Theory and practice of intellectual property
№ 3 / 2023
ISSN (Print) 2308-0361
ISSN (Online) 2519-2744
PDF (Ukrainian)DOI: https://doi.org/10.33731/32023.282327
Submitted 2023-05-10
Accepted 2023-05-30
Published 2023-06-19
Digital piracy and counterfeiting in the conditions of digital transformation: analysis of the situation, trends, defense mechanisms
Gennadiy Androshchuk
Ph.D. (Economics), Associate Professor, Chief Researcher of the Department of industrial property and commercialization of intellectual property objects of the Intellectual Property Scientific Research Institute of the National Academy of Legal Sciences of Ukraine
Ukraine
https://orcid.org/0000-0003-0781-9740
Abstract
In the work, based on the analysis of statistical data, the study of international sources, the economic and legal problems of digital piracy and counterfeiting in the world, the EU and Ukraine in the conditions of digital transformation are investigated: state and dynamics, impact on business and economy, causes and main factors, problematic issues that arise in connection with this phenomenon, the practice and the organizational and economic mechanism of countermeasures in this area. The sale of counterfeit goods causes millions of jobs and lost profits and is currently the world’s largest criminal enterprise. It is expected that by 2024, in the US alone, the volume of sales of counterfeit goods in electronic commerce will increase to 6 trillion dollars. The rating of the most active pirate countries is given, and Ukraine is the place. Criminal networks take advantage of the lack of law enforcement in some states and adapt the distribution of their products using new means of communication (Internet, social networks, etc.), distribution channels (transit, free zones, small parcels), and consumer requests. In addition, the return on investment is high, and the imposed fines are low and do not have a deterrent effect on counterfeiters and sellers. It is concluded that counterfeiting and piracy are global problems that know no borders. They are too big to be solved by individual companies, sectors of the economy, or governments. Therefore, it is important to develop and strengthen cooperation between these subjects. To ensure a successful fight against digital piracy, counterfeiting, and money laundering, coordination between governments at the international, national, and regional levels is essential. The private and public sectors should join forces in the fight against the trade in counterfeit and pirated products by organizing special cooperation units that will be responsible for collecting information on the movement of funds obtained from criminal activities and for exchanging information in the field of combating money laundering. The protection of IP rights in the conditions of martial law is extremely important, as these are Ukraine’s international obligations regarding EU accession and the vital need to protect Ukraine’s economic interests.
Keywords: intellectual property, e-commerce, counterfeiting, artificial intelligence, software, digital piracy, digital transformation, economic damage
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