Intellectual property (IP) crime in Canada – hazardous and costly

Potentially significant economic impacts

• cost estimated between $10 – $30B annually – no comprehensive studies available
  • software piracy losses – approx. $736M/year, tax losses – approx $345M , job losses – approx. 32,000
• 90% produced from external sources, 10% from domestic
  • Asia – particularly China – main source
• increasing number of counterfeit goods seized – and a wider range of products and sale venues, including large retail chains
• significant cross-border movement – both from and to the US
• no longer confined to luxury goods and apparel
  • electrical products, pharmaceuticals, automotive parts, food products
• organized crime – especially Asian-based – primary actor
  • often operate through import-export and retail companies – conceal counterfeit items in shipments of legitimate goods

Health and safety risks

• resulting from a lack of quality control – includes fire hazards (electrical components), explosions (batteries), accidents (brake parts) and sickness or death (pharmaceuticals)

IP crime…

• current penalty may be insufficient deterrent (up to five years/$1M fine – no offence for possession)
• not a designated offence under proceeds of crime legislation – police unable to confiscate assets from the sale of counterfeit goods
• Canada on US watch list due to lack of intellectual property rights enforcement