Majorohim Observatory Report on the Economic Cost of IPR Infringement in the Toys And

Press Release – Thursday 14thDecember 2015

MajorOHIM Observatory report on "The economic cost of IPR infringement in the toys and games sector"

The UK Anti-Counterfeiting Group (ACG) which represents companies with over 2,700 international brands, welcomes this important new study from the Office for Harmonization in the Internal Market (OHIM), the EU’s intellectual property agency.

Over the years ACG has been make every effort to convince governments and enforcers of the growing dangers associated with counterfeiting, which damages our economy, destroysjobs and, feeds organized criminal gangs that are often involved in trafficking drugs, firearms and people. This report confirms the economic damage caused by this menacing trade, in just one sector.

The OHIM study, which only focuses on manufacturing, calculates that approximately €1.4 billion is lost to EU member states every year, as a result of counterfeit toys and games. This equates to over 6,000 jobs, and €370 million in government revenue, which could be used for essential public services.

99% of the toys and games sectoris made up of small and medium sized businesses and in the UK alone,over 12% of jobs and £174 million is annually lost, due to counterfeiting.After Germany, this is the second highest in the EU.

Both Europol and Interpol have recognised counterfeiting as an extremely dangerous, multinational criminal activity, with links to sinister networks across the world. However, this latest independent report OHIM signals the wider economic impact and social harm being created by the criminals involved.

Alison Statham, ACG Director of Operationssaid,“theamount of revenue and lost jobs due to counterfeitingin the toys and games sector is shocking, but the thought of children waking up on Christmas morning to stockings full of dangerous fakes is frightening. Consumers need to be aware that at Christmas time they are particularly vulnerable. Counterfeiters have no morals or conscience and are only interested in cashing in on the sale of substandardjunk toys and games,which are manufactured without any regard forsafety standards and are often extremely dangerous.

The message to UK consumers is “buyer beware”. What may look like bargains at internet and social media sites and locations such asWellesbourne,in Stratford,and Cheetham Hill in Manchester,may well put your family and friends at very serious risk.

ACG hopes that this 4th OHIM report willfurtherexposethe worldwide economic, social harm of counterfeiting, and in so doing helpto change the overall perception that counterfeiting isan innocentbusiness.“

NOTES FOR EDITORS

This is the fourth report in a series of studies, undertaken by OHIM,to reveal the economic impact of counterfeiting in numerous industrial sectors in the EU. In March, OHIM published the first study in the series, which looked at the economic impact of fake cosmetics and personal care items. This was followed, in July, by a similar report on fake clothes, shoes and accessories (including fake sportswear). September saw the publication of a third report which focused on sport equipment.

Each report centres on a sector known to be particularly vulnerable to counterfeiting.

The most recent European Commission report based on EU wide customs figures reinforces the extent of the problem, highlighting that more than 95,000 detention cases were registered across EU borders in 2014.This resulted in seizures of over 36 million productswhich included items for daily use in the home, such as toys, body care articles, medicines and electrical household goods. The equivalent value being estimated to be just over 617 million euro. The Commission believes that the volume of detentions is abetted by a huge number of small parcels arriving via express and postal traffic; probably as a result of internet sales.

The Anti-Counterfeiting Group (ACG) is a not for profit trade association which represents rights holders in the branded goods sectors (see our website for more information). It is a unique forum for stakeholders in the anti-counterfeiting field to collaborate and support each other – from brand owners through specialist service providers to the law enforcement agencies which are responsible for enforcing the criminal provisions of the Trade Marks Act 1994.

For further information please email