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How do Toy industries react about the problem of counterfeiting & product piracy?

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  1. Executive summary.
    1. The counterfeiting industry.
  2. Counterfeiting.
    1. Definition and terminology.
    2. Geographical origin.
    3. Price and quality.
  3. The economic and social impact.
    1. The role of the authorities.
    2. The loss to industry.
    3. The danger for the consumer.
  4. Initiatives.
    1. Combat organisations.
    2. Anti-counterfeiting technologies.
    3. International initiatives.
  5. Recommendations.
    1. Legal aspects.
    2. Technical aspects.
  6. Bibliography.

The fight against counterfeiting is a battle which requires an approach on many levels.
It is estimated that counterfeit toys account for 12 per cent of the European toy market.
Counterfeiting is a danger for the health of the consumer whose undermines industries and makes criminal organisations more prosperous. Counterfeiting products can compromise the safety of children. The EU's legal framework was enforced and various industries joined their forces.
To ensure that the fight against counterfeiting and piracy remains a political priority in the EU. Toy industries have to alert decision makers and consumers to encourage all players to take action.
Competition is positive within any industry as long as all players compete fairly. Counterfeiting is a serious threat, it is controversial and it is actually difficult to estimate cost. We can say that the figures are simply alarming. The trade in counterfeit products accounts for approximately seven percent of global trade. In Europe the European commission has estimated the total number of jobs lost around 200; 000.Toy manufacturers constantly research and develop new kinds of toys to provide the highest quality product and a positive experience for child development. Counterfeit products may contain small parts, toxic substances and hazardous materials which contravene all safety standards, we have seen a lot of examples those last months.

[...] The direct costs of counterfeiting are largely borne by the legitimate industries that make and distribute the original products. Using a traditional measure of the cost of counterfeiting, in 2002 the toy industry lost gross sales of about 677 million euros to counterfeit products. The economic impact Industry world-wide loses large amounts to counterfeiters. These losses not only affect the producers of genuine items, but they also involve social costs. The ultimate victims of unfair competition are the consumers. They receive poor quality goods at an excessive price and are sometimes exposed to health and safety dangers. [...]


[...] It often happens that the design of the product is copied and sold under a similar, but not identical, trademark. This is harder to combat for the trademark owners, especially in Asia where design protection is not as strong as trademark protection. The danger for the consumer Counterfeiting of toys cause financial losses but, more importantly, it involves serious health and safety risks to children. The great danger is that counterfeit copies of products may not comply with safety standards and can cause injuries and death. [...]


[...] 1st Part: The counterfeiting Industry Counterfeiting For beginning, the term ?counterfeiting? is used in this report, in its broadest sense and encompasses any manufacturing product which imitates the appearance of the product of another to mislead a consumer that it is the product of another. It may include trademark infringing goods or copyright infringements. This term also includes copying of packaging, labelling and any another significant features of a product or a trademark. It is very hard to obtain reliable statistics on counterfeiting because it is a clandestine activity. [...]

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