Over €2.3 billion per year are lost in the EU as a result of fake toys and games, according to a report published by the Office for Harmonization in the Internal Market (OHIM) today.
The direct impact for the toy industry itself is considerable, at a cost of €1.4 billion, and an estimated loss of 6,150 jobs. The findings of the report highlight how important it is to make sure intellectual property rights (IPR) are protected and well enforced. This is especially true for the small and medium sized enterprises (SMEs) who represent 99% of the sector, and who often do not have sufficient resources to take action against infringement.
A further concern for the industry is the threat that counterfeit toys can pose to children’s safety. As well as stealing intellectual property, unethical companies may also look to cut costs in other ways, and pay little or no attention to the important EU standards that are in place to keep toys safe.
The full report can be found here.