Malta’s jewellery and watches sector losing €7 million annually to counterfeit items

Counterfeiting in Malta is causing annual losses of around €7 million in the jewellery and watches sector and €1 million in the handbags sector, new data has shown.

The data emerged from the European Union Intellectual Property Office (EUIPO), which tracked the impact of counterfeit products on EU businesses. 

According to EUIPO data, the clothing sector loses an estimated €12 billion annually due to counterfeiting, with counterfeit handbags, jewellery and watches accounting for a further €2.7 billion in lost sales each year.

“SMEs are particularly vulnerable to this type of infringement, as they often rely on a small number of distinctive product designs and have limited capacity to monitor and enforce their design rights,” EUIPO said. 

Fuelled by the expansion of e-commerce and social media, around 13 per cent of Europeans reported having intentionally bought counterfeit products, a figure that rises to 26 per cent among younger consumers aged 15-24.

EUIPO warned that, beyond the economic impact on businesses, counterfeit products can pose serious health and safety risks for consumers and for the environment as they often do not comply with safety and quality standards. Research also shows that the trade in counterfeit goods is sometimes linked to organised criminal networks and even labour exploitation.