Millions of people are looking forward to the European Football Championship and the Summer Olympics. But brand pirates and other fraudsters are also hoping to make a killing. The EU is warning of the consequences.
In football, this would be met with a hail of red cards, but counterfeiting sports goods and illegal streaming are apparently considered by some consumers to be a minor offence. Yet such behaviour causes millions of euros in damage to rights holders and manufacturers in the EU every year, according to a study published on Wednesday by the European Union Intellectual Property Office (EUIPO).
Sport, which depends on the money, is also being damaged. In the run-up to major sporting events such as the European Football Championship in Germany, the Summer Olympics in France or the Tour de France, the EU agency based in Alicante, Spain, is therefore launching a “Play Fair” campaign – an appeal to fans to only watch official broadcasts and stick to authorized merchandise. “We are all looking forward to a summer full of exciting competitions, and fair play is essential – both for the players on the pitch and for the spectators at home,” said EUIPO Executive Director João Negrão.
Young people in particular stream illegally
The study on consumer attitudes and behaviour in the EU with regard to intellectual property paints a picture of an industry that suffers from trickery and fraud. Twelve percent of people in the EU have watched or streamed sports content from illegal sources, compared to nine percent in Germany.
In the 15- to 24-year-old age group, 27 percent even admitted to having watched sports broadcasts on illegal online channels (Germany: 21 percent). Bulgarian young people took the cake here with 47 percent. Anyone who wants to be sure that they have not ended up with an illegal streaming provider can check this using the EUIPO’s Agorateka tool. It helps consumers find legal content for their country.
Major sporting events involve a lot of money and millions of viewers and consumers. According to the EU office, fraudsters also see great opportunities here. Illegal online streaming affects all types of content – including sporting events. According to EUIPO estimates, media piracy generates a total illegal turnover of one billion euros annually.
Counterfeit goods worth 120 million euros seized
Counterfeit sporting goods also cost European manufacturers an estimated €850 million in losses each year – 11 percent of the industry’s turnover. This figure does not include sportswear such as football shirts and trainers, which make up a large proportion of counterfeit clothing, the total value of which in Europe is estimated at €12 billion annually.
According to the study, counterfeiters have an easy time targeting young Europeans in particular. Ten percent of all consumers between the ages of 15 and 24 have knowingly bought counterfeit sporting goods online – in Germany, the figure was as high as eleven percent. Police authorities across Europe have also confiscated counterfeit sporting goods with an estimated retail value of 120 million euros.
Negrão also pointed out the negative consequences of intellectual property infringements on sport. Watching official broadcasts and buying licensed products ensures the continued existence of many sports. After all, legally generated revenues are passed on to sports associations and athletes in accordance with the principle of solidarity, stressed the EUIPO boss.
EUIPO: Counterfeit sporting goods can be dangerous and toxic
“If fans stream live sports broadcasts illegally, the entire financing model of the Olympic Movement, which is based on solidarity, is at risk,” warned Emma Terho, chair of the Athletes’ Commission of the International Olympic Committee, at an EUIPO conference last year. The media rights would lose their value and no one would acquire media rights anymore.
Product counterfeiting also has serious economic and social consequences, as the EUIPO stressed. In addition to loss of sales and job losses, poor-quality copies also damage brand value. Counterfeit goods that do not meet European standards for health, safety and environmental protection also pose serious health risks. According to a study, counterfeit sports equipment can not only fail at the crucial moment, but also contain toxic ingredients.
Source: Stern
