Counterfeit and pirated product market reaches $11 billion

The counterfeit and pirate product market is currently worth around $10.8 billion in Turkey, according to the report of Business Action to Stop Counterfeiting and Piracy (BASCAP), and similar losses are being repeated each year. According to the Turkish daily Dünya, $4.4 billion out of the $10.8 billion are items that have been produced abroad. The digital counterfeiting and piracy market is also worth around $1 billion, which according to the spokesperson for Brand Protection Group, Dr. Ali Ercan Özgür, accounts for more than 1 percent of Turkey's Gross National Product and the amount keeps increasing each year.

Another striking fact is that Turkey comes fifth in counterfeited and pirated goods production in the world, some of which includes food products. Furthermore, research conducted in the U.S. indicates that Turkey produces the highest quantity of counterfeited medicine.

The counterfeit and pirated product market causes tax loss, loss of income and also loss of reputation. Therefore, currently many brands have started fighting against pirated products. According to the Registered Trademark Union's data, in 2013, there were around 7,000 to 8,000 cases filed for counterfeit products, and via the hotline of the Customs and Trade Ministry, around TL 19 million worth of counterfeit products have been seized.

Worldwide, the market of counterfeit products is worth between $250 to $650 billion dollars, depending on which sectors are included. The Brand Protection Group (MGK) is fighting against piracy and represents more than 647 brands and 1,000 product types.

The Turkish economy is badly affected by counterfeiting and the smuggling of illegal goods. For example, one out of every five cigarette packs are illegal. The smuggling rate in tea and fuel oil is higher than 10 percent, and smuggled fuel oil alone causes a tax loss of around TL 5 billion, while illegal cigarettes cause a similar loss of around TL 5.5 billion.

However, in line with new regulations, the Turkish Criminal Code has increased the minimum jail sentence for smuggling of alcohol, cigarettes and fuel oil to three years, and furthermore, those who alert the authorities to any tobacco smuggling acts will also receive a reward.