Switzerland’s strong reliance on intellectual property (IP) is a clear source of strength and innovation. However, these qualities also expose it to the risk of counterfeiting.
The structure of the Swiss economy—anchored in high-value, IP-intensive sectors such as pharmaceuticals, luxury goods, and precision engineering—depends heavily on safeguarding innovation and brand integrity. The global prestige of Swiss brands, however, makes them vulnerable to counterfeiters, particularly in regions where IP enforcement is weak or ineffective. This illicit activity poses a serious threat to Swiss rights holders, the government, and to society in general. It undermines fair competition, diverts revenue from legitimate businesses, erodes consumer trust, and, in some cases, endangers consumer health and safety.
This OECD report presents robust empirical evidence on the risks that counterfeiting poses to Swiss-branded products. It provides a comprehensive assessment of the scale of global trade in counterfeit goods that infringe on Swiss IP rights and assesses the economic impact this has on the Swiss government and industry. The report also features an in-depth analysis of the watchmaking sector—the most affected industry—and examines the role of small parcels in the distribution of counterfeit goods, a tactic often used by counterfeiters to evade detection.
The findings are of concern. In 2021, the estimated value of global trade in counterfeit goods that infringed Swiss trademarks was USD 4.7 billion (CHF 4.47 billion), equivalent to 1.3% of Switzerland’s total exports. The economic consequences were considerable: counterfeiting led to an estimated USD 3 billion (CHF 2.73 billion) in lost sales across affected Swiss industries and resulted in the loss of over 6 000 jobs.
These results underscore the urgent need for co-ordinated international action against IP crime, and particularly as it concerns trade in counterfeit goods. This report contributes to a better understanding of the global risks posed by counterfeiting and is intended to support policymakers in developing effective strategies to combat this growing threat.