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image The economic cost of IPR infringement in toys and games

The economic cost of IPR infringement in toys and games

The new report released by the European Observatory on Infringements of Intellectual Property Rights reveals that each year toys and games manufacturers across the EU lose approximately €1.4 billion due to counterfeiting, representing 12.3% of sales in this sector. Those lost sales translate into 6,150 jobs.

The toys and games manufacturing sector in the EU is largely made up of small and medium enterprises (SMEs), employing, on average, around 10 workers per firm. When the direct and indirect effects of counterfeiting in the toys and games manufacturing sector are taken into account, €370 million in government revenue is lost across the EU (lost VAT, income tax, social security contributions and tax on company profits).

Germany (the largest producer of games and toys in the EU) and United Kingdom, are the two countries with the highest absolute impact in sales and jobs lost.

The report covers the manufacture of products like dolls, action figures, stuffed animals, board games, toy musical instruments, model trains and puzzles. It does not include video games consoles, software for video games or bicycles.

The President of OHIM, António Campinos, said that this report aims to help policymakers in their work, by providing data and evidence-based studies, and to help consumers make more informed choices.

More information available at the Observatory website:

https://oami.europa.eu/ohimportal/en/web/observatory/ipr_infringement_toys_and_games
 

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