Trade in counterfeit and pirated goods is a vital threat for modern, innovation-driven
economies, a worldwide phenomenon that grows in scope and magnitude. Counterfeiters
ship infringing products via complex routes, with many intermediary points, which
poses a substantial challenge to efficient enforcement. This study looks at the issue
of the complex routes of trade in counterfeit pirated goods. Using a set of statistical
filters, it identifies key producing economies and key transit points. The analysis
is done for ten main sectors for which counterfeiting is the key threat. The results
will facilitate tailoring policy responses to strengthen governance frameworks to
tackle this risk, depending on the profile of a given economy that is known as a source
of counterfeit goods in international trade.
China emerges as the top producer of counterfeit goods in nine out of ten analysed
categories. In addition, several Asian economies, including India, Thailand, Turkey,
Malaysia, Pakistan and Viet Nam are important producers in many sectors.
The data identifies several important transit points for trade in counterfeits, including
Hong Kong (China), the United Arab Emirates and Singapore, which are handling trade
in counterfeit goods in all the analysed product categories.
Small shipments and parcels tend to dominate numerous trade routes, reflecting the
shrinking costs of postal and courier shipments and the increasing importance of Internet
and e-commerce in international trade.