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FY2013 Survey Report on Losses Caused by Counterfeiting was Compiled

The Japan Patent Office (JPO) has been conducting a survey for collecting and analyzing information on the conditions of Japanese enterprises that have actually suffered from losses caused by counterfeiting inside and outside Japan as well as information on current measures that such companies take against counterfeits. It hereby announces that it compiled the results of such survey subject to the FY2012 data into a report, titled “FY2013 Survey Report on Counterfeit Losses Caused by Counterfeiting.”

In FY2012, the average amount of counterfeit losses per company was 190 million yen, totaling 100.1 billion yen for all companies covered by the survey, showing a decrease from the previous fiscal year.* The ratio of the companies that have suffered counterfeit losses was 21.8%, which indicates that Japanese companies continue to seriously suffer from counterfeiting, mainly in China and other Asian regions.

In addition, the survey showed that an increasing number of victimized companies tend to suffer from violations of several rights or losses arising from the Internet, and specific cases of damage caused by such counterfeits have been becoming increasingly diverse and complex in recent years. Concerning counterfeits found by Japan Customs, the number of seizures was a record high.** To address such diverse and complex damage caused by counterfeiting, it is necessary for Japan to expand the target of measures it takes against counterfeiting to a wider variety of entities, as well as to broaden the methods and scope of those measures already taken.

*Notes:
*1: The total amount of counterfeit losses refers to those of companies that answered the questionnaire item about such damage. The number of the companies that have answered this specific questionnaire item decreased to 347 from 404 in the previous fiscal year.
**2: According to a report by the Ministry of Finance titled “Situation of Infringements Violating Intellectual Property Rights Suspended at Customs in 2013,” in 2013, the number of products whose importation was suspended marked a record high and has continued to increase for seven consecutive years since 2007 to more than 20,000 cases.

1. Background

In recent years, the growing number of counterfeits and pirated products has been circulated on a global basis, and the damage caused by such counterfeits has become very diverse and complex. Against this, the JPO has been conducting measures against counterfeits, including supporting Japanese companies not only in Japan but also overseas, cooperating in domestic enforcement activities, and raising consumer awareness and understanding about counterfeiting, in coordination with relevant ministries and agencies, governments of other countries, and international organizations.

Through this survey, the JPO collects and analyzes information on the conditions of Japanese companies that have actually suffered losses from counterfeiting both in Japan and abroad as well as information on measures that such companies took against counterfeits and other instances of damage. This survey has been conducted every fiscal year since FY1996 to utilize the data for policymaking to combat counterfeits and pirated products and to supply data useful for developing anti-counterfeiting and piracy measures by companies.

2. Outline of the survey

The survey covered the top 8,081 companies and organizations that had filed the highest number of patent registrations, utility model registrations, design registrations, and trademark registrations out of the total number of applications filed in Japan over the past five years (FY2007-2011).

In FY2012, the average amount of counterfeit losses per company was 190 million yen, totaling 100.1 billion yen for all companies covered by the survey, which showed a decrease from 125.5 billion yen in the previous fiscal year.* The ratio of the companies that have suffered counterfeit losses was 21.8%, down from 23.4% in the previous fiscal year (the percentage of companies suffering from counterfeiting losses among the total valid responses).
*Note: See the Note 1 above.

Looking at the figures by country and region, 67.8% of the companies that have suffered from counterfeiting report that they have suffered losses in China, followed by 21.3% in Taiwan, showing the fact that the ratios of Japanese companies suffering damage in these regions remain high. In addition, 20.2% of the companies that suffered damage by counterfeit losses responded that they have suffered such losses in six ASEAN nations, namely, Indonesia, Thailand, Malaysia, Singapore, Viet Nam and the Philippines. These figures showed that the number of Japanese companies suffering from counterfeiting tends to increase in these ASEAN regions.

As for the ratios of losses by type of right, the largest is in trademarks (59.4%), followed by designs (36.3%), patents and utility models (31.6%), and copyrighted works (17.8%), with the tendency seen in recent years remaining. Among the companies damaged by counterfeiting, the ratio of those damaged by violations of several rights is tending to increase. In addition, looking at the counterfeit losses arising from the Internet, 62.3% of damaged companies incurring damage by such counterfeit losses responded that they incurred damage through counterfeits arising from the Internet, an increase from the 53.9% of the previous fiscal year, showing an increasing tendency in these ratios in successive year.

Concerning such companies’ current and future measures against counterfeit products, they have been focusing on China and other regions in Asia as target regions, and it is expected that they will tend to strengthen such measures.

The results of the survey, as well as the reports before FY2012, are accessible at the following JPO website:
http://www.jpo.go.jp/torikumi/mohouhin/mohouhin2/jittai/jittai.htmExternal Site Link (in Japanese)

Reference

Release Date

March 17, 2014

Division in Charge

International Cooperation Division, General Affairs Department, Japan Patent Office

Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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