Counterfeiting & Piracy

Whether fine art, hand-made items, or brand-name articles: Whoever creates products that are a cut above has, since time immemorial, been the target of plagiarizers or unauthorized users. The phenomenon of counterfeiting and piracy has taken on an unsettling mass worldwide in the meantime. Swiss businesses are increasingly the victims of copying, in particular on the European and Asian markets. Basically, no industry sector is spared: watches, software, music, film, pictures, medicines, foodstuffs, and even machines — are all counterfeited or copied without permission, in particular when they are easily available over the internet. The consequences for business and society are horrific:

Financial damage

It is estimated that the Swiss economy suffers losses of 2 billion francs annually due to counterfeiting and piracy.Worldwide damages are estimated to be several hundred billions of francs annually. More important than the numbers, however, is the fact that counterfeiting and pirated copies undermine the incentive system behind intellectual property and inhibit investment in innovation—even in the countries which are the source of the counterfeiting.

Loss of jobs

Product piracy destroys jobs, primarily in the countries where the originals are produced. According to a 1998 estimate by the Organization for Economic Cooperation and Development (OECD), counterfeiting and piracy destroyed about 200,000 jobs in Europe and the USA. The number of counterfeited and illegally copied goods has greatly increased since then. It also can be assumed that many times this number of jobs have been lost up to today. Switzerland, as a source country of valuable original products, is particularly strongly impacted. Our economy, our jobs, and our standard of living are based on innovation with high added-value. Intellectual property rights protect innovation and are a primary incentive for investment. Counterfeiting inhibits the creation of incentive structures for investment in areas of higher added-value and qualified, well-paid jobs in the countries where counterfeited products originate. The counterfeiting industry thus hurts the sustainable economic development of these countries.

Puts consumers at risk

Counterfeited goods are often of inferior quality. Depending on the product, they can also endanger consumer safety and health, in particular with:

Medicines (drugs and products)
Mechanical and computer-steered replacement parts (e.g., automobile accessories)
Food items and luxury items
Toys (for example, which have above-average amounts of chemicals)
Perfumes, cosmetics, and bodycare products (can lead to skin irritations)