Pirated, counterfeit products value to touch $1.78 tn in 2015

Manoj Rammohan

Paris, Feb 3 (PTI) The value of counterfeit and piratedproducts sold worldwide is expected to grow to as much as USD1.78 trillion in 2015 and is likely to hurt foreign directinvestment (FDI) and tax collections in many G-20 countries,including India, says a report.

The total worth of counterfeit and pirated products islikely to be USD 1.22-1.77 trillion in 2015, much higher thanthe 2008 estimate of just USD 455-650 billion, according tothe study by Business Action to Stop Counterfeiting and Piracy(BASCAP).

"... A number of G-20 economies may be missing out onhigher FDI as a result of concerns over IPR (IntellectualProperty Rights) enforcement. The lost investment could giverise to additional tax losses of more than USD 6.25 billionacross the G-20," the study noted.

International trade in counterfeit and pirated productsis alone projected to be worth between USD 770-960 billion by2015.

Product counterfeiting and piracy is estimated to costG-20 governments and consumers more than USD 125 billion everyyear. India is a part of the G-20, an influential grouping ofdeveloped and developing countries.

The G-20 economies lose approximately USD 77.5 billion intax revenues and higher welfare spending, USD 25 billion onincreased costs related to the crime and USD 18.1 billion onthe economic cost of deaths resulting from productcounterfeiting, among other things, it added.

The report was released at the Global Congress onCombating Counterfeiting