Switzerland’s global reputation for quality, precision, and innovation has made its brands highly attractive targets for counterfeiters. This report has shown that the scope and scale of counterfeiting affecting Swiss intellectual property rights (IPR) are substantial and growing. In 2021 alone, the estimated value of global trade in counterfeit goods infringing Swiss trademarks was USD 4.7 billion—representing 1.3% of Switzerland’s total exports. Although multiple sectors are impacted, the Swiss watchmaking industry remains disproportionately affected, accounting for 87% of all global seizures of counterfeit goods violating Swiss IPRs.
Counterfeiters continue to adapt their methods by leveraging increasingly complex trade routes and sophisticated distribution methods. The widespread misuse of global postal and courier systems—particularly for small parcel shipments—has enabled traffickers to evade detection more effectively. This shift has been accelerated by the growth of e-commerce and the widespread adoption of direct-to-consumer business models. At present, nearly three-quarters of all seizures involving counterfeit Swiss goods are single-item shipments, reflecting the fragmentation and decentralisation of illicit trade.
Despite the challenges posed by the COVID-19 pandemic, which disrupted enforcement operations and customs inspections, the threat posed by counterfeits has not diminished. The economic cost remains significant and continues to grow. In 2021, counterfeiting was responsible for an estimated USD 3 billion in lost sales across affected Swiss industries and the destruction of over 6 000 jobs. These figures represent a real and immediate burden on Swiss manufacturers, particularly in sectors that depend heavily on brand integrity and consumer trust.
The damage is not limited to the private sector. The Swiss government also bears a fiscal burden, with estimated tax revenue losses of nearly USD 97.8 million in 2021. These include foregone revenues from corporate income tax, personal income tax, social security contributions, and VAT—exacerbating pressures on public finances.
The findings of this report underline the multifaceted nature of counterfeiting and the urgency of strengthening the response. Combating this evolving threat requires co-ordinated action across borders and sectors, involving not only customs and enforcement agencies, but also industry stakeholders, digital platforms, and postal operators. Consumer awareness, legal reforms, and technological innovation will all play critical roles in shaping an effective and sustainable policy response.
Switzerland’s leadership in high-value manufacturing and its prominence in global trade make it particularly vulnerable to the risks of illicit trade. Yet these characteristics also position the country to lead international efforts in reinforcing the protection of intellectual property, supporting legitimate trade, and upholding the integrity of global value chains.