What is the scale of global trade in counterfeit goods?

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Global Trade in Counterfeit Goods Reaches Half a Trillion Dollars Annually

The global trade in counterfeit and pirated goods is a significant economic issue, potentially reaching US$500 billion (RM2.08 trillion) per year. A substantial portion of this trade, approximately 20 per cent, directly infringes upon United States intellectual property rights. This situation has prompted a directive from President Donald Trump to intensify efforts in combating these illicit sales, particularly those occurring on third-party online marketplaces.
Crackdown on Online Counterfeit Sales Initiated

President Trump has issued a directive aimed at curbing the proliferation of counterfeit products sold through online platforms. This initiative seeks to gather more information on methods to effectively monitor and reduce such sales. The presidential memo highlights the substantial financial impact of this trade, underscoring the need for a more robust enforcement strategy against what has been described as the "Wild West of counterfeiting and trafficking."
Intellectual Property Infringement by Major Online Retailers

The issue of counterfeit goods is prevalent on major e-commerce platforms, including those operated by Amazon.com Inc, eBay Inc, and China's Alibaba Group Holding Ltd. While these companies typically have policies in place to prohibit counterfeit items and invest in programs to prevent their sale, the scale of the problem persists. For instance, Amazon reported spending over US$400 million (RM1.63 billion) in 2018 alone on measures to combat counterfeits, fraud, and other forms of abuse on its platform.
Government Agencies Tasked with Developing Solutions

In response to the growing problem, the US administration is engaging multiple government departments to devise solutions. The Department of Homeland Security, in conjunction with the Departments of Commerce and Justice, has been mandated to present recommendations within 210 days. These recommendations are expected to outline strategies for improved monitoring and enforcement mechanisms to tackle the trade in counterfeit and pirated goods more effectively.

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What is the scale of global trade in counterfeit goods?

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