the market.

info480A new report from the Office for Harmonization in the Internal Market (OHIM), the EU’s largest intellectual property agency, reveals that 12.3% of sales in the EU toys and games sector is lost due to counterfeiting.

Those lost sales translate into 6,150 jobs, as legitimate manufacturers employ fewer people than they would have done in the absence of counterfeiting.

The toys and games manufacturing sector in the EU is largely made up of small and medium enterprises (SMEs), employing around 10 workers per firm on average.

The report also shows that, when the direct and indirect effects of counterfeiting in the toys and games manufacturing sector are taken into account, €370m in government revenue is lost across the EU, in terms of lost VAT, income tax, social security contributions and tax on company profits.

The report, released by OHIM acting through the European Observatory on Infringements of Intellectual Property Rights, covers the manufacture of products like dolls, action figures, stuffed animals, board games, toy musical instruments, model trains and puzzles. It does not include video games consoles, software for video games or bicycles.

The President of OHIM, António Campinos, said: “We are completing a picture of the economic impact of counterfeiting in a dozen economic sectors across the EU. Today’s report shows us the extent to which the toys and games sector is impacted by the presence of counterfeits in the market. Through this reporting, we aim to help policymakers in their work, by providing data and evidence-based studies, and to help consumers make more informed choices.”


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