The Office for Harmonization in the Internal Market (OHMI) has come out with a fresh report on the economic cost of IPR infringement in the footwear, accessory and clothing sector. As per the report, the sector loses more than €26 billion in revenue every year. This in turn leads to approximately 500.000 job loss. For years, EURATEX (European Apparel and Textile Confederation), which represents the textile and clothing industry, has been alerting EU institutions and national authorities about counterfeiting and piracy in the sector. It has been making EU aware of the consequences of these factors on the entire European economy.

The OHMI’s report shows that the costs of IPR breach, which results in job losses, loss of profit and in some cases, closures of SMEs is very high. According to the report, 9.7 per cent sales are lost due to counterfeiting, €26.3 billion of revenue is lost per year, €17 billion of sales are lost in related sectors, 3,63,000 direct jobs are lost, while 5,18,281 direct and indirect jobs are lost and €8.1 billion of government revenue is lost.

EURATEX has urged the EU for some constructive action to tackle counterfeiting and piracy challenges that face the textiles and clothing industry.