News Release
New Method for Estimating Costs of Counterfeiting Presented
Sep 27, 2012
Development of a new approach to estimating the impact of infringements on sales
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Trends of globalisation, the integration of markets and the rise of the Internet economy have made that violations of intellectual property rights (IPRs), such as counterfeiting or Internet piracy, have become more widespread. While there is no shortage of estimates of the scale and impacts of these infringements, there is little consensus on their accuracy or reliability. In absence of a robust evidence base, it is difficult to debate the effectiveness of government efforts to regulate IPRs or address the impacts of infringements.
This study was set up to assist the European Commission in the development of a methodology that would quantify the scope, scale and impact of IPR infringements on the European economy. In this report we offer the ‘building blocks' for such a methodology that strives to be consistent, robust, feasible and reliable in measuring the scale of this phenomenon.
Based on an extensive review of the literature, we propose a methodology for measuring trends of the lost revenues due to IPR infringements in markets of counterfeited products. While the methodology presents a promising approach to the problem, a number challenges remain and it needs further testing. The report offers a number of suggestions for next steps to take this approach to the next level.
Chapter One
Introduction
Chapter Two
Defining IPRs and their infringement
Chapter Three
The drivers, scale and impacts of IPR infringements
Chapter Four
What existing methods can teach us
Chapter Five
Testing a new approach for estimating the scale of IPR infringements
Chapter Six
The challenges of measuring IPR infringements
Chapter Seven
Applicability of the model to unauthorised use of protected content
Chapter Eight
Next steps towards measuring IPR infringements
Appendix A
A detailed review of approaches to measure IPR infringements
Appendix B
Non-technical description of a new method to measure IPR infringements
Appendix C
Road map for implementing additional pilots of the RAND Model
The research described in this report was prepared for the European Commission, Internal Market and Services Directorate-General and conducted by RAND Europe.
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