According to a recently published report by Organisation for Economic Co-operation and Development (OECD) and European Union Intellectual Property Office (EUIPO), the total employment losses globally due to piracy and counterfeiting is expected to rise to 4.2 to 5.4 million jobs in 2022 which stood at 2 to 2.6 million jobs in 2013 witnessing a staggering increase of 110%.
Besides, the total economic and social costs are expected to rise to $1.54 to $1.87 trillion by 2022 which was $737 to $898 billion in 2013 due to counterfeiting.
At MASCRADE (Movement Against Smuggling and Counterfeit Trade) 2017, a FICCI-KPMG report namely Illicit Trade: Fueling Terror Financing and Organised Crime, which is a product of a FICCI initiative was launched to help improve the understanding the relationship between illicit trade, organised crime and terror financing.
According to Dr. Sanjaya Baru, Secretary general, FICCI, “Illegal trade in smuggled, counterfeited and pirated goods dampens the economy in multidimensional ways. It destabilises the legal industry, restrains innovation and investments, reduces government revenues and hampers the health and safety of consumers. Moreover, globally it fuels transnational crime, corruption, and terrorism. As it converges with other criminal activities it undermines the rule of law and the legitimate market economy, creating greater insecurity and instability around the world.”
The ever-increasing growth of illicit trade can be attributed to many factors like higher taxation rates, lack of awareness, availability of cheaper alternative, lack of enforcement mechanisms. These are the key factors that encourage the consumers to go for counterfeited or pirated good without realising the negative consequences.