The OHIM office stated in a new report that Spanish companies are the ones which suffer most illegal activity in EU. In Alicante, the cosmetic sector and loses each year 4,700 million in counterfeit, the 7.8% of total sales, according to a study by the Office for Harmonization in the Internal Market (OHIM) released yesterday. The most copied products include perfumes, makeup and toiletries as well as sunscreen and shampoo, which cause losses not only for manufacturers but also for the retailers and distributors.
Furthermore, OHIM has estimated 50,000 jobs lost by counterfeits “because the producers, traders and outlets that sale the original products employ fewer workers”, according to the statement of the organism. The data were obtained by the Office for Harmonization in the Internal Market through the European Observatory on Infringements of Intellectual Property Rights. “The role of the Observatory is to analyze, understand and disseminate the value of the rights of Intellectual Property, and its breaches” he said. The study also determined that, when taking into account the effects on other providers, companies in the cosmetic and personal care industry lost 9,500 million euros of sales revenue due to counterfeiting, and the loss of jobs rise to 80,000.
Moreover, income from government is reduced by 1,700 million euros because of counterfeit, because the producers of those counterfeit goods cease to pay income taxes, social security contributions and VAT. Spain loses annually 17.1% of industry sales, resulting in absolute terms in the biggest impact for the business sector in the EU (949 million euros).