It has been officially recognised that product counterfeiting is seriously threatening economic growth within the single market. Since the businesses affected contribute through taxes to the development of the community it follows that any reductions in sales caused by consumers purchasing alternative fake products will harm everyone.

 

Product pirates pay no taxes so they are not affected.

 

Business pays employees and they pay taxes. Business also contributes, as do employees to social security and medical care schemes run by the State they reside in. Since piracy reduces the number of jobs available then again money that would have been on hand to finance these schemes is lost.

 

Little wonder then that authorities are concerned enough to look for remedies to attack the problem.