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Product piracy is threatening small- and medium-sized companies: EU

Product piracy is threatening small- and medium-sized companies: EU

MADRID: Trade in counterfeit goods and pirated copies is increasingly causing problems for small and medium-sized businesses, with some unable to survive, according to a European Union watchdog. Intellectual property rights violations reduce the survival chances of smaller and mid-sized businesses by 34 per cent, according to a study published Tuesday by the EU Intellectual Property Office (EUIPO) and the Organisation for Economic Co-operation and Development (OECD). These companies often lack the capacity to take action against counterfeiters, and can be ruined by the loss of sales, reputational damage and the loss of competitive advantage, the study found. German news agency dpa reported suppliers of electrical machinery and electronics, apparel and fashion goods, perfumery goods and cosmetics, and toys and games are the most affected. Most of these counterfeit goods come mainly by mail from China and Hong Kong. These counterfeit goods are often inferior and pose a risk to consumer

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