Report Shows 2.5 Percent of Global Trade is Counterfeit
We've discussed specific instances of counterfeiting before, like the ongoing issues at Alibaba, counterfeit sports merchandise and more. Now, according to a study by the International AntiCounterfeiting Coalition, we know that approximately 2.5 percent of the global trade (of everything) is counterfeit. That's a range of between $461 billion to as high as $1.8 trillion in merchandise.
While a fake handbag or jacket probably won't cause any physical harm to anyone, other products, such as electronics or hardware, could.
"Many people believe piracy is limited to handbags and other similar products, but the more serious issue is industrial companies," Ann-Charlote Soederlund, co-founder of the Global Anti-Counterfeiting Network, told Bloomberg. "The effects can be immensely larger than the consequence of a fake handbag."
Those numbers aren't difficult to believe, if you look back at previous seizures we've reported on. At this year's Super Bowl, officials nabbed approximately $39 million in items. Merchandisers at the 2016 Rio Olympics had to create lower-quality apparel to deter others from creating knock-off merchandise.