Chamber Urges Lawmakers to Combat Counterfeiting

WASHINGTON, D.C. – The United States Chamber of Commerce warned lawmakers that counterfeiting was a significant drag on economic growth and urged greater vigilance and enforcement of existing laws.

"These crimes are growing in size, scope and severity – no product or category is safe," said Thomas Donohue, Chamber President and CEO in testimony before the Senate Judiciary Committee. "The crisis is pick-pocketing businesses, stifling innovation and costing American jobs."

Trade in counterfeit goods accounts for 6–9% of all world trade and is sharply rising, according to some estimates. Intellectual property crimes drain an estimated $200–250 billion from the U.S. economy alone.

"It's a big business and it's getting bigger," warned Donohue. "Counterfeit products threaten our health and safety and have severe consequences for economic growth and job creation."

By some estimates, product counterfeiting results in the loss of 750,000 American jobs every year. From an economic perspective, intellectual property crimes deter new product innovation, reduce business sales and tax revenues, create liability concerns, lower corporate and shareholder profits, destroy well-established brands, and diminish consumer confidence, according to the Chamber's testimony. Counterfeit products have been linked directly to aggravated illnesses and even deaths.

The Chamber urged lawmakers to take additional steps, including: strengthen anti-counterfeiting laws, increase enforcement efforts, raise public awareness of the implications, and work with our international allies to counter global intellectual property theft.

"These are not victimless crimes, but rather real criminal activities with significant personal economic and social consequences," said Donohue.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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