Losses through counterfeiting, product piracy and brand diversion are estimated to now account for as much as 6-7% of world trade and to be costing between £120 and £180 billion (euro 200 to 300 billion; $175 to 260 billion) in lost revenue annually – and much of that from organised crime activities worldwide. Crime which is global and knows no boundaries, and which is becoming even easier to perpetuate and organise through, and on, the Internet.

Add losses through retail theft and tampering and these figures rise even more dramatically. Even within the EU, losses through counterfeiting and piracy alone are estimated to be between euro 400 million and euro 800 million in the Single Market and euro 2,000 million in non-member countries.

Not unsurprisingly, the European Commission announced (on 30th November 2000) a series of measures aimed at both combating and further stepping up the fight against counterfeiting and piracy. These measures include proposals to strengthen the means of enforcing intellectual property rights, examining mechanisms for administrative co-operation among Member States to combat the problem, and the need to put forward proposals for harmonising the minimum thresholds of sanctions and criminal proceedings and extending Europol's powers.

A study is also being commissioned by the E.C. to define a methodology for collecting, analysing and comparing data on counterfeiting and piracy, while recommendations are being made for making better use of existing information systems and for strengthening co-operation and the exchange of information between the private and public authorities.

Additionally, the Research Directorate-General of the European Commission have announced sponsorship for a project designated as 4IPR (for Intellectual Property Respect) which has the initial aim of identifying information and technology resources concerned with anti-counterfeiting and intellectual property abuse.

Ultimately, the end result of the 4IPR project will be to make data available across a multi-level secure network, enabling everyone in the anti-counterfeiting and crime prevention chain to become more effective in the fight against this type of crime.