Battling IP Theft

As a nation rooted in entrepreneurship and innovation, intellectual property is critical to U.S. economic growth and job creation. Of course, stealing IP also is big, unsavory business.

A recent Inc.com article titled “Attack of the $35 Gucci Bag” offers some interesting information on the IP theft problems many firms face, and how some are battling against knockoffs, including the use of private investigators.

As for overall costs to the economy, Inc.com noted:

Counterfeit buyers, tempted by $25 Coach purses and $10 Dolce & Gabbana sunglasses may only see a bargain, but both the U.S. and global economies take a hit as a result. The U.S. Chamber of Commerce estimates that the U.S economy loses between $200 and $250 billion in annual sales due to counterfeiting, while the world economy is robbed of about $650 billion every year. A 2007 study by the Institute for Policy Innovation, Lewisville, Texas-based think tank, claims that copyright theft costs the U.S. economy $58 billion in lost output and $2.6 billion in lost tax revenue.

Nearly everything is subject to counterfeiting today -- from medications to airplane parts. According to a report released last year by the Department of Homeland Security, the top three types of items seized on U.S ports of entry were footwear (the equivalent of $77 million in authentic goods), apparel ($27 million), and consumer electronics ($16 million). However, those statistics represent just goods that were seized, which is a small fraction of overall counterfeit activity.