Fight

the

Pirates.

Counterfeiting causes immense damage to affected companies! Our team of experienced attorneys will provide you with consistent support in the fight against counterfeiting and product piracy.

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Counterfeiting

Counterfeiting is one of the most significant challenges in today’s globalized economy. Counterfeit products (“pirated goods” or counterfeits and fakes) are produced in almost all industries and enter the market via various distribution channels – from traditional trade channels to online sales. This has a negative impact on the sales and image of original manufacturers and also poses a potential threat to the safety of consumers and customers.

What is particularly worrying is that these activities often do not occur in isolation, but are part of a complex network of organized crime. Criminal organizations use the trade in counterfeits as a lucrative mainstay and use internationally operating networks, front companies and opaque supply chains. These structures enable them to distribute counterfeit products through various channels – from traditional trading systems to digital distribution via online marketplaces – and make high profits in the process. The illegal trade in pirated goods not only promotes money laundering and other financial crimes, but also undermines the foundations of fair competition and ultimately jeopardizes public safety. The close link between product piracy and organized crime makes it more difficult to investigate and prosecute, as criminal networks often operate across borders and are coordinated at an international level.

These developments make it clear that product and brand piracy is not only a problem of intellectual property, but also has an impact on the entire business location and impairs innovation, investment and social security. To counter this complex problem, a close-knit interplay of legal measures, technical monitoring and international cooperation is required.

Drivers and enablers of counterfeiting

Digitalization and social commerce:
Increasing digitalization and the role of social media and influencers promote the sale of counterfeit products, as consumers are attracted to low-priced but illegal offers by personalized advertising and low risk perception.
Global networking and supply chain abuse:
The global trade infrastructure allows criminals to exploit vulnerabilities in cross-border supply chains. Different legal frameworks in different countries significantly reduce the risk of organized crime.
Other enablers:
Document fraud, corruption, labor exploitation, environmental crime, cybercrime and money laundering are key factors that support the criminal process. For example, over 80% of criminal networks in the EU make improper use of legal business structures to disguise their activities and launder profits.

Economic damage

According to a study conducted by the OECD together with the EUIPO, the global illegal trade in counterfeit and pirated goods amounted to USD 464 billion in 2019, which corresponds to 2.5% of global trade. In absolute terms, the value of trade in counterfeit goods is almost equivalent to the entire GDP of advanced OECD countries such as Austria and Belgium.

In a report by the EUIPO together with Europol, around 86 million counterfeit items were seized in the EU in 2022 – with an estimated total value of over 2 billion euros. In addition, counterfeit goods account for around 5.8% of EU imports. In 2023, over 1,400 investigations into intellectual property offenses were initiated in the EU.

Effects and risks for companies and consumers

For companies

Loss of sales and damage to image:
Original manufacturers not only lose potential sales, but also run the risk of inferior counterfeits damaging the brand image. For example, counterfeit luxury goods or technical components can have a lasting negative impact on customer trust.
Barriers to investment and innovation:
If companies fear that their innovations will be undermined by copies, they are often reluctant to invest in research and development. In the long term, this can lead to an innovation backlog and competitive disadvantages.
Increased legal costs:
The enforcement of intellectual property rights against counterfeiters often requires lengthy and cost-intensive legal disputes – especially in cross-border cases.

For consumers

Safety risks:
Counterfeit products, whether in the field of technology, pharmaceuticals or consumer goods, often do not meet the required safety standards. For example, counterfeit electrical appliances or medicines can pose considerable health risks.
Quality defects and malfunctions:
Inferior materials and improper processing mean that counterfeit products do not offer the same functions as originals – which is particularly critical for technical products or safety-relevant products.
Misleading and deceptive:
Consumers who unknowingly purchase counterfeits are deceived – whether through false labeling or misleading advertising. This not only affects the customer experience, but can also have legal consequences if consumer protection regulations are infringed.

Industries affected

All industries and products are affected by piracy, but the following are particularly affected:

Kleidung
Cosmetics
Games
Pharmaceuticals
Smartphones
Alkoholika
Music recordings
Watches
Jewelry
Bags
Sporting goods
Pesticides

Product and brand piracy endangers and destroys thousands of jobs in these and other sectors in Germany and the EU and therefore also has a considerable negative economic impact.

Relevant areas of law and examples

In the fight against product and trademark piracy, various areas of law are intertwined – here is an overview of the most important areas of law.

Measures and options in the fight against counterfeiting

The fight against counterfeiting requires a multi-layered approach:

Customs seizure procedures in the EU

Customs authorities play a central role in the protection of intellectual property:

Application:
Rights holders can submit an application to customs for action to be taken to seize suspicious goods being imported, exported or transited in EU territory.
Inspection and seizure:
Random checks are carried out on conspicuous consignments. If trademark or product piracy is detected, the goods concerned are temporarily seized by customs.
Next steps:
After successful testing, the counterfeit products can be permanently destroyed or withdrawn from circulation.

Civil and criminal law measures

In addition to customs proceedings, rights holders have various legal options:

Civil law measures:
These include cease and desist letters, injunctions and lawsuits to enforce claims for injunctive relief and damages.
Criminal measures:
In cases of organized piracy or systematic infringements, criminal charges can be filed against manufacturers and distributors. Cooperation with international investigative authorities is often used in such cases.

Involvement of state authorities

Various authorities are available at EU and international level:

OLAF (European Anti-Fraud Office):
OLAF assists in the detection and prosecution of cases in which product piracy is linked to fraud and financial irregularities.
Europol and Interpol:
These organizations promote international cooperation and help combat cross-border criminal networks that are behind product piracy.

We fight counterfeiting

We combat product and brand piracy and take appropriate measures for companies through customs seizures and civil and criminal proceedings against importers, distributors and platforms that trade in counterfeits.