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Report IP Theft

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The Problem: Unfair Competition Resulting from IP Theft Harms Jobs, Innovation and Economic Growth

U.S. companies work hard and invest a tremendous amount of resources to develop intellectual property (IP). It must be secured if U.S. companies are to maintain our nation’s position at the pinnacle of innovation and competitiveness.

IP theft costs the U.S. more than $300 billion.[1]

Trade Secret Theft:

  • Trade secrets are a critical form of IP for U.S. manufacturers, constituting as much as two-thirds of the value of companies’ information portfolio. [2]
  • As many as 60 percent of companies report attempted or actual trade secret theft in a given year.[3]
  • Trade secret theft is now a national and international epidemic, costing the U.S. between $160 billion and $480 billion a year.[4]

Software Piracy:

  • Commercial value of pirated software reached a record high of $63 billion in 2011.[5]
  • The top ten business software pirating countries in 2011 were all emerging markets with piracy rates over 50%.[6]
  • Software piracy cost U.S. manufacturers $240 billion in revenue from 2002-2012 and reduced U.S. GDP by $70 billion. During this period, the U.S. manufacturing sector lost over 42,000 jobs due to global software piracy.[7]
  • Reducing the global software piracy rate by 2.5 percent per year for 4 years would create an estimated 27,239 new manufacturing jobs, add $8.7 billion to U.S. GDP, and generate $29 billion in revenue for manufacturers.[8]

Counterfeit Goods:

  • In Fiscal Year 2014, there were 23,140 intellectual property rights seizures with a manufacturer’s suggested retail value of $1.2 billion. Goods from China accounted for 63% of the total manufacturer’s suggested retail value for all IPR seizures.[9]
  • Global trade-related counterfeiting accounts for 2.5% of world trade, or $461 billion.[11]

More information can be found at: 

Click here to REPORT IP THEFT

Sources:

[1] Commission on the Theft of American Intellectual Property, “The IP Commission Report,”  May 2013

[2] Forrestner Research, Inc., “The Value of Corporate Secrets,” March 2010

[3] ASIS International, Inc., “Trends in Proprietary Information Loss,” June 2007

[4] PwC and the Center for Responsible Enterprise and Trade, “Economic Impact of Trade Secret Theft,” February 2014

[5] Business Software Alliance, “Shadow Market: 2011 BSA Global Software Piracy Study,” May 2012

[6] Ibid

[7] National Association of Manufacturers & National Alliance for Jobs and Innovation, “Economic Impact of Global Software Theft on U.S. Manufacturing Competitiveness and Innovation,” 2014

[8] Ibid

[9] U.S. Customs and Boarder Protection, “Fact Sheet on CBP Intellectual Property Rights enforcement initiatives,” 2014

[10] U.S. Customs and Boarder Protection, “Fact Sheet on CBP Intellectual Property Rights enforcement initiatives,” 2014

[11]   OECD/EUIPO, (2016). Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact, OECD Publishing, Paris.

 

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