Measuring IPR infringements in the internal market Development of a new approach to estimating the impact of infringements on sales

EUROPE Measuring IPR infringements in the internal market Development of a new approach to estimating the impact of infringements on sales EUROPE RAND Europe is an independent, not-for-profit research organisation whose mission is to improve policy and decision making for the public good. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. Preface There is no shortage of estimates of the scale and impacts of IPR infringements. However, there is little consensus on the accuracy or reliability of these numbers. In absence of a robust evidence base, it is difficult to debate the effectiveness of government efforts to regulate intellectual property rights (IPRs) or address the impacts of infringements. Therefore, the European Commission aims to develop and implement a system that monitors trends in this area. The study was commissioned by the Internal Market and Services DG of the European Commission. It was set up to assist the Commission in the development of a methodology that would quantify the scope, scale and impact of IPR infringements on the European economy. In this report we offer the 'building blocks' for such a methodology that strives to be consistent, robust, feasible and reliable in measuring the scale of this phenomenon. Based on an extensive review of the literature, we propose a methodology for measuring trends of the lost revenues due to IPR infringements in markets of counterfeited products. While the methodology presents a promising approach to the problem, a number challenges remain and it needs further testing. The report offers various recommendations for next steps to take this approach to the next level. The study has been a joint effort of RAND researchers based in Brussels, Cambridge (UK), Washington DC and Santa Monica (US). This report has been peer-reviewed in accordance with RAND's quality assurance standards. The document should be relevant to policymakers with an interest in measuring the extent and scale of IPR infringements at national, European or global level. Moreover, the report will be useful to industry representatives or analysts interested in the impact of this phenomenon at firm level. RAND Europe is an independent not-for-profit policy research organisation that aims to improve policy and decision making in the public interest, through research and analysis. RAND Europe's clients include European governments, institutions, NGOs and firms with a need for rigorous, independent, multidisciplinary analysis. CHAPTER 7 Applicability of the model to unauthorised use of protected content71 …