Counterfeit Design-Based Goods: Huge Losses in Hungary

Industries based on design are particularly vulnerable to counterfeiting: according to estimates, the fashion and apparel sector suffers annual losses of EUR 12 billion due to counterfeiting, while the handbag and jewelry sectors suffer losses of EUR 2.7 billion. In Hungary alone, counterfeit goods cause more than EUR 160 million in losses in design-based industries, the European Union Intellectual Property Office (EUIPO) told MTI.

According to the statement, as design is becoming an increasingly important factor in consumer decisions, the risk of counterfeiting is also growing among European creators and businesses.

Based on a new EU-wide survey, 72% of European consumers – and 80% of those aged 18-24 – consider product design important when deciding what to buy. Looking at individual sectors, the survey found that design is particularly significant in the furniture and fashion industries.

They pointed out that the protection of design rights helps combat counterfeits and unauthorized copies and strengthens the EU’s competitiveness in the international market.

According to the report, the spread of counterfeit goods that mimic the appearance of original products is growing due to the rise of e-commerce and the influence of social media. About 13% of Europeans say they have intentionally purchased a counterfeit product; and this figure has already reached 26% among younger consumers aged 15-24.

They emphasized that, beyond the economic impact, counterfeit products can also pose serious health and safety risks to consumers and the environment, as they often fail to meet safety and quality standards. Furthermore, research also suggests a link between the trade in counterfeit goods and organized criminal networks, and in some cases, labor exploitation.

The European Union Intellectual Property Office established in 1994, manages the registration of European Union trademarks, design rights, and geographical indications for artisanal and industrial products; these are all intellectual property rights that extend to all 27 EU member states.