The European Union Intellectual Property Office (EUIPO) and the Organisation for Economic Co-operation and Development (OECD) have unveiled the results of their study Mapping Global Trade in Fakes 2025: Global Trends and Enforcement Challenges.
The European Union Intellectual Property Office (EUIPO) and the Organisation for Economic Co-operation and Development (OECD) have unveiled the results of their study Mapping Global Trade in Fakes 2025: Global Trends and Enforcement Challenges.
In an era of globalization, trade facilitation, and industrial specialization, supply chains have evolved to span multiple countries and continents. This transformation has brought about significant benefits, including enhanced efficiency, economic growth, and increased consumer choice. However, it has also introduced new challenges in managing and securing these complex networks.
The rising importance of intellectual property (IP) in global production highlights the need for international collaboration and enforcement to protect innovation and brands across jurisdictions. Unfortunately, the intricate nature of global supply chains has created vulnerabilities to IP infringement. Counterfeit goods infiltrate these networks, undermining legitimate businesses, depriving governments of revenue, and posing risks to public health and safety.
Illicit trade in counterfeit goods is further linked to organized crime and corruption, exploiting gaps in regulation and enforcement. In 2021, the global trade in counterfeit goods was valued at approximately USD 467 billion, accounting for 2.3% of total global imports. For the EU, the value of counterfeit goods trade was estimated at USD 117 billion, representing 4.7% of total EU imports. These challenges are amplified by the increasing complexity and global nature of supply chains.
China and Hong Kong (China) continue to dominate as the primary sources of counterfeit goods, with other regions also contributing. Counterfeiters are increasingly using international waterways and adopting "localization" strategies to produce fakes closer to end markets. Free trade zones, offering reduced oversight, play a pivotal role in this trend. Counterfeiting spans nearly 50 out of 96 product categories, with high-value goods like clothing, footwear, leather goods, and electronics remaining top targets.
Counterfeiters exploit online platforms and modern logistics to infiltrate legitimate trade, with postal services emerging as the primary channel for distribution. Small parcels, often classified as "de minimis" trade, evade scrutiny and create challenges for enforcement agencies. The EU remains a key target for counterfeit imports, primarily originating from China and Hong Kong (China), which account for the highest value of seized counterfeit goods.
The COVID-19 pandemic had a notable impact on global trade, with a decline in trade in goods in 2020, followed by a strong rebound in 2021 and 2022. Data analysis reflects evolving counterfeiting trends and enforcement challenges. Strengthening enforcement requires better coordination, information sharing, and collaboration with rights holders and trade intermediaries. Enhanced engagement with trade intermediaries, including postal and shipping services, is critical to curbing illicit trade and safeguarding global supply chains.