Value of counterfeit products to touch $1.78 trn in 2015

The value of counterfeit and pirated products sold worldwide is expected to grow to as much as $1.78 trillion in 2015 and is likely to hurt foreign direct investment (FDI) and tax collections in many G-20 countries, including India, says a report.

The total worth of counterfeit and pirated products is likely to be $1.22-1.77 trillion in 2015, much higher than the 2008 estimate of just $455-650 billion, according to the study by Business Action to Stop Counterfeiting and Piracy (BASCAP).

"... A number of G-20 economies may be missing out on higher FDI as a result of concerns over IPR (Intellectual Property Rights) enforcement. The lost investment could give rise to additional tax losses of more than $6.25 billion across the G-20," the study noted.

International trade in counterfeit and pirated products is alone projected to be worth between $770-960 billion by 2015.

Product counterfeiting and piracy is estimated to cost G-20 governments and consumers more than $125 billion every year. India is a part of the G-20, an influential grouping of developed and developing countries.

The G-20 economies lose approximately $77.5 billion in tax revenues and higher welfare spending, $25 billion on increased costs related to the crime and $18.1 billion on the economic cost of deaths resulting from product counterfeiting, among other things, it added.

The report was released at the Global Congress on Combating Counterfeiting & Piracy.

According to experts, there should be increased cooperation between governments and law enforcement agencies to fight the menace of rising product piracy and counterfeiting.