Around £800m worth of counterfeit goods pass through online shopping and
auction sites in the UK each year, new research has claimed.
Figures compiled by legal services firm DLA Piper and online intellectual
property specialists ComSec International suggest that 'e-fencing' has doubled
over the past three years.
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DLA Piper said that an estimated £5 of every £100 spent at auction sites goes
on counterfeit items.
Products most at risk include fashion and cosmetic items, something online
auction giant eBay has become familiar with
in
recent weeks.
The research also warned that auction sites are a second home for 'grey
market' trading, in particular the sale of imported consumer electronics, motor
equipment and sports goods at highly inflated prices.
"Counterfeit goods dilute the value of brands, undermine the integrity of
auction sites and cost the UK economy millions of pounds in lost income," said
Simon Levine, joint global head of DLA Piper's technology, media and commercial
group.
Counterfeit goods ultimately cost the UK economy millions of pounds in lost income
Simon Levine DLA Piper
"But this is not just about protecting brand owners; it is for the consumer's
benefit also.
"If you invest your trust and money in a brand you want to know you're
getting the real thing, whether that's make-up and cosmetics or domestic
appliances and children's toys."
Responsibility for dealing with this problem does not lie solely with the
websites, according to DLA Piper, but must be carried by consumers and copyright
owners as well.
James Ramm, director of ComSec International, said: "E-fencing poses a
significant threat to brands and is a false economy for buyers.
"We use the very latest software to track the infringement of brands online
by scanning image and text descriptions, but our data is still only the tip of
the iceberg.
"The full extent of counterfeit trading online may never be known and will
continue to thrive unless consumers, brands and the sites in question take
action against illegal traders."
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