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10.6.2021 6 NEWS Consumers are facing more risks than ever due to fake products ACCORDING to the study European Citizens and Intellectual Property (IP) carried out by the European Union Intel- lectual Property Office, consumers still find it hard to distinguish between gen- uine and fake goods. Nearly one in 10 Europeans (9%) claimed that they were misled into buy- ing counterfeits, with significant differ- ences among EU Member States. e countries with a higher proportion of misled consumers are Bulgaria (19%), Romania (16%) and Hungary (15%). In contrast, Sweden (2%) and Denmark (3%) have the lowest figures within the EU. Malta is slightly above the EU average with 11% of consumers claiming they were misled into buying counterfeit goods. In a global context where e-commerce is booming – over 70% of Europeans shopped online in 2020, according to Eu- rostat – uncertainty regarding counter- feit products remains a concern among EU citizens. According to the study, a third of Europeans (33%) wondered whether a product they had bought was original. Counterfeits represent 6.8% of EU im- ports worth €121 billion, according to a joint study by the EUIPO and the OECD, and they impact every sector: from cos- metics and toys, wine and beverages, electronics, to clothing and even pesti- cides. ey can pose serious health and safety risks to consumers, notably due to exposure to hazardous chemicals as well as other dangers. Concern over counterfeit products has risen during the COVID-19 pan- demic. e proliferation of counter- feit medicines, such as antibiotics and painkillers, and other medical products more recently, such as personal protec- tive equipment and face masks, has put the spotlight on this phenomenon as infringers prey on people's uncertainty about emerging treatment and vaccines. In addition to the health and safety risks, counterfeits often lead to security breaches and financial losses. Digital piracy is also a lucrative market for infringers. In the case of IPTV – tele- vised content acquired through an inter- net connection – losses are significant. Providers of illegal IPTV gain almost €1 billion euro every year in the EU, harm- ing content creators and legitimate busi- nesses. IP crime is a profitable activity in- volving organised crime groups and in- creased evidence shows links between counterfeiting and piracy as well as other crimes such as drug and human traffick- ing, cybercrime or fraud. e Executive Director of the EUIPO, Christian Archambeau, said intellectual property is one of Europe's most valuable assets, and a key element in its social and economic recovery, especially for small businesses. "e COVID-19 pandemic has put the problem of IP crime under a magnifying lens with the rise of counter- feit medicines and medical products that further threaten the health and safety of citizens," he said. "is is a long-standing issue, often interlinked with other types of illegal activities, which requires ur- gent robust, coordinated action and has recently been reinstated as one of the top ten EU priorities in the fight against or- ganised crime." SMEs and IPR infringement Counterfeiting not only affects con- sumers but also entails significant dam- age to the EU economy and, in particular, to small and medium-sized enterprises (SMEs). According to the IP SME score- board published by the EUIPO, 1 out of 4 SMEs in Europe claims to have suffered from IP infringement, but Maltese SMEs recorded none Companies owning IP rights such as trade marks or patents reported loss of turnover (33%), damage to their reputa- tion (27%) and loss of competitive edge (15%) due to infringement of their rights. Today less than 9% of all SMEs in the EU own registered IP rights. But for those that do IP makes a big difference: SMEs that own IPRs, such as patents, designs or trade marks, have a 68% higher revenue per employee than those that do not and their employees earn higher wages. To raise awareness on the value of IP and help SMEs leverage their compet- itiveness in the marketplace, the EUI- PO has launched the Ideas Powered for Business programme, including a €20 million SME Fund, in cooperation with the European Commission and Member States' Intellectual Property Offices. is initiative subsidises both IP assessment services and 50% of trade mark and de- sign applications fees at national, region- al or EU level, and it is helping thousands of SMEs develop their IP strategies in these challenging times. Think you have ever bought something fake? www.euipo.europa.eu Watch out and protect yourself from fakes and pirated content! € 121 billion of fake goods are making their way into the EU every year 1 in 10 Europeans have been tricked into buying counterfeit goods fakes and piracy are everywhere COVID-19 has shown us Millions of fake face masks and other personal protection equipment have been seized across the EU When you buy online, remember to: Remember, genuine COVID-19 vaccines are not sold online Always use trusted sites Check for recent and authentic reviews Look for http 's' to check the site is secure Look for reliable payment methods Beware of anything that looks suspicious If the price is too good to be true - it probably is ? fake product online or access pirated digital content: You're risking your health and safety You're funding organised crime You're putting your money and personal details at risk Is it worth it? If you buy a • 11% of Maltese consumers have been misled into buying a counterfeit product • 6.8% of EU imports – worth €121 billion – are counterfeits • €4 billion worth of counterfeit pharmaceuticals are traded worldwide

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