German companies lose more than 30 billion euro in revenue each year as the direct consequence of product and brand piracy. In addition, around 70,000 jobs are destroyed.
In France, some 6 billion euro in revenue is lost every year; in Italy 6.9 billion euro; in the Scandinavian countries altogether some 1.3 billion euro. Producers of watches and jewelry within the EU are particularly hard-hit, along with fashion brands and producers of medical and cosmetic items.
After analysing the current status quo, the report suggests ten measures for the targeted fight against product and brand piracy, including a comprehensive information policy. “Many cases of fraud can be prevented from the very beginning by proactively informing consumers about the methods of counterfeiters and means of identifying and avoiding counterfeits,” explained André Stadelmaier, spokesman of NetNames Germany. “It is also sensible to create dedicated websites to allow consumers to check product authenticity and report cases of fraud.”
Businesses should furthermore work together in the fight against counterfeits in order to consolidate their resources and knowledge and actively make use of synergy effects. “It is also helpful to appoint a special brand protection manager, or at least a contact person. This leadership figure can enhance the internal and external sensibility for the challenges and coordinate appropriate countermeasures,” continued Stadelmaier.
In its report, NetNames brought together dozens of investigations from around the world into a comprehensive report with more than 200 data points regarding the effects of product and brand piracy. The report is available in English on the NetNames website.
