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Table of Contents
Background
Importance of Protection for Innovators Has Long Been Recognized in the United States
Common Protections Related to IP
Counterfeiting and Piracy Cover a Wide Range of Goods
Counterfeiting and Piracy Have a Wide Range of Effects on U.S. Consumers, Industry, Government, and the Economy
Consumer Effects Include Danger to Health and Safety
Effects Vary Across Industries and Include Lost Sales and Reduced Incentives to Innovate
U.S. Government Loses Tax Revenue, Incurs Enforcement Expenses, and Faces Risks to Supply Chains
The U.S. Economy May Experience Slower Growth
Certain Stakeholders May Experience Positive Economic Effects of Counterfeiting and Piracy
Lack of Data Hinders Efforts to Quantify Impacts of Counterfeiting and Piracy
Lack of Data Is the Primary Challenge for Quantifying Economic Impacts of Counterfeiting and Piracy
Assumptions Are Used to Compensate for the Lack of Data
Three Widely Cited Estimates Sourced to U.S. Agencies Cannot Be Substantiated
No Single Approach for Quantifying Impacts of Counterfeiting and Piracy Can Be Used, but Different Studies Indicate Problem Is Sizeable
Extrapolation of Enforcement Seizure Data
Surveys of Supply and Demand
Use of Economic Multipliers to Estimate Effects on the U.S. Economy
Other Data Collection and Modeling Methods
“Rule of Thumb” for Measuring Counterfeit Trade as a Proportion of World Trade
Economy-Wide Impact of Counterfeiting and Piracy Is Unknown
Appendix I: Objectives, Scope, and Methodology
Appendix II: GAO Contact and Staff Acknowledgments
GAO Contact
Staff Acknowledgements
Bibliography
Studies and Literature on the Nature of Counterfeiting and Piracy and Their Economic Effects
Studies and Government Estimates We Reviewed that Quantify Economic Impacts on the U.S. Economy or Industry Sectors
Other Literature We Reviewed
Obtaining Copies of GAO Reports and Testimony
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