Counterfeiting a growing threat to copyright holders

Counterfeiting has become a major problem to some industries‚ according to a new report.

Counterfeiting is an increasingly common type of fraud in the UK, according to a new report.

The latest FraudTrack study by professional services firm BDO Stoy Hayward showed that the problem of counterfeiting has grown during the recession.

Simon Bevan, BDO Stoy Hayward's head of fraud services, said the issue was a serious one, which did real damage to copyright holders.

"We are increasingly asked to look at counterfeiting problems that emanate out of the Far East," Mr Bevan explained.

"These problems are not a few pirate DVDs but the wholesale manufacturing of products which are sold on the internet and then really hit the sales figures of the genuine manufacturer."

The findings come just days after a national charter was launched in a bid to crack down on gangs who sell counterfeit goods at markets and car boot sales.

Speaking at the launch of the Real Deal: Working Together For Fake-Free Markets charter, Liz Bales of the Industry Trust for Intellectual Property (IP) Awareness outlined the extent of the losses suffered by the film industry because of IP theft through counterfeiting.

She explained that her organisation's research had concluded that criminals make profits of more than £171 million a year from counterfeit DVDs.

BDO Stoy Hayward's FraudTrack report also suggested that corporate fraud lawyers can expect to be busy in the coming months.

Reported fraud in the UK in the first six months of 2009 was worth £960 million, compared to £1.2 billion in the whole of 2008.

With the number of frauds by managers against their employers rising sharply, the firm predicted the total for 2009 could reach £3 billion, despite the vast majority of frauds remaining unreported.