Aspects concerning counterfeiting and piracy in the European Union

• Author: Gabor, S.
• Position: Phd. Student, Faculty of Economics, Lucian Blaga Universityof Sibiu
• Pages: 197-204

Bulletin of the Transilvania University of Braşov • Vol. 5 (54) •No. 1 - 2012

Series V: Economic Sciences

ASPECTS CONCERNING

COUNTERFEITING AND PIRACY IN

THE EUROPEAN UNION

Simona GABOR1

Abstract: The global problem of counterfeiting and piracy has increased in

European Union though there are special laws defending Intellectual

Properties Rights. The aim of this paper is to point out the aspects on the

topic of counterfeiting and piracy inside the European Union Single Market.

Analysing the information gathered, we can conclude that there are evident

facts of growing and increasingly dangerous phenomena in the European

Union, with significant impact on the economic and social sectors. European

Commission is the one that identifies strategies and effective practices to help

rightful owners protect their Intellectual Property Rights.

Key words: intellectual property rights, counterfeit, piracy, European

Union.

1 Phd. Student, Faculty of Economics, Lucian Blaga Universityof Sibiu.

1. Introduction

“The intellectual efforts create new

technologies, describe new ways of doing

things, develop new products and services,

and expand the cultural richness of society.

They result in intellectual assets, or pieces

of information, that may have economic

value if put into use in the marketplace”

claims Maskus K. in his study “Intellectual

Property Rights in the Global Economy”.

A substantial threat to creators and

various industries is considered to be trade

in counterfeit goods. The increasing

number of counterfeit goods and the

counterfeit goods themselves are a real

danger to everyone. There are counterfeit

articles in every sector, including the fast-

moving consumer goods, pharmaceutical,

and automotive industries.

Chuchinprakarn S. points in his study

“Consumption of Counterfeit Goods in

Thailand: Who Are the Patrons?” that

counterfeiting is a profitable industry.

Furthermore, it is the production of copies

that have identical packages, trademarks,

and labels as the genuine products but use

low quality materials in the production

process. Even though counterfeit goods are

affordable, they may be harmful to the

public due to the inferior quality of

materials.

Even if governments and management

have visibly identified the problem, not

very much is known – equally in practice

and theory – concerning the mechanisms

and structure of the illegal market, the

course of action of counterfeit producers,

consumer behaviour with respect to

replication products and the economic

impact on individual companies. The

variety of the counterfeit trend underlines

the call for further research in this area and