The EUIPO has published a study on The Economic Cost of IPR Infringement in the Tyres and Batteries Sectors. This report shows that EUR 2.2 billion — corresponding to 7.5% of all sales in the tyre sector — are lost each year due to counterfeiting across the EU. In addition, the presence of counterfeit batteries in the EU market costs the legitimate industry EUR 180 million each year, which is equivalent to 1.8% of the sector’s sales. Counterfeit batteries mostly affect the vehicle sector but are also found in the mobile phone sector.

Main findings:

  • 7.5% of direct tyre sales lost each year
  • EUR 2.2 billion lost annually by the tyre sector
  • 1.8% of direct battery sales lost each year
  • EUR 180 million lost annually by the battery sector
  • Direct employment losses of 8 318 jobs (both sectors)
  • EUR 340 million in government revenue lost annually (taxes and social contributions: both sectors)

Those lost sales translate into approximately 8,400 jobs lost directly across the two sectors, as legitimate manufacturers employ fewer people than they would have done in the absence of counterfeiting. The total loss of government revenue as a result of counterfeit tyres and batteries in terms of lost taxes amounts to EUR 340 million.

  Lost Sales % Lost Sales (million EURO ) Lost Sales % Lost Sales (million EURO )
IRELAND 5.3 11 1.4 1

The country least affected by counterfeiting of tyres and batteries in relative terms is Finland (3.1 % and 0.8 % respectively), while Lithuania is the country most affected (19.2 % and 5 % respectively). In absolute terms, the impact is greatest in Spain, with lost sales due to counterfeit tyres and batteries estimated at EUR 477 million, followed by France at EUR 438 million, Germany (EUR 292 million), Italy (EUR 274 million) and the United Kingdom (EUR 214 million). The five largest EU Member States account for EUR 1.7 billion lost due to counterfeiting, 70 % of total lost sales in the EU.

The study covers the following products:

  • The manufacture of rubber tyres for vehicles, equipment, mobile machinery, aircraft toys, furniture and other uses;
  • The manufacture of inner tubes for tyres;
  • The manufacture of interchangeable tyre treads, tyre flaps, ‘camelback’ strips for retreading tyres, etc.;
  • Tyre rebuilding and retreading;
  • The manufacture of primary cells and primary batteries;
  • The manufacture of electric accumulators including separators, containers and covers;
  • The manufacture of lead acid, NiCad, NiMH, lithium, dry cell and wet cell batteries.

Download EUIPO Report The economic cost of IPR infringement in the tyres and batteries sectors -Quantification of infringement in the Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres (NACE 22.11) and Manufacture of batteries and accumulators (NACE 27.20) [pdf 493kB]

Source: European IPR Helpdesk