Product piracy report 2024 shows: Counterfeiting now affects almost all product categories
Customs seized counterfeit goods with an original value of over 38 million euros
In 2024, customs detected 6,327 cases of product piracy in Austria and initiated 9,974 procedures as a result. In terms of original price, this is the second-highest figure since records began. In addition, 378,109 counterfeit and other illegal medicines were withdrawn from circulation. While clothing, bags and shoes used to be counterfeited in the past, counterfeit goods now include various everyday appliances, medicines, jewellery and even car parts.
State Secretary Barbara Eibinger-Miedl: "Brand and product piracy causes considerable damage to domestic retailers and manufacturers. Last year alone, our customs officers seized a total of around 129,000 counterfeit articles with a total value of original goods of more than 38 million euros. The protection of intellectual property is a cornerstone of our Austrian innovative strength and economic power - two factors that are essential for our business location, especially in economically challenging times. In addition, the health of consumers can be jeopardised by inferior counterfeit goods, especially in the area of medicines. I would therefore like to thank all customs officers for their professional commitment."
Current figures also underline the importance of the fight against product piracy: IPR-intensive economic sectors create 29.8% of all jobs in Austria, or more than 1.2 million employees. These economic sectors account for 44.2 % of GDP. According to studies by the OECD and the EU Intellectual Property Office, product counterfeiting continues to rise, as does the smuggling of such products.
Customs expert Bernhard Herics warns against ordering counterfeit articles that are supposed bargains: "Inferior and counterfeit goods can be hazardous to health or even life-threatening due to inferior quality and harmful materials, while also posing a threat to the environment. Customs has the important task of stopping the import of products suspected of being counterfeit. Every year, countless new products are added that are counterfeit, for example detergents. Customs therefore always remains vigilant and has its finger on the pulse."
Counterfeit products threaten the health of consumers
Consumers can be deceived by counterfeit products and are sometimes exposed to risks to their health and safety. 97% of the dangerous counterfeit goods identified were categorised as posing a serious risk. The causes of the identified hazards ranged from poorly designed products, the use of inferior materials and components to a lack of understanding of regulations or safety mechanisms.
Priority checks by customs show effect
The successes of customs are mainly due to regular priority checks on postal traffic with a focus on online trade and increased controls at Vienna Airport. Most of the seizures concern clothing, shoes, bags and jewellery, but also mobile phones including accessories and toys. The counterfeit goods seized in Austria were mainly dispatched from Asia and most of them are likely to have been manufactured there.
Internet orders for counterfeit medicines continue to gain ground
Counterfeit and illegal medicines that are ordered or smuggled in by private individuals at a distance (e.g. via the Internet) in contravention of the ban under the Austrian Medicinal Products Import Act continue to be a cause for concern. Counterfeit and illegal medicines not only cause economic damage to the pharmaceutical industry, but also pose a considerable risk to public health, as they are often not prepared in accordance with the relevant formulations and may contain dangerous ingredients.
In 2024, 7,147 consignments containing a total of 378,109 counterfeit and other illegal medicines were seized in Austria. This is a 6% increase in seizures compared to 2023, although the number of medicines decreased.
Exceptional product piracy incidents
At the end of May 2024, customs officers at Vienna Airport were able to remove counterfeit branded products from circulation twice within a week. During the inspection of an air freight consignment on 21 May 2024, the employees of the Austrian Customs Office became aware of a consignment from China. A total of 443 car accessories, 73 hairdryers, 2,531 mobile phone covers and 2,502 wheel logos from various car brands were seized in the 29 boxes. The consignment was seized and the rights holders notified.
A second major seizure was made on 27 May 2024 with the discovery of 382 pieces of presumably counterfeit branded products in a consignment from the USA. The consignment was subjected to a detailed customs inspection due to a hit in the risk analysis. The seized goods included 4 iPhones, 54 notebooks, 81 pairs of earphones, 16 SAT receivers, 33 smartwatches, 188 tablet PCs, 4 pieces of packaging material and 2 pieces of accessories. The consignment was seized and the brand owners were informed.
On 9 July 2024, a container was subjected to a customs inspection in Hall in Tyrol. As part of international cooperation, almost 600 boxes were checked and over 36,000 pieces of counterfeit shoes, sports jerseys and various other items of seizure were confiscated and subsequently destroyed. The goods were to be sent by train from Turkey to France.
During another risk-based special inspection at the customs warehouse at Vienna Airport, three consignments from Bangkok to Vienna were checked. The contents of the parcels with a total weight of 3.3 tonnes consisted mainly of product piracy goods. In the process, 13,608 counterfeit articles such as shoes, sunglasses, handbags and various other items of clothing belonging to 54 different rights holders were seized and withdrawn from circulation. The consignments were to be sent to London after a stopover in Vienna.
In September 2024, a container of detergent was checked during a special inspection at the port of Vienna. The consignment came from Turkey and was destined for a wholesaler in Germany. During the inspection, the suspicion arose that the goods could be counterfeit and the brand owners were contacted for clarification, who confirmed the suspicion. The largest part of the consignment (21 pallets weighing approx. 16,300 kg) was destroyed under customs supervision after a procedure was initiated. For the smaller part of the consignment, the rights holder decided to take civil action against the importer in Germany on the basis of trade mark law. This was to ensure that these products could not be sold on the market.
This product piracy bust was indeed a speciality, as it differs from typical counterfeit products such as handbags, shoes, clothing or watches due to the nature of the products. However, the use of counterfeit detergents is a cause for concern, as it cannot be ruled out that they also contain substances that are harmful to the environment or to health. This can have serious consequences, as clothing is worn directly on the skin. This case illustrates that all product groups that can be sold profitably are potential targets for product piracy.
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