New estimates of the cost of counterfeit goods

A Money Programme survey, conducted by Ipsos Mori, suggests that the most popular fake product in Britain is the DVD. The British Video Association believes that nearly 80 million fake DVDs are bought each year in Britain, and it appears to be a growing problem. In 2007 the Federation Against Copyright Theft (Fact) seized 2.8 million fake DVDs, a 74% increase on the previous year.

The BBC also quote Tony Swaffield, responsible for brand protection at New Era, the world’s biggest baseball cap manufacturer: “We would estimate that 30 to 40% of all products bearing our name are counterfeit. If you’re talking luxury brands or sporting brands, I would estimate they are affected at the same percentage”. Indeed, it is estimated the global trade in fakes could be worth £150bn.

Why is this a problem? Firstly, it’s theft. Someone is stealing from someone else. That someone else might be a firm that loses the incentive or ability to change and improve its product. More worryingly, in the case of foods, medicines and other products, dodgy copies could be potentially life threatening.