The developed world is becoming increasingly serious about intellectual property rights and is trying to find out more effective ways to combat what in their eyes has become a costly menace. A recent OECD sponsored report estimated that the international trade in counterfeit and pirated products was $200 billion in 2005.

This total does not include domestically produced and consumed counterfeit and pirated products and a significant volume of pirated digital products being distributed via the Internet. If these items were added, the total magnitude of counterfeiting and piracy worldwide could well be several hundred billion dollars more.

The report shows that the items that they and other counterfeiters and pirates produce and distribute are often sub-standard and can even be dangerous, posing health and safety risks.

The report analyses the structure of the markets for counterfeit and pirated products; the analysis highlights the importance of distinguishing those consumers who knowingly purchase counterfeit or pirated products, from those who are deceived; assesses the scope of products being counterfeited and pirated; examines the principal factors driving production and consumption.

It also estimates the potential magnitude of counterfeited and pirated goods in international trade, based on a new econometric model; establishes and applies a 17-point framework for assessing the effects of counterfeiting and piracy economy-wide, as well as on rights’ holders, consumers and governments; presents a framework for assessing the effectiveness of the policies and related initiatives being pursued to combat counterfeiting and piracy; describes and evaluates the main national and international initiatives being taken by governments and business to combat counterfeiting and piracy; examines in detail the situation in the audio-visual, automotive, electrical components, food and drink, pharmaceutical and tobacco sectors;

The report outlines ways that information and analysis on counterfeiting and piracy could be strengthened; and suggests areas where policies and practices to combat counterfeiting and piracy could be strengthened.

The report suggests ways to develop information and analysis, and calls on governments to consider strengthening legal and regulatory frameworks, enhance enforcement and deepen the evaluation of policies, programmes and practices.

The market for counterfeit and pirated products can be divided into two important sub-markets. In the primary market, consumers purchase counterfeit and pirated products believing they have purchased genuine articles.

In the secondary market, consumers looking for what they believe to be bargains knowingly buy counterfeit and pirated products. The policies and measures to combat counterfeiting and piracy in the two markets differ; it is therefore important to know how much of a threat each poses when considering product-specific strategies.

The study identifies a number of factors that are important to understanding why some products are counterfeited or pirated more frequently than others, and why counterfeiting and piracy are more common in certain parts of the world than others. The factors provide a framework for assessing the propensity of a product to be counterfeited or pirated, which can be used to guide quantitative research.

The study shows that counterfeit and pirated products are being produced and consumed in virtually all economies, with Asia emerging as the single largest producing region. In recent years, there has been an alarming expansion of the types of products being infringed, from luxury items (such as deluxe watches and designer clothing), to items that have an impact on personal health and safety (such as pharmaceutical products, food and drink, medical equipment, personal care items, toys, tobacco and automotive parts).

The report presents an eight-point framework for assessing the effectiveness of policies and measures to combat counterfeiting and piracy, and describes the situation for 12 different economies (Brazil, Canada, China, France, India, Israel, Italy, Japan, Korea, Switzerland, Chinese Taipei and the United Kingdom).

The analysis indicates that the economies examined appear to have mechanisms in place to combat counterfeiting and piracy and that, in most cases, those mechanisms meet the basic obligations contained in the World Trade Organisation’s Agreement on Trade Related Aspects of Intellectual Property (i.e., TRIPS). Within this framework, there has been a general tendency for economies to strengthen civil and criminal sanctions in recent years. In practice, however, enforcement is still viewed by many as inadequate.

At the national governmental level, two of the principal challenges in combating counterfeiting and piracy are to: (i) find ways to enhance enforcement and (ii) raise awareness of counterfeiting and piracy issues.

More needs to be done to detect and undermine counterfeiting and piracy at the point where infringement originates. Actions are also required to keep the Internet from becoming an even more prominent distribution channel for counterfeit and pirated products.

Multilaterally, ways to strengthen the existing framework and practices could be explored. Suggestions mentioned in this regard include strengthening civil and criminal remedies to more effectively redress the harm caused to rights holders, expanding border measures and increasing information disclosure. Furthermore at the governmental level, co-operation with industry and among governments could be strengthened.

The report has given a long list of items that are prone to counterfeiting and piracy: automotive scooters, engines, engine parts, body panels, air bags, windscreens, tires, bearings, shock absorbers, suspension and steering components, automatic belt tensioners, spark plugs, disc brake pads, clutch plates, oil, filters, oil pumps, water pumps, chassis parts, engine components, lighting products, belts, hoses, wiper blades, grilles, gasket materials, rings, interior trim, brake fluid, sealing products, wheels, hubs, anti-freeze, windshield wiper fluid. chemicals/pesticides Insecticides, herbicides, fungicides, non-stick coatings.

Consumer electronics, computer components (monitors, casing, hard drives), computer equipment, webcams, remote control devices, mobile phones, TVs, CD and DVD players, loudspeakers, cameras, headsets, USB adaptors, shavers, hair dryers, irons, mixers, blenders, pressure cookers, kettles, deep fryers, lighting appliances, smoke detectors, clocks. Electrical components. Components used in power distribution and transformers, switchgears, motors and generators, gas, and hydraulic turbines and turbine generator sets, relays, contacts, timers, circuit breakers, fuses, switchgears, distribution boards and wiring accessories, batteries.

Food, drink and agricultural products. Fruit (kiwis), conserved vegetables, milk powder, butter, ghee, baby food, instant coffee, alcohol, drinks, candy/sweets, hi-breed corn seeds personal accessories. Watches, jewellery, glasses, luggage, handbags, leather articles. Pharmaceuticals/medicines used for treating cancer, HIV, malaria, osteoporosis, diabetes, hypertension, cholesterol, cardiovascular disease, obesity, infectious diseases,

Alzheimer's disease, prostate disease, erectile dysfunction, asthma and fungal infections; antibiotics, anti-psychotic products, steroids, anti-inflammatory tablets, pain killers, cough medicines, hormones, and vitamins, treatments for hair and weight loss.

Tobacco cigarettes, cigars, and snuff. Toiletry and other household products. Home and personal care products, including shampoos, detergents, fine fragrances, perfumes, feminine protection products, skin care products, deodorants, toothpaste, dental care products, shaving systems, razor blades; shoe polish; non-prescription medicine.

Other toys, games, furniture, sporting goods (such as basket balls and golf clubs), stickers, dyed and printed exotic fabrics, belt buckles, decals, flags, lighters, tabletops, flowers, plant cuttings, qualification certificates, abrasive tools, sanitary products (bath tubs, wash basins, toilets), tableware (plates, bowls, cups).