Swedish companies are losing business opportunities and Sweden is losing tax revenue.
Lower sales reduce the demand for jobs. In addition, piracy contributes to poor working conditions and products that are hazardous to health and safety. Consumers are simply being deceived.
Sweden particularly affected
Swedish products are particularly affected, both in view of the value of the illegal trade and if you look at the proportion of illegal trade within certain product categories, such as car parts, machinery (ball bearings), clothes, toys and watches. Most of these products come from China, Hong Kong, Singapore and Turkey.
Piracy in numbers
The numbers are based on 2016, which is the last year that statistics was provided from customs authorities globally.
- Piracy of Swedish products generates a turnover of more than SEK 28 billion annually (this corresponds to two percent of the total sales of Swedish-made goods).
- Sweden loses more than SEK 7 billion per year in lost tax revenues (VAT, corporate tax, income tax and social security contributions).
- In 2016 Sweden lost at least 7100 jobs due to piracy.
- Every year, Swedish companies lose SEK 17.1 billion on piracy.
- The import to Sweden of pirated goods amount to SEK 18.3 billion.
- About 50 percent of all pirated goods imported 2016 in Sweden were purchased by
- In 2016, about 50 percent of all pirated goods imported to Sweden were purchased by consumers who thought they bought genuine products.
- Pirated goods purchased by consumers in good faith are estimated at SEK 4.5 billion a year.
- Of all car spare parts sold in Sweden, 20 per cent is estimated to be counterfeits.
- Of all the perfumes and cosmetics sold in Sweden, 55 per cent is expected to consist of counterfeits.
The consequences for Sweden studied for the first time
The calculations come from a report made by the OECD and is based on a study of the consequences of piracy for Sweden. The study was done on behalf of PRV and the report was completed in spring 2019. This is the first time that the consequences for Sweden have been studied. The report estimates both the effects of importing pirated products to Sweden and the effects of global trading in pirated products where the proprietor of the intellectual property is a Swedish company.
Photo: Casper Hedberg