Intellectual property rights (IPR) remains fundamental to promoting creativity and innovation, playing a significant role in the EU’s economy and accounting for almost 50% of the EU's GDP and almost 40% of employment. However, counterfeit products threaten not only economic stability but also pose a risk to consumer safety, public health, and the environment.
In 2019 alone, counterfeit products infiltrated nearly 6% of all EU imports, reaching a staggering €119 billion in value, leading to the loss of 650 000 direct jobs. SMEs are particularly vulnerable in this landscape, facing a 34% lower survival rate than larger companies when affected by IPR violations.
The recommendation on measures to combat counterfeiting and enhance the enforcement of IPR, known as the toolbox against counterfeiting, is a strategic initiative designed to address these challenges, including piracy, with tools and recommendations directed to EU countries and economic operators in the EU. The recommendation focuses on 5 main areas.
- urging stakeholders to intensify cooperation by designating a single contact point for IP enforcement, using secure communication tools, such as the IP Enforcement Portal, and boosting the role of market surveillance authorities in countering counterfeiting
- encouraging signatories of the MoU on the sale of counterfeit goods on the internet to apply for the status of trusted flaggers and participate in the modernisation of the MoU
- recommending best practices for social media services, transport and logistic services, payment service providers and domain name providers to prevent misuse of their services, e.g. by calling on EU TLD registries to extend the existing information and alert system to cover geographical indications
- addressing the differences in criminal penalties for IP infringements among EU countries and recommending measures to streamline IP enforcement procedures, using dynamic injunction and alternative dispute resolutions to make it more efficient and impactful
- recommending a faster, cheaper, and more ecological storage and destruction of IP-infringing goods
- promoting and adopting innovative solutions such as blockchain to enhance supply chain traceability and the digital product passport
- employing content recognition systems to detect counterfeit and pirated goods, while also exploring effective methods to protect IPR in virtual worlds
- introducing the SME Fund for IPR enforcement and the Cybertheft Prevention Toolkit to help SMEs protect their IP rights and combat cyber threats to safeguard innovations
- raising awareness and providing education on IPR to all relevant actors from enforcement authorities to consumers and young innovators by integrating IP education into national curricula to cultivate a more informed and aware public society
- encouraging EU businesses to consult available information on the business and legal environment before engaging in activities abroad (e.g. Counterfeit and Piracy Watch List)
- promoting the Code of Conduct for Clean Free Trade Zones annexed to the OECD Recommendation on Countering Illicit Trade among EU operators