Ireland 'well above' EU average for sale of counterfeit goods

13% of Irish consumers said they were misled into buying a counterfeit product, according to a new report

The EU is heightening SME awareness of counterfeiting.

Ireland ranks “well above” the EU average for the sale of fake and counterfeit goods to consumers, a new report shows.

According to the European Union Intellectual Property Office (EUIPO) – which registers product trade marks and patents in the EU – last year, 13% of Irish consumers said they were misled into buying a counterfeit product.

That is above the 9% EU average. 

Only Bulgaria, with 19% of consumers, and Romania with 16%, ranked higher in the survey. 

Sweden and Denmark had the lowest levels of duped consumers, measured at just 2% and 3% respectively.

Fake goods represent nearly 7% of EU imports worth €121bn, according to a joint study between the EUIPO and the OECD.

Consumers facing more risks

The EUIPO said consumers were facing more risks than ever from the sale of counterfeit goods, with concern rising since the beginning of the Covid crisis. 

It said counterfeits impact every product sector – from electronics and clothing to pharmaceutical goods, pesticides and even wine and beverages.

“The Covid-19 pandemic has put the problem of IP [intellectual property] crime under a magnifying lens with the rise of counterfeit medicines and medical products that further threaten the health and safety of citizens,” said EUIPO executive director Christian Archambeau.

“This is a long-standing issue, often interlinked with other types of illegal activities, which requires urgent robust, co-ordinated action and has recently been reinstated as one of the top 10 EU priorities in the fight against organised crime,” he said.

In addition to the health and safety risks, counterfeits often lead to security breaches and financial losses.

The EUIPO said counterfeiting is also a significant issue for the EU economy, and SMEs in particular.

It said 25% of SMEs in Europe claim to have suffered some level of IP infringement, with 18% of Irish SMEs impacted.

€20m fund for SMEs

The EUIPO has launched a €20m fund for SMEs to help subsidise trade mark applications and IP assessment services, with the money available on a first-come-first-serve basis.

"Today, less than 9% of all SMEs in the EU own registered IP rights. But for those that do, IP makes a big difference: SMEs that own IPRs, such as patents, designs or trade marks, have a 68% higher revenue per employee than those that do not and their employees earn higher wages," the EUIPO said.

The office, which is headquartered in Alicante, Spain, said the fund – launched in co-operation with the European Commission and member states’ IP offices – is helping “thousands of SMEs develop their IP strategies in these challenging times”.

"Intellectual property is one of Europe’s most valuable assets, and a key element in our social and economic recovery, especially for small businesses," Mr Archambeau said.