The Swedish economy is innovative and rich in intellectual property (IP), with nearly every industry either producing or using IP. Swedish innovative industries are also export-dependent and very deeply integrated in the global economy, through active participation in global value chains. At the same time, the threats of counterfeiting and piracy are growing – and Sweden is vulnerable. This report measures the direct economic effects of counterfeiting on Swedish industry, government and consumers. It examines both the impact of the imports of fake products to Sweden and – more importantly – the impact of the global trade in fake products that infringe on the IP rights of Swedish innovative companies. For more information see: http://www.oecd.org/gov/risk/counterfeiting-and-piracy-and-the-swedish-economy-eb300f5b-en.htm

1. Stockholm, 10 May 2019

2. Joint project: OECD — EUIPO
• Quantitative analysis
(empirical, robust, objective)
• Detailed dataset of customs seizures
(W CO, DG TAXUD, CBP)
Threats of counterfeiting and piracy
are growing worldwide…
• Up to $509 bn of trade in fake goods in 2016.
• Up to 3.3% of world trade
Context

3. Sweden
– particularly vulnerable to global counterfeiting.
• Advanced economy that produces highly valued
products that rely on IP
• Open economy actively participating in value chains.
• Relatively small economy; importance of exports.
Context

4. Effects of trade in fake goods on
consumers, industries and the
government, from two angles:
1. Impacts of imports of fake
products to Sweden
2. Impacts of infringements of
Swedish firms’ IPR in global trade
This study

5. This is done by using:
 a combined database on customs seizures from
 the “GTRIC toolbox”
 data on substitution rates from consumer
surveys
 data on industrial output and employment
Data

6. The results
Most fake goods imported to
Sweden come from Asia. The top
sources are China and Hong Kong
(China) and Thailand.
ICT devices (e.g. phone batteries,
chargers and earphones) were
the most counterfeited type of goods
followed by watches, clothing,
and toys and games.

7. The results
Global trade in counterfeit and pirated
products that infringed Swedish
trademarks amounted in 2016 to as
much as SEK 28.3 billion ($ 3.4 bn),
equivalent to 2% of total Swedish
manufacturing sales (domestic plus
exports).
Swedish industry is at risk!
Most targeted product
categories include
automotive spare
parts, machinery (ball
bearings), clothing,
toys and watches.

8. The results
Fake goods that infringe the IP of
Swedish right holders come mainly
from China; Hong Kong, China,
Singapore and Turkey.

9. The results
The total volume of Swedish companies’ forgone sales due
to infringement of their IP rights in global trade amounted to
SEK 17.1 billion (USD 2 billion), or 2.4 % of total sales by these
Swedish companies in 2016.
Lower sales reduce the demand for jobs, either in the retail and wholesale sector
or in Swedish industries due to the global infringement of their trademarks.
Altogether, at least 7 100 jobs were lost in Sweden due to counterfeiting and
piracy, which represents 0.7% of full-time equivalent employees in Sweden
Altogether, trade in counterfeit and pirated goods resulted in a reduction in Swedish
public revenues equal to almost SEK 7.54 billion (USD 905 million) or 0.2% of
Swedish GDP.

10. Next steps
• Robust results – starting points for building
evidence-based policy responses.
• We are ready to act, and
to advise our countries on
selected policy areas.

11. oe.cd/CounterfeitingSweden