The European Union’s biannual report notes that the Chinese Communist Party (CCP) remains the biggest offender of intellectual property rights, causing the loss of thousands of jobs and billions of euros in revenue.

The CCP is responsible for 80% of the counterfeit and pirated goods discovered by the EU and the limitations caused by the CCP Virus pandemic do not seem to have altered the situation given the mail-order sales, according to the Financial Times on June 17.

The EU estimates that because of CCP crimes against intellectual property it loses at least 10% of cosmetic sales, personal care products, pesticides, agrochemicals, clothing, footwear, and accessories.

Thousands of jobs and a large part of tax revenues are also lost.

Counterfeit products shipped by companies dependent on the CCP are valued at 121 billion euros, or 6.8%, of EU imports from other countries.

In addition, when medical equipment and supplies are pirated, the threat extends to human lives.

In addition to the CCP, there are also counterfeits from India, Indonesia, Russia, Turkey, Ukraine, and other countries, albeit in smaller quantities.

It was found that the legislation applied by the CCP encourages the inconsistent approval of patents, ignoring the legality of patents belonging to companies from other countries.

“Chinese companies make extensive use of these technologies without paying adequate royalties,” states the EU’s biannual report.

It is also clear that economic and job losses are not only affecting the EU, in the United States it is estimated that economic losses due to intellectual property theft can range from $180 billion to $540 billion per year.

“I do think this is not something to be viewed in isolation, but really as part of a global trend toward the identification of IP rights as an important part of policy and trade,” warned Arthur Artinian, a partner in the London law firm K&L Gates.

FBI Director Christopher Wray revealed that his agency is investigating more than 2,000 cases related to the CCP and that it is the biggest threat to the U.S. economy and democratic principles, according to Fox News on June 24.

Categories: U.S. World Business