VDMA study
7.3 billion euros in losses per year due to product piracy
The VDMA surveyed its members on the subject of product piracy. The result: the threat and the damage remain at a high level. However, Germany is not only a victim.
In its study, the German Engineering Federation (VDMA ) comes to the following conclusion: 70% of German companies are affected by product and brand piracy. However, it should be added that there has been a decline in the number of members as a whole and in absolute figures in recent years. The damage caused by product piracy amounted to EUR 7.3 billion in 2015, around EUR 600 million less than in 2013. The VDMA also calculates that a turnover in this amount of damage would secure almost 34,000 jobs in the industry. In addition to the financial damage, the loss of image, loss of market advantage and unjustified recourse claims are not to be underestimated for companies.
China as the biggest plagiarist
Following a decline in the last survey, the People's Republic of China has climbed to a new high of 83% of companies naming it as a country of manufacture. This is an increase of 11%. According to VDMA members, there are repeated reports of dealers and counterfeiters who continue to sell their counterfeits with only minor modifications despite legally binding judgments. The VDMA is therefore calling for measures against product piracy not only to be adopted, but also to be implemented with vigor. Incidentally, Germany ranks second among the countries of origin of counterfeit products. Motors and systems (92%), plastics and rubber machinery (92%) and textile machinery (91%) are the most counterfeited products.
Competitors are the biggest counterfeiters
At 76% (+5%), the competitor is named as the most frequent counterfeiter or customer. The customer as a counterfeiter is declining (-7% to 16%). Counterfeit components are the preferred choice (62%), followed by design plagiarism (47%). In contrast, the reproduction of entire machines has fallen by 10 percentage points to 41%.
An important question was where the counterfeiters obtain the know-how for the counterfeits. Reverse engineering (69%) is in first place. This involves copying an existing product by redesigning it. The outflow of know-how, for example through former employees, is reported by 32%. 13% of companies report industrial espionage. It is pleasing to note that the number of companies having to deal with unjustified complaints due to plagiarism has fallen by 4% to 22%.
Protective measures negligible?
When it comes to choosing a preventive measure against product piracy, more than 80% are still in favor of registering property rights. They rely on patents, trademarks, etc. However, around 87% of respondents complain about the inadequate support provided by foreign authorities and 81% complain about insufficient help at foreign trade fairs. The VDMA asked Messe Frankfurt for a statement on this as part of the study. In it, the trade fair company reaffirmed its "great interest in ensuring that its exhibitors can exhibit innovations without them being plagiarized. However, as the organizer of globally renowned brand events and as a service and marketing partner for our customers, we are also committed to neutrality. However, trade fair companies can contribute to offering our customers a fair business environment within the framework of legal certainty and industrial property protection. Messe Frankfurt has also launched the 'Messe Frankfurt against Copying' initiative, with the help of which it can show its customers options for action in the event of suspected plagiarism. However, it is up to the rights holder to assert their rights. For example, Messe Frankfurt recommends that its customers register trademarks and products with the relevant office in good time and bring appropriate evidence with them to events in order to be able to provide proof of any infringements of design protection. In plain language, this means that documenting existing rights at trade fair events is a prerequisite for customs or police intervention in the event of infringements. The full statement can be found in the study from page 33 onwards.
Technical protective measures are less popular, because either no corresponding measures are yet available or they are too expensive.













