One in four small and medium-sized enterprises (SMEs) have suffered from intellectual property infringement, a major study has revealed.
The research, published by the European Union Intellectual Property Office (EUIPO), shows that counterfeiting is rampant across the single market, and by extension, the UK.
According to the report, around a quarter of small businesses in the EU – and around 18 per cent of firms in Ireland – have been negatively impacted by counterfeiting and digital piracy in one or more ways.
The paper shows that a third of companies (33 per cent) whose intellectual property has been infringed upon have lost turnover as a result, while over a quarter (27 per cent) report damage to their reputation.
A further 15 per cent say counterfeiting has reduced their “competitive edge”.
A separate report, published earlier this year by the EUIPO, also found that nearly one in 10 (nine per cent) Europeans had been misled into buying counterfeit products.
It means that 6.8 per cent of all EU imports – worth approximately €121 billion – are not genuine products.
Commenting on the findings, Executive Director of the EUIPO, Christian Archambeau, said: “Intellectual property is one of Europe’s most valuable assets, and a key element in our social and economic recovery, especially for small businesses.
“The COVID-19 pandemic has put the problem of IP crime under a magnifying lens with the rise of counterfeit medicines and medical products that further threaten the health and safety of citizens.
“This is a long-standing issue, often interlinked with other types of illegal activities, which requires urgent robust, coordinated action and has recently been reinstated as one of the top ten EU priorities in the fight against organised crime.”
The research also reveals that less than nine per cent of all SMEs own registered intellectual property rights, but those that do have a 68 per cent higher revenue per employee and their employees earn higher wages.
For help and advice with related matters, please get in touch with our intellectual property team today.