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counterfeiting (2)

According to the first EU-wide intellectual property crime threat assessment from Europol and the European Union Intellectual Property Office (EUIPO), most criminal activity involving counterfeiting is carried out by increasingly professionalised organised crime networks, which can reap large profits while running relatively few risks.

Food and drinks remain highly popular items for counterfeiters, with the EU consistently emerging as a major destination market for counterfeit food and drinks. Detected counterfeit food products include baby milk powder, stock cubes, cheese, coffee, olive oil and pasta. Several of these goods have been found in groceries and supermarkets, illustrating that they also infiltrate the legal supply chain. As the counterfeit goods are almost always of substandard quality and produced in unhygienic environments, they can pose a serious risk to the health and wellbeing of consumers. In some cases, counterfeit food has even been found to contain dangerous or hazardous ingredients. Law enforcement authorities regularly detect other types of counterfeit goods alongside counterfeit food and drinks, highlighting how organised crime groups are frequently involved in trading an ever wider range of different counterfeit goods. In general, there appears to be an overall professionalisation of the organised crime groups involved in food counterfeiting.

Besides food, counterfeit alcoholic beverages pose a considerable risk to EU consumers. Spirits and wine are especially popular goods targeted for counterfeiting by organised crime groups. They frequently place cheap wine in bottles containing fake expensive wine labels, sometimes even adding pure alcohol on counterfeit spirits. Production methods have become increasingly sophisticated in recent years, with some organised crime groups operating their own production lines, including the packaging and labelling of the product. Another method is to use legitimate production lines one day a week or month for the production of counterfeits.

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EUIPO 2017 is a situation report that establishes that organised criminal groups are involved in IPR crime. It also finds that EU-based criminal gangs involved in distributing counterfeit goods rely predominantly on manufacturers based abroad, but then organise importation, transportation, storage and distribution of the counterfeit goods within the EU. The majority of counterfeit goods come from China: the development of the Silk Road and the corresponding increasing use of rail and maritime transport between China and the EU support also new threats in the IPR crime landscape. 

The report also looks at the falsification of certification schemes such as organic, and the value of falsely labelled geographical indication products e.g. PDOs. Most commonly affected products are wine, spirits, cheese, meat, fruit, vegetables and cereals.

Read more details at: Headlines on Europol report on counterfeiting

Read the report at: EUIPO 2017 on counterfeiting

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